Who loses in this scheme?RamaY wrote:First Post on LIC Downgrading
Is this due to push from govt(increasing imports from pakis) or market driven?Total exports to India between July-September, 2011, stood at $73.871 million. (Pakistan's financial year commences from July 1.)
This is against exports of $71.825 million during the same period of previous year, according to data released today by the Commerce Ministry here.
Major growth was witnessed in exports of construction materials, including cement, which rose from $5.717 million to $10.850 million, a growth of 89.9 per cent.
This was followed by the export of fruits and fruit preparations, which increased from $19.076 million to $22.425 million , a growth of 17.6 per cent.
Another point of friction is that Japanese staff often supersede Indian staff and go on to get the top posts. Reason offered is that communication with HQ in Japan needs to happen in Japanese and hence the Japanese staff can do this better. Not sure if this is nepotism/chauvinism mixed into one or just the way the Japanese play the game.Marten wrote:Note: This is my opinion and does not apply to manufacturing, only to services (inc. IT, Telecom, Infra).Singha wrote:hopefully the Indo-Japanese co-op thing will be like human-elf alliance in LOTR. elfs have high tech but very poor manpower which is declining.
let them provide the work and technology - we will provide the foot soldiers, centurions and horsemen.
together this alliance can take on the sauron's tower glowing with lights across the dark northern steppe.
Unfortunately, the Japanese do not trust anyone, and do not get the Indian style of functioning (where it gets done, but you mostly cannot expect or ask for realistic updates etc. and of course NO one wants to get in by 8.00 sharp at their desks.) Most Japanese earn twice their income through overtime (which is from 5.15 to 8.00pm). This is not available in India, so the underestimation of effort always reflects in people having to put in much later hours at the same benchmarked salaries that the Japanese are willing to pay (given that they benchmark against the non-OT pay). The resulting friction has derailed a few giants and has brought some software acquisitions to their knees.
The acceptance of India's culture by the Japanese is required first and foremost, since the almighty knows India can never conform to Japanese culture. The other thing of controlling all aspects of the business via Japanese rubber-stamps will at some point have to stop; else they will continue wondering why Indians switch jobs so soon and speak back so often! There are major cultural differences that impact the current alliances and unless there is more clarity on what folks expect and some acceptance of realistic targets, the Japanese are not going to enjoy the benefits of cheaper labour without some pain.
The capital used to buy ONGC stock could have been more productively used by LIC lending it to upcoming industrial ventures etc. Once again, government playing with middle class money to appease other sections of society.vera_k wrote:Who loses in this scheme?RamaY wrote:First Post on LIC Downgrading
If investors lose, won't the decision makers in LIC be liable for taking obviously poor decisions? And if this was done on instructions from the Finance Ministry, some of those officials can be prosecuted too. This is the next round of scams that will end up in the courts I think.
chola wrote: We do not have world class cellphone, auto or auto parts industries. If we do we would not be running an account deficit. Those industries would be competitive on the world's stage like Japan, Taiwan and South Korea who maintain massive forex surpluses on exactly those industries.
This is why using a depreciated currency is important. Japan, Taiwan and South Korea all developed on a depreciated currency until the day their industries have caught up and were able to innovate.
From experience with SoKo in Chennai I have to say they are a much better fit. After some early unpleasantness. Somehow the Korea/Tamil fit has been excellent. Culturally we are very similar.Singha wrote:still, they finally seem willing to play ball at the macro level given the lack of other options and Cheena pushing them around. Soko is another capital rich country whose manufacturing could benefit from macro level investments and policies by Seoul in favour of India.
hat is the sort of scale even that cheap plastic toy requires. That particular toy is being manufactured in the 100 million per year range. When you manufacture at such scale you can invest in the very latest technology and QC process.
Definitely true in some cases .. Let me tell you something about medical equipment manufacturing. We import 70%+ of high end equipment.. In my dads hospital hardly 15-20% of the high end stuff is India manufactured.ndian manufacturing is too fragmented to deal with such volume. Hence is unable to generate the technology required.
my daughter's best friend here in massa land is a korean girl.Theo_Fidel wrote:From experience with SoKo in Chennai I have to say they are a much better fit. After some early unpleasantness. Somehow the Korea/Tamil fit has been excellent. Culturally we are very similar.Singha wrote:still, they finally seem willing to play ball at the macro level given the lack of other options and Cheena pushing them around. Soko is another capital rich country whose manufacturing could benefit from macro level investments and policies by Seoul in favour of India.
The first thing is the SoKo's have settled in Chennai family and all. There is about 5000 of them in Chennai and they have their own little colony. Their kids go to school here and several Korean restaurants have now opened. Essentially they have come to stay. And Tamils have welcomed them. Both have very similar work ethics and are concerned about being disrespected. Saving face is important for both. Both will work like dogs to save face and earn respect. Both Maha & Andhra have been trying to steal the SoKo groups but there is a reluctance to move from Chennai.
There is still a problem with upper management promotion but a lot more Indians now work high up in Korean companies. It helps that the Chennai portion is often the most profitable part of the Korean conglomerate.
someone who has had more interaction and decoded their culture might want to update the mob in the L&M thread on this issue.Theo_Fidel wrote:From experience with SoKo in Chennai I have to say they are a much better fit. After some early unpleasantness. Somehow the Korea/Tamil fit has been excellent. Culturally we are very similar.Singha wrote:still, they finally seem willing to play ball at the macro level given the lack of other options and Cheena pushing them around. Soko is another capital rich country whose manufacturing could benefit from macro level investments and policies by Seoul in favour of India.
The first thing is the SoKo's have settled in Chennai family and all. There is about 5000 of them in Chennai and they have their own little colony. Their kids go to school here and several Korean restaurants have now opened. Essentially they have come to stay. And Tamils have welcomed them. Both have very similar work ethics and are concerned about being disrespected. Saving face is important for both. Both will work like dogs to save face and earn respect. Both Maha & Andhra have been trying to steal the SoKo groups but there is a reluctance to move from Chennai.
There is still a problem with upper management promotion but a lot more Indians now work high up in Korean companies. It helps that the Chennai portion is often the most profitable part of the Korean conglomerate.
Not to mention that elfs enjoy a longer life span than most and elvish is a hard language. Now where is Aragorn by the way ? It is high time he shows up.Gondor needs him.Singha wrote:hopefully the Indo-Japanese co-op thing will be like human-elf alliance in LOTR. elfs have high tech but very poor manpower which is declining.
let them provide the work and technology - we will provide the foot soldiers, centurions and horsemen.
together this alliance can take on the sauron's tower glowing with lights across the dark northern steppe.
Singha jiSingha wrote:khan actually has its own internal underclass of 100 mil to exploit for low cost manufacturing first.
So Govt will now try to negotiate the bond holders with swap of even longer term bonds thus deferring immediate payouts?Vipul wrote:Foreign claims on India — $137 billion due in 1 year.
According to the Bank for International Settlements' (BIS) preliminary data for December 2011, international claims on India, payable within the next one year, are $137 billion.. This is 60 per cent of the total claims of overseas banks on India in non-rupee currencies. This can eat up one half of the $293-billion foreign exchange reserves that India now has. .
This is not correct alll our problems are not because of Mamta. Problem is less with UPA-II than UPA-1. UPA-1 inherited a strong economy and then engaged in wholesale loot through 2g, coal scam etc etc. but through MNERGA, Agri loan wrtie off bought the voters. Now chickens are coming to roost thats allRoperia wrote:Crisis in UPA-II, ripple in the economy, time to act or quit!
One can always find comfort in someone else being worse off. Although the rate of growth of the Indian economy has fallen from 8.4 per cent in 2010-2011 to 6.9 per cent in 2011-2012, I often hear defenders of the Government say that at least we are growing, unlike the advanced economies. This is self-deception. We must never forget that India, despite our growing band of billionaires, is a desperately poor country where around 400 million live on less than the Government-defined poverty line of Rs.32 per day. India needs a double-digit rate of growth for decades to pull out of the poverty trap. Whatever spin the Government gives, there is little doubt that the economy is in serious trouble. The rupee fell to an all-time low of Rs.54.46 against the dollar on May 16. The Index for Industrial Production in March showed a decline of 3.5 per cent. The Sensex has fallen to under 16,000. Finance Minister Pranab Mukherjee insists that the political crisis in Greece is responsible for the decline in the rupee and Sensex, but the real cause of the economy's plight lies at home. The culprit is the Government. It has halted the engine of India's growth-the private sector.
Policy paralysis was the story of 2011. Bureaucrats were scared of taking decisions for fear of incurring the wrath of an investigating agency. There were great hopes from the Union Budget. Unfortunately, it culminated in damaging attacks on the private sector. The retrospective tax amendment to overturn Vodafone's victory in the Supreme Court was a blot. The decision to impose General Anti-Avoidance Rules (GAAR) on foreign investors was equally controversial, not because it was clamping down on tax havens, but because it gave too much power to the taxman with which even genuine investors could be harassed. Mercifully, GAAR has been held in abeyance but it still hangs like a Damocles sword. The draconian provision of allowing non-bailable warrants for customs violations is reflective of the big brother attitude of the Government.
In April, the Telecom Regulatory Authority of India (TRAI) announced a series of recommendations which could potentially destroy India's telecom and media industries, both sunrise sectors in the not-so-distant past. For telecom, TRAI suggested an extortionate reserve price for spectrum. On media, the regulator landed a body blow on broadcasters under the guise of promoting digitisation. The notorious institution of carriage fee charged by cable operators from news broadcasters to carry their channels should have been abolished, not legitimised. TRAI has also put a cap on the amount of advertising to be carried per hour. Even the powerful Mukesh Ambani has not been spared by Government. He is in arbitration with the Government over a dispute related to his KG-D6 gas block. Our cover story, written by Deputy Editor Dhiraj Nayyar, analyses how various policy actions by the Government are pushing businessmen to the wall and choking industries which have been key catalysts for growth in the past decade. "Businessmen genuinely believe that this Government is the most anti-business one in the last two decades. They have begun to openly challenge its non-action," says Nayyar.
I have always believed that India has grown in spite of the Government, not because of it. It has grown on the energy, skill and enterprise of the Indian people. Now there is anxiety that we may have reached a point where the stranglehold of the bureaucracy, corruption and the lack of infrastructure is proving too much even for this indomitable spirit. I hope the wellknown image of India Shining does not convert itself into India Declining.l
With a moribund BJP national leadership I doubt they can take advantage of the situation. Petroleum prices will have to be increased which will cause further inflation but people may still go for the TINA factor. The buzz in Delhi circles is of Third front which is probably going to be an even bigger disaster economically given its past record.Singha wrote:but will any of this result in the INC being hit with chappals and thrown out on their ear in the next elections ?
I doubt it
- oppn is fragmented , BJP central leadership more or less does what 10 janpath wants, state units of BJP are not under full control
- loose cannons like Mamata continue to do damage
- SP seems more intent on culturally creating a farsi and urdu speaking caliphate in UP than reviving the fortunes of our biggest state and heartland
- NAC continues to be in place, 10 janpath continues to be supreme decision maker in economic matters
- people in 100s of millions will still vote on basis of caste , ethnic and religion based handouts.
Lot of PE investment is actually assured return debt and plug has been pulled/is being pulled on lot of such investments by PE investors like DE Shaw & Clearwater.Vipul wrote:Foreign claims on India — $137 billion due in 1 year.
A rapidly depreciating rupee, dipping foreign exchange reserves and strong financial links with the Euro Zone are pushing India against the wall. The over 20 per cent depreciation of the rupee against the dollar in the last one year has hugely increased the repayment burden of Indian companies.
According to the Bank for International Settlements' (BIS) preliminary data for December 2011, international claims on India, payable within the next one year, are $137 billion.. This is 60 per cent of the total claims of overseas banks on India in non-rupee currencies. This can eat up one half of the $293-billion foreign exchange reserves that India now has. European banks account for over 40 per cent of India's total foreign dues. At $132 billion, this is twice India's liabilities towards the US.
But leaving out the UK, India's Euro Zone exposure is about $60 billion. That is close to 3.4 per cent of India's GDP. Any full-blown crisis in Greece could spill over to the other European nations, posing a risk of capital flight from India.
The immediate impact of capital flight and the depreciating rupee would be more pressure on domestic liquidity, says Ms Sonal Varma, Executive Director and India Economist at Nomura. That also means a higher risk of interest rates moving upwards.
International claims, other than rupee-denominated ones, include trade credit and other borrowings. The data on international claims from the BIS, roughly tally with the RBI's data on non-rupee external debt.