Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Kashi » 11 May 2018 09:50

Suraj wrote:This is essentially a regulatory matter which can be addressed quickly by the government.


The Indian market itself is flooded with Chinese goods. To ensure compliance, GoI will have not only slap tariffs on Chinese imports (as they did with toys and electronics), but also clampdown on existing e-retailers selling Chinese goods branded as local.

The question is, can the local goods completely replace the Chinese ones qualitatively and quantitatively?

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Bart S » 11 May 2018 10:23

Suraj wrote:This is essentially a regulatory matter which can be addressed quickly by the government.


Govt has shown little inclination so far to do so. Even simple steps like mandatory labeling of source/country of origin of the product that people have been demanding for quite a while now, remains unimplemented. About 99% of Amazon Basics products are cheap quality Chinese junk and likewise the Flipkart branded cables/chargers etc. Several Indian brands are also into this business now, many of Wipro's electrical products are just Chinese makes with Wipro stickers on them, likewise for other so-called Indian brands like Milton etc.

The reason why this is a big issue with online retailing is that while buying an online product you have no consistent way of examining it or reading the packaging to determine where it is sourced from, and often times the product cannot be returned or its just too much of a hassle to return it.
Last edited by Bart S on 11 May 2018 12:09, edited 2 times in total.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vina » 11 May 2018 10:40

Deleted political diatribe
Last edited by Suraj on 11 May 2018 11:52, edited 1 time in total.
Reason: Some people never learn despite multiple bans.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby JayS » 11 May 2018 11:08

Bart S wrote:
Suraj wrote:This is essentially a regulatory matter which can be addressed quickly by the government.


Govt has shown little inclination so far to do so. Even simple steps like mandatory labeling of source/country of origin of the product that people have been demanding for quite a while now, remains unimplemented. About 99% of Amazon Basics products are cheap quality Chinese junk and likewise the Flipkart branded cables/chargers etc. Several Indian brands are also into this business now, many of Wipro's electrical products are just Chinese makes with Wipro stickers on them, likewise for other so-called Indian brands like Milton etc.


Apart from the issue of what is being sold, the ecommerce companies need a regulatory body which can force them to be more transparent and accountable to customers. Once I bought a TV from snapdeal and I got a used repackaged model. The seller wouldn't even accept. What followed was a month long agony to get the significant sum of money I had paid. That time I got to know that these companies do not even have any ombudsmen system. There is no escalation ladder for customer. You are basically at their mercy. You can talk to only the BPO folks which are contract workers and there is no way at all to get in touch with the ecommerce company folks directly. Whatever may people say about advantages of non-interference of government in these businesses, they surely are not honest enough to maintain transparency and accountability on their own. One day this frenzy of doling out discounts will stop. One or two companies will dominate the market after beggaring every other player. The entry barrier will be so high later than no one will try to enter the space. When we have monopoly or bipoly the issue related to regulation will become rather important.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Bart S » 11 May 2018 12:12

JayS wrote:
Bart S wrote:
Govt has shown little inclination so far to do so. Even simple steps like mandatory labeling of source/country of origin of the product that people have been demanding for quite a while now, remains unimplemented. About 99% of Amazon Basics products are cheap quality Chinese junk and likewise the Flipkart branded cables/chargers etc. Several Indian brands are also into this business now, many of Wipro's electrical products are just Chinese makes with Wipro stickers on them, likewise for other so-called Indian brands like Milton etc.


Apart from the issue of what is being sold, the ecommerce companies need a regulatory body which can force them to be more transparent and accountable to customers. Once I bought a TV from snapdeal and I got a used repackaged model. The seller wouldn't even accept. What followed was a month long agony to get the significant sum of money I had paid. That time I got to know that these companies do not even have any ombudsmen system. There is no escalation ladder for customer. You are basically at their mercy. You can talk to only the BPO folks which are contract workers and there is no way at all to get in touch with the ecommerce company folks directly. Whatever may people say about advantages of non-interference of government in these businesses, they surely are not honest enough to maintain transparency and accountability on their own. One day this frenzy of doling out discounts will stop. One or two companies will dominate the market after beggaring every other player. The entry barrier will be so high later than no one will try to enter the space. When we have monopoly or bipoly the issue related to regulation will become rather important.


They are also basically stealing the data of our citizens. Amazon has massive amounts of data that they are doing who knows what with. We need a GPDR type regulation ASAP. There is a reason Google invested part of the money involved in the Flipkart acquisition - they want to one-up Amazon by accessing all that data generated by Indian consumers. If the govt does not step in, we are all set to become the world's largest data-colony, deja vu all over again, like Yogi Berra would say.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 11 May 2018 12:22

Stick to the topic , please. Take sidebars to appropriate threads.

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Indian Economy News & Discussion - Nov 27 2017

Postby Peregrine » 11 May 2018 15:57

Reserve Bank of India adds 2.5 tonnes of gold to forex reserves in Q4
The Reserve Bank of India (RBI) has added 2.5 tonnes of gold to foreign exchange reserves for the quarter ended March 2018 in two tranches.
This is the first such addition after 2009, when the central bank bought 200 tonnes of the yellow metal from the International Monetary Fund (IMF) at $1,032 per tonne. According to IMF data (updated till March 2018), India’s gold holding in forex reserves rose to 560.3 tonnes by the end of March 2018. The RBI did not respond to email queries till the time of going to press.
Cheers Image

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 11 May 2018 17:15

Notifications from tradingeconomics.com:
India
Deposit Growth YoY 28/APR: 8.2% (previous 8%)
Foreign Exchange Reserves 5/MAY $418.94B (previous $420.37B)
Bank Loan Growth YoY 28/APR 12.6% (previous 11.5%)

PS:
Industrial Production YoY MAR 4.4% (previous 7.1% )
Manufacturing Production YoY MAR 4.4% (previous 8.7%)
https://tradingeconomics.com/india/indu ... production
ndia's industrial output grew 4.4 percent from a year earlier in March 2018, missing market expectations of a 5.9 percent advance.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 11 May 2018 17:50

https://www.moneycontrol.com/news/busin ... 66961.html
India’s industrial production grew 4.4 percent in March, as compared with a robust 7.1 percent jump in February.

Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country’s business landscape.

Manufacturing sector, which accounts for more than three-fourths of the entire index, grew at 4.4 percent in March slower than 8.7 percent in February.

Capital goods output, which is a proxy to measure private sector investment activity, fell 1.8 percent in March, after it soared 20 percent in February.

Consumer durables output increased 2.9 percent in March from 7.9 percent in February, while consumer non-durables grew 10.9 percent in March as compared with 7.4 percent jump in February.

Electricity production grew 5.9 percent in March from 4.5 percent in February, while mining activity’s growth grew 2.8 percent from (-) 0.3 percent in February.​


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 11 May 2018 22:12



It means that Trump's tariffs can't hurt as much. If the rupee dips more than RBI/GOI want, then India can't be accused of currency manipulation either.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Supratik » 11 May 2018 23:33

They are trying to stop the rupee from appreciating. I think the rupee depreciation from around 50 to 70 during UPA2 was due to massive economic misdoings and does not reflect the underlying strength of the economy. They should let the rupee appreciate 1-2% per year.

Meanwhile, minimum wages will be revised.

https://www.businessinsider.in/India-is ... 001419.cms

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 12 May 2018 01:00

From all that I've read so far, the IIP blip in March 2018 was a result of base effect on account of a strong performance in March 2017. For the full fiscal year, IIP still grew very strongly. In particular, the 6 month rolling average IIP continues to rise, because the March performance is still better than middle of last autumn when GST early impact was just settling down:

Code: Select all

Mth   CY     FY        IIP   3-mo  6-mo Notes
Mar   2018   2017-18   4.4   6.3   6.2   End of fiscal year
Feb   2018   2017-18   7.1   7.2   6.1
Jan   2018   2017-18   7.5   7.8   5.7
Dec   2017   2017-18   7.1   6.0   4.6   
Nov   2017   2017-18   8.8   4.9   3.4   
Oct   2017   2017-18   2.2   3.5   2.2   
Sep   2017   2017-18   3.8   3.2   2.4   
Aug   2017   2017-18   4.5   1.9   2.2   
Jul   2017   2017-18   1.2   0.9   1.2   GST Effective
Jun   2017   2017-18   -0.1   1.6   1.5   
May   2017   2017-18   1.7   2.5   1.4   
Apr   2017   2017-18   3.1   1.5   2.1   
Mar   2017   2016-17   2.7   1.4   1.3   
Feb   2017   2016-17   -1.2   0.4   0.9   
Jan   2017   2016-17   2.7   2.7   1.0   
Dec   2016   2016-17   -0.4   1.1   0.2   
Nov   2016   2016-17   5.7   1.5   0.6   Demonetization
Oct   2016   2016-17   -1.9   -0.6   -0.2   
Sep   2016   2016-17   0.7   -0.8   0.0   
Aug   2016   2016-17   -0.7   -0.3   -0.1   
Jul   2016   2016-17   -2.4   0.3   0.4   
Jun   2016   2016-17   2.1   0.8   0.5   
May   2016   2016-17   1.2   0.2   -0.1   
Apr   2016   2016-17   -0.8   0.4   -0.8   
Mar   2016   2015-16   0.05   0.2   1.0   
Feb   2016   2015-16   2.0   -0.3   1.6   
Jan   2016   2015-16   -1.5   -2.0   2.3   
Dec   2015   2015-16   -1.3   1.8   3.3   
Nov   2015   2015-16   -3.2   3.5   4.2   
Oct   2015   2015-16   9.8   6.7   5.2   
Sep   2015   2015-16   3.8   4.8   4.2   
Aug   2015   2015-16   6.4   5.0   3.9   
Jul   2015   2015-16   4.2   3.8   3.6   
Jun   2015   2015-16   4.4   3.5   3.4   
May   2015   2015-16   2.7   2.7   2.9   
Apr   2015   2015-16   3.4   3.5   1.8   
Mar   2015   2014-15   2.1   3.2   0.6   
Feb   2015   2014-15   5.0   3.1   0.6   
Jan   2015   2014-15   2.6   0.2   -0.1   
Dec   2014   2014-15   1.7   -2.1   -0.5   
Nov   2014   2014-15   -3.8   -1.8   -0.2   
Oct   2014   2014-15   -4.2   -0.4   1.2   
Sep   2014   2014-15   2.5   1.1      
Aug   2014   2014-15   0.4   1.4      
Jul   2014   2014-15   0.5   2.9      
Jun   2014   2014-15   3.4         
May   2014   2014-15   4.7         GE 2014

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 12 May 2018 19:55

India's Role in the World


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Supratik » 13 May 2018 01:00

MDP (multidimensional poverty) is falling at the rate of 3.5% per year. KL has lowest and BH highest MDP.

http://www.thehindu.com/news/national/s ... 866587.ece

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Neshant » 13 May 2018 08:48

Suraj wrote:This is essentially a regulatory matter which can be addressed quickly by the government.


I don't think so.

Walmart will be lobbying Trump to impose sanctions on India to open the floodgates to China made goods.

All part of free market access they will argue.

Dumping China goods on countries is their main business.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 13 May 2018 12:02

US President Donald Trump's new drug plan may hit India

https://timesofindia.indiatimes.com/wor ... 141977.cms

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Supratik » 13 May 2018 17:32

Actually it is MNC drug makers who extort exhorbitant drug prices to maintain their top line and bottomline. Generic drugs allow US poor to afford treatment.


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby suryag » 13 May 2018 20:51



From the report
This list contains projected GDP's of 192 Countries/Economies in current prices (U.S. dollars) of year 2018 and 2023. GDP's of Pakistan and Egypt are missing in nominal methods. Both figure has been calculated by interpolation.

Ouch!!! Why did this happen because their exchange rate is not stable ?

BTW we will beat France and UK only by 2023 ? :(

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Supratik » 13 May 2018 21:02

No it is a 5 year projection. We will cross UK and France in a year or two provided there are no shocks.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 13 May 2018 21:40

Supratik wrote:No it is a 5 year projection. We will cross UK and France in a year or two provided there are no shocks.

Those are just IMF WEO numbers that keep changing based on what they think exchange rates will be. A few months ago it stated India would overtake UK and France in 2018. Now their madrassa math says we do so in 2019.

The whole thing is a farce. I prefer PPP GDP figures. Why ? Because exchange rate micro-movements don't make such a difference there. We don't pay OECD prices for everything in India. PPP is a far better comparison between India and a developed country, not nominal GDP.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suresh S » 13 May 2018 21:45

Agree Suraj. I have always maintained that comparing GDP in dollars is madrassa math, another propaganda tool of the west to put rest of the world down and keep humoring their ignorant public. PPP is the only way if done properly.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 13 May 2018 22:12

On that token, here are 2018 and 2023 PPP GDP numbers (in $ trillions):

Code: Select all

Country 2018_GDP 2023_GDP
China 25.2 37.0
USA 20.4 24.5
India 10.4 16.8
Japan 5.6 6.4
Germany 4.3 5.2
UK 3.0 3.6
France 2.9 3.5

We'll add $6 trillion in GDP in a 6 year period, more than anyone but China. More than YooEss too.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby suryag » 13 May 2018 22:31

Saar why is paaki sthan not rated on the nominal scale ?

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 13 May 2018 22:50

The first rule of the Indian Economy club is that we don't discuss them here.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby nash » 14 May 2018 00:18



PPP or even nominal GDP, in next decade ours will be bigger than the combined total of major common wealth countries. We need to think what we are gaining to be the part of CW group.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 14 May 2018 12:05

Suraj wrote:On that token, here are 2018 and 2023 PPP GDP numbers (in $ trillions):

Code: Select all

Country 2018_GDP 2023_GDP
China 25.2 37.0
USA 20.4 24.5
India 10.4 16.8
Japan 5.6 6.4
Germany 4.3 5.2
UK 3.0 3.6
France 2.9 3.5

We'll add $6 trillion in GDP in a 6 year period, more than anyone but China. More than YooEss too.


So 2018 PPP shows China out matching US GDP PPP by 5 Trillion , thats almost the economy size of Japan and we are twice of Japans GDP .......No wonder I see no Western MSM financial times ever likes to quote PPP GDP figures else they show emperor is naked

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Arima » 14 May 2018 13:02

Suraj wrote:On that token, here are 2018 and 2023 PPP GDP numbers (in $ trillions):

Code: Select all

Country 2018_GDP 2023_GDP
China 25.2 37.0
USA 20.4 24.5
India 10.4 16.8
Japan 5.6 6.4
Germany 4.3 5.2
UK 3.0 3.6
France 2.9 3.5

We'll add $6 trillion in GDP in a 6 year period, more than anyone but China. More than YooEss too.



just one question, it may be stupid,

how come PPP of UK and France low compared to there economy of 2.5T$? mostly i have seen PPP much larger compared to GDP?? am i missing something here?

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 14 May 2018 16:10

Via tradingeconomics.com:

Wholesale prices in India rose by 3.18 percent year-on-year in April of 2018, after a 2.47 percent gain in the prior month and above market estimates of 2.86 percent. It was the highest wholesale inflation since December 2017, as cost increased at a faster pace for manufactured products and fuel, while prices of food rebounded. On a monthly basis, wholesale prices increased by 0.7 percent, compared to a 0.2 percent rise in March.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 14 May 2018 17:51

https://www.bloomberg.com/news/articles ... h-in-april
India’s oil consumption surged 4.5 percent in April as industrial activity gathered pace in Asia’s third-largest economy and sales of trucks and buses soared.

The nation’s total oil demand expanded to 17.7 million tons in the month from 16.9 million a year ago, rising for eight straight months, according to the oil ministry’s Petroleum Planning & Analysis Cell.

Demand for diesel, which accounts for about 40 percent of India’s oil consumption, increased 2.7 percent to 7.2 million tons. Demand for diesel is typically muted in April as farming consumption shrinks following the harvest season in March.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 14 May 2018 18:54

Arima wrote:
Suraj wrote:On that token, here are 2018 and 2023 PPP GDP numbers (in $ trillions):

Code: Select all

Country 2018_GDP 2023_GDP
China 25.2 37.0
USA 20.4 24.5
India 10.4 16.8
Japan 5.6 6.4
Germany 4.3 5.2
UK 3.0 3.6
France 2.9 3.5

We'll add $6 trillion in GDP in a 6 year period, more than anyone but China. More than YooEss too.



just one question, it may be stupid,

how come PPP of UK and France low compared to there economy of 2.5T$? mostly i have seen PPP much larger compared to GDP?? am i missing something here?

You’ll need to educate yourself on what PPP is, on your own.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 14 May 2018 19:15

Austin wrote:
Suraj wrote:On that token, here are 2018 and 2023 PPP GDP numbers (in $ trillions):

Code: Select all

Country 2018_GDP 2023_GDP
China 25.2 37.0
USA 20.4 24.5
India 10.4 16.8
Japan 5.6 6.4
Germany 4.3 5.2
UK 3.0 3.6
France 2.9 3.5

We'll add $6 trillion in GDP in a 6 year period, more than anyone but China. More than YooEss too.


So 2018 PPP shows China out matching US GDP PPP by 5 Trillion , thats almost the economy size of Japan and we are twice of Japans GDP .......No wonder I see no Western MSM financial times ever likes to quote PPP GDP figures else they show emperor is naked

When comparing between high income OECD nations, nominal GDP is fine since price levels, ratio of the prices of most goods and services to income etc are the similar in these countries, ie their PPP multipliers are quite similar (around 0.95-1.05) However nominal is a weak comparison basis between them and China (>2 multiplier) or particularly India - our PPP multiplier is 4.5 . You can’t use nominal GDP comparisons where PPP multipliersare so far off - the purchasing power of a unit of income isn’t remotely close . When India is a high income country with a PPP GDP figure similar to nominal GDP figure then we can use nominal GDP to compare to other similar peofile countries .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 14 May 2018 19:58

^^ I guess that also answers Arima question on why PPP and GDP are so similar for OECD nations..Thanks Suraj even I was looking for an answer .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 14 May 2018 21:33

The PPP multiplier (ratio between PPP and nominal GDPs) enables you to have a good basis for using any GDP measure to compare two countries. If the multipliers are similar (approx 1.0), you can use either nominal or PPP figures. If the countries being compared have multipliers wildly different, only PPP is a meaningful comparison.

There's a deliberate effort to portray PPP GDP as some 'poor man's GDP'. But it isn't any such thing. All those 2000+ year historical GDP figures ? They're all PPP figures - that's the only one you can discern from historical records of consumption. There were no known exchange rates then for nominal figures to be available. Who has exchange rates between Roman sestertii , Gupta era rupees and Tang dynasty currency in AD 450, hainji ?

Nominal GDP figures are arguably the more questionable GDP measure since it depends on fiat currency exchange rate dynamics.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 15 May 2018 08:03

Nominal GDP figures suits the rich counties that have multipliers close to 1 so most of these Western institutions would stress on Nominal GDP than PPP.
Well if some one accounted even for their Debt then the figures would be more skewed ....For a GDP of 20 Trillion Nominal and PPP , US alone has Debt of 107 % of their GDP and Japan like 240 % ....most EU countries are around ~ 90 % of GDP !

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A_Gupta » 16 May 2018 05:37

From tradingeconomics.com:

India's trade deficit widened slightly to USD 13.72 billion in April of 2018 from USD 13.25 billion a year earlier, below market expectations of a USD 15 billion gap. Exports increased 5.17% year-on-year to USD 25.91 billion, rebounding from a 0.7% drop in March. Sales went up for organic and inorganic chemicals (38.5%); plastic and linoleum (30%); engineering goods (17.6%); cotton yarn, handloom products (15.7%); drugs and pharmaceuticals (13.6%) but fell for petroleum products (-4.5%) and gems and jewelry (-17%). Imports rose 4.6% to USD 39.63 billion, lower than a 7.2% gain in March. Purchases went up for petroleum, crude and products (41.5%); transport equipment (33.2%); coal, coke and briquettes (20.4%); organic and inorganic chemicals (18.4%) and machinery, electrical and non-electrical (9.1%) but fell for gold (-33%).

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vina » 16 May 2018 07:59

Awrighty folks.

1. The US 10 Year Treasury yields have crossed 3% and seems headed up. Equity markets seem toppy to me ain't going to be a free ride from here on. Volatility is going to increase as the easy money is slowly withdrawn as growth picks up globally. The labor market too is pretty strong for the past couple of years and I think the US is going to start seeing wage pressure and over a period of time will start showing up in inflation. Probably the Fed will have to normalise faster. The 10 Year Treasury historically is closer to 5% to 6% than 3%. So still quite a ways to go.

2. Looking at the US yield curve, on the long side (ie 10 to 30 year) it is actually nearly flat, but from the 1 year to 5 year going on to 10 , 15 and 30 year, it is actually upward sloping, despite all the Fed "twist" and all that market operations.

3. Coming to India , Check out our Yields and check out the yield curve. The 5 year benchmark ( 7.16 GS 2023 ) has a HIGHER yield than the 10 year (7.17 GS 2028) and the other traded G Secs with 2026 and 2027 having higher yields than the 10 year as well.

4. What it means is that India has an INVERTED yield curve . The bond markets are sending out a clear message with pricing in the shorter term bonds higher than the longer term (with higher duration risk) bonds, which is basically means poor longe term prospects and indeed a recession around the corner.

5. India's macros have steadily deteriorated. The INR has to drop , oil prices will increase, inflation expectations look to become unanchored again (anchoring inflation expectations is something that Raghuram Rajan tried very hard to do and kept real interest rates positive in his term). The RBI is really caught out here. They face the twin deficit problem again. Sorry folks, interest rates NEED to go up here . No two ways about it.

6. The Govt borrowing HAS to be cut and the overall fiscal pressure on savings has to be brought down. But with election year in 2019, that aint gonna happen and what should be "pass thru" in terms of pricing like oil might NOT happen. I fully expect this govt to get on to the bad old Congress habit of off balance sheet borrowing (like the infamous oil bonds) and stuff . The already did that with the PSU bail out /re cap bonds. More of the same. In any civilised place all those are contingent liabilities which have to recognised on your books, okay we will let that pass.

7. The govt has basically NOT done structural reforms (okay dont quote GST and the bankruptcy and reorg) on the industrial side , especially of the PSU /Govt side, while expanding spending. This govt though that "cleaning the clogged drains" and getting decision making going again will get the economy going. But no, despite the oil windfall in the earlier part, that simply was not enough. The Indian economy has too many structural issues on the Govt/PSU industrial side that has locked up capital, drains the surplus generated by the productive parts of the economy and indeed has put a tax on the entire economy by higher rates of interest for everyone, because the govt's higher borrowing needs.

8. It aint looking pretty. Hang on folks, and the Govt better start praying that the Fed doesn't start hiking interest rates faster, oil stays where it is (anything above this will start inflicting serious pain) . While the govt will repeat the Congress in 2014 strategy of spend like crazy and bust the bank, and hand a poisoned chalice to the successor in case you dont come back, I hope they start doing that later towards the election, rather than front load it. Somehow I think they will front load the spending binge. Lets see.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Hari Seldon » 16 May 2018 09:49

Image

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby disha » 16 May 2018 10:56

^^ China is endorsing Indian economy. That is a major major step.


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