Indian Economy News & Discussion - Nov 27 2017

[Cyrano]

[bala]

Great interview of Sanjeev Sanyal and many deep relevant areas are covered. He talks about the colonialist bureaucracy of India which have the treacherous clan of India people who facilitated colonial rule for the Britshit. This system is still perpetuated in Indian bureaucracy as the IAS system. The Indian bureaucracy is ass backwards, we have junior people in charge of districts when we need senior seasoned people who can discern issues and solve problems at the district level. This is where change is required. Even the state level does not have the cream of the crop of people, they are cloistered in central govt offices often idling their time. Sanjeev talks about judicial reforms too. The backlog of judicial cases is reason enough for a change.

Next, Sanjeev talks about rethinking bachelors degree nationwide. We can have zoom video lectures prerecorded by experts on various topics. All the people in India have access to the material and they appear for exams/certification on each topic and when they accumulate enough of them they are automatically given a degree. This continuous education for the population and those who have degrees can update themselves on any area of interest later in their careers. This can be done for a fraction of the cost without the need to build imposing campuses (or existing ones can be reused for exam purposes and labs). The faculty are freed up to do cutting edge research and collaborate with SME/MSM/LSM/Defence labs etc. If India can institute this edu reform, then we have done for education what we did in the UPI/ONDC/JanDhan area, technology to leapfrog from the rest of the world. The Youth dividend of India demands such a change.

Also Sanjeev understands the nature of complex systems which have chaos and order in-built. The covid crisis was managed properly by India, not acting crazy on the demand side, instead looking at it from a supply viewpoint. Hence India did not hand out stimulus checks like the US. They supported a safety net for food and absolute poverty (by direct fund transfer in JanDhan accounts) folks not for everyone in India. Ergo, We came out of the crisis in good shape.

[Cyrano]

Deans ji rightly analysed that Byju's business model is eminently vulnerable in his blog. If Sanyal is talking about it, the govt is going to come up with something in the next year or two.

[VinodTK]

India makes first crude oil payment to UAE in Indian rupees

[vijayk]

That interview of Sanjeev sanyal is great interview

[Aditya_V]

Why do we need PSU banks if they are charging non minimum balance fees, cash deposit charge, more than 5 atm transactions cost? Is there a strategic need for them to remain as PSUs?

See the coverage in Tier 2, 3 towns and rural areas. They are much more social than people like to admit. But the beneficiaries in the old system was well greasef political lobbies of the BIF. The need to quasi commercial to survive and not become a burden .

[vijayk]

https://www.business-standard.com/econo ... 807_1.html

[vijayk]

https://swarajyamag.com/infrastructure/ ... nnectivity
PM GatiShakti: NPG Proposes Six Major Road And Rail Projects Worth Rs 28,000 Crore To Transform Connectivity

[krithivas]

(Sorry for the digression, Just for some perspective) ^^ "Annamalai put out a list of assets and properties worth over Rs 1.34 lakh crore, linking them to the family controlling the Dravida Munnetra Kazhagam, chief minister MK Stalin, his son and sports minister Udhayanidhi Stalin, and son-in-law Sabareesan". In other words, India was could have executed 5 such connectivity projects with an economic return value that would be many many folds higher and benefitting crores of ordinary citizens.

[Pratyush]

(Sorry for the digression, Just for some perspective) ^^ "Annamalai put out a list of assets and properties worth over Rs 1.34 lakh crore, linking them to the family controlling the Dravida Munnetra Kazhagam, chief minister MK Stalin, his son and sports minister Udhayanidhi Stalin, and son-in-law Sabareesan". In other words, India was could have executed 5 such connectivity projects with an economic return value that would be many many folds higher and benefitting crores of ordinary citizens.

Just because someone has made an aligation. Doesn't automatically prove it.

[fanne]

Except when it is against Mudi ji and his party members!!

[isubodh]

Why do we need PSU banks if they are charging non minimum balance fees, cash deposit charge, more than 5 atm transactions cost? Is there a strategic need for them to remain as PSUs?

See the coverage in Tier 2, 3 towns and rural areas. They are much more social than people like to admit. But the beneficiaries in the old system was well greasef political lobbies of the BIF. The need to quasi commercial to survive and not become a burden .

Yes and that also leads issues. Since the tier 2,3 folks have no options and PSU banks are now profit motive they are coming up with all those charges. They can do that as TINA.
On one hand we know that low earning people need to be in the bank network and same time pushing PSU Banks for profile will ensure that those we say are low earning pay dearly for it.
So PSU banks needs to be structured in small retail business and general business modes. The modes can be set based on relationship value. If say lower than 5/10 lakh its small retail else its general business. Atleast the small retail business then should not have profit as key driver.
Or its could be carved out of all PSU banks as a separate unit.

[vijayk]

https://www.moneycontrol.com/news/busin ... 05191.html

Average Income of Middle class Indians went up from 4.4 Lakh in 2013 to 13 lakh 2022

[sanman]

[Cyrano]

^^^Most MSM reporting is like this, shallow and pointless

[drnayar]

(Sorry for the digression, Just for some perspective) ^^ "Annamalai put out a list of assets and properties worth over Rs 1.34 lakh crore, linking them to the family controlling the Dravida Munnetra Kazhagam, chief minister MK Stalin, his son and sports minister Udhayanidhi Stalin, and son-in-law Sabareesan". In other words, India was could have executed 5 such connectivity projects with an economic return value that would be many many folds higher and benefitting crores of ordinary citizens.

no business happens in TN without a certain percentage going to the respective minister.. this is almost like the default option. And its not just the minister but their entire family and cohorts are involved.Take it from someone who is directly involved with businessmen in TN !.. that is not an allegation. For what its worth i dare say its only the tip of the iceberg.
"Normal" people cant imagine the massive wealth TN and its expatriates enjoy out of the country., Singapore , Macau , Thailand.. mega riches . mind blowing. There are "people" who fly out for coffee and breakfast just like "normal" people run to their local coffee shops. They will put any rich Chinese or European to shame.
And now extrapolate that to the TN ministers.

[KL Dubey]

"Normal" people cant imagine the massive wealth TN and its expatriates enjoy out of the country., Singapore , Macau , Thailand.. mega riches . mind blowing. There are "people" who fly out for coffee and breakfast just like "normal" people run to their local coffee shops. They will put any rich Chinese or European to shame. And now extrapolate that to the TN ministers.

Two questions based on your connections with TN businesspeople:

- Is it legitimately built wealth (from productive business activities that get counted in the GDP) ? If so, I guess it is good that Indians are getting rich.

- Is this money flowing to doubtful/anti-Indian activities ?

Certainly, the "cut" taken by TN politicians is illegitimate. I hope the ED goes after these wildly disproportionate assets (1.34 trillion rupees is about $16 billion). There would surely be more than that.

[chetak]

(Sorry for the digression, Just for some perspective) ^^ "Annamalai put out a list of assets and properties worth over Rs 1.34 lakh crore, linking them to the family controlling the Dravida Munnetra Kazhagam, chief minister MK Stalin, his son and sports minister Udhayanidhi Stalin, and son-in-law Sabareesan". In other words, India was could have executed 5 such connectivity projects with an economic return value that would be many many folds higher and benefitting crores of ordinary citizens.

Just because someone has made an aligation. Doesn't automatically prove it.

Pratyush ji,


the benami investments and the holding pattern of these shell companies are unmistakable and Annamalai has established not only the trail, but also the ownership details

none of these "allegations" are wild or unprovable.

stop for a moment and think, where did Annamalai get this info from and why none of those named so far, have gone to any court so far

who do you think is backing him and why. This has been very long in the planning

the raids against some well known money men and their arrest is no coincidence....

why haven't the courts given them bail, one understands that they will eventually come out on bail, but right now, even the hizzonners are not willing to tangle with the powers that be

In some states, the two pillars, the cops, the intelligence community, the lawyers, the padres, politicos, and the BIF have formed an impenetrable ecosystem

people are not fools and every dot is being connected, even as more damning data emerges. The trail of financial bread crumbs exposed by Annamalai, if diligently probed, even by some run of the mill "investigative" reporter, will singe every dravidiya rice bag politico, senior cops, separatist nurturing padres, and the steel frame upholders including many eminent representatives of the pillars

TN is one state in India where it is easiest today for the commies, jihadis, ricebags separatists including BIF politicos to foment trouble

most major issues that form triggers for socio cultural unrests, religio-political issues, where a separatist agenda that is rooted in the falsely propagated cultural narrative that can and is eventually traced back to the evil distortions in the so called aryan-dravidian divide spun by robert caldwell and george uglow pope and these get highlighted within a network of padre run colleges where it is given the contrived status of "mass movements"

certain colleges in madras and one in trichy are notorious for such trouble making

Needless to say that none of these BIF fed and led pogroms would succeed without overt and covert state support, using state machinery to nurture and push the anti national objectives

Many have forgotten the support that the ltte was given both by the padres and the state that was then run by the same set of clowns who run the circus today and how drugs and arms running gangs ruled the roost then, as indeed they are doing so even today

[chetak]

https://www.moneycontrol.com/news/busin ... 05191.html

Average Income of Middle class Indians went up from 4.4 Lakh in 2013 to 13 lakh 2022

vijayk ji,

this is on a PPP basis

[Adrija]

Small pedantic correction Chetak garu… as the projections are in local currency PPP is immaterial… PPP (vs nominal) matters only if we are converting from local currency to USD.. for nominal the market exchange rate is applied vs in PPP the adjusted rate… so nominal conversion uses 83 INR: 1 USD, whereas in PPP it would be ~24 INR: 1 USD

Hope that clarifies

[chetak]

Small pedantic correction Chetak garu… as the projections are in local currency PPP is immaterial… PPP (vs nominal) matters only if we are converting from local currency to USD.. for nominal the market exchange rate is applied vs in PPP the adjusted rate… so nominal conversion uses 83 INR: 1 USD, whereas in PPP it would be ~24 INR: 1 USD

Hope that clarifies

Thanks, Adrija ji. The explanation is lucid

I stand corrected.

[Vadivel]

New GST incentive scheme will encourage consumers to demand bills

Goods and Services Tax (GST) authorities will introduce a scheme from 1 September to encourage consumers to insist on an invoice when making purchases, the finance ministry said in a social media post on Sunday.

The scheme, called ‘mera bill mera adhikaar’, will be launched in Haryana, Assam, Gujarat and the union territories of Dadra and Nagar Haveli, Daman and Diu, and Puducherry, the ministry said. It said the scheme will offer citizens the chance to win ₹1 crore, ₹10 lakh or ₹10,000 in a lucky draw.

Invoices of up to ₹200 issued by GST registered sellers will be eligible for the draw. Up to 25 invoices per person will be considered every month, the ministry said.
This is the latest effort by tax authorities to increase GST compliance. Central and state authorities have previously taken several steps, such as increased reporting requirements and use of data analytics, to improve tax compliance. This, along with healthy economic growth, has helped improve GST collections. The union government and states collected ₹1.65 trillion in July, the third-largest monthly sum since GST was introduced in 2017.

https://www.livemint.com/news/india/new ... 92634.html

There is a highly successful scheme in Taiwan which I think is being tried here

https://bubbleteaisland.com/2023/07/21/ ... hat-is-it/

[isubodh]

The scheme, called ‘mera bill mera adhikaar’, will be launched in Haryana, Assam, Gujarat and the union territories of Dadra and Nagar Haveli, Daman and Diu, and Puducherry, the ministry said. It said the scheme will offer citizens the chance to win ₹1 crore, ₹10 lakh or ₹10,000 in a lucky draw.

What could be reason for this limited release ? Is it that these states have low compliance ?

[vijayk]

[vijayk]

https://www.businessworld.in/article/In ... 23-486741/
India’s Chinese Takeaway

Global financial institutions believe China’s long-term economic growth rate could sag to three per cent a year

[vijayk]

[vijayk]

[vijayk]

[vijayk]

[Ashokk]

GST revenues grow 11% to about Rs 1.6 lakh crore in August: Govt

NEW DELHI: The Goods and Services Tax (GST) collection for August stood at Rs 1.6 lakh crore, showing an 11 per cent growth year-on-year, revenue secretary Sanjay Malhotra said on Friday,
The increase in the mop up has been attributed to growing compliance and less evasion. This is for the third straight month that GST collections were reported at over Rs 1.6 lakh crore. The collection from Goods and Services Tax (GST) was Rs 1,43,612 crore in August 2022. In April this year, the collections touched an all-time high of Rs 1.87 lakh crore. Malhotra was replying to a question on the expected GST revenue numbers for August, the data for which will be released later on Friday.
Malhotra said GDP growth was 7.8 per cent in June quarter and nominally it has grown 8 per cent. "GST revenues during June quarter grew by more than 11 per cent. This translates into a tax:GDP ratio of more than 1.3," Malhotra said.

[chetak]

India, is by far, the most complex and difficult country (financially speaking, and in a central bank way) for any central bank governor to administer and manage

rowdy rajan and his commie cohorts would have come down with a very serious case of financial jock itch, after having been soundly beaten, yet again, by a history major.......

Sadly, when unsavory "bankers" try to clamber on to a political donkey, hoping to hitch a free ride to the finish line, there is bound to be some consequential chafing, especially of the nether regions

But all is not lost. A judicious combination of burnol and Preparation H is highly recommended for such wokes to procure a soothing effect

RBI governor Shaktikanta Das rated A+ in Central Banker Report Card 2023 by Global Finance magazine

https://www.livemint.com/news/india/rbi ... ne%20said.

"The Bank Governors who earned an ‘A+’ grade in the Global Finance Central Banker Report Cards 2023 are Shaktikanta Das from India, Thomas J. Jordan (Switzerland), Nguyen Thi Hong (Vietnam)," an official statement issued by Global Finance magazine said.

The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of 101 key countries, territories and districts, including the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States.

“Fighting inflation, which has been fueled by pent-up demand and disrupted supply chains, has everyone turning to their central bankers for help," said Global Finance founder and editorial director Joseph Giarraputo. “Global Finance’s annual Central Banker Report Cards celebrate those bank governors whose strategies outperformed their peers through originality, creativity and tenacity."

The Bank Governors who earned an “A+" grade

India Shri Shaktikanta Das

Switzerland Thomas J. Jordan

Vietnam Nguyen Thi Hong

The Bank Governors who earned an “A" grade
Brazil Roberto Campos Neto

Israel Amir Yaron

Mauritius Harvesh Kumar Seegolam

New Zealand Adrian Orr

Paraguay Jose Cantero Sienra

Peru Julio Velarde

Taiwan Chin-Long Yang

Uruguay Diego Labat

The Bank Governors who earned an “A-" grade
Colombia Leonardo Villar

Dominican Republic Hector Valdez Albizu

Iceland Asgeir Jonsson

Indonesia Perry Warjiyo

Mexico Victoria Rodriguez Ceja

Morocco Abdellatif Jouahri

Norway Ida Wolden Bache

South Africa Lesetja Kganyago

South Korea Rhee Changyong

Sri Lanka Nandalal Weerasinghe

Taking to X (former Twitter), PM Modi said, "Congratulations to RBI Governor Shaktikanta Das. This is a proud moment for India, reflecting our financial leadership on the global stage. His dedication and vision continue to strengthen our nation's growth trajectory."

[Cyrano]

Great showing from global South where money matters. I'd put Russian central bank governer Elvira Nabiullina on that A+ list as well coz the western publication won't.

[suryag]

Where is Powell ji ?

[vijayk]

Some tough message for India to grab market share of China ...

[vijayk]

[Atmavik]

Where is Powell ji ?

Very slowly deflating

[vijayk]

[vijayk]

[S_Madhukar]

Apparently the Indian options market is bigger than any in the world!

Unprecedented Action In Nifty Options Call: Anuj Singhal Decodes It With 'Khelo India Khelo' Analogy.
Look at the crazy expiry day data when options surged 100-700x. Yes you read that right.
Derivatives turnover vs cash in India is now 433x. The next highest is Germany at 35x. In US it’s 1-3x
The daily options expiries have turned Indian derivative markets into largely a gambling den.

I am myself not a trader but some warning signs for SEBI to think about..



I have also seen high inflows in Indian ETFs this week... hopefully there is an explanation for this

[Atmavik]

https://www.youtube.com/watch?v=MItfNp5mcTk
Top Economist on India's Next 30 Years | Neelkanth Mishra | SparX by Mukesh Bansal



folks the whole talk is very interesting( 2 collage mates catching up) start for 44 mins for the economics.