Zebra
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How to make India grow very fast and become rich?
First , make Indian "System" more and more people friendly.
Second, India is rich, even today, as it is.
How to make India grow very fast and become rich?
Other area is currency appreciation.Another area I want to focus upon is to use very cheap capital available globally. Country like Israel and Japan has so much of money they can not use. Take a loan from them. A very cheap loan shall be available. We have to be a little innovative and we must generate Huge fund from these sort of countries from where the capital is available very cheaply. Now GBP VS INR is moving RS 90 VS 1 GBP a year. Suppose we can manage a loan 2% or even at 3% and add another 3% as the risk premium even than we can get the loan at 6% at the most and we can use this big amount at a very low capital cost to be used in infrastructure and other projects. We already have very low cost manpower. We must blend low cost manpower and low cost capital s the factor of production. We must give a very generous incentives to industries who want to invest in electronics parts and electronics goods. If we can make this single sector booming even than we can go much much ahead. We must make a study how China moved ahead. We must formulate similar strategy. We must develop more and more free trade zones and ease the tax laws and stop the interference of government. Untill we have such complected tax structure, we can not have a big and phenomenal rise in growth rate. We here need a out of box thinking where we can generate more revenue with simplification. We have to push our growth rate above 9% consistently for many years. That is the only solution.
Yes, ofcourse but not now. Let economy gain some movement. That has to be done and will be done. DO you know how chinese GDP increased by 5 fol in 10 years. Mainly because of currency appreciation. It need a 17.5% growth rate. CHina averaged 8 to 9 percentage. Rest came from currency appreciation.Other area is currency appreciation.
currency appreciation happens only when we have surplus in trade and less foreign debt and net international position in control.We have 8 TR USD GDP compared to 2.3 TR in nominal ternm which means our currency is undervalued 350%. It should be around RS 20. So it will rise rapidly once our economy is no track like Vajpayee time when Rs appreciated 6 Rs.
But we have a huge foreign exchange remittance above 70 bn USD every year and foreign exchange of 350 BN USD +. No issue here.currency appreciation happens only when we have surplus in trade and less foreign debt and net international position in control.
Our trade is in deflicit of 30-50B $
Foreign debt upto 400b $(govt+private+fixed deposits)
Net IIP is at -500B $
Huge? how huge? just 363 BN $But we have a huge foreign exchange remittance above 70 bn USD every year and foreign exchange of 350 BN USD +. No issue here.
How to increase exports now.currency appreciation happens only when we have surplus in trade and less foreign debt and net international position in control.
Our trade is in deflicit of 30-50B $
Foreign debt upto 400b $(govt+private+fixed deposits)
Net IIP is at -500B $
If u can't cut tree from this side cut it from other side I.e decrease imports by increasing import duty and decrease use of oil by using bio fuelsHow to increase exports now.
Please elaborate.
Well, China is itself dependent on a debt fueled model. Their economic growth is result of inflation and Yuan appericiation.still government debt was at 40% only.
250% of gdp ' I think even moreWell, China is itself dependent on a debt fueled model. Their economic growth is result of inflation and Yuan appericiation.
China's debt is 250% of GDP and 'could be fatal', says government expert