Tracking Indian Economy till general elections 2019

[indiatester]

I abosolutely agree with the video. In theory, the video is spot on.

However , in practice, none of the informal businesses used to pay taxes of any kind till now(Duh, they are informal). That was the only way to make themselves a profit- to stay afloat after accounting for the bribes they had to pay to the police and such. But then, when you make them pay the taxes, tit will eat into their very margins, because they will be now forced to pay taxes(there is no other go) and they will not be able to stay afloat.

Of course, such taxation wont be a problem in a country like Norway, Sweden or USA, where corruption by babus is not a daily part of life as in India(so much so that every single Sanghi clown, who cries about demonetisation and GST ending corruption, here in India can be accused of having a bribe taking/corruption indulging babu as his blood relative with 100% accuracy) . So what happens is the taxes will force the small businesses to close down,

And of course, if someone is a typical Sanghi clown with no knowledge of basic economics and simply wants to kill the informal sector- swin or perish and such, it might be a good thing. But for the country, it is a deadly thing- it will cause the loss of the company, loss of services to the people which the company provided, loss of jobs to people who were employed by it and of course, there wont be any new taxes from the company which has been closed. Before this kind of forced formalisation, atleast the company running informally provided jobs and livihood to the people involved even when they dint pay any taxes. But now, not only will they not pay taxes, because they have now closed down, it also means they will not be generating jobs, services and so on. The way to fix the problem of tax non compliance is to strike down the bureaucracy and encourage the incentives for formalisation, not increase the risks for formalisation by shoving down GST on the businesses.

This is why I keep telling that the supposed cure for corruption- GST, is actually worse than the disease itself

BTW, I dont oppose GST. I only oppose the rate at which they have implemented it right now.

I ofcourse would love it if the informal sector would actually turn against the corrupt babus and not oppose the direction in which the govt (and opposition for that matter) are steering the country towards.
One other thing that should be taken care of by the govt is that the entry barriers to do business should be taken down. These include
1) Reduce number of permissions required from multiple agencies
2) Entry barrier wrt high capital (reduced real estate prices)
3) Easier access to capital
4) Better labour

The focus should shift from taxes/GST to the actual heart of the problem which is to allow the business to thrive.

 

[square]

The focus should shift from taxes/GST to the actual heart of the problem which is to allow the business to thrive.

so after 3&1/2 years , you now posting that govt have not focus on actual heart of the problem...

 

[square]

Demonetization GST and New Bankrupcy code are making the fraudsters very afraid as old business as usual of Black money will be very very difficult.
I tell you these black money lovers will fight till last drop of black money in their minds....but ..Govt. will prevail and Indian economy will skyrocket after a short term pause.
These reforms are BIG....they are making system clean and transparent ...so ..sit back and ride the roller coaster for now followed by straight upward trajectory.

if you are on the view that the black money still present in the system after the demonetization then you are controdicting modi sarkar...

 

[sorcerer]

Jan Dhan accounts keep villagers sober, slow rural inflation: Study

NEW DELHI: Village residents who opened bank accounts under the Prime Minister's Jan Dhan Yojana (PMJDY) may be saving more and cutting back on their consumption of alcohol and tobacco, a study by the economic research wing of the State Bank of India (SBI) suggests.

This may have also slowed inflation in rural areas. When the PMJDY programme was launched there were fears that higher circulation of money would stoke inflation. The study using retail inflation data showed that states with more than 50% share of Jan Dhan accounts in villages had a "meaningful drop in inflation".

Of the 30 crore-plus Jan Dhan accounts, many were opened after demonetisation last November. Just 10 states have 23 crore or 75% of the accounts, with Uttar Pradesh (4.7 crore) topping the list, followed by Bihar (3.2 crore) and West Bengal (2.9 crore).

The SBI study analysed state-wise impact of PMJDY accounts on rural and urban consumer price index (CPI). It is part of a research paper which is expected to be released later this year. "The analysis confirms that besides formalisation of the economy, financial inclusion has had tangible benefits which is visible in the inflation data," the study said.

Besides inducing villagers to save, the Jan Dhan bank accounts also seem to have steered them away from intoxicants. "We observed that there is both statistically significant and economically meaningful drop in consumption of intoxicants such as alcohol and tobacco products in states where more PMJDY accounts were opened," the study conducted by Soumya Kanti Ghosh, group chief economic adviser at SBI, and his team showed. "This could be because of behavioural changes like less spending after demonetisation," the study said. It also found an increase in household medical expenditure in states of Bihar, West Bengal, Maharashtra and Rajasthan since October 2016.


Experts said availability of banking channels can trigger change in behaviour. "It is well known that your spending behaviour changes when you have cash with you compared to money in the bank. It's the same when you have a credit card," said former chief statistician Pronab Sen. "There could be behavioural changes happening. But the most important thing is that Jan Dhan accounts are promoting a culture of saving and helping to curb spending on alcohol and other such items," said N R Bhanumurthy, professor at the National Institute of Public Finance and Policy (NIPFP).


However, Ashok Gulati, Infosys chair professor of agriculture at the thinktank Indian Council for Research on International Economic Relations (ICRIER) said further analysis is needed to prove the correlation between Jan Dhan accounts and behavioural changes. "We need more robust analysis before we can say for sure that because people now have bank accounts they are spending less on intoxicants," he said. The professor added that other factors, such as developed infrastructure and links with markets in some states may have had a far greater impact on the price situation.


https://timesofindia.indiatimes.com...ural-inflation-study/articleshow/61095142.cms


Ache Din are here!!!
but Gandu Bhakt's head are so deep into Italian ass that they cant see such.
Where is the development they ask, which they never dared to ask when the G-company alone was developing their pockets via scams from A to Z

A for Augusta
B for Bofors
C for Coal
Well!!! it goes on and on.

 

[Nicky G]

I included NBFCs in above when I said informal. NBFC share is up because banks are not lending.



How much is the total credit growth? If it has not grown(seems from bank health), there won't be any growth. Period.

NBFC can't all be considered informal. Besides, banks weren't lending anyway due to pile of bad debt; its not as if things were huncky dorry, they were heading towards diaster anyway.

Credit growth has been on steady decline. It can pick up only after the system is cleaned up.

 

[Nicky G]

Morgan Stanley bets on India, says world’s fastest growing economy to grow 10% per year for 10 years

 

[OneGrimPilgrim]

(sorry if this was already shared here earlier)

World Bank chief hails PM Modi's economic reforms; calls them 'significant'

Days after Narendra Modi was criticised for saying that low growth in one quarter was not a big issue, the World Bank chief on Thursday praised the Indian Prime Minister for the economic reforms that he levied in the country.

Modi's reforms 'signiicant'

In fact, Jim Yong Kim called the reforms "significant" and went on to highlight the importance of the reforms in the long run, which was exactly what Modi had assured on October 4.

"The reform process has been significant," Kim told reporters at the beginning of the annual meeting of the International Monetary Fund (IMF) and the World Bank in Washington.

"We think that certainly in the medium and long term, the growth will reflect the seriousness of Prime Minister Modi's government in making those reforms," added Kim.

Kim acknowledged the government's work while responding to a question on the recent economic slowdown of India.

While Modi had said that the Reserve Bank of India (RBI) has predicted 7.7 percent growth in the coming quarters, both the World Bank and the IMF have downgraded India's growth projections.

On Wednesday, the World Bank stated that India's GDP may slowdown from 8.6 percent in 2015 to 7 percent in 2017 because of disruptions by demonetisation and the GST, said a PTI report.

Even the IMF has forecast that India's growth projection will be 6.7 percent in 2017.

Reforms will definitely yield goals.

However, Kim feels that the recent slowdown in India's economic growth is short-term. He termed it as an "aberration" which occurred mainly due to the temporary disruptions in preparation for the GST.

"Our team feels that the slowdown has been because of the waiting for the passage of goods and services tax," Kim explained.

"But the goods and services tax we have to understand is something that India has been talking about for a long time, well before Prime Minister Modi took power," Kim said.

GST hailed

According to Kim said that the "goods and services tax would be very good for Indian growth".

"Prime Minister Modi took a very different approach to our doing business report. And his approach was we are going to move up quickly and we are going to do the things that we need to do to reform the business environment," he said.

 

[sorcerer]

India undergoing 'exciting digital transformation, says IMF

Read more at:
//economictimes.indiatimes.com/articleshow/61102388.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[sorcerer]

Indian seafood export rises 25% in first quarter

Read more at:
//economictimes.indiatimes.com/articleshow/61102429.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

wheres the gandu bhakts who said exports crumbled !!

 

[ezsasa]

(sorry if this was already shared here earlier)

World Bank chief hails PM Modi's economic reforms; calls them 'significant'

Days after Narendra Modi was criticised for saying that low growth in one quarter was not a big issue, the World Bank chief on Thursday praised the Indian Prime Minister for the economic reforms that he levied in the country.

Modi's reforms 'signiicant'

In fact, Jim Yong Kim called the reforms "significant" and went on to highlight the importance of the reforms in the long run, which was exactly what Modi had assured on October 4.

"The reform process has been significant," Kim told reporters at the beginning of the annual meeting of the International Monetary Fund (IMF) and the World Bank in Washington.

"We think that certainly in the medium and long term, the growth will reflect the seriousness of Prime Minister Modi's government in making those reforms," added Kim.

Kim acknowledged the government's work while responding to a question on the recent economic slowdown of India.

While Modi had said that the Reserve Bank of India (RBI) has predicted 7.7 percent growth in the coming quarters, both the World Bank and the IMF have downgraded India's growth projections.

On Wednesday, the World Bank stated that India's GDP may slowdown from 8.6 percent in 2015 to 7 percent in 2017 because of disruptions by demonetisation and the GST, said a PTI report.

Even the IMF has forecast that India's growth projection will be 6.7 percent in 2017.

Reforms will definitely yield goals.

However, Kim feels that the recent slowdown in India's economic growth is short-term. He termed it as an "aberration" which occurred mainly due to the temporary disruptions in preparation for the GST.

"Our team feels that the slowdown has been because of the waiting for the passage of goods and services tax," Kim explained.

"But the goods and services tax we have to understand is something that India has been talking about for a long time, well before Prime Minister Modi took power," Kim said.

GST hailed

According to Kim said that the "goods and services tax would be very good for Indian growth".

"Prime Minister Modi took a very different approach to our doing business report. And his approach was we are going to move up quickly and we are going to do the things that we need to do to reform the business environment," he said.

Loan shark keeping his customer in good spirits!!!


He he !!!!

 

[sorcerer]

'India gets $10 bn investment commitment in food processing'

NEW DELHI: India has attracted investment commitments of around USD 10 billion in the food processing sector ahead of the mega 'World Food' event to be held here in November, Union minister Harsimrat Kaur Badal said today.


The World Food India event will see participation of 30 countries and over 50 global CEOs, along with CEOs of leading domestic food processing firms and 27 states, she added.

"We had kept a target of USD 10 billion investment. I am happy to share, we have already achieved the target. More investment is likely to flow as we still have 2-3 weeks for the event," Badal said at the curtain raiser of the 3-day event from November 3.

She declined to share the name of the companies which have committed to make the investment.

"We will give names in the World Food India. I have to take permission from companies which are investing on whether to announce it now or not. They will be announcing during the event," she added.


The government is also actively considering a proposal to allow foreign direct investment (FDI) in non-food items, along with food products, under the multi-brand retail policy, she said expressing hope of getting it cleared.

https://economictimes.indiatimes.co...t-in-food-processing/articleshow/61103553.cms



Good show..
This was an undervalued sector for some time.
Lets see how the industry reacts.

 

[indiatester]

Indian seafood export rises 25% in first quarter

Read more at:
//economictimes.indiatimes.com/articleshow/61102429.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

wheres the gandu bhakts who said exports crumbled !!

Lets temper our export growth numbers.

Experts saying that this is just over invoicing by companies for exports as they can use it to escape from GST. So, growth in exports may not be true to this number.

 

[sorcerer]

Lets temper our export growth numbers.

Experts saying that this is just over invoicing by companies for exports as they can use it to escape from GST. So, growth in exports may not be true to this number.

So you mean to say that the foreign exchange received for these goods wont add up vis a vis the physical export of food materials at ports where both is under the eyes of the Govt.
Most of the time such tonnage of items do leave a whole lot of paper trial behind.

IMO ,If its an industrial figure from a govt statistical body, they are not just looking at just the invoices to vet their statistical figures but a whole lot of other inputs.

Lets see the whats happening in the coming quarters.

 

[ezsasa]

'India gets $10 bn investment commitment in food processing'

NEW DELHI: India has attracted investment commitments of around USD 10 billion in the food processing sector ahead of the mega 'World Food' event to be held here in November, Union minister Harsimrat Kaur Badal said today.


The World Food India event will see participation of 30 countries and over 50 global CEOs, along with CEOs of leading domestic food processing firms and 27 states, she added.

"We had kept a target of USD 10 billion investment. I am happy to share, we have already achieved the target. More investment is likely to flow as we still have 2-3 weeks for the event," Badal said at the curtain raiser of the 3-day event from November 3.

She declined to share the name of the companies which have committed to make the investment.

"We will give names in the World Food India. I have to take permission from companies which are investing on whether to announce it now or not. They will be announcing during the event," she added.


The government is also actively considering a proposal to allow foreign direct investment (FDI) in non-food items, along with food products, under the multi-brand retail policy, she said expressing hope of getting it cleared.

https://economictimes.indiatimes.co...t-in-food-processing/articleshow/61103553.cms



Good show..
This was an undervalued sector for some time.
Lets see how the industry reacts.

If anyone has time on their hands, dig up how many cold storage and integrates food processing units this minister had started in past 2-3 years.

I am just curious about her ministry’s performance.

 

[sorcerer]

If anyone has time on their hands, dig up how many cold storage and integrates food processing units this minister had started in past 2-3 years.

I am just curious about her ministry’s performance.

Govt sanctions 30 new cold storage projects
The Food Processing Ministry took a step further the number of integrated cold storage facilities in the country which currently has a shortfall in handling capacity for at least 29-30 million tonnes (mt) of milk and dairy products, fruits and vegetables, fish and marine produce and cereals.

Harsimrat Kaur Badal, the Food Processing Minister, announced the sanctioning for 30 new cold storage units here on Monday. In total, there are 138 such facilities now sanctioned as part of the Integrated Cold Chain project. In its first year, the Ministry has operationalised 14 cold chain projects.

“Food wastage is a huge issue and we need to have a zero-tolerance approach with the population rising each year and the land available for cultivation shrinking. If availability increases with reduced wastage, it will curb inflation,” she told reporters.

The 30 new units are expected to attract investment of Rs. 470 crore with Ministry grants amounting to Rs. 275 crore.

“There is a need to handle 61 mt of produce annually but we only have a capacity for 31 mt so far. There’s a lot of work to be done. This sector is a huge employment generator even for unskilled workers. It can play a pivotal role for uplifting farmers who face huge challenges,” she added.

With regard to mega food parks, Badal said that of the 17 sanctioned projects, two were already operational while a third would be in a few days, taking a dig at the Congress-led UPA-II regime.

“The scheme was launched in 2008 but between then 2014, only two were operationalised. In one year, we will have three working. The results of the work done by the Ministry will be seen more clearly over the next year and a half since it takes 30 and 24 months for a food park and cold chain project to be operationalised,” she said.

The Government estimates the food processing sector to be growing at 8.4 per cent and comprised 13 per cent of factory employment in 2012-13.

(This article was published on May 18, 2015)

http://www.thehindubusinessline.com...-new-cold-storage-projects/article7220265.ece

 

[indiatester]

So you mean to say that the foreign exchange received for these goods wont add up vis a vis the physical export of food materials at ports where both is under the eyes of the Govt.
Most of the time such tonnage of items do leave a whole lot of paper trial behind.

IMO ,If its an industrial figure from a govt statistical body, they are not just looking at just the invoices to vet their statistical figures but a whole lot of other inputs.

Lets see the whats happening in the coming quarters.

Lets wait to figure out what the truth is. Right now its better to not go to town with this number.

 

[ezsasa]

Govt sanctions 30 new cold storage projects
The Food Processing Ministry took a step further the number of integrated cold storage facilities in the country which currently has a shortfall in handling capacity for at least 29-30 million tonnes (mt) of milk and dairy products, fruits and vegetables, fish and marine produce and cereals.

Harsimrat Kaur Badal, the Food Processing Minister, announced the sanctioning for 30 new cold storage units here on Monday. In total, there are 138 such facilities now sanctioned as part of the Integrated Cold Chain project. In its first year, the Ministry has operationalised 14 cold chain projects.

“Food wastage is a huge issue and we need to have a zero-tolerance approach with the population rising each year and the land available for cultivation shrinking. If availability increases with reduced wastage, it will curb inflation,” she told reporters.

The 30 new units are expected to attract investment of Rs. 470 crore with Ministry grants amounting to Rs. 275 crore.

“There is a need to handle 61 mt of produce annually but we only have a capacity for 31 mt so far. There’s a lot of work to be done. This sector is a huge employment generator even for unskilled workers. It can play a pivotal role for uplifting farmers who face huge challenges,” she added.

With regard to mega food parks, Badal said that of the 17 sanctioned projects, two were already operational while a third would be in a few days, taking a dig at the Congress-led UPA-II regime.

“The scheme was launched in 2008 but between then 2014, only two were operationalised. In one year, we will have three working. The results of the work done by the Ministry will be seen more clearly over the next year and a half since it takes 30 and 24 months for a food park and cold chain project to be operationalised,” she said.

The Government estimates the food processing sector to be growing at 8.4 per cent and comprised 13 per cent of factory employment in 2012-13.

(This article was published on May 18, 2015)

http://www.thehindubusinessline.com...-new-cold-storage-projects/article7220265.ece

Yup, cold storage units are critical to control food inflation.

 

[Sakal Gharelu Ustad]

NBFC can't all be considered informal. Besides, banks weren't lending anyway due to pile of bad debt; its not as if things were huncky dorry, they were heading towards diaster anyway.

Credit growth has been on steady decline. It can pick up only after the system is cleaned up.

So no growth then. RIght???.....................

 

[sorcerer]

Temporary disruptive effect of GST over, says DEA Secretary

NEW DELHI: Economic Affairs SecretarS C Gargtoday said the temporary disruptive effect of the Goods and Services Tax (GST) is over as the manufacturing sector recorded positive growth of 3.1 per cent in August.

Commenting on the twin data on industrial output and price situation, he said that the benign and moderate inflation has become the order of the day.

"Manufacturing grew by 3.1 per cent in August after two months of negative growth of -0.5 per cent and -0.3 per cent. Temporary disruptive effect of GST is over," he said in a tweet.


Read more at:
//economictimes.indiatimes.com/articleshow/61117737.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[Nicky G]

So no growth then. RIght???.....................

Credit lending by banks is slowing while that by bonds and NBFCs is picking up. Overall, modest growth for now.