Indian Economy: News and Discussion (Apr 1 2011)

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sanjeevpunj
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sanjeevpunj » 30 Nov 2011 20:28

The FDI initiative is a deeply considered initiative with the approval of a globally accepted economist, though many think Dr Singh is a passive PM, his economic reforms are not passive.
All along the chain people will benefit,small shop owners,and even farmers.Farmers will be able to sell at competitive prices to a company of their choice, unlike now when they are forced to sell at a price fixed by narrow sighted politicians.Many companies like Walmart and Carrefour entering the scene will ensure a better price for the produce of the farmers. what is needed is a strong farmers' union to fight for the rights of the farmers.This initiative can help the farmers as much as it would help the small shop owners, who can buy their commodities in wholesale and well regulated prices.The experiment of Dr Singh must be given a chance.
@Upendra ji.Think deeper, the idea is not ill-conceived.Today farmers are forced to sell at a fixed price and have no choice about who to sell to.When this idea is implemented,they will be able to sell to a vast range of buyers offering competitive rates.Not just Walmart,there will be many others in the fray, so they will offer to buy farm produce at better prices.Guys like recently Slapped Pawar will not be able to fix onion prices any more, once this moves further.Dr MMS is focussed on growth, the idea is not ill-conceived at all.Think deeper,Sir.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Vipul » 30 Nov 2011 20:39

Check the rediff article quoted above on how farmers who are supposed to get higher prices end up giving up on farming due to the trade pactices adopted by the big retailers. Note that this has happened not only in America/Western Europe but also in South American countries.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sanjeevpunj » 30 Nov 2011 20:55

So it does boil down to bad trade practices, isnt it.That is where the fight comes in against trade practices that encourage corruption.Time to call for passing the Jan Lok Pal Bill after this, to ensure that corrupt practices are not allowed to sabotage the initiative.In principle,the initiative is very logical, and it has to be tested in practical reality, unless it is given a chance, we cannot assume that it is a failed attempt.We should be learning from the mistakes made by USA/Western Europe, and correct our trade practices first.Surely then things would improve.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Upendra » 30 Nov 2011 20:56

sanjeevpunj wrote:@Upendra ji.Think deeper, the idea is not ill-conceived.Today farmers are forced to sell at a fixed price and have no choice about who to sell to.When this idea is implemented,they will be able to sell to a vast range of buyers offering competitive rates.Not just Walmart,there will be many others in the fray, so they will offer to buy farm produce at better prices.Guys like recently Slapped Pawar will not be able to fix onion prices any more, once this moves further.Dr MMS is focussed on growth, the idea is not ill-conceived at all.Think deeper,Sir.


Me thinking deeper wont change the reality, FDI is a poison being sold as panache for our economic ills

From the rediff article viewtopic.php?p=1203815#p1203815
Destruction of farms and farmers
Do the supermarkets really benefit? Since 2006, India has allowed a partial opening up of the retail sector. Has these retail units benefited the Indian farmers and for that the consumers? The answer is no.

Even in Latin American countries, including Brazil, Argentina, Uruguay and Colombia, where supermarkets, most of them owned by multinational giants, now control 65 to 95 per cent of supermarket sales, farmers have been forced to quit agriculture.


Increased Unemployment
In this eye-opening study, entitled "Wal-Mart and Poverty", the comprehensive study clearly brings out that those American states that had more Wal-Mart stores in 1987, had higher poverty rates by 1999 than the states where fewer stores were set up.

"Equally important, the counties (districts) which built new Wal-Mart stores during the period 1987 to 1998 also had high poverty rates," the report concludes.

Interestingly, increased poverty growth from Wal-Mart operations comes at a time when poverty rates nationally in America were otherwise going down.

Claims by the big supermarkets to be driving economic growth by creating thousands of jobs have been exposed as a sham.

In UK, it has now been shown that supermarket chains like Tesco and Sainsbury have failed to live up to their promise of creating thousands of jobs and thereby driving up the economy.

Big retail does not create additional employment but actually destroys the existing employment. Here is a comparison which should help remove the wool from your eyes.

The Indian retail market is estimated to be around $ 400 billion with more than 120 million retailers and employing over 400 million people.

On the contrary, the US-based giant Wal-Mart, a global leader in big retail, also has a turnover of US $400 billion and employs only 2.1 million people. Which one of these retail systems provides employment is crystal clear.

If you think Wal-mart is here to create employment opportunities you must be living in a fool's paradise. Simply put, they are investing in India to make money.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sanjeevpunj » 30 Nov 2011 21:09

Upendra wrote:Me thinking deeper wont change the reality, FDI is a poison being sold as panache for our economic ills.

Why do you think FDI is poison. Not so.The poison is faulty business practices.That we have to reform.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Upendra » 30 Nov 2011 21:09

sanjeevpunj wrote:So it does boil down to bad trade practices, isnt it.

No, flawed business model supported by bribed politicians which leads to social disintegration. Farmer is at the base of a economic pyramid of a society, hit him hard and economic pyramid starts collapsing. This is what they are trying to achieve in their mad rush to impose a technotronic dictatorship.

sanjeevpunj wrote:Time to call for passing the Jan Lok Pal Bill after this, to ensure that corrupt practices are not allowed to sabotage the initiative.

You are expecting the corrupt to pass an anti-corruption bill?

sanjeevpunj wrote:In principle,the initiative is very logical, and it has to be tested in practical reality, unless it is given a chance, we cannot assume that it is a failed attempt. We should be learning from the mistakes made by USA/Western Europe, and correct our trade practices first.

World over the results are same, allow MNCs into retail sector and see your farm and SME sector being destroyed. It would be wise not to repeat those mistakes.

sanjeevpunj wrote:Surely then things would improve.

Unwarranted optimism.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sanjeevpunj » 30 Nov 2011 21:12

We ought to get farmers to speak on this matter, that would end the debate.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 30 Nov 2011 22:22

The link contains a 80-page EASY TO READ presentation/SLIDES: http://bharatkalyan97.blogspot.com/2011 ... s-for.html on FDI in retail. It was prepared by Shekar Swamy based on his personal views. He is a CEO and visiting Faculty at an University.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 30 Nov 2011 22:37

Abhijeet:
Moralizing? Far from it. Hypocrisy? Probably, I even proactively agreed. We all are hypocrites and elites at some level. Who decides what is wise? Well the people themselves. If the income is Rs1.00, then one spends less than Rs1; spending often more than what one earns is not a sign of wisdom. Do we need to write books on Capitalism and Socialism to see such simple truth? If it is moralizing, so be it. And who is stopping consumers in their decisions? We are talking about the dangers of allowing foreign entities control of parts of our system. Don't tell me you believe Corporations don't control our behavior. Either it is the State or the Corporations.

Singha:
The majority of the NRIs in USA, at least, would be the cream of American society when it comes to disposable income. Of course I am ignoring the Student population. To you some might appear as gatekeeper, to some as Gandalf :-) It is rather cheesy to call us the gatekeepers when this is just a discussion forum and we are giving our opinions. Well I have been a Indian Association meet here, where even NRIs and Indian origin people see India as a destination of business - purely from monetary perspective.

I agree with you, learning the hard way is part of growing up. We did learn something in 1991 crisis, no? Would you recommend all people to get addicted to drugs and come out by themselves? Or would you advocate education on the dangers of drug-addiction before hand or simultaneously? It probably is okay to let your son to touch the candle flame to teach the pain of fire, but is it wise to allow him to touch the gas-stove flame?

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby vera_k » 30 Nov 2011 22:41

Arun Jaitley: Why BJP is opposed to FDI in retail

Brings up 3 points -

1. Unilateral reform without extracting concessions in other areas from US/EU.

2. Sequencing - manufacturing needs a boost such that retailers can source locally.

3. Will need an increase in subsidies to farmers going by current practice in US/EU.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Sudip » 30 Nov 2011 23:01

Vipul wrote:Check the rediff article quoted above on how farmers who are supposed to get higher prices end up giving up on farming due to the trade pactices adopted by the big retailers. Note that this has happened not only in America/Western Europe but also in South American countries.


Farmers giving up on farming. I thought India already suffers from inefficient labor intensive susbsistence based farming. So wouldnt reducing the manpower in farming and making them migrate to other occupations like manufacturing, services be good for the economy in the long run? I thought as the economy of a country matures, the percentage of workforce involved in agriculture reduces so I dont see anything wrong with it.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SBajwa » 30 Nov 2011 23:50

Even in Latin American countries, including Brazil, Argentina, Uruguay and Colombia, where supermarkets, most of them owned by multinational giants, now control 65 to 95 per cent of supermarket sales, farmers have been forced to quit agriculture.


Farmers were forced to quit because they got better things to do!!

when manufacturing competition increased from Germany and Japan in USA people got educated and moved on and innovated other things (plastics, information,etc)

Same way the real problem in India for the 400 million poor farmers is that they have

1. not other option but to sell to government due to minimum guarantee prices. (which are
higher than international market, buying wheat from USA is cheaper than growing in India
and using the same agriculture land to grow better cash crops will make Indian farmers rich overnight).

2. to face too many middle men from farmer to consumer and thus everybody take their cut.

3. Due to small land holdings they cannot move on to other things. (poultry, milk, meat, food processing, etc).

4. Poverty is increasing because land holdings are getting smaller with each generation.

and thus!! any FDI should be welcomed. IT IS GOOD!

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Singha » 01 Dec 2011 00:06

given the political climate, if this measure were passed, I bet hardly any foreign retailer would enter the food sector .... too much chances of getting their stores burned or wrecked by agitated mobs.

but the real problem remains unsolved - our farms are shrinking in size due to overpopulation and next gen educated kids of farmers are no longer that interested in farming....if you drive into rural areas lots of middle aged farmers but seldom any teenager to be seen....FDI or not, this is not going to change, because same is the problem in any farming country.

unless water conservation and irrigation and breeds etc are worked at, things will get tougher for farmers whether desi or bideshi sells his produce.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SBajwa » 01 Dec 2011 00:26

Indian politicians and leftis need to open up their eyes and look around.

Indian Delta is the biggest most fertile and with ample water land mass between Europe and Burma.

Indian delta can grow better things than Wheat and Rice (leave it to USA and China)., India
should only grow Vegetables, Cotton, fruits and related industries gear to become #1 in horticulture.

The vegetables can be bartered to Arabians for Oil.
The cotton can be used to revive the manufacturing as well as export.
The fruits can be supplied all over the world (along with local market).

The poverty in India is only because of Nehruvian policies of distrusting "Market based economy". Let
the market take over.

Currently India is like a PHD professor who is forced to teach to kindergarten by its leaders.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sukhish » 01 Dec 2011 00:44

Upendra,
DMK is already in agreement with congress on the motion vote in parliament, also TMC will come around. also the
SP has softned it's stand by saying that if big retail buys from small farmers they will support it. in the end BJP will be left opposing.
MMS is not going to go back on this one. like nuclear deal MR ADVANI will again bite the dust.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 01 Dec 2011 03:34

Any country that 'ONLY' grows this or that, 'ONLY' manufacturers this or that, 'ONLY' services this or that will be at the mercy of other countries. When the rubber meets the road, countries try to take care of their interests first.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Cosmo_R » 01 Dec 2011 04:15

Apologies if posted previously:

As Growth Stutters, India Woos Foreign Investment
http://online.wsj.com/article/SB1000142 ... 76658.html

Summary:

"Just a year ago, India was an investor darling, accustomed to near double-digit gross domestic product growth and talk of rivalry with China to be the fastest-growing big economy in the world. Today, the country of 1.2 billion people is watching its 20-year economic boom fall victim to a toxic mix of swelling government debt, stubborn inflation, infrastructure bottlenecks and a lack of foreign investors. The Reserve Bank of India's campaign of 13 interest-rate increases since March 2010 has choked off borrowing and slowed growth, but done little to subdue its target, inflation. The latest GDP numbers may give the central bank leeway to pause on rate increases, analysts say.

In a sign of India's precarious position, its currency has lost more than 15% of its value against the dollar since August, making it the worst-performing currency in Asia. And many economists forecast that economic growth next year will drop to around 6%—strong by global standards but well below India's potential and slow enough to harm its banking system as well as its efforts to relieve poverty, the government's often-stated top priority. "

We have to have (and it's a must) 10 years of ~10% growth to lift 300MM people out of poverty. If we don't goodbye 2030/2050 top 3 economies stuff. Goodbye also to many things including effective deterrence, conventional and nuclear against PRC.

Any investment that benefits the farmers and the consumers (gate to the plate) is good.

Small landholdings? Possible Answer: consolidate them under corporate farming on leasehold basis and employ the farmers on a salary basis, help their kids with education.

Water problems? Possible answer:
http://www.pepsico.be/pdf/Pepsico_Susta ... ctices.pdf

Etc.

All the defined problems are addressable given political will and consensus. We can either relapse into anti-capitalist/imperialist/east India company/MNC exploitation rhetoric of the CPI-M/X/Y/Z and sit pretty on the ash heap of history or change and move with the times and live to fight another day. Fact is 35-40% of India's food production never makes it from the gate to the plate--too many middlemen too many money lenders etc. End result: farmers who commit suicide and high food prices for the urban consumer.

But political will and consensus are missing. The opposition (UPA or NDA) is not 'loyal' (as the Brits would have it) and in opposition, their sole purpose would seem to be topple the governing party through negative tactics. The UPA gang-banged Arun Shourie when he wanted to disinvest PSUs and the BJP/NDA is returning the favor.

We on BR protest mightily (and rightly) when the Medha Patkars hold up dams for the ostensible benefit of tribals against the critical needs of city dwellers. Yet some us see the FDI in retail with its implications for the dukanwalas as a slippery slide into enslavement.

PRC has allowed Wal-Mart and anyone else who wants to into China.:

Eugene Robinson of Wapo:

"My hotel is in the chic, yuppified Chaoyang District, just up the street from an Apple store, a Starbucks, a Calvin Klein boutique and just about every luxury retailer you could possibly name. An hour’s drive away, at the visitors center for the Mutianyu section of the Great Wall, the first restaurant you see is a Subway. High-status automobile brands in China include not just Porsche, Audi and Mercedes, but also Buick.....

Walk down any commercial street in Beijing and you see storefronts, venders and hawkers (dukandars??) selling anything under the sun."

http://www.washingtonpost.com/opinions/ ... story.html


WSJ: ""India's fiscal situation is reaching grave proportions," says Sanjay Mathur, economist for Royal Bank of Scotland."

We laugh at the Greeks, Italians, Portuguese, Americans and Spaniards for their political gridlock. But we have a massive one our hands and a dysfunctional political system. Take a look at what the current account deficit means.

'Jugaad' wont be enough and MMS/Ahluwalia know this. Hence the 'Hail Mary' pass.

JMT

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby svinayak » 01 Dec 2011 04:25

SBajwa wrote:
The poverty in India is only because of Nehruvian policies of distrusting "Market based economy". Let
the market take over.

Remove Socialism from India and Indian constitution. Cannot talk about "Market based economy" when socialism is one of the govt objectives. There are lot of problems. By keeping the Indian industries closed they want to talk about Market based economy

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby sanjeevpunj » 01 Dec 2011 06:14

Is a farmer's revolution coming up eventually? I smell one from Ralegaon.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SBajwa » 01 Dec 2011 07:46

by SwaymG
Any country that 'ONLY' grows this or that, 'ONLY' manufacturers this or that, 'ONLY' services this or that will be at the mercy of other countries. When the rubber meets the road, countries try to take care of their interests first.


What I am trying to put across is

1. India has 300+ million poor (majority of whom are farmers due to small land holdings).
2. Food security (growing grains) is important for strategic goals, government should reserve so much land to store/reserve next 1-5 years food need. (by last count 20-30% of warehouses that stored grains in India were rented out as grain went bad due to mismanagement).

BUT!!
When wheat and rice is cheaper in International market why are we hell bent upon breaking the back of poor farmers who can easily grow good cash crops for which Arabians/Far East/Middle East/East Europe/South america/Afria will pay good MONEY!!

All we have to innovate is (get an IITian or an agricultural scientist to do a thesis on this)

"How to store and transport fresh vegetables and fruits for months"

Facts are
India in its history was never poor because of its fertile land mass and thus attracted all the looters.
India is now poor because of its policies and inefficient managers.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Singha » 01 Dec 2011 08:15

AAI has again put KF on cash-n-carry basis for a dues of 250cr.

but beauty according to AAI official is that AI is under same ministry and has a due of 1000cr but nobody in AAI dares to even write a demand note asking it back, as AI is clear in their mind that GOI will continually pump in our money to save their sorry state!

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 01 Dec 2011 10:16

SBajwa wrote:Facts are
India in its history was never poor because of its fertile land mass and thus attracted all the looters.
India is now poor because of its policies and inefficient managers.

Fact is
India in its history never had this much population fighting for precious and dwindling resources - be it land or water; be it forests or farm land.
Last edited by SwamyG on 01 Dec 2011 19:05, edited 1 time in total.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Upendra » 01 Dec 2011 10:23

sukhish wrote:DMK is already in agreement with congress on the motion vote in parliament, also TMC will come around. also the SP has softned it's stand by saying that if big retail buys from small farmers they will support it.

Congress is known to use bribes and blackmail to steer around opposition parties to its line of thinking, but even these parties will think twice before joining hands with congress to stab millions of farmers and SME's in the back. Congress has rigged EVM to win elections but these parties need people's support for the votes.

sukhish wrote:in the end BJP will be left opposing.

All for the good, atleast we know who is with the aam aadmi.

sukhish wrote:like nuclear deal MR ADVANI will again bite the dust.

Keep having wet porki dreams, we all know who had to bite the dust when the devil worshiping structure came tumbling down

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Murugan » 01 Dec 2011 11:17

Nub of the matter is Congress harbours a death wish...
NV Subramanian | Thursday, December 1, 2011

Any policy change that fundamentally affects the livelihood of the masses needs political consensus. When PV Narasimha Rao gave the go-ahead to his finance minister Manmohan Singh for economic reforms, he never lost sight of politics. Yet, he blundered and never recovered ground for the Congress, which sank for the best part of the ensuing decade.

After the Congress lost the Andhra Pradesh elections halfway through Rao’s term, the prime minister put a stop to reforms. Manmohan Singh was unhappy and thought of resigning. But the Congress lost the next general election nevertheless. It was analysed then that at least some of the reforms that were overdue were not sold to the voters at all. The Congress and its prime minister just did not know how to sell them. Perhaps, they were unsellable.

While reforms in the early 1990s were a diffusion phenomenon, foreign direct investment in multi-brand retail proposed by the Manmohan Singh government is specific. Opposition to it is, therefore, all the more focussed and sharp. But the basic issue remains the same. How can a government bring in massive policy change affecting crores of people without moving to build at least some political consensus beforehand?

Even UPA allies like the Trinamool Congress, DMK, and parties like the Samajwadi Party and BSP have registered strong opposition to FDI in retail. Meanwhile, the Kerala Congress unit is unhappy. And at least one Congress MP from Uttar Pradesh, a state going to polls shortly, Sanjay Singh, has protested against it. Sanjay Singh has targeted commerce minister Anand Sharma, saying a Rajya Sabha MP cannot understand the problems of the poor.

That is the nub of the matter. And it goes beyond Sharma. If a Lok Sabha prime minister like Narasimha Rao chose to mediate reforms and failed, what chance does a nominated PM like Manmohan Singh stand? Whatever his redeeming qualities, the prime minister has never exhibited political sense. He is also adamant. He held UPA-1 to ransom on the India-US nuclear deal whose fruits, if any, look very bitter after the Fukushima disaster. Now, he’s done it again with FDI in retail, saying at a Youth Congress conference that there will be no rollback.

Typical of Manmohan Singh, the whole thing was hurried up. After big businessmen spoke of policy-making paralysis following the 2G scam expose and Anna Hazare’s movement, the PMO was anxious to counter criticism with a silver bullet. But India is not China where policy can be imposed by fiat. India is also a very poor country. Don’t be misled by growth figures. When AK Antony and Jairam Ramesh opposed FDI in retail in the Cabinet, it should have caused some rethink. Ramesh has his ears to the ground and Antony has sound political instincts. But the policy change was rammed through, meeting with implacable opposition in Parliament.

An elected prime minister would have squarely faced the opposition if he was sure of his position and convinced them. Alternatively, he would have made bold to threaten going directly to the people, as Indira Gandhi would surely have done were she convinced FDI in retail was pro-people, which appears doubtful.

Instead Manmohan Singh retreats to safety, and the negotiator for all seasons, Pranab Mukherjee, steps in. Mukherjee, of course, cannot take decisions. He has to get clearance from the PM, who, in turn, has to get clearance from Sonia Gandhi. Is this a democratic government or a crypto-dictatorship?

It is not as if no one understands the perils of continuing with Manmohan Singh. In the Congress, he is called a ‘floater’, in the sense that he does not even make the effort to swim. At some level, the Congress leadership is reconciled to losing the 2014 general elections. Rahul Gandhi hopes to turn the tide with a grand victory in UP. But if he fails as expected, the party will continue with Manmohan Singh. The Congress leadership is so subconsciously reconciled to a defeat in 2014 that it is unwilling and unable to superannuate Manmohan Singh, even though he has become a serial blunderer. In lay language, that is called a death wish.

The writer is a New Delhi-based political and strategic analyst, and editor of www.newsinsight.net envysub@gmail.com
inbox@dnaindia.net

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Supratik » 01 Dec 2011 17:09

Apparently, the 30% sourcing from local SMEs is not WTO compliant.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 01 Dec 2011 19:16

Instead of discussing the issue based on its merits and demerits, this is turning out to be anti-INC protests in some circles.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby gakakkad » 01 Dec 2011 19:47

we do not need to be WTO compliant. What the hell can they do to us . we are not I-rack or Libya . So WTO may kindly go to Bhad .

Khanate itself does not follow international conventions .. (Kyoto protocol )

Khanate agriculture is heavily subsidized .

EU stopped shipment of Dr. Reddy's pharma products destined for south America. They market Indian companies to be "drug pirates".. When in real life there western companies are the worst pirates.

More-over , I do not want to see more unbranded chinese products in Yindia. If I framed the bil , I would specifically mention that.. "No product be source from unscrupulous Chinese SOURCES. Only western brand manufactured in Panda permissible ".



Even though I am in general in favour of the FDI in retail , I have seen the perils of walmart .

The present bill does not seem to have an intrinsic anti dumping feature ..

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Singha » 01 Dec 2011 19:57

>> More-over , I do not want to see more unbranded chinese products in Yindia.

you are too late for that. big bazaar is full of it. any toy store is full of it - "no return. no warranty. no exchange" printed boldly behind the sales counter.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby gakakkad » 01 Dec 2011 20:01

^^ Shivs aunt with dick analogy comes to mind ... :)

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby SwamyG » 01 Dec 2011 20:07

gakakkad wrote:Even though I am in general in favour of the FDI in retail , I have seen the perils of walmart .

Way back then even now I am still in general favor of a Naturalized Citizen becoming a PM, but I have seen the perils of at least one of them coming so close to the power. Some principles are so ideal and perfect on books, they appeal to us even further when they are spun.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby gakakkad » 01 Dec 2011 21:09

sukhish wrote:Upendra,
DMK is already in agreement with congress on the motion vote in parliament, also TMC will come around. also the
SP has softned it's stand by saying that if big retail buys from small farmers they will support it. in the end BJP will be left opposing.
MMS is not going to go back on this one. like nuclear deal MR ADVANI will again bite the dust.



con party did not win the last elections because of the N-deal. that is a common crap floated in the media..It won the elctions due to caste based politics , OBC reservations , NREGA and a host of other well known dirty election tricks.. If you look at the vote shares , most of the con votes came from Muslims and OBC dominated areas ..

Besides BJP did not lose the elections for its opposition of the deal. They made electoral blunders. Broke up with Navin Patnaik in Orrisa . Severed ties with Mamta. Broke up with Om Prakash Chautala. Projected Advani as PM candidate..

But fortunately for desh , inflation this time is quite high .Too many scams are exposed. There "welfare" schemes have proven to be unsustainable. etc.. so public opinion against CON seems all time low..

I hope that MMS pushes through FDI and National Manufacturing Policy (especially ease of labour laws) before Rahul Baba takes over.. (god why do we have to call him a baba , he is like 42. ). Had it not been for MMS madamme maino and Raul Vinci baba would have bankrupt the nation by now. When PVNR was in power , people considered him to be a scum. But now even hard core BR-fites have a soft spot for the guy. I have a feeling MMS will be like PVNR..Without MMS CON party would have destroyed the country ..

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby L Ram » 01 Dec 2011 22:09

con party did not win the last elections because of the N-deal. that is a common crap floated in the media..It won the elctions due to caste based politics , OBC reservations , NREGA and a host of other well known dirty election tricks.. If you look at the vote shares , most of the con votes came from Muslims and OBC dominated areas ..


People are forgetting the dirty role played by PRP in A.P. these dirty people helped INC in at least 20 to 25 MP seats by dividing the opposition votes. PRP owners (chiru and his gang) get huge money from INC for this act. Slightly OT for this thread

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby ramana » 02 Dec 2011 00:24

India now has "defect o dictatorship"

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby rohitvats » 02 Dec 2011 00:48

RamaY wrote: <SNIP>
You need to read the many available case studies on WalMart model to understand it. It hasn't become the largest retailer in the world for nothing.


You highlight the problem in understanding of the situation pretty well.

Why will foreign model apply to India? Can anyone please answer this? Is the purchasing power of a Big Bazaar store (you aware what this is?) any lesser than Walmart? I don't think so. And oh! BTW, the retail outlet model of Bharti-Walmart is doing horrible business...while Cash-n-Carry is doing good.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Prem » 02 Dec 2011 00:57

http://www.ndtv.com/article/profit/poli ... ata-293251
Political differences, vested interests stalling India's progress: Ratan Tata
Ratan Tata, Chairman of the Tata Group, expressed concern over the political stalemate in the country on Thursday."Political differences and vested interests should never be allowed to stand in the way of India's economic progress,” Ratan Tata said in a twitter message.His comments have come on the back of a deteriorating political and economic climate in the country. The opposition has been pushing for a vote on Foreign Direct Investment or FDI in retail over which Parliament remains paralysed. It is adjourned for the eighth day with no business transacted. The government has to either face a vote or suspend the decision to open up the retail sector for FDI. In the midst of a political turbulence, the country's economic growth slipped to a two-year low. The Indian economy expanded by 6.9 per cent in the second quarter ending September 2011, the slowest pace of growth in the last nine quarters."India's growth rate has dropped to 6.9 per cent. The manufacturing growth dropped to 2.7 per cent - a two year low!" Ratan Tata tweeted.A slowdown in the economy spells more troubles for the government especially because it hurts India's image as one of the top investment destinations across the globe. Foreign investors have been pulling out money from the Indian markets sensing troubles for the economy ahead. "We should never let the extraordinary momentum achieved or the global visibility we had diminish," Ratan Tata said in one of the tweets."It would be a question of national pride for every Indian to rebuild the past glory and reestablish the country's economic leadership," Ratan Tata's tweet said.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Prem » 02 Dec 2011 00:59

Now U know .
http://timesofindia.indiatimes.com/busi ... 927520.cms
'FDI in India to deepen economic cooperation with US'
WASHINGTON: Welcoming the decision of the Indian government to allow foreign direct investment in the multi-brand retail sector, the United States said that it will "deepen" the India-US economic co-operation.
"We welcome India's decision. We think economic reforms such as these will further strengthen business-to-business ties between our two countries," State Department spokesman, Mark Toner, told reporters.
"It's going to create new economic opportunities and it's also going to lead to more choices for Indian consumers," he added.FDI in the retail sector was one of the wish list of the US companies and the US had been pushing for it for quite some time now.Terming the opposition to the FDI in retail by various political parties as "a reflection of a vibrant democracy that India has", he said "this is part of a vibrant democracy where, you know, opposition parties can speak their mind and voice their concerns. But, you know, we view this, as I said, as a way to deepen our economic ties with India."Last week, Corporate America had hailed the Union Cabinet's decision in this regard saying these bold economic reforms would benefit Indian consumers by bringing efficiencies and productivity to the farm-to-fork supply chain, while tamping down rising food prices and inflation.The overall effect of these actions will accelerate India towards becoming the world's third-largest economy, which had earlier been predicted to occur by mid-century, said the US India Business

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby Prem » 02 Dec 2011 01:03

http://www.firstpost.com/economy/indias ... 45530.html
India’s foreign remittances to hit record $58 bn: WB

While 2011 might be a year of tears for most Indian companies and consumers, for those with earning members abroad, this could turn end up as a fantastic year.According to the World Bank, India will receive the developing world’s highest remittances of $58 billion, or 16.5 percent of the total remittances sent to developing countries, in 2011.Earlier this week, Firstpost had, quoting a Business Standard article, how the depreciation of the rupee is creating big gains for families of expatriates, especially those who live in the Middle East and have families back in Kerala.Remittances worldwide (including to high-income countries) are expected to soar to $406 billion, according to the latest issue of the bank’s Migration and Development Brief, released on Wednesday at the fifth meeting of the Global Forum on Migration and Development in Geneva.
Of course, developing countries are the biggest beneficiaries as they comprise almost 86 percent of the total remittances (about$351 billion). While China will rake in $57 billion, remittances to Mexico and the Philippines are forecast to total $24 billion and $23 billion, respectively.And don’t expect the cookie to crumble any time soon. In spite of the economic slowdown that is dampening employment prospects for migrant workers in some high-income countries, global remittances are expected to continue growing and hit $515 billion by 2014, noted the World Bank.Of this amount, $441 billion will flow to developing countries, ”Despite the global economic crisis that has impacted private capital flows, remittance flows to developing countries have remained resilient, posting an estimated growth of 8 per cent in 2011,” said Hans Timmer, director of the bank’s Development Prospects Group.“Remittance flows to all developing regions have grown this year, for the first time since the financial crisis,” he said.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby svinayak » 02 Dec 2011 06:12

Prem wrote:
Political differences, vested interests stalling India's progress: Ratan Tata
Foreign investors have been pulling out money from the Indian markets sensing troubles for the economy ahead. "We should never let the extraordinary momentum achieved or the global visibility we had diminish," Ratan Tata said in one of the tweets."It would be a question of national pride for every Indian to rebuild the past glory and reestablish the country's economic leadership," Ratan Tata's tweet said.


India is going to the largest populated country in the world. Everybody have to come to India to invest inspite of brief hiccups

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby nachiket » 02 Dec 2011 06:19

Acharya wrote:
India is going to the largest populated country in the world. Everybody have to come to India to invest inspite of brief hiccups

That cannot be taken for granted. India has been the second most populated country in the world for decades, yet investment was negligible prior to the 1991 liberalization. The government has to create the right conditions in the economy for the country to be an attractive investment destination. No one will invest unless they have a reasonable expectation of a good return on their investment. Ratan Tata is absolutely right in what he said.

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Re: Indian Economy: News and Discussion (Apr 1 2011)

Postby svinayak » 02 Dec 2011 06:31

Due to cold war and false global politics it has been skewed for the last 50 years. Now it will change


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