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 »

How is this economical for the customer - 70 rs order with 40 rs delivery fee?
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

V_Raman wrote:How is this economical for the customer - 70 rs order with 40 rs delivery fee?
Just Beta started. Day 1.

Will be consolidated
From ONDC :

As of 5:30 PM PM IST, 30th Sep

-->161 orders placed on ONDC network across Paytm(88), IDFC(42), Spicemoney(15), Mystore(16) Buyer apps

-->59 orders are delivered, and rest in progress

-->Cateogry breakup: 55% Grocery, 45% Food & Beverages orders
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

V_Raman wrote:How is this economical for the customer - 70 rs order with 40 rs delivery fee?
The same applies to such products, on virtually any platform. Most sellers on Amazon and Flipkart either add such a delivery fee, mark up the price over MRP, or require a minimum order quantity if they promise 'free' delivery.

Logistics will be the key make or break factor for this, not just for delivery but stuff like returns etc.
V_Raman
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by V_Raman »

Maybe customers will be able to choose the delivery company as well who might offer subscription plans similar to Amazon Prime scoped to delivery - within the city, or district or state or country.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Atmavik »

V_Raman wrote:Maybe customers will be able to choose the delivery company as well who might offer subscription plans similar to Amazon Prime scoped to delivery - within the city, or district or state or country.
Yes , one can choose delivery
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by hnair »

Buying a 40rs milk packet from a shop about 1km away is a pain for lots of folks. You either walk or use two wheeler. Then there is the charming thing in Bangalore called gridlock, which can add to fuel costs for driving. Then you get a parking like, further half kilometer away. The other option of catching a auto/rick has minimum charge in rest of India but in Bangalore, the rick guy is usually a grand douche who won’t want your fare if it is not in his route or distance is under 1 light year.

The milk procurement cost including the hour it takes, plus lugging it to your doorstop will definitely make delivery fee look good, when combined with other groceries. Add to that rains or illness or small kids to lug along for these essential shopping jaunts and these delivery fees looks attractive for convenience of procuring groceries from your home. Only destination shopping like malls are worth the trouble for a personal leisure and entertainment kind of experience nowadays in the big cities of India

This delivery mode works well to decongest shopping traffiic and make life easier and is probably greener also, if electric scooters are introduced. These delivery apps helps small businesses who won’t otherwise attract footfalls and is great for micro-markets inside a city
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

Government collects Rs 1,47,686 cr GST revenue in September.

GST collections in September rose 26 per cent to over Rs 1.47 lakh crore, the finance ministry said on Saturday. Goods and Services Tax (GST) mop-up has been over Rs 1.40 lakh crore for seven months in a row.

The gross GST revenue collected in the month of September 2022 is Rs 1,47,686 crore, of which Central GST is Rs 25,271 crore, State GST is Rs 31,813 crore, Integrated GST is Rs 80,464 crore (including Rs 41,215 crore collected on import of goods) and Cess is Rs 10,137 crore (including Rs 856 crore collected on import of goods), the ministry said in a statement.

The government generated 26% higher revenues in the month of September 2022 in comparison with the same month last year. The goods import revenue was recorded 39% higher and the revenues from domestic transaction (including import of services) are 22% higher than the revenues from these sources during the same month last year.

During the month of August 2022, 7.7 crore e-way bills were generated, which was marginally higher than 7.5 crore in July 2022.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

https://www.ndtv.com/india-news/india-h ... na-3398394
In India, half of all infrastructure projects are delayed, and one in four run over their estimated budget. Prime Minister Narendra Modi believes technology is the solution to these perennial and notorious bottlenecks. Under a 100-trillion-rupee ($1.2 trillion) mega project called PM Gati Shakti -- Hindi for the strength of speed -- PM Modi's administration is creating a digital platform that combines 16 ministries. The portal will offer investors and companies a one-stop solution for the design of projects, seamless approvals, and easier estimation of costs.

"The mission is to implement projects without time overrun and cost overrun," Amrit Lal Meena, special secretary of logistics in the ministry of commerce and industry, said in an interview in New Delhi. "Global companies choosing India as their manufacturing center is the objective."
Fast-tracking projects will give India an advantage, especially with China still largely closed to the outside world and companies increasingly adopting a China-plus-one policy -- finding other countries to expand in or source from -- to diversify their businesses and supply chains. Asia's third-largest economy not only offers cheap labour, but also a talent pool of largely English-speaking workers, even though rickety infrastructure keeps many investors away.

"The only way to compete with China, apart from the fact there are political requirements of countries to move away, is to be as competitive on the cost as you can be," said Anshuman Sinha, a partner at Kearney India who leads transport and infrastructure practices. "Gati Shakti is about making it easier to have a flow of goods and manufactured components across the length and breadth of the country."

The key pillars of the project are identifying new production clusters that don't exist today, and linking those sites seamlessly to the nation's railway network, ports and airports, Mr Sinha said. "If you peel the layers of Gati Shakti, it's made up of identifying nodes and strengthening the logistics network connecting those nodes."

Reducing red tape through technology is crucial for India to unclog its stalled infrastructure projects. Of the 1,300 projects, Gati Shakti's portal currently oversees, almost 40% were delayed due to issues related to land acquisition, forest, and environment clearances, resulting in cost overruns, according to Mr Meena. At least 422 projects had some issues and the portal resolved problems in some 200 of those.

Under Gati Shakti, the government, for example, will use technology to ensure that a newly constructed road isn't dug up again to lay out phone cables or gas pipelines, according to a government agency promoting investments in India. The plan envisages modeling infrastructure projects along the lines of what Europe did after the Second World War or what China did between 1980 and 2010 to raise the nation's "competitive index," according to Invest India, the government agency.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by ritesh »

Atmavik wrote:https://www.youtube.com/watch?v=jEh7wCVOyhI

India’s Moment After a Decade of Structural Reforms – Saurabh Mukherjea

@ 13:15 he talks about the effect of GST and UPI on black economy.

he makes a few points

1. number of business have shut down as there only profit margin was tax evasion
2. gives the example of plastic pipes industry which was 50-50 white-black 10 yrs ago and is now 70-30 expected to go to 85-15

This has massive implications for cost of capital and productivity.
Whatever you say makes sense, however don't think BIF got affected. Anti CAA and Farms bill protests attest to this fact. Another aspect, these puncture pootras were neck deep in hawala and black economy, don't think their belligerence has diminished one bit.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.bloomberg.com/news/articles ... val-season
India Jobless Rate Drops to Four-Year Low Before Festival Season
India’s unemployment rate dropped to the lowest in more than four years in September, buoyed by a strong rise in new jobs, according to a private research firm.

The jobless rate sharply fell to 6.43%, data from the Centre for Monitoring Indian Economy Pvt. showed. The reading is the lowest since August 2018 and compares with a one-year high of 8.3% in August.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

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https://swarajyamag.com/economy/how-5g- ... an-economy
How 5G Will Boost The Indian Economy
India’s 5G journey has begun with a rollout in 13 cities. These include Bengaluru, Gurugram, Hyderabad, New Delhi, Pune, and Chandigarh amongst others.

A tad bit late to the 5G party, India will be able to draw significant economic benefits from the ushering of the services.

Put simply, 5G enables much higher speeds than 4G and low latency which are important in an age where artificial intelligence, the internet of things (IoT), metaverse, and other smart platforms are becoming common for individuals and enterprises.

The Indian market, even after the Jio revolution in 2017, is still in its adolescence.

Though smartphone connections, as a percentage of the total mobile connections, have increased from 40-odd per cent in 2017 to a little less than 90 per cent in 2022, the average revenue per subscriber (ARPU) is still under Rs. 200, almost one-fourth of what it is China, and lower than that in Russia, Brazil, Philippines, and Indonesia.

Even the EBITDA margins in India, between 2015 and 2019, were lower for India compared to the Asia Pacific. However, the numbers present an opportunity for service providers in India.

As per forecasts by GSMA, 5G penetration will increase from 2 to 4 per cent in 2023 to around 18 per cent in 2028, and from 60 per cent in 2033 to 90 per cent in 2040.

The 5G penetration will also be about making India a 2G-mukt economy, as Reliance Chairman Mukesh Ambani stated in the company’s AGM of 2021.
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Re: Indian Economy News & Discussion - Nov 27 2017

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https://swarajyamag.com/news-brief/more ... vey-report
More Than 60 Per Cent Rural Homes In The Country Now Have Clean Tap Water, Says Union Ministry Survey Report
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

India's unemployment rate drops to 4-year low before festival season
India’s unemployment rate dropped to the lowest in more than four years in September, buoyed by a strong rise in new jobs, according to a private research firm.

The jobless rate sharply fell to 6.43%, data from the Centre for Monitoring Indian Economy Pvt. showed. The reading is the lowest since August 2018 and compares with a one-year high of 8.3% in August.

The decline comes as nearly 10 million jobs got added during the month, defying the trend in August when workers who entered the job market couldn’t find work. In rural areas, the unemployment rate declined to 5.8% from 7.7% in August, while in urban areas it stood at 7.7%, lower than 9.6% in the previous month.

The latest data comes against the backdrop of India’s festive season which typically boosts economic activity and aids jobs growth. A strong demand in the services sector along with steady monsoon rains also likely boosted employment opportunities.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

Bjorn Lomberg is a good analyst. He even consulted with Andhra Pradesh Govt couple of years back and produced a report of what the priorities should be. Its avl as a book on amazon. None of it got implemented I'm guessing.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by KL Dubey »

^^Either some madrassa math or a misleading label in the SDG trajectory graph in the Debroy et al article. The "world" can't complete all SDGs by 2078 if low income and high income countries are taking till 2121 and 2176 to reach only 80%. Maybe it means some kind of a "world average" of the estimated time taken by different countries to get there.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

"Logistical Marvel": IMF Lauds India's Direct Cash Transfer Scheme
Washington: India's deployment of a direct cash transfer scheme and other similar social welfare programmes is a "logistical marvel", the International Monetary Fund (IMF) said on Wednesday.

"From India, there is a lot to learn. There is a lot to learn from some other examples around the world. We have examples from pretty much every continent and every level of income. If I look at the case of India, it is actually quite impressive," Paolo Mauro, Deputy Director of the Fiscal Affairs Department at the IMF, told reporters at a news conference here.

"In fact, just because of the sheer size of the country, it is a logistical marvel how these programmes that seek to help people who are at low-income levels reach literally hundreds of millions of people," he said in response to a question on the impressive direct cash transfer programme being successfully implemented by the Indian government.

There are programmes that target specifically women. There are programmes that target the elderly and farmers. Perhaps the interesting part is that in these examples, there is a lot of technological innovation, he said.

"In the case of India, one thing that is striking is the use of the unique identification system, the Aadhaar," Mauro said.


"But in other countries, also, there is greater use of sending money through mobile banking to people who actually do not have a whole lot of money, but they have a cell phone," Mauro said.

"So being somewhat innovative in identifying people, in processing their applications for transfers through digital means, deploying funds through, again, mobile banking. This is something that countries can learn from each other. We try also here to be a little bit of a convening place where people can compare these types of experiences," he said.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

https://journals.lww.com/ijmr/Fulltext/ ... er.10.aspx

The Global Hunger Index (GHI) is calculated and disseminated annually. India, which is the 5th largest economy in the world and has a good ranking in many other indicators, has a poor ranking based on this index. After a critical review of the appropriateness of the indicators used in GHI, the Indian Council of Medical Research has the viewpoint that the indicators of undernourishment, stunting, wasting and child mortality do not measure hunger per se. Referring to this index as a Hunger Index, and thereby ranking countries is not appropriate, since many of the measures that are used to evolve an index that measures hunger are probably contextual. Countries should therefore evolve their own measures that are suitable for their own context.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

https://theprint.in/opinion/indian-mili ... a/1115864/


"While the 40-180 nanometre nodes meet most military requirements, certain chip-manufacturing capacity exists only in the Quad, which forms the trusted foundry network of the US, Australia and Japan"


What's this certain chip capacity the author is thinking about?
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

Reform, economic growth focus to boost FDI opportunities to $475 bn in 5 years: EY-CII report
Most multinational companies (MNCs) already present in India see the country as an alternative for their China+1 strategy, with their optimism driven both by short-term as well as long-term prospects, according to a CII-EY survey report.

The survey, 'Vision 'Developed India' Opportunities and Expectations of MNCs', conducted jointly by EY and CII showed that 71% of MNCs considered India to be an attractive investment destination for their global expansion. An overwhelming 96% of the respondents were positive about the Indian economy in the long run, it said.

The MNCs also said the Indian economy would perform significantly better in 3-5 years.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

Number of poor people in India fell by about 415 million between 2005-06 and 2019-21, a ‘historic change’: UN
Around 415 million people in India climbed out of poverty between 2005-06 and 2019-21, with the incidence of poverty falling from 55 per cent to just over 16 per cent over this period, according to the Global Multidimensional Poverty Index 2022.

Despite the significant reductions, however, the largest number of poor people in the world — 228.9 million — lived in India in 2020, said the MPI report, released Monday by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford.

India’s MPI value and incidence of poverty were both more than halved. The MPI value fell from 0.283 in 2005-2006 to 0.122 in 2015-2016 to 0.069 in 2019-2021. The incidence of poverty fell from 55.1 per cent in 2005-2006 to 27.7 per cent in 2015-2016 to 16.4 per cent in 2015-2016.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Zynda »

A question...if India & Russia decide to trade with their respective currencies, how is the exchange rate between them evaluated especially with focus on de-dollarisation?
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by JTull »

Zynda wrote:A question...if India & Russia decide to trade with their respective currencies, how is the exchange rate between them evaluated especially with focus on de-dollarisation?
There's usually an offshore NDF (non-deliverable forwards) market for currencies that aren't freely traded. Although number of active counterparties will be small due to sanctions.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Zynda »

Been reading on Twitter (not reliable news source anyways) that India may sign trade treaties with a few countries where trade will be conducted in Rupee-<xx> currencies...so was curious. Thanks for the reply....
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://archive.ph/wldXJ
The end of Apple’s affair with China
Covid-19, costs and geopolitics are driving the iPhone-maker to manufacture and sell its gadgets elsewhere
Now a change is under way. Mr Cook, who has not been seen in China since 2019, is wooing new partners. In May he entertained Vietnam’s prime minister, Pham Minh Chinh, at Apple’s futuristic Cupertino headquarters. Next year Apple is expected to open its first physical store in India (whose prime minister, Narendra Modi, is a fan of gold iPhones).

The two countries are the main beneficiaries of Apple’s strategic shift. In 2017 Apple listed 18 large suppliers in India and Vietnam; last year it had 37. In September, to much local fanfare, Apple started making its new iPhone 14 in India, where it had previously made only older models. The previous month it was reported that Apple would soon start making its MacBook laptops in Vietnam. Some of Apple’s newer gadgets show the way things are going. Almost half its AirPod earphones are made in Vietnam and by 2025 two-thirds will be, forecasts JPMorgan Chase. The bank reckons that, whereas today less than 5% of Apple’s products are made outside China, by 2025 the figure will be 25% (see chart 1).

As Apple’s production system is shifting, its suppliers are diversifying away from China, too. One crude measure of this is the share of long-term assets that Taiwanese tech-hardware and electronics firms have located in China. In 2017 the average figure was 43%. Last year that had fallen to 31%, according to our estimates using company and Bloomberg data.
Another motive is containing costs. Average wages in China have doubled in the past decade. By 2020 a Chinese manufacturing worker typically earned $530 a month, about twice as much as one in India or Vietnam, according to a survey by jetro, a Japanese industry body. India’s ropey infrastructure, with bad roads and an unreliable electrical grid, held it back. But it has improved, and the Indian government has sweetened the deal with subsidies. Vietnam offers tax rebates and holidays, too, as well as free-trade deals, including one recently signed with the European Union. Bureaucracy around visas and customs remains a pain. But the work ethic is similar to that in China: “Confucius still gets them out of bed in the morning,” says one foreign executive in Vietnam.
Apple also increasingly sees locals as potential customers, particularly in India, the world’s second-largest market for smartphones. Apple’s gadgets are too pricey for most Indians, but that is changing. In July Apple reported that its revenues in India had nearly doubled in the past quarter, year on year, driven by the “engine” of iPhone sales.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

Gujarat achieves 100% household water connections; All India rural household tap connections percentage-54.

The Jal Jeevan Mission of the Government of India touched a new milestone on Friday. Gujarat, the home state of Prime Minister Narendra Modi is declared a “100 per cent Har Ghar Jal” state.

As per the government, all 18,187 villages of the state are now connected to the tap water supply. As a result of this 92 lakh rural households are covered.

Interestingly, 70% of the state’s area is classified as semi-arid to arid climatically. Thus the demand for water from various households and the economy puts a pressure on the supply. Due to tremendous demand, Gujarat has faced problems with groundwater depletion, especially after the water demand increased in the 1960s.

About Jal Jeevan Mission

Jal Jeevan Mission is aimed to provide safe and adequate drinking water through individual household tap connections by 2024 to all households in rural India. The programme gives a push to mandatory elements, such as recharge and reuse through greywater management, water conservation, and rainwater harvesting.

It is a community approach-based mission and depends on education and communication as key components of the mission.

What is the status all over India?

According to the Jal Jeevan Mission website, as of 20/10/2022, there are in total 19,14,84,145 rural households. Out of these, 10,41,68,891 rural households have tap connections (on 20/10/2022). This translates to 54.40 per cent.

Gujarat is the fifth-largest Indian state by area (covering some 196,024 km2). It is the ninth-most populous state and has a population of 60.4 million. It has a border with Rajasthan in the northeast, Dadra and Nagar Haveli and Daman and Diu to the south, Madhya Pradesh to the east, Maharashtra to the southeast, and the Arabian Sea and Pakistan to the west. In India, the economy of Gujarat is the fourth-largest (a gross state domestic product (GSDP) of ₹19.44 trillion).
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

https://worldview.stratfor.com/article/ ... omic-storm

The Indian economy retains solid momentum and multiple advantages compared with many other lower-middle-income countries, which should enable India to emerge relatively unscathed from the impending global economic downturn and intensifying financial volatility. Following the COVID-induced recession in 2020, India's economy rebounded very strongly in 2021 and has maintained solid growth ever since. India has also overtaken China as the fastest-expanding economy among larger emerging economies. While inflation remains high in India due to global energy and food price shocks, it is not overwhelming. And while the value of India's currency has dipped, the rupee has depreciated far less than currencies in other countries due to a combination of central bank monetary tightening and foreign-exchange market intervention
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

kit wrote:https://worldview.stratfor.com/article/ ... omic-storm

And while the value of India's currency has dipped, the rupee has depreciated far less than currencies in other countries due to a combination of central bank monetary tightening and foreign-exchange market intervention
In the last one year, Indian government has burnt $118 Billion of foreign reserves in trying to keep up the value of Indian Rupee vis-a-vis the almighty $.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Aditya_V »

Vips wrote:
kit wrote:https://worldview.stratfor.com/article/ ... omic-storm

And while the value of India's currency has dipped, the rupee has depreciated far less than currencies in other countries due to a combination of central bank monetary tightening and foreign-exchange market intervention
In the last one year, Indian government has burnt $118 Billion of foreign reserves in trying to keep up the value of Indian Rupee vis-a-vis the almighty $.
RBI has aldready clarified that 2/3rd 67% of that reduction is due to value of FE assets in Euro/ Yen etc loosing value in USD terms. So stop spreading articles which are baseless

Another USd 10 billion in saving BD and SL.

Ruppee depreciation is mainly due

1) High US interest meaning FII and HNI investing in USD bonds pulling lots of money from India. When the US reduces it unsustainably high interest rates this money will flow back.

2) increase in CAD due to high Oil, gas prices and importing extra coal to meet the huge Electricity demand during the summer heatwave.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by rsingh »

Wr are buying Gold. :mrgreen: And what about other foreign currencies like EURO etc
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »


Thanks for posting this, and yes just like it takes time to associate in China It would be logical to presume it would take a decade or so to develop alternative supply chains outside China, India with its massive pool of English speaking workforce is awaiting, its infrastructure and industry will compete with China by that time
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by yensoy »

^^^^ Agree with you overall but "massive pool of English speaking workforce" is of little use in the factory floor. Neither China nor Vietnam has an English speaking workforce yet they get the job done. All that matters within the walls of a factory are efficiency of production, quality, cost and ability to handle complexity/change. Outside of the factory, yes we need power, roads, quick customs clearance and a no harassment regime.

The world wants us to take over this role. There can be no competitor to China due to many reasons. I don't care for the world wanting us to build things for them, nor do I care to be a competitor to China. I do care that we should be able to produce a bulk of our own consumption locally - and when this happens, we will have enough capacity to produce for the global market, and we will be competitive with China. We should have our own brands and designs and that should be the export driver; producing for foreign brands is ok but we cannot build our economy and country on that basis.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

I read the article in full and he seems to have the biased outlook and sunk cost fallacy of someone who is heavily personally invested (literally married into) in China.

Coming to India, his point about roads and infrastructure are only partially true and only when looking at the country overall, however not really a deal breaker for the small scale segment that he is in as he can easily find a factory that meets all criteria that he has in any of the existing industrial hubs.

The other statement about assembly lines being poorly organized and metal working lacking automation is just bullshit. If he is outsourcing to some workshop in Bihar maybe but if he is really interested in manufacturing, there are tens of thousands of cutting edge manufacturing operations that he could look at.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Adrija »

^^ actually, reading the article gives me quite a lot of hope- if all they can come up with is two lines about India "needs better roads" and "workfloor poorly organized" then that tells us that India is doing quite well......... our infrastructure has genuinely improved in the last five years.

Only fly in the ointment on the infra front is the continuing delay in the DFCCs. I really really really hope we are able to finish both of those by 2024. Perhaps @vsunder can let us know what is the actual reason for the delay and by when realistically we can hope to finish them

Not to take away at all from the stupendous job the government has done already (highways/ ports infra, scrapping of laws, IBC, GST, privatization program, etc), but there are however quite a bit of unfinished agenda still for NaMO and NDA on the economic front (in increasing order of difficultly):

1. Regulatory cholesterol: The centre has done a good job in scrapping/ consolidating a lot of the regulatory restrictions which business is subject to already. I wish they would work to speedily notify the new labour codes as well. However, the bigger burden of the industries is now at the state level, and there absolutely NO progress has been made
2. Energy cost: no large scale manufacturing can really take off unless we ensure cheap and reliable power. Right now, the cheapest energy costs are actually in the US, which is giving a lot of momentum to reshoring and near-shoring (Mexico/ Canada) especially for heavy production, and we run the risk of this window closing as well unless we act urgently. The sad and more worrying part on this is that all talk I hear of power sector reforms involves INCREASING the cost of power, which would be suicidal for the Make In India/ PLIs/ AtmaNirbhar Bharat programs
3. Judicial reforms- expanding the capacity of the judiciary manifold. The challenge here is that lower judiciary comes under the state governments and expanding this is not on the list for any state government. The real solution is creating a All India Judicial Service through the UPSC, which would solve for many problems in one stroke. Sadly, I think this requires a constitutional amendment
4. Urban infrastructure and governance: while we have poured a lot of money in rural infra and inter-city movement of goods and people, which shows, urban infrastructure improvement has been slower to show results (although to be fair there is a lot of money being poured across metros, flyovers, road expansion particularly in big cities). However, much more is required, and more importantly, maintenance of this infra including cleanliness, street lighting, as well as other softer aspects including walkability and (in Namo's words) general "Ease of Living" remain a black hole. The Swachch Bharat program to take care of solid waste seems very sadly to have petered out

That is because our urban governance is a complete black hole and actually is a congenital defect in our constitution. The only real solution is to ensure statutory and fiscal empowerment (by amending the constitution and giving local governments a share of the GST collected) for all states, ensuring a clear devolution and demarcation of powers across the four tiers of government (local, district, state and centre); and perhaps most radical of call, having the states create a municipal cadre to ensure dedicated habitat management. They should open this cadre to all the AgniVeers, in which case they will get access to a trained and disciplined manpower, address the governance deficit at the lowest -and most visible- tier of governance, and also ensure that the AgniVeer program is a success

Sorry for the long post
bharathp
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by bharathp »

https://www.indiatvnews.com/business/ne ... -31-820228

digital rupee to be launched on NOv 1
The use case for the pilot is settlement of secondary market transactions in government securities, the RBI said in a statement on Monday.

Nine banks -- State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC -- have been identified for participation in the pilot.
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