Indian Economy News & Discussion - Nov 27 2017

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V_Raman
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by V_Raman »

This is the G2 in the making me thinks - 2 independent financial systems...
Atmavik
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Atmavik »

V_Raman wrote:This is the G2 in the making me thinks - 2 independent financial systems...

Looks like it… I would watch where South Koreans tilt
V_Raman
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by V_Raman »

Maybe India can negotiate for G2.25 - sensitive times - India needs to think larger in terms of regional security for dharmic countries including SL, Myanmar and our unique friendly neighbor - BD.

If we see rupee trade with neighbors and key countries - if ME integrates with RuPay for expat money transfer for example. then we know G2.25 is in the making...
Manish_Sharma
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Manish_Sharma »

GST collections till Feb over ₹13.33 lakh crore against ₹10.13 lakh crore in last fiscal showing 31.6% Growth indicating Sustainable Recovery moving towards Growth.

"Economist" Raghuram Rajan is free to keep looking at "Curves"..
I mean whether V or K shape economic recovery.

https://twitter.com/MumbaichaDon/status ... 1NRqA&s=19
Yagnasri
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Yagnasri »

The job market is not opening up that much even now. There are no greenfield units in manufacturing in many sectors. This lack of new units has been going on for many years, i.e. even before COVID hit. It is good that NS has started production-related incentives now. But GoI needs to look hard at manufacturing as a large section of youth is joining the job market every year.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

India achieves $400 billion goods export target.

India has achieved its goods export target of $400 billion nine days ahead of schedule.

"India set an ambitious target of $400 billion of goods exports and achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success. This is a key milestone in our Aatmanirbhar Bharat journey," Prime Minister Narendra Modi tweeted on Wednesday.

For the current financial year, India had set a $650 billion exports target. Out of $650 billion, the target for services exports was $250 billion.

In the April-December period the figure stood at about $300 billion. "In December alone we touched $37 billion goods exports despite the Omicron fear factor weighing high. This month, in 15 days till January 15, we have reached $16 billion," commerce and industry minister Piyush Goyal said in January.

Modi also posted graphics of India achieving its export target. According to those graphics, the government approach with closer interaction with states and districts; engagement with exporters and faster resolution of their issues; and actively engaging with different export promotion councils, industry associations and other stakeholders have helped in reaching this milestone.

On average, goods worth about $33 billion were shipped every month and about $1 billion every day.

The key export sectors, which contributed to record healthy growth include petroleum products, electronic goods, engineering goods, leather, coffee, plastic, ready-made garments of all textiles, meat and dairy products, marine products and tobacco.
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Yagnasri wrote:The job market is not opening up that much even now. There are no greenfield units in manufacturing in many sectors. This lack of new units has been going on for many years, i.e. even before COVID hit. It is good that NS has started production-related incentives now. But GoI needs to look hard at manufacturing as a large section of youth is joining the job market every year.
There might be some lag. Lets hope the investments will bring in more jobs in 6+ months or so
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Narendra Modi
@narendramodi
India set an ambitious target of $400 Billion of goods exports & achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success.

This is a key milestone in our Aatmanirbhar Bharat journey. #LocalGoesGlobal
Image
Image
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://twitter.com/amishra77/status/15 ... 6527280130
The performance of Aspirational Districts (~$20 billion) in helping achieve the $400 billion exports target is one of the most important facets.
From Leather products of Assam to engineering goods from Jharkhand - the economic cycle kickstarted in these districts is immense. 2/5
Akhilesh Mishra @amishra77
The agricultural sector has been the powerhouse in driving up the export numbers in FY2021-22 thereby empowering the farmers.
From non Basmati Rice (~52% growth) to Black rice (in U.P., Bengal, etc) and from Fresh Fruits To Wheat (~390% jump - even before Ukraine crisis). 3/5
Handloom, Textiles from areas like Bhadohi (carpets including) in U.P. to almost 150% jump in Saddlery exports from Kanpur.
From pharmaceuticals to Apricot from Ladakh (for the first time) and Millets from Himachal to Litchi from Bihar - the performance has been phenomenal. 4/5
Biggest success story has been the export of engineering goods.
Engineering goods is India's No. 01 exports overall (~110 Billion). It is also No.01 export to individual countries like USA, China, Netherlands, Belgium, etc.
Great for MSMEs. Great for jobs. #LocalGoesGlobal 5/5
Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

Some context on the export performance:

a) At a likely $655-660 billion for the fiscal year ended March 31 2022, India will exceed its previous best ever performance in 2019-20 ($535 billion) by an enormous $120-125 billion. It will exceed the COVID-19 hit 2020-21 fiscal ($500 billion) by $155-160 billion.

b) In 1949, West Germany overtook India, pushing us down to #10 in the top exporters rankings. By end 1949, Brazil also overtook us, pushing us to #11. That was the last time India was in the top 10 list of exporting countries.

c) In 2021-22, latest data indicates India will finish the year at either #8 or #9. This is the first time in the history of the Indian Republic that we rank among top 10 exporters, up from #18 in 2019.

The current breakdown in exports for countries ranked 4-10 (top 3 are China, USA and Germany) is (all figures $ billion, best available data/estimate):

Code: Select all

Pos Country     Merch Svcs Total
04  Japan       $688B $210B $898B 
05  France      $590B $275B $865B
06  UK          $420B $392B $812B
07  Netherlands $545B $255B $800B
08  India       $420B $250B $670B
09  South Korea $550B $95B  $645B
10  Hong Kong   $540B $95B  $635B
So from these:
* Provisional data indicates we will finish in the top 10 this year for the first time since 1949-50.
* India is on the cusp of overtaking UK in merchandise exports - for the first time in approximately 175 years.
* India is already one of the top 10 services exporters, at #6 position behind US, UK, France, Netherlands and China.
* There's are two crowded buckets - the $500-$650B (we moved up 10 spots crossing this) and another between $800-950B) where all the major non-top 3 countries sit.
* India could make the top 5 in three more fiscals of strong export growth.
yensoy
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by yensoy »

^^^^ As good as the numbers are, it is more exciting to see the diversity of exports, and relatively higher value exports such as niche agricultural products & handicrafts. Due to rise in oil prices, the export dollar amount will also rise because we do export refined petroleum products to a lot of places including the US. But rather than commodities such as wheat which have high input costs (fertilizer + depletion of water table + pollution) I see the uptick in other agro products including horticulture and floriculture as a positive.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vimal »

^^ Members like Suraj ji have made a dolt like me so much economic literate over the years. Thanks and please keep posting.
With that it would be interesting to see a table of India's export in $ terms and world ranking by year. I wonder if it exists anywhere.
Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

There are nice visualizations of the rankings on YouTube:
vimal
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vimal »

^^ From that video:

- India fell off from top 20 exporting nations in 1960.
- It did not make a comeback till 2009 but fell on and off till 2013
- After that India never looked back and kept rising in the rankings
{deleted}
Last edited by Suraj on 24 Mar 2022 09:06, edited 1 time in total.
Reason: Don’t bring politics here
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://economictimes.indiatimes.com/te ... 339635.cms
Zoho’s Tier-2 centres script a return to roots
In Tamil Nadu's Tirunelveli, coders and engineering managers sit in a converted shed in a sprawling farmhouse with bananas ripe for the picking, but they are cramming for the deadline of a Zoho analytics product they will ship for customers all over the world.

The cloud-based business intelligence and analytics platform is the latest among Zoho’s product lines to be built by rural talent in India

The Tirunelveli centre is one of the 30 offices run by Zoho in mostly tier-2 towns ..
Slowly an eco-system is being developed. We need to replace entire infra cloud/mail/IM/youtube/SM ... Good that these people are being encouraged
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://byjus.com/current-affairs/globa ... isk-index/
Cushman & Wakefield’s Global Manufacturing Risk Index assesses the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and the Asia Pacific.

In this article, we shall discuss in detail the outcomes of the Index and its importance. This is an important topic from the perspective of the upcoming IAS Exam and other government exams.

Latest Update:

India ranked 2nd in the 2021 Index and has overtaken the United States as the global manufacturing destination
In 2020, India had ranked 3rd and the US ranked 2nd
China retained its first position in the Global Manufacturing Risk Index, 2021
Cyrano
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

The report can be downloaded from https://cw-gbl-gws-prod.azureedge.net/- ... -index.pdf

Seems like a light weight study...
kit
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

Some one had posted key areas like textiles for which there is immense potential for growth in India by virtue of raw material and skilled labour., is there a comprehensive list of such sectors .. looked like a "low hanging fruit" to me at that time. Electronics industry with the advent of fabs can easily add another 100B to the export list
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Krishna Kumar Murugan
@ikkmurugan

Effects of shutting down Sterlite

Price of Electrical Cables almost doubled in 2 years.

Image

Image

Modi Govt. has to work with courts to restart this Sterlite
Aditya_V
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Aditya_V »

Or start setting up Copper plant in some other state, dismantling factories has been done before and shifting it by Rail. Some of the TN industries can be relocated with Stalin cheering.

Under Stalin brilliant leadership copper is out and Lulu super market is in. And the great PTR will balance the TN budget and run TN like the Kerala model.
nishant.gupta
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by nishant.gupta »

Cyrano wrote:The report can be downloaded from https://cw-gbl-gws-prod.azureedge.net/- ... -index.pdf

Seems like a light weight study...
Some points which I felt were very interesting:
  • India is in the last quartile in terms of bounce back. While they seem to have taken only one criteria: at least one vaccine; but then also we are close to the world average...
  • China tops when they list down the countries with least geo-political risk. Above countries like USA, Germany and everyone else. I think I missed something here or did they decide to not take into account issues like the one of CPC acting against edu-tech companies?
vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.moneycontrol.com/news/busin ... 97951.html
UPI reaches a watershed moment with digital transaction value shooting past $1-trillion mark in FY22
The payments system crossed the 500-crore mark in volumes for the first time in March
The Unified Payments Interface (UPI) has breached the $1-trillion mark in transaction values for the financial year 2021-22, a major milestone for the payments system which has witnessed substantial growth over the past two years and led to further digital adoption for payments and financial services.

According to data until March 29 by the National Payments Corporation of India (NPCI), which operates and manages UPI payments, UPI has recorded transaction values of Rs 83.45 lakh crore in FY22. As per the current conversion rate, $1 trillion amounts to approximately Rs 75.82 lakh crore.

The payments system crossed the 500-crore mark in volumes for the first time in March. As per NPCI’s data, 504 crore transactions were recorded by March 29 itself.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

GST collections in March cross Rs 1.42 lakh crore, highest ever.

The gross GST collection in March is at all-time high, breaching the earlier record of Rs 1,40,986 crore collected in January 2022, Finance Ministry said.

The average monthly gross GST collection for the last quarter of the financial year 2021-22 has been Rs 1.38 lakh crore, FinMin added.

GST collections in March rose to a record Rs 1.42 lakh crore as the economy slowly recovered from the Omicron wave, the Finance Ministry said on Friday. The revenues for the month of March 2022 are 15 per cent higher than the GST revenues in the same month last year and 46 per cent higher than the GST revenues in March 2020, the ministry added.

The gross GST revenue collected in the month of March 2022 is Rs 1,42,095 crore of which CGST is Rs 25,830 crore, SGST is Rs 32,378 crore, IGST is Rs 74,470 crore (including Rs 39,131 crore collected on import of goods) and cess is Rs 9,417 crore (including Rs 981 crore collected on import of goods).

"The gross GST collection in March 2022 is all-time high breaching earlier record of Rs 1,40,986 crore collected in January 2022," FinMin stated.

Image

The average monthly gross GST collection for the last quarter of the financial year 2021-22 has been Rs 1.38 lakh crore against the average monthly collection of Rs 1.10 lakh crore, Rs1.15 lakh crore and 1.30 lakh crore in the first, second and third quarters respectively.

In the month of March, the government has settled Rs 29,816 crore to CGST and Rs 25,032 crore to SGST from IGST as regular settlement. In addition, Centre has also settled Rs 20,000 crore of IGST on ad-hoc basis in the ratio of 50:50 between Centre and States/UTs in this month. The total revenue of Centre and the States in the month of March 2022 after regular and ad-hoc settlements is Rs 65646 crore for CGST and Rs 67410 crore for the SGST. Centre also released GST compensation of Rs 18,252 crore to States/UTs during the month.

During the month, revenues from import of goods was 25 per cent higher and the revenues from domestic transaction (including import of services) are 11 per cent higher than the revenues from these sources during the same month last year.

Total number of e-way bills generated in the month of February 2022 is 6.91 crore as compared to e-way bills generated in the month of January 2022 (6.88 crore) despite being a shorter month, which indicates recovery of business activity at faster pace.

"Coupled with economic recovery, anti-evasion activities, especially action against fake billers have been contributing to the enhanced GST. The improvement in revenue has also been due to various rate rationalization measures undertaken by the Council to correct inverted duty structure," the ministry further stated.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Atmavik »

Aditya_V wrote:Or start setting up Copper plant in some other state, dismantling factories has been done before and shifting it by Rail. Some of the TN industries can be relocated with Stalin cheering.

Under Stalin brilliant leadership copper is out and Lulu super market is in. And the great PTR will balance the TN budget and run TN like the Kerala model.

Govt should provide incentives to move the plant to either UP , gujarat or TS
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

India's March exports touch $40.38 billion.

Merchandise exports touched a record $40.38 billion, while imports rose to $59.07 billion, a government source said on Friday, referring to provisional trade data.

Monthly trade deficit in March was estimated at $18.69 billion, according to Reuters calculations.

Merchandise exports for the financial year 2021/22 ending in March touched $417.81 billion while imports rose to $610.22 billion, the source said.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

A new era of exports takes off: Breaking the $30 billion a month “psychological barrier.

The $30 billion a month mark has historically been the “psychological barrier” for Indian exports. When in March 2021, the goods exports crossed the mark comfortably, the lazy analysis in the opinion pieces was a regurgitation of usual ideas—commodity prices are up, there is a shipping cost inflation, it’s just a blip and so on. The analysis—and the failure to spot an emerging trend—could not have been more wrong. From March 2021-February 2022, every month has clocked more than $30 billion in goods exports. The trend will quite likely continue for March 2022 as well. For the first time in Indian trade history, the annual goods exports have touched $400 billion and the final number for the year maybe close to $410 billion. Once the services exports data is added, the total exports will end up close to $650 billion mark. This will place India close to top ten exporting nations in the world, if not within the top ten itself. With a strong 13 months of goods and services export, it is fair to call this hugely positive change a trend rather than a blip.

There are three significant aspects which characterize India’s emerging increased trade competitiveness and global integration.

First, the $400 billion goods export and $650 billion total export number is an outcome of meticulous planning and the focus on Aatmanirbhart. Prime Minister Narendra Modi had talked about the need for rejuvenating the industrial economy, where India leverages its large market and human capital talent base. Following that, the industry and various government bodies have come together with a renewed emphasis to develop capabilities for great value addition in India. On its part, the Centre assessed trade potential with different countries analysing past trends. About 200 countries or territories were analysed closely to understand how Indian strengths can match market demands for each entity. Indian missions, territorial divisions in ministries, industry bodies and export promotion bodies coordinated to make sure that every potential opportunity was pursued. PM Modi led this, speaking to all Indian missions in August 2021, and stressing the potential of Indian industry in the exports markets.

Second, a large part of the $400 billion goods export involves domestic value addition. A historical quip about Indian exports has been that we ship out a lot of raw material or low value-added products. However, in the FY 22, top product categories paint a different and a very optimistic picture. Till March 21, the day India hit the $400billion exports mark, the top category of exports has been engineering goods, clocking nearly $108 billion. Processed petroleum products were next at $59.6 billion, followed by gems and jewellery at $37.7 billion, organic and inorganic chemicals at $28.2 billion, and drugs and pharmaceutical at $23.7 billion. This export basket clearly indicates that the upswing is driven by real manufacturing capabilities. There is always room for improvement and increasing the India-based value add. But the numbers clearly speak for themselves—this is a manufacturing driven export revival. For reference, exports of pure raw materials like mica, coal and other ores and minerals were at $5 billion, ranking only thirteenth as a category. Iron ore exports amounted to $3.1 billion, the eighteenth most valuable category. This is a testament to the success of a broader industrial policy driven by domestic capability enhancement and upskilling. The Indian consumer is getting access to even better products and the world is turning to India to fulfil more of its goods demand.

Third, several breakthrough categories have stood out for the first time. India’s electronic goods exports were at $15 billion, already the seventh-biggest export category. Of these, $5.5 billion will just be mobile phone exports, a category where India had very little manufacturing presence just five years back. Same is the case for defence equipment. India would earn about $1.5 billion in export revenue this year, up nearly six times in the last eight years. This trend is best visible in agriculture items. From Banganapalli and Suvarnarekha mangoes of Andhra Pradesh going to South Korea; Palghar’s sapota, Uttar Pradesh’s jamuns, and Bihar’s litchis going to the UK; and Jalgaon’s bananas, Sangli’s dragon fruit, Assam’s Burmese grapes and Madurai’s flowers reaching the UAE, a lot of new ground has been broken. This is important because the benefits of trade in such products accrue to market participants with a relatively smaller economic size. These breakthrough categories may individually look small, but at the margin, they can make a huge positive difference to the participants involved. India recently signed a Comprehensive Economic Partnership Agreement with the UAE. Trade deals in various formats are also being discussed with the UK, Australia, and Canada. This is significant because all these countries have significant bilateral trade potential, with the UAE and the UK being part of India’s top ten export destinations.

With the Pradhan Mantri Gati Shakti plan working on reducing logistics costs and friction and creating signature infrastructure assets, products and services from currently untapped Indian destinations will also likely find new markets. A great new era of global trade led growth is unfolding in front of us—a milieu in which India is now a strong and confident player.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Manish_Sharma »

https://twitter.com/MumbaichaDon/status ... mpk0g&s=19
Thread :

Why was "Intellect Economist" Raghuram Rajan THROWN OUT by Modi Govt?

Know the real reason behind it.

Bharat's Govt had conducted probe into ex-RBI gov Rajan for helping ‘White Men’. (Al-Jazeera)

What does it mean?
(1/14)

Bharat Govt had reached to conclusion that Raghuram Rajan Controlled RBI was setting interest rates to favour Developed Nations.

The probe was conducted on demand of none other than Then Finance Secretary Rajiv Mehrishi.

What had happened to raise such demand?
(2/14)

In 2014, Rajan kept repo rate – rate at which the RBI lends to banks – unchanged at 8% citing inflation.

Gladly know...UPA Govt led by "Economists" Maunmohan Singh & Chidambaram had SCREWED Bharat with whopping Inflation Rates 8.86% in 2011, 9.31% in 2012 & 11.06% in 2013.
3/14

PM Modi kept "Bringing Down Absurd Inflation" (gift by UPA) as 1st Priority as it wasn't killing Only common man, but Economic Growth too with high cost of production. With strict Fiscal Discipline,Modi Govt got Inflation under control.
5.8% in 2014, 4.9% in 15 & 4.5% in 16
4/14

Now what should have happened with Inflation coming under control?
Right.... Cutting down Bank Rates by RBI which would have helped businesses to get funds at cheaper rates, bring down Cost, More production, More Employment and Overall economic growth.
(5/14)

But our "Handsome" RBI Gov Raghuram Rajan had different ideas or you can say.... Deliberate Malafide Intentions.

As inflationary pressures eased in 2015, Rajan cut the rate to bring down to 7.25 % inJune. But in the August 2015 meeting, he maintained the Status Quo.
(6/14)

And he refused to cut those rates inspite of Inflation coming down drastically.

Raghuram Rajan was adamant inspite of Govt sending numerous REQUESTS as high bank rates were causing incalculable damage to Bharat's Economy & growth prospects,by stunting credit & investment.
7/14

So finally Finance Secretary Rajiv Mehrishi demanded a probe & the Findings were Stunning.

Raghuram Rajan was deliberately playing game of helping Wealthy Foreign Businesses at cost of Bharat's businesses and citizens.

How?
(8/14)

In developed countries, interest rates are typically lower than in Bharat, encouraging foreign investors to TEMPORARILY park funds in Bharat's financial system to mint profits from higher interest.

Also,World was just recovering out of Recession with too low Returns THERE.
9/14

So..Raghuram Rajan opened a profitable destination for Foreign Investors to mint money in Bharat with high interest rates...Harming Bharat's Economy in return.

In short, Raghuram Rajan subsidised Rich & Influential in US, Europe & Japan with high interest rates in Bharat.
10/14

Under the cover of being ‘inflation hawks’, the real reason for keeping interest rates high in Bharat – at the cost of credit flow, investment and growth – needs to be more deeply thought about, analysed and investigated,” Mehrishi had said while demanding probe.
(11/14)

Accordingly..after the Enquiry, Raghuram Rajan was unceremoniously DUMPED by PM Modi & FM Arun Jaitley Ji

Raghuram Rajan was desperately trying to get an appointment with both to show his keen interest in continuing as RBI Governor.
But..BOTH Didn't EVEN attend his calls.
12/14

After this Great Humiliation.... Finally "Money Launder Economist" Raghuram Rajan hanged his boots as RBI Gov & went back to his role of "ACTING” as Intellect Economist & Academia.
(13/14)

Ps : please don't try preaching me that Foreign Investments are good for economy. Raghuram Rajan brought FII& FPI....NOT FDI.

FII & FPI are like Gold-Digger Girlfriends. They leave you seeing better prospects somewhere else.

FDI is like a Devoted Life-partner.

(14/14)
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Image

https://www.indiatoday.in/india/story/p ... 2022-04-06
PM Modi's food security scheme averted rise in extreme poverty: IMF study
An IMF study — Pandemic, Poverty, and Inequality: Evidence from India — has stated that Prime Minister Narendra Modi’s food security scheme, PMGKAY, prevented a rise in extreme poverty in India.
The new IMF paper — Pandemic, Poverty, and Inequality: Evidence from India — found that extreme poverty (with purchasing power parity of less than USD 1.9 per person per day) in India was less than 1% in 2019 and it remained constant even during the pandemic in 2020.

“PMGKAY was critical in preventing any increase in extreme poverty levels in India and the doubling of food entitlements worked substantially in terms of absorbing the Covid-induced income shocks on the poor,” the report stated.

Last month, Prime Minister Narendra Modi announced the extension of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) till September 2022. Under the PMGKAY, free food grain is provided to those in need.

“A low level of extreme poverty for two consecutive years, including one marked by the pandemic, can be considered as elimination of extreme poverty,” it read.
The report stated that pandemic shock is largely a temporary income shock and that temporary fiscal policy interventions have been fiscally appropriate to absorb a large part of it.

Consumption growth, an important determinant of poverty, was found to be higher in 2014-19 than the robust growth observed in 2004-2011.

original paper
https://www.imf.org/en/Publications/WP/ ... dia-516155
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by venkat_kv »

Manish_Sharma wrote:https://twitter.com/MumbaichaDon/status ... mpk0g&s=19
Thread :

Why was "Intellect Economist" Raghuram Rajan THROWN OUT by Modi Govt?

Know the real reason behind it.

Bharat's Govt had conducted probe into ex-RBI gov Rajan for helping ‘White Men’. (Al-Jazeera)

What does it mean?
(1/14)

Bharat Govt had reached to conclusion that Raghuram Rajan Controlled RBI was setting interest rates to favour Developed Nations.


After this Great Humiliation.... Finally "Money Launder Economist" Raghuram Rajan hanged his boots as RBI Gov & went back to his role of "ACTING” as Intellect Economist & Academia.
(13/14)

Ps : please don't try preaching me that Foreign Investments are good for economy. Raghuram Rajan brought FII& FPI....NOT FDI.

FII & FPI are like Gold-Digger Girlfriends. They leave you seeing better prospects somewhere else.

FDI is like a Devoted Life-partner.

(14/14)
Manish Ji,
But didn't the govt in the past also mention that Raghu Ram Rajan not continuing was his own decision as he was not willing to commit for a full second term and his leaving was on his terms and not that govt got rid of him.
Rockstar Rajan has been quite busy of late running around any one who shoves a mike into his face offering his gyan, don't know when he finds time to teach, which as the primary reason for his stepping down.
hgupta
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by hgupta »

VijayK,

You should post that in the thread, "A Nation on the March" and in Namo achievement thread.
Vips
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

E-way bill spike in march hints at further growth in GST Collection.

Article behind a pay wall. Excerpts:
Electronic permits for goods shipment within and across states in March have shot up to 78.1 million, the highest since November 2020 for which data is readily available, indicating that Goods and Services Tax (GST) revenue collections in April could surpass the all-time high seen in March.
Official data from GSTM the company that processes tax returns shows that in March, e-way generation jumped 13% from what was generated in February.
Vips
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

India's tax revenues soar to a record high of Rs 27.07 trillion in FY22.

The Centre beat all its estimates of revenue collection in the financial year ended on March 31, aided by better indirect tax mop-up, strict compliance measures, and recovery in most sectors following the successive waves of the Covid-19 pandemic.

India’s gross revenue collection soared to a record high of Rs 27.07 trillion in FY22, while the tax-to-GDP ratio jumped to an over two-decade high of 11.7 per cent, the finance ministry said on Friday. The total mop-up was 34 per cent more than the Rs 20.27 trillion collected in FY21.

About 49 per cent growth was registered in direct tax collection and 20 per cent in indirect tax collection in FY22.

“It signifies a robust recovery in the economy. This was also supplemented with better compliance efforts in taxation. Various efforts were taken by the tax administration on direct as well indirect taxes to nudge higher compliance through the use of technology and artificial intelligence,” the ministry said.

While briefing on collection figures, Revenue Secretary Tarun Bajaj said the overall tax buoyancy showed a “'healthy, robust figure”.


Image


The tax buoyancy came in at about 2, which means the rate of growth in tax collection was nearly double that of nominal GDP (gross domestic product) growth.

The tax-to-GDP ratio in FY22 rose to 11.7 per cent -- the highest since 1999. In FY21, the ratio was 10.3 per cent, Bajaj pointed out. “Direct taxes are more than indirect taxes (in 2021-22) and I hope this trend will continue in the coming years,” Bajaj said.

The tax revenue in the Union Budget for 2021-22 was estimated at Rs 22.17 trillion, as against the revised estimates of Rs 19 trillion, with growth of 17 per cent, according to the ministry.

Within direct taxes, corporation tax grew by 56.1 per cent and personal income tax by 43 per cent. In indirect taxes, customs duties grew by 48 per cent, reflecting robust export and import.

On the Ukraine-Russia crisis, Bajaj said it is worrisome but we need to see how the economy performs, particularly commodity prices and their impact on supply chains.

On the outlook on collection figures, he said the figures have been provided in the Budget and it may not be possible to repeat such a high growth rate in the current financial year.

Bajaj further said it might be difficult to achieve the budgeted customs collection for the current fiscal as it may not be possible to fully restore the import duty on edible oils and pulses because of the rising prices. The Centre had reduced the customs duty on edible oil and pulses in FY22.

Net direct taxes, which comprise income tax paid by individuals and corporate tax, came in at Rs 14.10 trillion -- Rs 3.02 trillion higher than the BE. Direct taxes in FY22 were higher by 34 per cent and 23 per cent over the pre-pandemic levels of FY19 and FY20.

Indirect taxes like excise duty stood Rs 1.88 trillion higher than the Budget estimate. Against the Budget estimate of Rs 11.02 trillion, the indirect tax mop-up was Rs 12.90 trillion, he said.

According to CBIC Chairman Vivek Johri, customs duty collections included major contributions from items like gold, edible oil, mobile phones and motor vehicles. Infrastructure items such as iron, steel, and cement have also ensured good GST revenue to the government, along with revenue from the IT sector, he said.

In terms of tax buoyancy, the overall tax buoyancy was 1.9 in FY22, with direct tax buoyancy at 2.8 and indirect tax buoyancy at 1.1.
arshyam
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by arshyam »

Does GST form part of the indirect taxes mentioned above? The article talks only about customs duty..
nandakumar
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by nandakumar »

arshyam wrote:Does GST form part of the indirect taxes mentioned above? The article talks only about customs duty..
It does include Central portion of the GST plus compensation levy imposed on GST which is to be used for making good on State GST shortfall below 14% annual growth in State GST.
hanumadu
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by hanumadu »

The GST compensaton is only for 5 years, that is till July 22.
nandakumar
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by nandakumar »

hanumadu wrote:The GST compensaton is only for 5 years, that is till July 22.
That's true. But I recall reading some reports where some States have asked for extension as the last years saw economic activities being severely disrupted. Consequently the take off point for States to not depend on handouts from the Centre got pushed further into the future. Don't know if Centre would agree to it.
Aditya_V
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Aditya_V »

It's been on the wishlist of the opposition, where center collects the tax for them, while the happily locked down industries. Now thier leverage goes down
Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

Until June 2022. A GST compensation cess has been applied on luxury and demerit goods until March 2026 in order to pay for the borrowings that the center made in order to pay compensation shortfalls in 2020 and 2021 FYs - amounting to Rs.1.1 lakh crore and 1.6 lakh crore respectively.

I don't see the compensation being extended because the center is already subject to a liability on account of the COVID year shortfalls. They have indeed asked the Center for it, but I don't see it happening. With the growth cycle now, states should focus on improving their business climate instead.
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