Indian Economy - News & Discussion 27 May 2012

[VenkataS]

I find it hard to believe that Chennai and Hyderabad will have less GDP than Surat in 2025.

[Muppalla]

So Hyderabad is not growing at all (after inflation?) from now to 2025?

That means Telangana will not be resolved until 2025. Or Hyd as T capital will not grow anymore

[prahaar]

We need to take the 15 year projections just as indicators of hot spots, not necessarily in a strict ranking. But looking at the cities mentioned, I find it hard to believe that Chennai or Hyderabad would rank below Surat (given the fact that they are the focus of two rich state ecosystems). OTOH, most of the cities from Western part of India are part of the same ecosystem as an industrialized belt starting from Ahmedabad in North extending upto Mumbai in South, Eastern boundary being Pune/Nasik and Arabian sea to the West. This is not very great news, since large parts of Saurashtra,Marathwada,Khandes and Vidarbha are being left behind. Soon we will have even Tier-II cities bigger in GDP than many countries but large parts are still out-of-loop.

[Singha]

IKEA has submitted its application to GOI for setting up stores in India, following the relaxation of FDI norms in multi brand retail.

I dont know what was stopping them earlier, because all their stuff seemed like inhouse to me (or atleast stamped with house labels if made by outside parties).

am thinking they might open 3 to start with, delhi, mumbai and blr. they need a certain cachement area size to justify the mega size of their stores. each store in indian context will likely need 2000+ staff covering two shifts and many more to run their sourcing ops in india.

btw does this mean folks like Decathlon and Metro who were doing wholesale for retailers only can now setup retail stores - decathlon, sports authority, metro, tesco, carrefour, walmart, macys and such ? (for some reason always wanted to buy a bowhunter outfit and bow from sports authority)

macys, target and kohls could make a killing here given the love indic women who have been abroad show for that place

[vina]

I find it hard to believe that Chennai

I am not sure how "Chennai" is counted. If it is only Chennai "City /Corpn area" then it looks fine. But anyone who knows Chennai know that the larger chennai "metro" area is actually like NCR with a large part of the exurbs falling into other districts.

So entire SriPerumbudur / Auto Belt /Tambaram/Avadi etc fall into other districts (Kanchipuram, Tiruvallur,Chengalpet) , not to mention the IT/Vity belt along OMR I think. Chennai is definitely an undercount. The larger "Chennai Metropolitan area" (that is how you should consider it like the SF Bay area, rather than San Jose alone or SF alone ) will be much bigger in size and will come in 3rd I would think after Mumbai and Delhi.

[Singha]

I agree. dont see a way CCU gdp is bigger than chennai.

[ArmenT]

There's also the factor that TN government tends to spread things around in different cities, not just around Chennai. For example, textile industry is concentrated near Coimbatore, leather industry near Vellore and Dindigul, lots of auto and electronics manufacturing in Sriperumbudur, lot of engineering and manufacturing in Coimbatore and Vellore areas etc.

[shyam]

I'm not sure how "Kolkotta" is still #3. What is the major GDP output of Kolkotta?

[Chandrasekhar]

Of Islamic VC Funds and Christian Chambers of Commerce

[SaraLax]

I'm not sure how "Kolkottha" is still #3. What is the major GDP ouput of Kolkotta?

I think, if we try to include the market cap of old economy PSUs like Coal India, bank PSUs, ITC & Brittania Industries whose Headquarters are all in Kolkata - then GDP figure for Kolkata would be huge in comparison to say a city like Chennai which seems to neither have any Maharatna/big PSU with HQs (beyond small sized PSUs like NLC, IOB, Indian Bank ) nor any huge listed public company ( Shriram transport / Sundaram Finance / Sundaram Fasteners/ Murugappa ?). Would this be a valid explanation for what we see in that GDP list ?.

Does the below linked recent article provide a different way of understanding the economic growth & development of cities & states ?.

I am a bit suprised reading this news ....TN is suffering from Power shortage in a big way and highly dependent on Vayu bhagawan for the same and was wondering how the revenues are going to come in with highly erratic power supply outside Chennai.

The Tamil Nadu government seems to be on track to meet its target of earning more than 50,000 crore from taxes this fiscal.

Based on this article - I guess in order to fulfill all the promises of free laptops, free mixers-grinders, free milch cows/goats, free breakfast @ govt. schools , free uniforms, free cycles/chappals/geometry sets/atlas maps etc made by the AIADMK, Amma is making her state revenue department strain very hard in bringing in the revenues from every corner of the state.

Oct 9 2012 : Tax revenue up as TN sets high target

CHENNAI: The Tamil Nadu government seems to be on track to meet its target of earning more than 50,000 crore from taxes this fiscal. The state's tax collection recorded a 26% increase during the first half of the financial year when compared to the corresponding period last year -- from 18,336 crore to 23,142 crore.

At a review meeting on Monday, commercial taxes and registration minister B V Ramanaa said the target has been set in order to aid the implementation of welfare and social security schemes announced by chief minister J Jayalalithaa and to further augment the revenue beyond the target of 51,332 crore fixed for the current financial year.

Stating that the government had sanctioned 33.36 crore towards modernisation of checkposts belonging to the department, the minister said 20.15 crore was allotted for construction of new buildings for commercial tax offices which were operating from rented buildings.

A senior official from the finance department said effective tax collection has helped improve the revenue.

"In addition, each year new companies are coming and setting up their base here. This also adds to the tax revenue," he said.

The official said that the number of dealers in Chennai with a taxable turnover of 200 crore has gone up from a little less than hundred to about 160. He said that the state government also recently authorised six more public sector and private sector banks to undertake e-payment of commercial taxes.

The minister said the chief minister had issued orders to fill 1,325 vacant posts in the department to achieve the tax collection target. A total of 1.12 crore was also alloted to the department for the purchase of new vehicles, he said.

Commercial taxes and registration department secretary Sunil Paliwal, commissioner K Manivasan and senior officials participated in the meeting.

[vina]

The Tamil Nadu government seems to be on track to meet its target of earning more than 50,000 crore from taxes this fiscal.

Based on this article - I guess in order to fulfill all the promises of free laptops, free mixers-grinders, free milch cows/goats, free breakfast @ govt. schools , free uniforms, free cycles/chappals/geometry sets/atlas maps etc made by the AIADMK, Amma is making her state revenue department strain very hard in bringing in the revenues from every corner of the state

It is indeed brilliant that Amma makes promise of free milch cows/goad , breakfast@govt schools , free cycles/chappals /geometry sets etc and RAISES the revenues to pay for all that.

Contrast that to GOI and Desh Ki Bahu, who want to feed everyone ,but go comatose for 8 years and that terrible short incomprehensible fella from the 70s who now is thankfully kicked upstairs who wanted to pay for that with "hope" / "faith" (how else can you explain the idiotic budgets presented in the last 3 years with absolute denial of reality).

Or better, try sizing up what Didi wants to do. Pay for all that with slogans and shrill rhetoric and blaming others for not throwing alms into her lap to hand out as doles and patronage!

[Austin]

Projected nominal GDP in 2025

1. New Delhi - $211B
2. Mumbai - $193B
3. Bangalore - $129B
4. Kolkata - $113B
5. Pune - $94B
6. Surat - $84B
7. Chennai - $77B
8. Hyderabad - $74B

Those are projections and these so called 10 year projection can change for all we know.

So right now Mumbai is the richest city which certainly suprises me , I was expecting Bangalore to be some where there quite a decent city with nice climate.

[Singha]

thats like comparing SRT to rohit sharma.

[Pratyush]

Government’s plan to get BJP support on FDI stuck

[Pratyush]

US retail giant Walmart to source locally in India

Dont know if it is some thing that will be done. If it is done, by the FDI Retailers. It removes nearly all objections that I have to FDI retailers.

[ArmenT]

US retail giant Walmart to source locally in India

Dont know if it is some thing that will be done. If it is done, by the FDI Retailers. It removes nearly all objections that I have to FDI retailers.

There are always certain items that they will have to source locally. For instance, food items like rice, tea, mangoes, sweets etc. will have to be purchased from Indian farmers, as there is very little demand in India for Chinese-style sticky rice or green tea.

One of the strategies that Walmart uses to woo the consumer is to offer lower prices on essential items (and you can't get more essential than food) than everyone else, so that the consumers will be more likely to shop there than anywhere else. The idea is that once you get a consumer into your store to purchase what they need, the goal is to get them to buy other items as well which are priced about the same as other places. Therefore, they strategically place essential items that everyone purchases frequently along the ends of the store (e.g. milk on one end, vegetables on the other end, bread along the back wall, candy near the checkout counters etc.) and place everything else that is non-essential in the middle aisles. This forces the customer to walk past the entire set of aisles of non-essential stuff to buy what they need (i.e. milk and fresh veggies which are located on opposite ends of the store) and many pick up other items that they normally wouldn't purchase otherwise. Actually, most supermarkets use these types of strategies, but Walmart can offer lower prices on many items because they buy in larger volumes than others and have a very efficient distribution system.

[amit]

US retail giant Walmart to source locally in India

Dont know if it is some thing that will be done. If it is done, by the FDI Retailers. It removes nearly all objections that I have to FDI retailers.

Pratyush,

Unless one thinks that this whole 51 per cent in FDI is a great kanspiracy to bring about an East India Company redux, one can see that it makes perfect sense for multinational retail chains to source as much as they can locally, especially for perishables. They are in the business to make money in case anyone forgot about that.

It's one thing to talk about the "China price" when one is sitting in the US of A but quite another thing to talk about it when the setting is in India. There's no way as hell that Walmart will be able to source things like vegetables more cheaply from China (think of the logistics of getting them over to India while still fresh) than what they can get within a 50-100 km radius of the shops.

"China price" may come into effect for high value items like TVs, refrigerators etc. But then as I've said before Chinese dumping is a problem that's independent of FDI in retail. I don't see FDI exacerbating the problem unless one is arguing that demand for these goods will go up dramatically due to FDI in retail. Folks who buy these from Walmart stores would have bought them anyway.

Sometimes it helps to take off political blinkers when looking at economic merits or otherwise of what is essentially an economic measure. (Boss, please note that this comment is not directed at you personally, rather it's a general comment).

For what it's worth, from the link you posted:

Manufacturing and sourcing locally is one of the key models that Walmart adopts globally to control costs and this is followed even in its wholesale business. "If I give you a great-value product, you will trust me on that. And what if I give you that at one-third of the price offered by other brands?" Jain said, highlighting the benefits to the end-consumer.

The private label brands are already being sold in the cash-and-carry outlets 'Best Price Modern Wholesale Store' and also at Bharti's independently-owned front-end retail stores 'Easyday'. These include Great Value (for FMCG products like tea, snacks, ketchup, staples, dishwash bars, etc), Equate (personal care products), George (western clothing), Astitva (ethnic Indian wear), Home Trends (home furnishings and decor), Mainstays (home needs), Kid Connection (toys and other children's items) and Athletic Works (sporting goods).

"Ninety-five per cent of what we sell is locally produced and sourced. We totally believe in sourcing more from within the country, which is a purely economic model," Jain said, adding that cost-effective models can be worked out for various types of products. "For example, what if our stores sell you clean drinking water for as low as Rs 2 a litre, provided you carry your own container or water bottle?"

The model will also be very suitable for a large country like India with diverse tastes and needs. In a country where tastes change every 100-200 kms, Walmart's endeavour will be to source products locally and within a 100-km radius of a store. Also, such a model will save on unnecessary expenditures like transportation and plastic costs that a conventional beverage company would incur. "These are the models that we can evolve in India."

The problem as I see it, is that many folks soak in their experience in the US and transplant that directly to the situation that may prevail in India. I think that's a mistake. Walmart, Tesco and others, if they want to succeed in India will have to invent an "India model" of doing business here, rather than transplant an "US model" or a "Chinese model". If they don't do that - I can wager - that the local home grown brands like Big Bazar will take these multinationals to the cleaners.

That's happened in other countries. It would be instructive to read about why Walmart failed in South Korea and yet other brands like Tesco are thriving. It's on the net, I found it fascinating reading. Anyone who's really interested in this issue should check it out, IMO.

[amit]

Actually, most supermarkets use these types of strategies, but Walmart can offer lower prices on many items because they buy in larger volumes than others and have a very efficient distribution system.

Purely from the perspective of a middle class Indian consumer - the likely shopper at these stores - I wonder if it's such a bad thing?

[ArmenT]

Actually, most supermarkets use these types of strategies, but Walmart can offer lower prices on many items because they buy in larger volumes than others and have a very efficient distribution system.

Purely from the perspective of a middle class Indian consumer - the likely shopper at these stores - I wonder if it's such a bad thing?

Oh, not at all. For a lower or middle class consumer, they'll love the walmart savings and that's a good thing.

[amit]

Oh, not at all. For a lower or middle class consumer, they'll love the walmart savings and that's a good thing.

+100

Not only that, another group which would benefit are the small kiranas in areas far away from these stores - it will take a long time for them to become ubiquitous -, they will buy in bulk and then sell. I've seen this happening in Big Bazar outlets in my home town Kolkata when I go for visit. There's a Big Bazar outlet very near my home and needless to say, I'm always running errands. Sigh!

[amit]

OK got a little time in hand now, so let me post a nice write up about Walmart's experience in South Korea.

Here's a nice paper on the subject.

Some random excerpts:

Most individuals believe that Wal-Mart failed to understand South Korean’s consumer preferences. Wal-Mart had
relied on its proven business model and its strategy in offering low prices for products. However, low prices alone were insufficient to make a successful business case in South Korea. South Koreans have different consumer preferences than Americans do; they are not necessarily interested in the same products.

Is there any reason to think that Indian preference wouldn't be different from the American preferences as well?

Most Wal-Mart outlets in South Korea were placed outside instead of in the cities. South Koreans expect easy
accessibility to shopping facilities within the larger cities without the need to travel. Also, South Korean consumers
shop more frequently than most Americans do. They may not purchase many things at once, but they will usually
get at least one item. Some individuals felt that Wal-Mart should have been located in the center of the cities where
consumers felt more comfortable with their shopping needs.

India does not have a car driving culture yet. So location is important, na?

Wal-Mart also believed the pursuit of its Western market strategies that mainly focused on dry goods, electronics, and clothing hurt them while in South Korea. For example, E-Mart used techniques, such as megaphones and hand clapping along with fancy displays, while Wal-Mart sold products out of boxes. Wal-Mart designed its South Korean stores based on US customer preferences, but different cultures have different idiosyncrasies.

A point I've been stressing on for a long time.

Bottom line, the notion that Walmart will become the next East India Company, now that it can have 51 per cent stake in its partnership with Bharti is highly over rated. In my humble opinion, onlee.

[Pratyush]

It is one thing to source agricultural produce from the local supplier. It is another to source manufactured goods from the local manufacturer.

The proof of the pudding is in eating it. But I am willing to give it a chance, as it will be help full in generating jobs in the country.

[amit]

It is one thing to source agricultural produce from the local supplier. It is another to source manufactured goods from the local manufacturer.

The proof of the pudding is in eating it. But I am willing to give it a chance, as it will be help full in generating jobs in the country.

Pratyush,

You got to look at the same issue from a different perspective.

Ask yourself why a Walmart is more likely to source things like cabbage, onions, fruits etc locally rather than from China?

Let's for a moment assume that the quality of these agri products from both India and China are the same (a big assumption I know). Even then Indian stuff would be preferred because they would be more fresh because the time to market would be less and they would be cheaper as well due to less transport cost.

It's the same case with manufacturing. Unlike, many here, I don't think Walmart has some evil intention of flooding the market with Chinese goods. If local brands - and as far as the stuff that a typical Walmart store sells we have plenty of local brands - can produce good stuff at good prices, I don't see why Walmart would go out of its way to source stuff from China and go through the typical customs and shipping hassle if the price differential is negligible.

Now if we assume the proposition that China maal is both cheaper and better, then hey, Walmart or no Walmart they'd still find their way into India. Heck even now when the quality of China maal available in India is shitty we still have them flooding the market till such time that consumers get fed up with them (scooters, anyone?). Again I don't see how a Walmart would make any substantial difference to this problem of Chinese dumping, which IMO, is independent of the FDI thingy.

Like I wrote before, unless it can be proven that the demand for Chinese manufacture will go up substantially due to Walmart's presence, it's hard to see how it would make any difference.

JMT

[Gus]

---It's the same case with manufacturing.

My observation is that Chinese products enjoy an economy of scale and a reliability of supply (even with long shipping lead time, this is because of poor labor laws, infra and power cuts locally in India, IMO). It is very well possible we will be seeing more Chinese mfg goods finding its way here through Walmart and its likes (even though conditions in India are to blame).

My guess is that the fear is that - this will push Indian mfg even more into the ground and kill it. The obvious answer to me is - not blocking WM, but to do what is necessary to make Indian mfg robust and thrive. I guess that is hard, but sloganeering against FDI and WM is easy.

[Pratyush]

Amit, you are right about the China thingie. But that is not my primary concern. The primary concern that I have is the proposed 30 % floor on domestic manufactured goods.

If the FDI Retailer raise it to 100% I will be the happiest of the lot.

[nakul]

If the FDI Retailer raise it to 100% I will be the happiest of the lot.

This seems highly unlikely IMHO since it will kill their ability to make large profits. The WM model works on acquiring products for cheap. The reason why it is being opposed is not for the sake of the middle man but because it affects the source of goods badly (Indian farmer, manufacturer, laborer etc). Honestly, most Indians wouldn't care if the middle man does not get his cut. He is needlessly increasing the price of goods.

[krisna]

In search of a dream

But the economic part of the vision was a failure. Mahatma Gandhi, leader of the independence movement, Jawaharlal Nehru, India’s first prime minister, and his daughter, Indira Gandhi, left the country with a reverence for poverty, a belief in self-reliance and an overweening state that together condemned the country to a dismal 3-4% increase in annual GDP—known as the “HinduNehru rate of growth”—for the best part of half a century.

The remnants of the Nehru-Gandhi dynasty, to whom many Indians still naturally turn, are providing no leadership either— maybe because they do not have it in them, maybe because they have too much at stake to abandon the old, failed vision. Sonia Gandhi, Nehru’s grand-daughter-in-law and Congress’s shadowy president, shows enthusiasm for welfare schemes, usually named after a relative, but not for job-creating reforms. If her son Rahul, the heir apparent to lead Congress, understands the need for a dynamic economy, there’s no way of knowing it, for he never says anything much.

These people are hindering India’s progress, not helping it. It is time to shake off the past and dump them. The country needs politicians who see the direction it should take, understand the difficult steps required, and can persuade their countrymen that the journey is worthwhile. If it finds such leaders, there is no limit to how far India might go.

even economic times is dissing the queen bee royally.

[krisna]

Question mark on govt fruit & vegetable wastage figures

The government has often defended its decision to open multi-brand retail to foreign direct investment (FDI) by saying modernisation of the sector through fresh investment would bring down wastage of fruit and vegetables. But experts and traders argue the wastage figures cited by the government are not based on any scientific research or study.

For instance, Commerce Minister Anand Sharma has said there is a 35 to 40 per cent wastage in fruit and vegetables in the country. Prime Minister Manmohan Singh, too, in his recent address to the nation, said: “One third of fruit and vegetables at present are wasted due to storage and transit problems.” However, the number could just be a “guesstimate” and nobody knows the source of the “35-40 per cent wastage” calculation, say experts.

corruption & lies hallmark of this govt.

[Pratyush]

An 11 % fall in the total exports for the month of September.

India Sep exports fall 11 percent to $23.7 billion

The imports have risen 5.09%

[Pratyush]

Govt to implement economic reforms in 2 years: Khurshid

2 questions;

1) Who is Khurshid to say the above.
2) What is the political legitimacy of the UPA to conduct the reforms.

JMT

[nakul]

Kejriwal is turning his guns on Salman now. MMS suddenly grew a voice when his name was implicated in the coal scam. Salman seems to be following his boss. Expect more noises from him to divert attention on his cheating the handicapped.

[kmkraoind]

Indian public sector inefficient, impotent: Chinese govt mouthpiece - TOI

The article said that "India does not need to worry so much about the development of the private sector and entrepreneurial spirit, which are the key to innovative activities".

"Some researchers have pointed out that Indian entrepreneurial and managerial capital has been more successful than China's, especially in taking control of and managing assets in the sophisticated markets of Europe and the US.

"However, India is plagued by its inefficient and impotent public sector."

The article pointed out that one of the crucial bottlenecks for Indian economic development, "the backwardness of its infrastructure, can be traced back to the ineffectiveness of public institutions".

"Investment in infrastructure needs long-term visions and a strong guarantee of continuous flow of income. Hence without the initiating role of the public sector, there will be little incentive for the private sector to participate.

[RamaY]

^ That is 100% pure BS.

Many NavRatnas (and other Ratnas) are doing great. Also the banks.

[krisna]

Not sure whether it belongs here - regards the MNC KFC--
anyway,
KFC: Worms in served chicken could batter brand

Ghosts of the past came to haunt Kentucky Fried Chicken (KFC) when officials from the food safety department in Kerala raided a Thiruvananthapuram outlet yesterday following complaints of worms in the chicken being served.

KFC's tryst with India began in 1995, when it first set up a base in the country, an outlet in Bangalore. Food safety inspectors soon raided the outlet, finding chicken served to contain 2.8 per cent monosodium glutamate (MSG), said to cause nausea and headaches, retardation and birth defects. The Prevention of Food Adulteration Act sets the ceiling for MSG at one per cent.

The situation was no different in Delhi, when a fly was found in its kitchen and the food safety department under the Madan Lal Khurana-led BJP government in the capital ordered its closure.

In the past, Cadbury had launched an extended campaign with brand ambassador Amitabh Bachchan explaining how the firm had strengthened procedures to root out issues of contamination following the detection of worms in its chocolates.

Companies such as Coca-Cola and PepsiCo, meanwhile, lobbied hard to change perceptions following the pesticide-in-cola controversy a few years ago.

[krisna]

Congress never so unpopular since 1977, mid-term poll likely

What I personally find most interesting about the current political uncertainty is that the only thing everyone seems certain of is the Congress’s unpopularity. In long years of covering politics and governance in Delhi I find it hard to remember a time, since after the Emergency in 1977, when Congress has been this unpopular. The Prime Minister tried, when he made a rare address to the nation last week, to be reassuring. And firm about the need for economic reforms to ‘save’ the economy but most people I met remembered only this line from his speech, “Money does not grow on trees.” They mocked him for not having discovered this before he opened the purse strings for Sonia Gandhi’s National Advisory Council to devise anti-poverty programmes like MNREGA.

When Sonia gathered around her a caboodle of NGO activists, leftist economists and well-meaning do-gooders, her purpose was to ensure that she was seen as this Government’s Lady Bountiful. She appears to believe as her role model, and mother-in-law, once did that the way to win elections is to be seen to be always on the side of the poorest people in this country, those millions of Indians who live in horrible conditions below a poverty line so low as to be shameful.

The supreme irony of the mess that the Congress finds itself in today is that Sonia, a politician, made important economic decisions and Manmohan Singh, an economist, played at being a real politician

Sonia Gandhi and Manmohan Singh inherited a booming economy in 2004 and in eight years have succeeded in taking it downhill the whole way. Growth rates have dropped, the value of the rupee has fallen precipitously and corruption levels have soared to unimaginable heights.

[Don]

{deleted}

http://www.business-standard.com/india/ ... /190873/on

India's score in the 'Global Hunger Index' back to 1996 levels

Despite steady economic growth and robust social sector spending, India's score in Global Hunger Index has returned back to the 1996 level raising questions over the speed at which it has brought down the proportion of undernourished people, underweight children and child mortality.

According to the findings of the Global Hunger Index 2012 by the International Food Policy Research Institute (IFPRI), India’s latest score in the Hunger Index (GHI) has once again returned to the 1996 levels, after showing a minor deterioration between 1996 and 2001. Concern Worldwide and Welthungerhilfe also contributed in framing the annual Hunger Index.

In 1990, India’s GHI score as monitored by IFPRI was 30.3, which fell to 22.6 in 1996. But again rose to 24.2 in 2001 and stood at 22.9 in 2012, much closer to 1996 levels. The lower the index, lower is number of incidence of hunger. Overall, India is ranked 65th among 79 major countries where hunger is prevalent, much below smaller nations like Sri Lanka, Indonesia, Thailand, Pakistan and Nepal.

India’s nearest economic rival, China has the second best score in GHI among the entire global world. Not, only that even Bangladesh has overtaken India on a range of social indicators including how fast it has reduced child mortality, the report showed

This effectively means that from 1996 onwards, India’s hunger index has shown little improvement, despite India’s gross national income (GNI) per capita almost doubling between 1995-97 to 2008-10, the report said. The GHI index combines three equally weighted indicators like undernourishment, child underweight and child mortality in one index.

"In India, 43.5 per cent of the children under five are underweight, which accounts for almost two-thirds of the country's alarmingly high GHI score. From 2005-2012, India is ranked second to last on child underweight -- below Ethiopia, Niger, Nepal and Bangladesh," the report said.

Later talking to reporters, senior officials from IFPRI said that the biggest challenge in India is to translate the good sounding intentions into practical results on ground.

“India has lagged behind in improving its GHI score despite strong economic growth. After a small increase between 1996 and 2001, India’s GHI score fell only slightly, and the latest GHI returned to about the 1996 level,” the report said.

In comparison, China had a managed to consistently lower its hunger index scores from 11.8 in 1990 to 8.9 in 1996 to 6.7 in 2001 and in 2012 it stood at 5.1, among the lowest in the world.

For India, the report acknowledges that it has arrived at that conclusion by including child mortality data from 2010, FAO data on undernourishment from 2006–08, and India’s latest available nationally representative data on child underweight collected in 2005–06.

“Given that the Government of India has failed to monitor national trends in child under-nutrition for more than six years, any recent progress in the fight against child under-nutrition cannot be taken into account by the 2012 GHI. Nonetheless, even bearing in mind that possible recent advances in the fight against child under nutrition are not yet visible in the latest GHI, India’s track record is disappointing,” the report said.

Globally, the report said that world hunger has somewhat declined since 1990, but still remains at an ‘serious’. The highest GHI scores are in South Asia and Sub-Saharan Africa.

“South Asia reduced its GHI score significantly between 1990 and 1996 – mainly by reducing the share of underweight children—but could not maintain the rapid progress,” the report said.

It said sub-Saharan Africa made less progress in reducing hunger since 1990s, but caught up with South Asia since the turn of the millennium with its 2012 GHI score falling below that of South Asia.

[Aditya_V]

If the chinese and tallen and deepen friend did not threten us, there would be no rafale deal. End the border disputes De nuke Pakistan and all problems solved.

[zlin]

x-post in PRC economy

China’s middle-class wealth share 10 times that of India!

Mid-2012, India’s total net wealth fell by 18%

According to the Credit Suisse’s third annual global wealth report 2012, the number of millionaires in India is going to increase by a whopping 53% to touch 84,000 by 2017.

The report also says that India has around 2,37,000 members of the top one percent of global wealth-holders, which sums up to a 0.5% share. However, it adds that between mid-2011 and mid-2012, India’s total net wealth fell by 18%. The study observes that rupee declined by more than 20% during the aforementioned period.

However, India’s wealth per capita (measured in rupees) has increased slightly, says the study. Nevertheless, the report points out that just 0.3% of the country’s population has a net worth of over $100,000. Given India’s large population, this low figure translates into 2.3 million people.

Across the emerging markets, India has personal wealth that is more inclination towards property and other real assets, which sums upto 84% of estimated household assets.

India’s personal debts stand at $162 per adult and the report says that it suffers from a significant under-reporting of household liabilities, which implies that the personal debt figured may have been underestimated.

While the study states that India will see 53% rise in millionaires seen by 2017, it adds that Brazil will see around 119% rise! On the flip side, high level of poverty exists with 95% of Indians having wealth below $10,000 versus 60% in China, says the study.

As a matter of concern for the India economy, the firm’s report says that China’s middle class wealth share is 10 times that of India. It explains that India’s middle class global wealth share has been stagnant at 3%

As the dollar has been steadily appreciating against other global currencies has resulted in aggregate global household wealth falling by 5.2% in dollar terms to $223 trillion from mid-2011 to mid-2012, says the report.

Total wealth
India: $3.2 trillion
Brazil: $3.3 trillion
US: $62 trillion
China: $20.2 trillion
UK: $12 trillion
Japan: $28 trillion

[RamaY]

Don and zlin,

You are guests in this forum. So know your limits. If you don't, you will be shown the door. You limit your posts to your china threads.

If you want to earn your $0.5 per post, you better behave.

[Yagnasri]

RamaYji, Let them post sir. They have earn 0.5 $ and feed their kids.