G_B_ Posted November 30, 2015 Posted November 30, 2015 only a matter of time India reaches 8% plus growth which is solid and sustainable.
G_B_ Posted November 30, 2015 Posted November 30, 2015 And it massively affects imports and causes FDI outflow when Rupee depreciates .Even exporters are affected when there is too much volatility as they are exposed to exchange risk . 90-95% of external borrowings is unhedged as well Just Google what happened to Tiruppur export market when Rupee suddenly depreciated beyond the 48-54 range during 2009/10 . Ridiculous and ignorant to say Rupee depreciating is good for our economy in any way . Disagree with this. A devaluation or gain needs to be looked at in the context of all other emerging market currencies. As far as I can see from Brazil to Russia to Turkey all are declining a much faster pace than India. In order for Indian exports to be competitive overseas in markets like Europe a degree of depreciation is good. Historically countries like South Korea and Japan have systematically undervalued their currency to make exports competitive. While India is a different economy, not fair to say depreciation in currency is always a bad thing.With regards to exports falling, more than the rupee the problem lay with what and where we export. India's number 1 export market the EU is still reeling in a big way. Germany who is the number 1 exporter within the EU has recently seen a drastic fall in exports which symbolizes the lack of demand. So no matter how much rupee gains or falls, if nobody wants to buy your goods its the elephant in the room.To fix exports IMO India needs to find other markets away from the EU. It means formalizing FTA's with the African union or south american for example. Both the EU and the Gulf region which make up close to 33-35% of all Indian exports are hit with economic issues of their own (low oil price in the case of Gulf nations) which kills their demand. Considering the world economy and emerging markets in general are not in the best of shape atm, i think its wise India not worry too much about exports as of now. Concentrate on passing reforms which will aid exports in the future and attracting FDI. Macroeconomic indicators such as the trade balance and current account are well in check.
G_B_ Posted November 30, 2015 Posted November 30, 2015 only a matter of time India reaches 8% plus growth which is solid and sustainable.to further add i think India should be the fastest growing G20 economy with this.
beautifulgame Posted November 30, 2015 Posted November 30, 2015 Disagree with this. A devaluation or gain needs to be looked at in the context of all other emerging market currencies. As far as I can see from Brazil to Russia to Turkey all are declining a much faster pace than India. In order for Indian exports to be competitive overseas in markets like Europe a degree of depreciation is good. Historically countries like South Korea and Japan have systematically undervalued their currency to make exports competitive. While India is a different economy, not fair to say depreciation in currency is always a bad thing.With regards to exports falling, more than the rupee the problem lay with what and where we export. India's number 1 export market the EU is still reeling in a big way. Germany who is the number 1 exporter within the EU has recently seen a drastic fall in exports which symbolizes the lack of demand. So no matter how much rupee gains or falls, if nobody wants to buy your goods its the elephant in the room.To fix exports IMO India needs to find other markets away from the EU. It means formalizing FTA's with the African union or south american for example. Both the EU and the Gulf region which make up close to 33-35% of all Indian exports are hit with economic issues of their own (low oil price in the case of Gulf nations) which kills their demand. Considering the world economy and emerging markets in general are not in the best of shape atm, i think its wise India not worry too much about exports as of now. Concentrate on passing reforms which will aid exports in the future and attracting FDI. Macroeconomic indicators such as the trade balance and current account are well in check. Agree we desperately need to diversify our export marker .Most of our export is concentrated mainly on Euro and US which doesn't help .Our bigger issue with export is those treaties we signed with SE Asian countries haven't delivered much .Out CA and Trade balance looks rosy now mainly becoz of the fallen oil prices though .Once they start rising again we will be in trouble unless we sort out the export sector .
amiret Posted November 30, 2015 Posted November 30, 2015 Driven by Govt spending ."The number is along expected lines. The economy has bottomed out, but the recovery continues to be quite protracted and patchy. We expect full year GVA (gross value added) growth at 7.3%. We expect a gradual recovery in 2016/17 in the average of 7.5-8% on the back of higher consumption growth. As far as monetary policy is concerned, we expect RBI to continue to remain accommodative, and a further rate cut will be dependant upon government's fiscal road map and evolution of inflation in months ahead," said A Prasanna, economist, ICICI Securities Primary Dealership."It's neither a positive surprise nor a negative surprise. Growth is tracking as per RBI's trajectory of between 7-7.5% for the full year. That's where the consensus number is. In that sense it's neither an alarming signal nor a sign that we're growing faster than estimated, so there is need to be cautious on rate cuts. It doesn't change anything. No change expected tomorrow (from the RBI)," said Ashutosh Datar, economist, IIFL Institutional Equities.
G_B_ Posted November 30, 2015 Posted November 30, 2015 (edited) Agree we desperately need to diversify our export marker .Most of our export is concentrated mainly on Euro and US which doesn't help .Our bigger issue with export is those treaties we signed with SE Asian countries haven't delivered much . Out CA and Trade balance looks rosy now mainly becoz of the fallen oil prices though .Once they start rising again we will be in trouble unless we sort out the export sector . I think its all relative See lets assume oil rises. One of India's largest exports of refining or petrochemicals. So naturally our exports will also rise. In addition rising oil prices mean one of our largest markets the gulf counties will absorb more exports and also Indians in these countries will send home remittances. So everything is checks and balances in the Indian economy. I personally think oil at 80 is more beneficial to India than oil at 50 that it currently is. The best you can do is the following (a) Build forex when the times are good. Which we are doing. Our ratio of Forex to GDP has increased.(b) Attract more FDI. Once again in reforms in FDI is needed (which is happening) (c) Manage your budget deficit. GST should help bridge some of the gap. (d) Reforms... the global economy is about perception. In 2013 India lost the perception battle. Modi is feku. But its better to be feku than be a mute. If India passes reforms even if macroeomically India is in a bad position, the investors and markets will back them for future gains. Edited November 30, 2015 by G_B_
amiret Posted November 30, 2015 Posted November 30, 2015 After the failure of the Gold monetization scheme 1 month after it's launch , finance ministry officials are going to meet to discuss changes .Only 400 GRAMS have been deposited under this scheme .Nov 30 2015 Reuters : India is set to discuss changes to a scheme to unlock the country's massive stash of gold at a high-level meeting on Tuesday, after a muted response to the program in the first month of its launch, according to banking sources.Prime Minister Narendra Modi launched the scheme on Nov. 5 to lure an estimated 20,000 tonnes of gold hoarded in households and temples into the banking system. But only 400 grams trickled in over the first two weeks as low returns and worries over income tax kept Indians away. The Govt scheme mentions designated banks , but does not mention the names of the designated banks .Banks, however, say they cannot offer attractive rates."For a deposit accepted at a higher rate, you should always have a borrower who is willing to pay you an even higher rate," said a second banking source. "If we disturb the equilibrium, somebody has to be willing to pay higher."Bankers are hoping the government can compensate them for the loss from higher rates - a topic likely to be discussed on Tuesday, the sources said.Are banks expecting the Govt to subsidize the purported higher interest rates in the GDS ? won't be surprised if this happens , after the subsidies/freebies the Govt offered to the Sugar producers and farmers .
G_B_ Posted November 30, 2015 Posted November 30, 2015 Driven by Govt spending .the good news for the BJP is that the economy seems to have bottomed out within their first 2 years.Best to face economic issues upfront in your rule than at the end.....
G_B_ Posted November 30, 2015 Posted November 30, 2015 India receives $32.87 bn FDI in October-September FDI increased by 48 per cent during October 2014 and April this year. "The increased inflow of FDI in India especially in a climate of contracting worldwide investments indicates the faith that investors have reposed in the country's economy and the reforms initiated by the government towards ease of doing business and further liberalsing the economy," she said. http://economictimes.indiatimes.com/news/economy/finance/india-receives-32-87-bn-fdi-in-october-september/articleshow/49982875.cms adi B 1
diga Posted December 1, 2015 Posted December 1, 2015 Since PM Modi came to power in 2014, India's GDP growth every quarter:Jul-Sep = 8.4%Oct-Dec 6.6%Jan-Mar 7.5%Apr-Jun 7.1%Jul-Sep 7.4% Not bad even if you consider the GDP growth definition was changed adi B 1
bulbul Posted December 1, 2015 Posted December 1, 2015 Modi government's gold bond scheme gets 'shining' response; receives 63,000 applicationsThe first set of sovereign gold bonds that closed on November 20 received a positive response despite falling gold prices, suggesting that the scheme may be successful in reducing imports of the metal.The scheme received 63,000 applications for 917 kg of paper gold worth Rs. 246 crore with its opening on November 5.http://www.dnaindia.com/money/report-modi-government-s-gold-bond-scheme-gets-shining-response-receives-63000-applications-2150113Even though this also not great still its starts let us see....
bulbul Posted December 1, 2015 Posted December 1, 2015 A month after Prime Minister Narendra Modi declared his government’s resolve to do away with interviews for non-gazetted jobs in the central government from January 1, online tests are set to replace the objective-type written examinations as a “viable and practical alternative”.The Staff Selection Commission (SSC) has decided to conduct online examinations across the country for vetting the candidates’ eligibility for all posts where higher secondary or above is an essential qualification. In a meeting held recently under the chairmanship of under secretary P H Pillai, a consensus was reached that the SSC will start conducting online tests, with objective-type multiple-choice questions, from next year for non-gazetted posts. The process of building up question banks is also being undertaken. http://indianexpress.com/article/india/india-news-india/non-gazetted-posts-in-line-with-pms-resolve-only-online-tests/
amiret Posted December 2, 2015 Posted December 2, 2015 modi govt promotes a new pink revolution :Regardless of the raging controversy over beef and the BJP adopting it as a major political issue, the Narendra Modi government quietly eased restrictions on the export of buffalo tallow, according to official documents accessed by The Hindu. Tallow export has since been booming month on month. The decision to permit export has already resulted in about 40 per cent increase in the price of buffalo tallow in just the last few months and feeds into what Prime Minister Narendra Modi called the ‘Pink Revolution’ during the polls, when he condemned the boom in meat exports from the country.
rkt.india Posted December 2, 2015 Posted December 2, 2015 Buffalo is different from cow. Issue was cow beef, not buffalo.
diga Posted December 2, 2015 Posted December 2, 2015 The government has embarked on the process of preparing a national IPR Policy."We expect it to be a visionary document that can guide the journey of India towards becoming an innovative economy in the next 10 years," he said here at a CII function.A draft policy, which is in the public domain, seeks to encourage innovation by providing tax incentives and modifying intellectual property rights.Kant said it has been formulated with a mission to foster innovation, accelerate economic growth, employment and entrepreneurship besides protecting public health, food security and environment.However, he added that it is important to have an innovative ecosystem which supports translation of inventions into commercial use.http://telecom.economictimes.indiatimes.com/news/ipr-policy-to-help-india-become-innovative-economy-amitabh-kant/50010890
sticky wicket Posted December 3, 2015 Posted December 3, 2015 Nov PMI lowest in 5 months, but usually comes down during Diwali time, but at least above 50
surajmal Posted December 4, 2015 Posted December 4, 2015 The country's pulses production was 17.20 million tonnes in the 2014-15 crop year, much lower than the requirement of 25 million tonnes. The gap is being met through imports. http://www.business-standard.com/article/pti-stories/commerce-min-to-hold-meeting-with-pulses-importers-tomorrow-115120200425_1.html Daal problem is 70 years in the making. No quick thinking or foresight is going to fix it. It all boils down to the need of an agricultural revolution. "more crop per drop", "more crop per acre", subsidizing the right crops etc etc.
rkt.india Posted December 4, 2015 Posted December 4, 2015 Daal is considered a risky crop by farmers. In our area UP west, most of the people have stopped cultivating daal and are more into sugarcane. Lentils are more prone to bacterial and fungus infection and need more care. Pulses prices have been rising steadily for last few years.
Mariyam Posted December 4, 2015 Posted December 4, 2015 BJP allies the Shiv Sena coming up with ingenious economic schemes to alleviate poverty.
bulbul Posted December 9, 2015 Posted December 9, 2015 NEW DELHI: The government today approved a proposal for central legislation to declare 106 additional inland waterways as national waterways."The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to carry out official amendments in the National Waterways Bill, 2015," an official statement said.The amendments are based on the recommendations of the Parliamentary Standing Committee on Transport, Tourism and Culture and comments of states... It provides for enacting a central legislation to declare 106 additional inland waterways as the national waterways."After the inclusion of 106 additional inlands waterways to the existing five national waterways, the total number of national waterways goes up to 111," the statement said. http://economictimes.indiatimes.com/news/economy/infrastructure/government-to-declare-106-additional-inland-waterways-as-national-waterways/articleshow/50111716.cms
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