Indian economy poses major challenges: Chinese think tank

[ezsasa]

Nope it won't. US knows better otherwise it would have tried to save USSR from failing too. A failed china would hurt US growth in short term but it will secure US hegemony in long term . It will also free US to run riot in Korea in SCS and everywhere and make money by winning reconstruction contracts.

with USSR, the war was ideological and geological. with china, it's purely economical and china has smartly intertwined itself into american economy. These two are like siamese twins now.

there was a american senate hearing today, topics included NOKO and russia. going by how questions were worded not to offend china on NOKO issue, i felt atleast top american politicians do not want any confrontation with china. what i felt surprising the most is that china is stealing american hegemony right under their feet and yet american politicians think russia is a priority to them.

i say stealing hegemony because, since 2001 if there is one country which economically benefitted the most while america was busy fighting their wars is china.

 

[Tarun Kumar]

Lol US itself is bankrupt. Its government debt alone in 20 trillion USD. How will it save China.Both these economies will collapse in 10-15 years. Modi and his team who are following US /China model have already taken banking system NPA beyond 10%. Makes u wonder whether sacking Rajan was right.

 

[Cutting Edge 2]

Indian economy poses major challenges: Chinese think tank

Pure BS headline by Chinese mouthpiece media.
Indian economy doesn't pose any challenge to China. Chinese companies are one the largest source of FDI in India. Not only this but India has emerged as largest non-domestic market for many Chinese companies. They have specialty in some sectors we in others, Both Chinese and Indian economies can coexist.

Bullshit, India lags in manufacturing sector, we will never be able to compete with the chinese if we continue like this, the only thing that our foolish ecomic planners have achieve so far is stupid call centre jobs in India, you can never build an economy like china or south korea or japan with services sector. Modis make in India plan also doent seem to be working, its just that the things which were already being made in India got a new logo of make in India, this is very frustrating

Blame INC they ruled india for 60 years and made sure to stifle India's industrial sector by complex land acquisition rules, tax rules, mining monopolies and red tape every where in bureaucracy. On top of this massive monopolies of unions controlled by regional political parties. Not to mention power and water shortages almost daily in many parts of India for last 60 years. Now after decades of destruction you blame Modi that he hasn't made India superpower in 3 years. Sorry to burst your bubble but Modi doesn't have a magic stick that will fix everything overnight. Give him some time this is the most business friendly gov we had since independence. As environment for doing business becomes more friendly presence of strong manufacturing base will emerge.

Forget defence, have you ever used the electronic items manufactured by Indian cos like hcl, micromax, karbonn etc? They are all crap when compared to the likes of samsung and motorola and even panasonic.

Micromax, Karbon, etc doesn't make phones in India they import from china and put their logos on them. They are crap because they are budget brand.
Samsung and others do make phones in India with same quality standards as elsewhere. (I know I am using one)

Tata Nano is not allowed to sell in european countries

Tata makes Jaguar and Land Rover no issues there. Do you know where Volkswagen, Audi, Fiat, Mercedes make their car parts? Please do a google search.
BTW How many Chinese companies are successfully selling cars in Europe?

low floor buses manufacture by tatas catch fire due to short circuits

Source?

We not only need to promote a manufacturing based economy but also improve the quality of our manufacturing.

I have heard lots of people online complaining about made in China or made in (insert whatever country) products and calling them inferior based on geography of factory.

Let me clarify this misconception. If you buy a product in 10 rupees you will get quality of 10 rupees product don't compare it with 100 rupees product. There are standards of production including quality control that all companies follow regardless of location of their manufacturing plant. Higher margin product has higher quality standards, lower margins product lower quality. Please learn this basic.

stupid callcentre jobs

call centre jobs in India

What bothers you about call centre jobs? People working hard to make a living bothers you?

We can have both service industry and manufacturing industry side by side. This is a strength not a weakness.

 

[IndianHawk]

with USSR, the war was ideological and geological. with china, it's purely economical and china has smartly intertwined itself into american economy. These two are like siamese twins now.

With one belt one road china is taking game further. It's also directly opposing USA in security council and in matters like Syria and ISIS and even afghanistan.

Soon enough Chinese navy will push back in Pacific ocean . When new Chinese aircraft carriers will traverse Pacific coast of US of A it won't be anymore about just economics.

Secondly a collapse of china would essentially be fall of CCP followed by chaos in Chinese economy. Tibet xinxiang might become free. China suddenly won't become poor it would just have lost some geography and some industrial might.
That inturn might make it more dependent on US economy and strength US product and services deeper penetration into huge Chinese market that too on US terms .

It will be a big risk but it will be well worthy.

 

[gslv markIII]

Space industry, Isro is something to be proud off. China and India will dominate this sector in decades to follow.
In other fields, India lags behind, despite huge potential specially from the private sector.

You forgot nuclear technology. We are leading in fast breeder (only second country to pursue this technology today) & thorium technology (in which we are the best).

 

[ezsasa]

Lol US itself is bankrupt. Its government debt alone in 20 trillion USD. How will it save China.Both these economies will collapse in 10-15 years. Modi and his team who are following US /China model have already taken banking system NPA beyond 10%. Makes u wonder whether sacking Rajan was right.

US is in debt with itself, the ratio of money owed outside of US may not be that big.
i can be wrong ofcourse..

 

[IndianHawk]

Lol US itself is bankrupt. Its government debt alone in 20 trillion USD. How will it save China.Both these economies will collapse in 10-15 years. Modi and his team who are following US /China model have already taken banking system NPA beyond 10%. Makes u wonder whether sacking Rajan was right.

NPA are being controlled. Steel industry has turned healthy again. Mega projects in mining to roads to power to realty are all gathering steam ahead. Meanwhile RBI has been empowered to cleanup the banking books.

Now answer me honestly in which world are you living:biggrin2:

 

[Tarun Kumar]

US is in debt with itself, the ratio of money owed outside of US may not be that big.
i can be wrong ofcourse..

How does it matter. Ultimately even if debt is in local currency, u will have to print money to pay it back. The more currency that is printed, more ur inflation goes up. Already in many US cities its impossible to live in a middle class salary. Same is the case in beijing and shanghai. Ultimately what creates growth is equity not debt. Debt only kickstarts growth but once an economy reaches certain maturity, taking more debt is suicidal.

 

[Tarun Kumar]

NPA are being controlled. Steel industry has turned healthy again. Mega projects in mining to roads to power to realty are all gathering steam ahead. Meanwhile RBI has been empowered to cleanup the banking books.

Now answer me honestly in which world are you living:biggrin2:

I am from banking sector. RBI does not have a magic wand to clear NPAs. NPA for banking system as a whole is touching 10%. For many public sector banks its 20%. This is what happens when you aim for 7%+ growth at all cost without understanding underlying economic factors. That said our banking system is still better than US and China

 

[IndianHawk]

I am from banking sector. RBI does not have a magic wand to clear NPAs. NPA for banking system as a whole is touching 10%. For many public sector banks its 20%. This is what happens when you aim for 7%+ growth at all cost without understanding underlying economic factors. That said our banking system is still better than US and China

Than you must know 60% of NPA belongs to big corporations which accumulated it thanks to the policy paralysis by UPA2 .

Scams in mining ,in spectrum allocation and denial of environment clearance coupled with complex land acquisition law led to slow project execution and piling NPAs .

Govt is clearing the knot . It is still very manageable

 

[Tarun Kumar]

Its manageable since we dont have trillions of dollar worth shadow banking system or ghost cities or high speed rail network which is a waste of money like China or 1 trillion of defence spending and trillions in wars and bailouts like US. The day we decide to put on gas by binging on debt like those brainless porkis are doing with CPEC we will be in a very very bad situation

 

[lcafanboy]

US is in debt with itself, the ratio of money owed outside of US may not be that big.
i can be wrong ofcourse..

The only country in the world which is not in debts is USA. Surprised? Well whatever debt it owes it's in dollars and it can print its way out. No matter what value it holds so if today you can buy crude oil for 50 dollars after printing it may be 500 dollars but that would hurt lenders not USA.

Or you can also see the biggest commodity which USA export is paper. It print s a dollar and buy whatever it wants which other countries can't do.

 

[Tarun Kumar]

The only country in the world which is not in debts is USA. Surprised? Well whatever debt it owes it's in dollars and it can print its way out. No matter what value it holds so if today you can buy crude oil for 50 dollars after printing it may be 500 dollars but that would hurt lenders not USA.

Or you can also see the biggest commodity which USA export is paper. It print s a dollar and buy whatever it wants which other countries can't do.

Lol if it were so simple. Suppose US does that and crude reaches 500. Who will be the loosers, US consumers who will pay 500USD for gas. Indians as usual will find a jugaad by signing deals with Russia and Iran outside international markets. Moreover only 10-20% of US debt is held by foreigners, rest is held by US banks and pension funds. Which means paying back debt by printing currency is not an option even for US.

 

[The Ultranationalist]

Pure BS headline by Chinese mouthpiece media.
Indian economy doesn't pose any challenge to China. Chinese companies are one the largest source of FDI in India. Not only this but India has emerged as largest non-domestic market for many Chinese companies. They have specialty in some sectors we in others, Both Chinese and Indian economies can coexist.


Blame INC they ruled india for 60 years and made sure to stifle India's industrial sector by complex land acquisition rules, tax rules, mining monopolies and red tape every where in bureaucracy. On top of this massive monopolies of unions controlled by regional political parties. Not to mention power and water shortages almost daily in many parts of India for last 60 years. Now after decades of destruction you blame Modi that he hasn't made India superpower in 3 years. Sorry to burst your bubble but Modi doesn't have a magic stick that will fix everything overnight. Give him some time this is the most business friendly gov we had since independence. As environment for doing business becomes more friendly presence of strong manufacturing base will emerge.


Micromax, Karbon, etc doesn't make phones in India they import from china and put their logos on them. They are crap because they are budget brand.
Samsung and others do make phones in India with same quality standards as elsewhere. (I know I am using one)


Tata makes Jaguar and Land Rover no issues there. Do you know where Volkswagen, Audi, Fiat, Mercedes make their car parts? Please do a google search.
BTW How many Chinese companies are successfully selling cars in Europe?


Source?


I have heard lots of people online complaining about made in China or made in (insert whatever country) products and calling them inferior based on geography of factory.

Let me clarify this misconception. If you buy a product in 10 rupees you will get quality of 10 rupees product don't compare it with 100 rupees product. There are standards of production including quality control that all companies follow regardless of location of their manufacturing plant. Higher margin product has higher quality standards, lower margins product lower quality. Please learn this basic.



What bothers you about call centre jobs? People working hard to make a living bothers you?

We can have both service industry and manufacturing industry side by side. This is a strength not a weakness.

Oh comeon now man, why are you acting like an apologist? Even i am a supporter of Modi, but i can see that make in Inmdia is not working as it was supposed to be. Growth in manufacturing sector is dipping continuously and job creation in it is low, what i want to say is Modi should work towards improving the quality of manufacturing sector, high quality products will get buyers more easily than the low quality crap, this is how south koreans and the japanese have accumulated such a huge wealth.

But not everything is bad in Indias case, while chinese have flooded the world markets with their low quality steel Indian steel is regarded as having excellent quality world over and also we have now started exporting capital goods to other countries and we are one of the top exporters or petroleum porducts in the world.

http://indianexpress.com/article/in...ships-indian-made-metro-coaches-to-australia/

But the pace remains slow.

 

[no smoking]

Let me tell u , our 2.4 trillion economy will take several decades to reach China's 11.5 trillion and that is good. Trying to boost growth by taking more debt like what US and China have done has taken both economies to point of quasi bankruptcy. China's shadow banking system itself is 10 times Indian economy and total US unfunded liabilities are 50 times Indian economy.

Since 2008, all the major economies in the world have been printing money ever since, Europe, Japan, USA, China. These money don't just stay within their borders but flood the whole world. This is the problem get every country involved, including India.

Ultimately both countries will try to solve this problem by printing more money and trying to boost output which is a failed strategy. Both US and China will end up like Zimbabwe with 10000%+inflation.

Currently, both countries already started to reverse their policy: Americans quite QE and increase their interest rate, Chinese banks are instructed to reduce or stop their loans to specific industries while those shadow banks are forced to swap their loans with national bonds at a significant discounted rate.
And more important, both countries don't plan to solve this problem by themselves. Every country is chased by the wolf--global crisis, you don't need to be the fastest one, you just make sure you are not the last one.
Unfortunately, I can bet these 2 countries won't be the first one to collapse.

 

[no smoking]

You forgot nuclear technology. We are leading in fast breeder (only second country to pursue this technology today) & thorium technology (in which we are the best).

All the other countries who were once pioneered in these 2 areas shut down their own research reactors. At the meantime, India keeps pushing off the deadline of her projects. Why? Think about that.

 

[Dovah]

All the other countries who were once pioneered in these 2 areas shut down their own research reactors. At the meantime, India keeps pushing off the deadline of her projects. Why? Think about that.

A major reason for that was because Thorium could not be weaponized unlike Uranium. In any case, I think it is a good technology to invest research in, even if nothing comes out of it.

 

[roma]

There are fundamentally two areas which are holding us back:-
1) Inefficient Tax collection system
2) Creation of new consumer products domestically
In both areas work in progress, we will know by 2020, where we are heading..

I wish it was just those two matters to deal with

sorry ! theres much more to it .....
# distribution system - road / rail networks for raw materials or sub-assemblies to factory and finished product to shipment out
# lalu prasad - type of paaan-sucker mentality - lacking modern creativity
# what Namo calls mind set -- i would call a need to change the backward mentality
# nationalist mindset to support our own products and walk away from pecchina products even if those cost say 15% less
# university to industry design and development programmes plus internships to create or improve products
# improving the school textbook mentality towards taking risks
# aiming for govt job in drdo and planning for retirement from the first day at work

plus loads loads more

not that it cant be done - but we must identify at least the one or two impediments as i agree you have wisely done and work to eliinate them and then fae up to the following next two and so on until we can at least see china in our crosswires ....then we are at least getting somewhere

and not as some politicos are doing - we had one or two successes with GSLV and then they shout out that india is on the way to become the next china - not by a long shot -lets not kid ourselves

 

[Butter Chicken]

NPA are being controlled. Steel industry has turned healthy again. Mega projects in mining to roads to power to realty are all gathering steam ahead. Meanwhile RBI has been empowered to cleanup the banking books.

Now answer me honestly in which world are you living:biggrin2:

Rajan was US deep state agent undermining Indian growth

 

[Tarun Kumar]

Since 2008, all the major economies in the world have been printing money ever since, Europe, Japan, USA, China. These money don't just stay within their borders but flood the whole world. This is the problem get every country involved, including India.



Currently, both countries already started to reverse their policy: Americans quite QE and increase their interest rate, Chinese banks are instructed to reduce or stop their loans to specific industries while those shadow banks are forced to swap their loans with national bonds at a significant discounted rate.
And more important, both countries don't plan to solve this problem by themselves. Every country is chased by the wolf--global crisis, you don't need to be the fastest one, you just make sure you are not the last one.
Unfortunately, I can bet these 2 countries won't be the first one to collapse.

Only partly true. Most of Yuans printed by China and USD printed by US stays within China and US where this additional currency causes havoc in the economy. The only beneficiaries are rich entrepreneurs and corrupt Government officials and loosers are common people who are permanently locked out of housing market. I have many Chinese friends and not one plans to stay in China despite very good jobs. Most are looking to Australia and NZ to migrate. Ever wondered why, because when Government prints currency at rate greater than rate of growth-inflation, confidence in whole banking/monetary system collapses, rents become astronomical, utility prices go through the roof. Precisely the same is happening in US where living in NY/SF is now impossible for most Americans even with USD 60000-80000 salary. We see a mini version of this model in Mumbai where rich double income no kids couples are literally staying near garbage dumps for a chance to own their own house.The whole debt based system is a collapsing house of cards. Both US and CHina know it and both are scrambling to grab more resources overseas to avoid it.