Indian Economy: News and Discussion

Roshan

Senior Member
Joined
Mar 2, 2019
Messages
2,297
Likes
8,090
Country flag
Structural issues !
We need to be in surplus in trade consistently . But our economic model currently is driven more by consumption.
So will take long time . Manufacturing growth may do it faster.
The rupee remained relatively strong during the upa years, which is something they use in their criticism of the bjp till date. I know they benefitted from lower crude prices but was the rupee propped up artificially at that time?
 

IndianHawk

Senior Member
Joined
Sep 24, 2016
Messages
9,058
Likes
37,670
Country flag
Also, we are poor in oil and gas resources. So, we will always have to import those and we need to have surplus trade in other items to cover for that.

Another item that we import a lot is gold. If we can somehow do some cultural changes to gift aluminum, iron or zinc jewellery (we have lots of deposit of those 3) in wedding :bplease:, we will save lots on import
Oil and gas imports can be reduced by solar and nuclear power plants and electric vehicles. That can reduce oil imports too large extent while in gas we can be self sufficient by more exploration.

Gold has to be recycled and monetized in the country. Education will also have an impact since urban families are much less beholden to gold compared to rural counterparts.

But yes exports have to grow exponentially.
 

Vinash

Senior Member
Joined
Feb 8, 2021
Messages
5,242
Likes
35,709
Country flag
Most of our imports are of energy so there’s little we can do about it except for improving renewable electricity generation in India and electrifying transportation in India.
View attachment 164940
Nuclear is the way! Nuclear energy has so many myths/fears surrounding it regarding safety.

This is an amazing thread and I recommend reading it completely. Apparently, the space required to store all Nuclear fuel rods used worldwide since 1950 is only 1 Football stadium.

 

FalconSlayers

धर्मो रक्षति रक्षितः
Senior Member
Joined
Oct 14, 2020
Messages
27,294
Likes
187,936
Country flag
Nuclear is the way! Nuclear energy has so many myths/fears surrounding it regarding safety.

This is an amazing thread and I recommend reading it completely. Apparently, the space required to store all Nuclear fuel rods used worldwide since 1950 is only 1 Football stadium.

Even that isn’t going to help us, we’ll need a dozen nuclear power plants to meet our domestic energy requirements but GoI seems to be going at regular speeds.
 

ezsasa

Designated Cynic
Mod
Joined
Jul 12, 2014
Messages
31,719
Likes
146,998
Country flag
That's a fundamental problem no government has been able to fully address.

Not likely in the next decade too despite the best intentions of our current government.
couple of aspects we need to remember is that, in our scenario India is just one of the players in the game, USD itself is a commodity. when fed raises their interest rates USD will try to move back to U.S. there by creating shortage outside U.S, there by increasing demand. now with countries failing economically due to shortage of USD supply, these countries will be willing to pay more to get USD. imbalancing the equation even further.

which means RBI has to incentivise USD to be available for domestic consumption, which explains forex drop. by the way what that UBS report said is a calculated guess, they don't actually know if RBI has indeed spent 40 billion $ forex on exchange rate.

from the govt side, things like ethanol blending, nano urea (to name a few) are all forex saving measures, in effect means that in absence of these measures more USD would have gone out.
 

IndianHawk

Senior Member
Joined
Sep 24, 2016
Messages
9,058
Likes
37,670
Country flag
More important in India context is roof top solar. Which can revolutionize life in India.

Every home should have roof top solar which has multiple benefits.
Free electricity for cooler / AC / house appliances.
Free electricity for your electric bike , car.
Providing shade in Indian summer therefore cooling the house naturally.
Solar heater for cold wether. And inverter for when power cuts .

Solar can make village life comparable to urban life without urban compromises.

And electric vehicles can save nation that Massive crude bill.
 

Arjun Mk1A

Senior Member
Joined
Mar 6, 2022
Messages
2,768
Likes
15,770
Country flag
Most of our imports are of energy so there’s little we can do about it except for improving renewable electricity generation in India and electrifying transportation in India.
View attachment 164940

We need to increase our share on Nuclear Powerplant. At least 40% should be from them. We can reduce our energy import on Coal, On other hand we can try to push EV but again it will create a new demand since we don't have Rare earth capability. Another area is Synthetic fuel, we can produce it from our own coal but even across the world there is no push for this. Maybe we can try and even if we fail at least we tried and failed.
 

HitmanBlood

Senior Member
Joined
Mar 30, 2021
Messages
1,459
Likes
12,175
Country flag
What would it have taken to maintain the rupee at 2014 levels, or thereabouts at least?
reversing currancy depreciation in today's international economy isn't easy.

Our first problem is energy prices. We import most of our energy and its currently at historical high. Hance it is very difficult to maintain import export balance. Another problem is increased comodity prices. we are spending way too much money importing almost every products from overseas which is erasing our gains in increased exports.

Another problem is US feds are increasing their intrest rates to limit dollar supply to control their historic inflation. This is making dollar stong against every other currency.

Modi government has initiated steps after COVID crisis to jump start economy. unfortunately because of western sanctions on Russia things have become much more difficult.

Still many intiatives such as solar, green hydrogen, ethnol blending, Electric vehicles, palm oil cultivation, local manufacturing are undertaken to boost Indian economy but it will take years. Meanwhile situation is difficult and it will only worsen next year as per many economists.
 

Shuturmurg

Senior Member
Joined
Jan 9, 2022
Messages
2,975
Likes
21,216
Country flag

Suryavanshi

Cheeni KLPDhokebaaz
Senior Member
Joined
Jun 5, 2017
Messages
16,330
Likes
70,171
Have to somewhat disagree with both posts here. Yes, it's not fair to call all Indian cities as over glorified slums, as we do have sections of cities that look decent. But there is a serious problem. The vast majority of our modern buildings and houses look ugly. Plain box like cement structures with ruined paint after a single monsoon. Most normal neighborhoods in India have a very third world drab look. Posters and ugly signboard everywhere, uneven streets, ugly shops. Most places don't have any decent pavements, and if they do, there are parked motorcycles and stalls placed everywhere. Overall our cities and architecture could be so much better.
Design itself is an art and people in India do not appreciate art much, this is a recent cultural phenomenon and has something to do with chalta he attitude.

There is a reason as to Why the UI UX designer are being well payed in the industry.

It's a cultural phenomenon and Indians are too late into it.
 

another_armchair

Senior Member
Joined
Feb 28, 2019
Messages
11,190
Likes
50,800
Country flag
Debt to equity ratio of 2.36 is really high. Amazon, Microsoft, Reliance all have D/E ration between 0.3 to 0.35.
Comparing an infrastructure company to a core technology firm isn't a fair comparison. Tech companies sit on a huge pile of cash, infra companies require massive capital investments and the RoI is quite low at the initial phase, completion takes time too and given the complex indian scenario of protest, litigation etc, project delays == added costs, debt repayment issues and bankruptcy.

Agree though, debt is uncomfortably high.
 

FalconSlayers

धर्मो रक्षति रक्षितः
Senior Member
Joined
Oct 14, 2020
Messages
27,294
Likes
187,936
Country flag
India's GDP to grow 7% this fiscal: FICCI survey
 

HitmanBlood

Senior Member
Joined
Mar 30, 2021
Messages
1,459
Likes
12,175
Country flag
Have to somewhat disagree with both posts here. Yes, it's not fair to call all Indian cities as over glorified slums, as we do have sections of cities that look decent. But there is a serious problem. The vast majority of our modern buildings and houses look ugly. Plain box like cement structures with ruined paint after a single monsoon. Most normal neighborhoods in India have a very third world drab look. Posters and ugly signboard everywhere, uneven streets, ugly shops. Most places don't have any decent pavements, and if they do, there are parked motorcycles and stalls placed everywhere. Overall our cities and architecture could be so much better.
I agree with you, most Indian cities look terrible.

I pondered on this topic a lot and came with below conclusion.

I think the biggest contributor to this is dirt patches on sides and leftover construction materials from finished buildings. This dirt spreads on the road and on buildings, Making everything look dirty and old.

Second problem in Indian cities is too many advertisement boards. These colorful boards gives chaotic look to the city.

In my observation any posh part of a City usually have paved footpath and concretised or proper landscaped empty space and have less number of advertisement boards. This makes those areas clean and orderly.

Another problem is unwillingness of gov to enforce basic civic rules. Things such as Illigal encroachment of street vendors and Illigal parking of vehicles makes roads narrower plus it forces pedestrians to walk on actual roads made for vehicle traffic.

Unchecked stray dog population combined with improper garbage disposal is also adding to ugliness to the cities.

Above mentioned problems are not that difficult to resolve. Unfortunately most municipal gov aren't taking this seriously.
 
Last edited:

ezsasa

Designated Cynic
Mod
Joined
Jul 12, 2014
Messages
31,719
Likes
146,998
Country flag
What would it have taken to maintain the rupee at 2014 levels, or thereabouts at least?
when exports increase more than imports, we retain more USD in the country. since it is a commodity, more supply, less demand, less competition, less price to buy the same USD.

germany for example has 250 billion $ forex, since their USD/EUR income is assured because of the way their exports portifolio are designed. ofcourse now this equation will change due to russia cutting off energy supply.

There's only one way INR can come down, that is by exporting more than imports. in this volatile global economic scenario, little chance in medium term.
 

another_armchair

Senior Member
Joined
Feb 28, 2019
Messages
11,190
Likes
50,800
Country flag
India imported more than 30BCM of natural gas/cng.

Do we have the potential to produce 5-10 BCM of biocng within the country given the massive amounts of biomass we generate along with our proximity to the tropics?

Solar has enough potential to take a larger share of power generation in India.

Rooftop solar was a decent bet but Govt has hiked GST on solar panels and water heaters. Theek hai, seh lenge.
 

Suryavanshi

Cheeni KLPDhokebaaz
Senior Member
Joined
Jun 5, 2017
Messages
16,330
Likes
70,171
India imported more than 30BCM of natural gas/cng.

Do we have the potential to produce 5-10 BCM of biocng within the country given the massive amounts of biomass we generate along with our proximity to the tropics?

Solar has enough potential to take a larger share of power generation in India.

Rooftop solar was a decent bet but Govt has hiked GST on solar panels and water heaters. Theek hai, seh lenge.
On the Other we could get cheap natural gas from a Myanmar if we somehow Crack a Deal with them.
 

Latest Replies

Global Defence

New threads

Articles

Top