Indian Economy - News & Discussion 27 May 2012

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vishvak
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Re: Indian Economy - News & Discussion 27 May 2012

Post by vishvak »

Govt may start gold deposits to channel savings
It says 50billion$ per year of gold import but doesn't mention Jewellery export.
RBI Governor Raghuram Rajan in his maiden press conference, after assuming charge, had announced that the central bank would launch inflation-indexed savings certificates linked to the CPI new index to retail investors by the end of November.
..
“For growth to revive, we need to come back to higher savings and investments,” the official said.
This is from maiden speech of the new dude selected for RBI top job. Where does such a scheme need gold anyway. If it offers good returns at low cost, why need gold. Fact is gold investments will be calculated as part of scheme most probably.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by V_Raman »

I just remembered that as part feasibility of the DMIC and the south Industrial corridors, one of the items was rupee depreciation to make mass manufacturing viable in India - acquire RE, employ labor in construction etc. Is that a correct recollection?
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Re: Indian Economy - News & Discussion 27 May 2012

Post by vishvak »

Theo_Fidel wrote:BTW I have been baffled by that too. The same GoI afsar types who screwed around in India, works his butt off in USA. What’s with that? We need to transfer that hindu work ethic to India.
We need clean work ethic everywhere all the time.

For example, there exist dubious pricing policies of so-called reputed multinational companies very openly. One is in Natural Gas sector where aberration exist in dual pricing 'policies' - which is actually excuses to enforce loot under monopoly of many multinational companies. Many famous multinational companies indulge in such practices. WTO has given many judgements against monopolistic policies of various countries.

We should also be efficient to challenge such dubious policies in courts. These loot has been going on for decades very openly by very famous multinational companies especially Anglo Dutch oil giants.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

brihaspati: I don't have a lot of time to write in detail, but I don't believe that private gold holdings in ornamental 18K/22K form are very useful for widespread use as latent savings. They incur a transactional overhand due to their nonstandard form, that lowers their value. It's the equivalent of transacting in high entry/exit load mutual funds. Sure, it could be sold to pay for education and upliftment, but it's a one-time deal. kumarn's suggestion of exchanging gold for land is a much better option since it exchanges one article of intrinsic value with another, but it requires the exchange of substantial amounts of gold to be useful.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by RamaY »

taking this OT thread.

Suraj garu - cleaning up all I can (allows me to Edit). Everything else, please give a helping hand..
Last edited by RamaY on 10 Sep 2013 22:53, edited 3 times in total.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by RamaY »

Suraj wrote:brihaspati: I don't have a lot of time to write in detail, but I don't believe that private gold holdings in ornamental 18K/22K form are very useful for widespread use as latent savings. They incur a transactional overhand due to their nonstandard form, that lowers their value. It's the equivalent of transacting in high entry/exit load mutual funds. Sure, it could be sold to pay for education and upliftment, but it's a one-time deal. kumarn's suggestion of exchanging gold for land is a much better option since it exchanges one article of intrinsic value with another, but it requires the exchange of substantial amounts of gold to be useful.
Whose land, which Land?
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Vadivel »

RamaY wrote:
Theo_Fidel wrote:BTW I have been baffled by that too. The same GoI afsar types who screwed around in India, works his butt off in USA. What’s with that? We need to transfer that hindu work ethic to India.
Hindu work ethic was same everywhere. Last time when they had a Hindu govt, India contributed to 30% of world GDP. By the time Islamics and Christians are done with it, India ended up at 3% od world GDP. Current (sic) Secular dispensation couldn't take it beyond 6%.
You want economic, social and human progress? Elect Hindu political dispensation.
It is pure math and common sense.
You can't compare the present day work ethics with 1000 years ago. Besides we where a monopoly then. We survived longer as a civilization utilizing the resources which was abundant for trading(which is the reason we got invaded et yadi), work ethic might have played a role but not that high, we where the only high productive state at that period of time except china.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by RamaY »

Pls visit OT thread for real gyan...
Last edited by RamaY on 10 Sep 2013 22:54, edited 2 times in total.
Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

There is no evidence that India of say the 12th century was more productive than the rest of the world. We had a large population proportion that is all. When the rest of the world joined the machine age and increased productivity we remained behind. This made us vulnerable to invasion and foreign subjugation upon which the british forcefully restricted our ability to upgrade our skills. If we want to join the high productive west we have to do what they have done. There are no answers in the 12th century.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Vadivel »

^ long-survived, productive etc also come from a civilization's work ethic, not from some maniac prophet.

Where did western supremacy, wealth and productivity came from? Hardwork and work ethic?
Please no straw man. We are are discussing about work ethic/productivity here.

The existing Indian work ethic is right now a mix of socialistic/semi-preindustrial revolution standards. Not aiming for a higher workmanship or productivity. For even simple tasks to get done, you need to have multiple follow-ups, check multiple times the output etc where a similar soko/jap worker will not need that level of supervision and inputs. I am talking about skilled work here with all the process and stuff in place.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

Theo: it wasn't merely the population that made the difference. It's the fact that we produced a lot of things of value in that time - spices and textiles being the most important. The drain of gold to India was a source of much angst from as far ago as the Roman era. Gaining control over the trade and accumulated wealth was what led first the Turko-Mongols and subsequently the Europeans here.

There remain limited lessons from then for today - to enhance and utilize our skills and labour arbitrage to produce things of value substantially in excess of the need to consume from abroad. We have forgotten our mercantile past.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by member_27444 »

Law and order and work ethic are strongly related.
Our nation is still following 16 th century EIC ways.
Look at the work ethic of a non elected PM who loses files in his office.
Equity empowerment and upholding value system based on integrity is missing.

I don't see the full potential of India being realized in the next 50 years at least. By then I will be history
:)
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Re: Indian Economy - News & Discussion 27 May 2012

Post by harbans »

Doles, NREGA, FSB, Freebies galore..hey you seen nothing yet: Read in Full :evil:
Under the new law, there are a series of steps that a land acquisition process has to follow. From the initial social impact assessment (SIA), which has a time limit of six months, to the final award of possession of land by the collector, an estimated 50 months, or roughly four years will pass. From an economic perspective, the 18-24 months needed to possess land under the older law was thought to be a major weakness. This was something the new law was expected to resolve. Instead, an estimate by PRS Legislative Research shows that it will double this time required to 50 months. This is a conservative estimate and does not include the possibility of extensions. For example, no time limit has been specified for the examination of the land acquisition proposal and SIA by a government. Then, the time from the preliminary notification to the survey of rehabilitation and resettlement will be specified by rules made under the law. It needs no elaboration on the havoc time overruns can play with any project’s financial and economic viability.
A Law that locks Industry out of Land
member_20317
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Re: Indian Economy - News & Discussion 27 May 2012

Post by member_20317 »

harbans ji, the requirements with respect to land unlocking were something else. The requirement was for tightening the administrative structure supporting land acquisitions and consolidations instead we got this. Such rank nonsense.

The only reason I suspect BJP supported this bill is because they themselves could be preparing to use this law as a casus belli against their opponents. ~29% seats that NDA in the present lok sabha has, does not count for much in any case.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by vishvak »

It would be interesting to note improvement of productivity and progress of technology all over the world when Arabs and then Europeans were ruling the seas over centuries.

Not sure of productivity increase before industrial revolution in Europe though guns were perhaps first to be mass produced even before industrial revolution.

The most celebrated industrial revolution occurred during barbaric colonialism as Europeans took the whole credit only!

During and post revolution world over major powers switched over to gold. India was under colonial rule - along with shifting of industries explicitly to Europe - very productive and revolutionary of Europe here! Gold from India was looted and kept in london at the time it was default currency during industrial revolution.

Indian industrialists asked for the gold of Indians back but that was denied by productive and industrial brutish. This was all very explicit.

Post independence the common currency was dollar already. Which only US can print. The tech is held by productive and industrialized people under regime of patents.

Dilli billis have not yet invested much in oil and natural gas extraction even when currency is not gold but paper.

There are many monopolies and patent regimes in tech sector, for example in oil and natural gas sector - international multinational oil giants indulge in dubious policies for decades - such as dual pricing policy. That is not part of productive behaviour but still it does increase productivity and profits without doing anything extra!

Dilli billis have not even put complaints against dubious pricing regimes in WTO.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by member_20317 »

vishwak bhai,

All this industrial revolution-wewolution could just as much be a polishing off of the imperialistic barbarism as some magical thing. Mostly you will hear this nonsense only from the same set of people who keep complaining about 'wrong social attitude'. Utter drivel.

Japs came so close to kicking the west in the Victorian part of their anatomy, at least twice, Pre-WW-2 and 80s and both times it was Japanese inability to own an empire that got them to lose.

The whole of Urope that used to pride itself for its productivity lost it to US, because of their empire building failures and the Umrikhans who gained it from Urope, gained it only because of their new approach to empire building.

No non-imperial country today has any semblance of productivity and all the productivity-shroductivity is concentrated either in countries with imperialistic tendencies or their vassal states (which implies imperialism only). The only countries that have post WW-2 seen productivity increases are the ones who have protected themselves well from imperialistic tendencies eg. China & India. The correlation is just too much, in everybody's face, to be denied and no amount of anecdotal evidence can falsify it.

If i remember well B ji and perhaps even one or two other members had posted on this aspect in one of the history related threads. So unless you want the history buffs pouring water over this rave party you either come up with some evidence or some engineering proper.

We have had all kinds of businessmen here in India at varying levels of business cycles. Entrepreneurs are crossing the river as they reach it. If they never reach it they don't cross it.

It is but rational that the first expansion stage be concentrated on the low lying fruits. The heavily centralized PSU structure lead by enlightened coconuts, tried to take that route. The IT-vity lead structure did actually take that route with very good results. Only difference between the earlier guys and later ones was that the later ones had freedom of action. The telecom sector did that till our mai-baaps decided to import everything. The services sector took that route and the efficiency of IT expenses of some of the companies in this sector is far better then their Gora MNC peer group. Hell all that had to be achieved by the marketing chains was done by the private retailers - desi lalas all. Now we are told that the desi lala cannot be relied upon and we must import advanced technology for retail business.
Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

Suraj,

The claim was...
.. we were the only highly productive society.
This is not true is it.

It is a good thing to produce luxuries in exchange for gold, but I don't think we should be doing that now. Manufactured goods or even services have a much higher skill level and more value add, leading to productivity and more wealth. It could be argued that the obsession with luxuries let to fatal financial errors like building the Taj Mahal which nearly bankrupted the people during this critical industrialization period.

The is little or no record of any government in India building a road or a modern navy or a school or a modern university or even a dramatically improving irrigation in the period before the british got here. The one exception could be the GT road of Sher Shah. So obviously the gold being received was being squandered. Not dissimilar to how the Spanish squandered their conquistador wealth.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by RamaY »

Pls visit OT thread for real gyan
Last edited by RamaY on 10 Sep 2013 22:55, edited 4 times in total.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Jaspreet »

Self deleted per Mod's request.
Sorry about that.
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Re: Indian Economy - News & Discussion 27 May 2012

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deleted to comply with mod instructions.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by svinayak »

Nonsense is being peddled as good and correct information
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Re: Indian Economy - News & Discussion 27 May 2012

Post by RamaY »

YamaR was here...
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Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

OK after all the rolling smilies can you show me a modern university built/funded in India just before british by a government here? Or a modern road even up to the roman standard of 2000 years ago. Keep in mind even the GT road was a gravel unimproved road.

Nalanda was much before the british wasn't it. I'm taking about the period just before the british got here, the industrialization start period. In any case nalanda had been destroyed a long time earlier right.

The irrigation in India was established much much earlier. Again in the industrialization window period what was being modernized.

If we had a modern navy it did not survive long against the western navies.

The british were nasty colonials but we were not industrializing when they got here or at least not fast enough to resist is the limited point I’m making. There is not a lot of evidence that we were much more productive than the rest of the world on per capita.
Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

What proof, you havn't posted anything to counter the argument other than claiming I support the british. What kind of strawman is this.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

Folks, please clean up your posts. I'll give you 24hrs before warnings are assigned for namecalling ('Mr.Ostrich' ?) and tagteaming on trolling.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

Theo_Fidel wrote:OK after all the rolling smilies can you show me a modern university built/funded in India just before british by a government here? Or a modern road even up to the roman standard of 2000 years ago. Keep in mind even the GT road was a gravel unimproved road.

Nalanda was much before the british wasn't it. I'm taking about the period just before the british got here, the industrialization start period. In any case nalanda had been destroyed a long time earlier right.

The irrigation in India was established much much earlier. Again in the industrialization window period what was being modernized.

If we had a modern navy it did not survive long against the western navies.

The british were nasty colonials but we were not industrializing when they got here or at least not fast enough to resist is the limited point I’m making. There is not a lot of evidence that we were much more productive than the rest of the world on per capita.
Hehe.. This is like asking to show "one single standing building" in Berlin in 1945.. :D India was screwed and was standing up again on her feet when she was screwed again by the brits. There no one single beautiful Building (heck even a proper building) left standing in Berlin on 7th May 1945 (and also on 9th May 1945) because Berlin was bombed like crazy by allied forces for couple of years. India was pillaged by Muslims for at least 400-500 years in the "pre-british" time you talk about.

Show me a proper building meeting the architectural and safety criteria of 1945 construction standards in May 1945 central-Berlin and I will show you a 6-lane cement-concrete national Highway from Pune to Peshawar built and operated by Hindus in 1750s.
Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

Certainly you could lay a lot of the blame on the muslim rulers. But for what ever reason our industrialization was not moving forward fast enough at that start period. We should not assume that ours was more highly productive society in that particular period. We were probably somewhere in the middle of pack and the entire pack was clustered together. No doubt India gold/plunder helped fund the burst of industrialization in the west.

I just wish that gold had triggered industrialization here instead.

Atri,

During this period 16 century or so, the renaissance was in full flow in the west. Huge and influential universities from oxford, Cambridge, berlin university, Bolgna, Paris, Heidelberg, Padua, etc were attempting to build scientific knowledge. Newtons Principia was being compiled and prepared for publishing, the nature of light was being explored, Kepler was plotting the stars and planets, etc.

We were not keeping up.

This was also the time the first modern roads and bridges were being laid across Europe, the first sewer system built. From being just behind/even with us they went ahead, we have been trying to catch up ever since.
-------------------------------------

Again the Meluha folks were long gone by the time the british had got here. We have not preserved their technology and did not remember any of it.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by member_27444 »

One must understand before the British Arrival India was ruled by Islamic hordes
Who perfected the art ( and science) of destroying educational institutions in Alexandria and used that knowledge ok ignorance to do the same to Indian institutions.

The learning mode and teaching mode then turned into to oral ok spoken methods of teaching through completely autonomous schools. These are now called regional engineering colleges or deemed universities. Now this encyclopedia mobilica's of Indian students unlike Taliban ( so called students but only taught one subject called search and destroy civilization. heard of Bamian Buddha? he was sitting target standing tall in the caves minding his own business of meditating was blown out of meditation some call it mind blowing )are like moving aka mobile knowledge missile launchers ok education launchers.
Hope the clarifies inspite of my trying to confuse. ok called scrambling or encryption

The destruction of teaching and imparting vocational trades became limited to generating food, clothing
and construction of simple abodes. Who wants to acquire wealth when there is no safety or protection from unlawful looters.

The economy stagnated to a great extent except for royal patronage ....



Added later
In 642 AD, Alexandria was captured by the Muslim army of Amr ibn al `Aas. Several later Arabic sources describe the library's destruction by the order of Caliph Omar[32][33] Bar-Hebraeus, writing in the 13th century, quotes Omar as saying "If those books are in agreement with the Quran, we have no need of them; and if these are opposed to the Quran, destroy them."[34] Later scholars are skeptical of these stories, given the range of time that had passed before they were written down and the political motivations of the various writers.
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Theo_Fidel

Re: Indian Economy - News & Discussion 27 May 2012

Post by Theo_Fidel »

The alexandrian library was actually destroyed by a crusader IIRC. That is how primitive and behind the west was.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

Theo_Fidel wrote:Certainly you could lay a lot of the blame on the muslim rulers. But for what ever reason our industrialization was not moving forward fast enough at that start period. We should not assume that ours was more highly productive society in that particular period. We were probably somewhere in the middle of pack and the entire pack was clustered together. No doubt India gold/plunder helped fund the burst of industrialization in the west.

I just wish that gold had triggered industrialization here instead.

Atri,

During this period 16 century or so, the renaissance was in full flow in the west. Huge and influential universities from oxford, Cambridge, berlin university, Bolgna, Paris, Heidelberg, Padua, etc were attempting to build scientific knowledge. Newtons Principia was being compiled and prepared for publishing, the nature of light was being explored, Kepler was plotting the stars and planets, etc.

We were not keeping up.

This was also the time the first modern roads and bridges were being laid across Europe, the first sewer system built. From being just behind/even with us they went ahead, we have been trying to catch up ever since.
-------------------------------------

Again the Meluha folks were long gone by the time the british had got here. We have not preserved their technology and did not remember any of it.
Theo ji,

This is exactly what I said. There was no total war going on in parts where Oxford, Cambridge, Berlin Universities etc were coming up. You need to see things in perspective.

Furthermore, What do you mean university? To certain degree, what matters is the degree of research which goes on. All the discoveries in Mathematics by Kerala mathematicians of 13th and 14th century was from universities located in chain of gurukulas. If you are looking for big huge buildings only, then places of learning in India from 9th and 10th century are referred to as "schools" by western historiographers. I recommend you to visit Mandu. The huge University of Mandu by Raja Bhoj (was later converted to Madrasa and palace and ram temple converted to mosque after desecration) is much larger than the Oxford University building when Newton was reinventing calculus. Such huge places of learning are deemed "sanskrit schools" by our eminent historians and archaeologists. If a structure half the size of Mandu's university were present in 10th century England, it would have been glorified as beginnings of Oxford University onlee. So please have your viveka-buddhi on.

BTW, calculus too (the beginnings) was discovered in India which most probably traveled to EU by Jesuit missionaries. but that is another story. the places where these things were discovered were ashramas and gurukulas perhaps made up of bamboo OR temples (which still exist). Hindu Temples acted as libraries, schools and universities, structured investment vehicles, artisan schools along with obvious religious purpose and town-hall. So please look things in perspective. couple of centuries before Newton, Calculus was being invented, speed of light was being calculated (Read Saayana's commentary on Rigveda. He states speed of light as 300,000 km/s i.e 2200 Yojanas in half-nimisha) along with Bhaskara's theories on planetary motion and other laws of mathematics and physics. Not talking about ancient India when Takshshila, Nalanda and others were running in full glory. Talking 14th century onlee.

As far as industrial revolution is concerned, that is more driven by market. this is the difference between science and technology. Why indulge in centralized mass-production when decentralized local production+marketing+consumption is possible everywhere of almost all commodities (luxury and essential)? After all, this is what the futuristic business models are looking into these days. Indians achieved this much earlier. The whole Graama-Vyavastha based economy makes centralized mass-production of goods redundant. Due to high investments, the owners cannot afford that demand goes down so all kind of politicking is required to keep the demand high. This is when Vaishya starts interfering in state-matters thus giving rise to aasurik militari-industrial complex.

I am still not at all in favor of big huge factories screwing up the environment. If we want dharmik (today's fashionable partial synonym for dharma is sustainability) economy, the highway is return to India's village-centric economy; make a list of all those commodities and services which are essential and/or luxury and which can be scaled down and manufactured locally to meet local demand; and produce and sell them that way using as many locally available raw-materials as possible. High standard of living is achievable using this model.

Big-huge industries indulging in mass-production of commodities which can be locally made and consumed is hardly a sign of progress. I understand for building air-craft carriers or oil-tankers, you need bigger installations - such installations were present in India (in Hindu India, not Islamic India). The elaborate industry of shipbuilding which hd vanished from Hindu-control after fall of Zamorin kings of Kerala was reconstituted and reinitiated by Shivaji in 17th century (1653 to be precise). The printing press was also established Shivaji (many historians claim this, although I am personally yet to see an original reference) along with ordinance factories. Shivaji identified 18 industries which are essential for war-effort (including animal husbandry) and started cultivating them all throughout Maratha territory. One of their achievements was refinement of Deccani breed of horse which fueled their expansion in region where superior arabian and central asian horses could not last longer.

You cannot have james watts perfecting steam engine in region where Aurangzeb is pillaging and converting and looting with million men for 45-50 years. Whatever things I have mentioned earlier happened "in spite" of Aurangzeb doing what he did best. And this is just one region of India which is not known for being soft and creative or artistic or poetic (at least not since 1300s). So the whole business model around industrialization is over-hyped. That is NOT the only way forward and people even in west are realizing it now. It appears appealing because you are not seeing things in perspective and narrowing your span of inquiry. Broaden it and you will see an alternative model which lasted much longer and was much more sustainable.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

Theo_Fidel wrote:Suraj,
The claim was...
.. we were the only highly productive society.
This is not true is it.
I don't quite agree with you on this either, but my previous post addressed the following statement:
We had a large population proportion that is all.
China and Europe had populations comparable or larger than ours at various points. Our economic strength lay in mastery over the output of a number of products of substantial value during that time, and our position as a mercantile exporter. The Chinese were a competitor in some areas, like textiles, though their products were significantly different from ours, and both had a huge market in Europe and the Middle East.

Going back to what you just stated, I disagree with that too. The fact that we were draining European gold for centuries suggests that we were in fact more productive than them as measured in net output, since they were running a deficit paid for in gold in order to pay down what we extracted and processed (spices) or produced (e.g. textiles) sold them.

Had they produced and exported enough things of value to us in kind instead of just mint gold, then I would agree that there's not enough data to suggest who was more productive, but based on trade pattern, both China and India generated enough exports to lead them to come to Asia to control that trade themselves. When two parties vigorously exchange goods and services that their individually better at, that would suggest similar productivity levels, but when one essentially drains its treasuries to pay for the goods of another, it's the latter that's more productive. That logic is the case even today, in general terms.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

deleted
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

Please stop turning this into the history thread.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

Suraj wrote:Please stop turning this into the history thread.
Speaking about Indian economic model, Suraj garu - sustainability and local production of most of the essential and luxury commodities against their mass-production in huge factories. Not historical discussion apart only few examples to make a point.

Indian aarthik model exists and is sustainable and that is where the world is trying to head (without calling it iNdian model, of course).

Future is not in doing what west did in 19th century (which china tried and is trying).. future and victory of dharma is in doing what we were doing until our fall, but adjusted to modern and future needs and compulsions. If every village can produce enough electricity to meet its requirements locally, (using any means available locally , be it biomass, solar, wind, hydro, coal, tidal, geothermal whatever), whole power-deficit will vanish. Big-huge grids are essential for heavy industry only. One cannot miniaturize blast-furnace, I understand. But there are so many chemical, biological, textile, mechanical, FMCG, pharmaceutical and other industries which can be easily miniaturized (today or in near future) so that village capital is used for village by villagers without not many having the need to leave their native settings. Imagine how happy theo ji would be if he never has to leave or consume anything which is made out of his village in S.TN? You may say, I'm a dreamer, but I am not the only one....
Suraj
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

It's not about being a dreamer. That argument completely ignores the demonstrated benefits of economies of scale. It's one thing to honor our great trading past. It's quite another to romanticize rural subsistence life and derive wrong lessons from them.

At a personal level, in that time life was not a very pretty experience. What made us collectively powerful was our ability to extract useful products from the land, like spices, or produce items like textiles in substantial volume.

Mechanization, urbanization and utilizing economies of scale have shown themselves to generate substantial growth since the dawn of industrialization. It is pointless to get ahead of yourself worrying about sustainability of growth before you've even grown enough for the population to essentially make subsistence living a memory. We're nowhere near that yet - it will take 10-20 years of rapid growth before we think of that.
Atri
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

Not talking about subsistence economy at all, Suraj ji.. I have said many products will need centralized manufacturing hubs. But many others can be easily manufactured locally as well. Consider FMCG industry for example. everything that is sold as FMCG can be easily made in small scale factories catering a village OR group of village. With multiple such production facilities in multiple places, market and profits will find an equilibrium only. The ideal capitalism with no monopoly and market full of competition only, thus bringing best products to consumers at cheaper price.

there are many such sectors. If ongoing research trends are observed, in the time frame you speak, it will be possible to make villages self-sustained in power-requirements. All it requires is time, research and some deal of public counselling. Why cook rice on gas stoves or induction stoves when it can be done in solar-cooker, for example. making solar cookers available at cheaper prices (which can be ensured if they are made and sold locally), dependence on gas OR electricity can be reduced that much. Solar-water heaters are getting popular these days, it can be popularized elsewhere as well. Same thing about Biogas. It will require some degree of public counselling. this is how Indic capital will be generated over the period of time. You know why many gobar-gas plants failed to take off? because well-off village people found it "demeaning" to clean the fermented gobar from the biogas plant because it is work of lower-castes. Those who could man up and clean their own $hite, they are independent of gas-cylinders only. There are community gobar-gas plants which are producing and distributing the gas locally. The participants get gas in exchange of their "contributions" (in terms of biomass - night-soil, animal waste and other biomass). This "gas-bank" is making the life of those "share-holders" free of most of the things happening in fuel-market. Many places have "water-bank".

And this is not some tribal villages living off on subsistence economy. These are villages of exporters of finished products (mostly of agricultural nature, but has potential for other things as well). I have personally been to many such villages.

There are many sectors like this one. I can give you more examples but that will require some thinking and time. But I think I am able to convey my over all drift. This is not romanticization of past. this is where the research of the world (and funding agencies) are heading towards, at least for next 20-25 years. If global economy heads south in next 4-5 years, all the more reason to walk that way.

Urbanization is different from mechanization. Urbanization is not really essential in Indian set up. Mechanization and consumer economies based on smaller living groups are possible. Urbanization is essential in European climate. Urbanization drives in India have failed spectacularly. If you call Delhi and Mumbai as "success stories" I beg to differ, having lived in Mumbai all my life. It is monumental failure and is ugly and grotesque which has not only killed the environment but also dharma. What makes it worse is determination of Manmohan to uproot farmers from villages and displace them, thereby forcing them to find their living in non-agricultural sector. While idea is correct, the implementation is wrong. Farmers who have left agriculture should be made available with income source in their villages only. This is possible from what I am saying in posts above and this one. Make them available capital so that they can start their business-ventures and become self-organized in their native environment, instead of coming to a ugly city to live in slums and making it uglier even more.

This is one monumental Q-tiyapa which has been going on in India and is making her ugly and as a sentimental romantic perhaps, but it pains me immensely to see my mother being turned into a grotesque and ugly manthara like hag due ill-advised implementation of reforms.
Last edited by Atri on 10 Sep 2013 22:08, edited 1 time in total.
svinayak
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Re: Indian Economy - News & Discussion 27 May 2012

Post by svinayak »

Scholars have spent years studying the history and that period about the economy in the world
http://www.amazon.com/Civilization-Capi ... 0520081145

Fernand Braudel is probably the most distinguished historian associated with the Annales School founded by Lucien Febvre and Marc Bloch. This Annales method attempted to revamp historical inquiry by enlarging the scope of analysis to include disparate places and through different times. Annalists were not content to research political institutions; they wanted to delve deeper into the past, to look at social and economic factors in order to reach a deeper, more comprehensive understanding of humanity. In order to be so inclusive, the Annalists looked at historical forces over great arcs of time, recognizing that many human factors change slowly and are not capable of discovery in snapshots of time. The title of this book, "The Structures of Everyday Life: Civilization and Capitalism, 15th to the 18th Century" captures well these two central tenets of the Annales School. "The Structures of Everyday Life" is the first volume in a three volume series.
----------------------------

So the poster who is trying to question the Indian history is only trying to patronize the Indians.

http://eh.net/node/2732
http://www.scribd.com/doc/98648143/Brau ... Capitalism
Last edited by svinayak on 10 Sep 2013 22:18, edited 1 time in total.
member_27444
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Re: Indian Economy - News & Discussion 27 May 2012

Post by member_27444 »

The Gandhian model at village level still holds of economic improvement in India.

Now it is coming in big time in US where it is fashionable with buy locally produced produce, support mom & pop stores! no to walmart. We give back to community ex target stores etc...

So Atri ji talking about village centric development which we have forgotten.

Hub and spoke is what Gandhi ji spoke as well but did not use jargon
Suraj
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Suraj »

everything that is sold as FMCG can be easily made in small scale factories catering a village OR group of village.
You want to build cookers, refridgerators, TVs etc in small scale villages ? Even if you just want to sell bottles of shampoo, what is the purpose of having 1000s of tiny bottling plants all over the country ? It's FAR more efficient to produce this in large plants and distribute it.
The ideal capitalism with no monopoly and market full of competition only, thus bringing best products to consumers at cheaper price.
That's not what you'll get by duplicating capital around so much and lacking large corporations who have the accumulated capital and technology base. What you'll get is a collection of jugaad products of little technological advancement.
If you call Delhi and Mumbai as "success stories" I beg to differ, having lived in Mumbai all my life.
Of course it's a success! I've lived in Mumbai for years and have lots of family there still. Have you seen the number of people who land up in Dadar station and elsewhere every day ? Mumbai has a net in migration of something like 1000/day. Ditto for New Delhi. People voted for urbanization with their feet.

The reason why Indian cities are not as modern as elsewhere lies in the fact that cities subsidize the hinterland with their economic output, but lack the demographic strength to vote for themselves enough of the money to invest in their development. In the limited case where the city is autonomous without a large rural catchment to subsidize, e.g. New Delhi, the result is telling. Delhi looks way more advanced than any other city in India today, because they're pouring much more money into it.

If you want a city to look like Shanghai, there's no substitute for investing as much as they did there - the bill is north of $100 billion, but the result is a modern megacity that generates far more in output each year.

Suffice to say that I don't agree with the substance of your post at all, and neither do all the millions streaming into Indian cities, regardless of their condition. There's *never* been a trend of de-urbanization in independent India, and if anything, urbanization will accelerate as we approach the critical 50:50 urban:rural distribution.

Folks, please stop quoting western moves towards local sourcing. These are trendy niches whose aggregate economic volume is dwarfed by the output of the underlying industrial system. Applying trendy post-industrial solutions to what is effectively a pre-industrial poor country is not an answer to the question of economic development.
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Re: Indian Economy - News & Discussion 27 May 2012

Post by Atri »

Suraj wrote:Suffice to say that I don't agree with the substance of your post at all, and neither do all the millions streaming into Indian cities, regardless of their condition. There's *never* been a trend of de-urbanization in independent India, and if anything, urbanization will accelerate as we approach the critical 50:50 urban:rural distribution.
Because Indians were never introduced to this model that I am talking about. Here is one example in limited context and we see the overwhelming response this man is receiving in India. Check out the response of farmers to this man today. and no, I am not talking politics, I mean not to. What you say is exactly what Nehruvian model which was based on Soviet model, told Indians. Why do you think there was hardly any migration to Mumbai from Western MH itself? It is because of cooperative banks and factories and other employment opportunities to small-land holding farmers who's land was usurped by the Sugar-lobby I spoke of in NaMo thread.. It is only after 2004-05 that migration to Mumbai-Pune strarted from western MH. Intra-state migration of people to Mumbai-Pune happened only from Vidarbha or Marathwada OR khandesh or Konkan earlier. Just one more example.

Rural growth boosts reverse migration
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