Indian Economy News & Discussion - Nov 27 2017

[A_Gupta]

“India's economy expands at 7.8% over January to March — faster than expected.”

[chetak]

[chetak]

[drnayar]

https://phys.org/news/2026-06-india-gai ... s-dry.html


India gained 2.1 million hectares of dry woodland in a decade, major study finds

[A_Gupta]

https://phys.org/news/2026-06-india-gai ... s-dry.html

India gained 2.1 million hectares of dry woodland in a decade, major study finds

Thank you! A bright spot, even with all of the caveats that came with the story.

[chetak]

[chetak]

They tried to defame India with lies but got caught and ended up getting defrocked publicly

This is a cooked up "explanation"

[Supratik]

Please don't post random nonsense from twitter.Most graduates from IITs now stay in India. Also if you have no time to read all that is happening in India use youtube to watch videos of all the tech developments. Your posts are mere rantings and do not contribute to this thread. Except USA most people looking to migrate are just immigrants. Someone opening a dhaba in Toronto is not brain drain.

[Vayutuvan]

Please don't post random nonsense from twitter....

@Supratik ji, context? I do agree with you to some extent; to what extent depends on the context.

[A_Gupta]

trading economics.com had this:

India recorded a current account surplus of $7.1 billion in the final quarter of the 2026 financial year, narrowing from the surplus of $13.7 billion but contrasting sharply with the market expectations that it would swing to a deficit of $15 billion. Goods deficits were expected to have grown sharply in the period as higher energy costs were set to inflate imports into the Indian economy, lifted by the war in Iran and India's partial pivot away from Russian energy to escape the mounting tariffs from the United States. The goods account recorded a deficit of $83.4 billion, widening sharply from the gap of $59.3 billion, as debits surged by 12% to $196.6 billion. Still, the services surplus widened to $60.4 billion from $53.3 billion, amid a 10% increase in credits to $111.1 billion. The secondary income surplus surged to $41.3 billion from $31.5 billion, amid a 33.9% surge in credits through workers' remittances to $33.9 billion. source: Reserve Bank of India

[chetak]

Please don't post random nonsense from twitter.Most graduates from IITs now stay in India. Also if you have no time to read all that is happening in India use youtube to watch videos of all the tech developments. Your posts are mere rantings and do not contribute to this thread. Except USA most people looking to migrate are just immigrants. Someone opening a dhaba in Toronto is not brain drain.

Supratik ji,

one does not give a toss about the alleged "brain drain" and good luck to those who wish to, or have already migrated. One sees this phenomenon simply as the flight, or the appropriation of Indian capital, since the days of the thieving islamic hordes, and other kleptomaniacal desert cults

Like folks in India, people in the amriki industry, by and large, are waiting out the trump tenure, hoping that the abundant sun once again shines on their balance sheets. They all figure that this temporary setback is probably just a bump on the road and the good times will be back again.

These elite institutions were established as the primary sources of quality engineering talent to drive and develop India's industrial growth, R&D, and serve as the inspiration for others to thrive and contribute to Bharat.

India prepares the field, sows the seeds, tends to the crops, harvests the grain and when the crop is harvested, the proceeds of the harvest (the crème de la crème, so to speak) is being reaped by others who have invested zilch in the process

It is the tremendous financial loss and consequences otherwise, that is being borne by the Indian state in particular, and the hapless but ever silent taxpaying citizens

If it were brain drain, as you put it, the swamp would have been drained completely by now. It's actually much more than that, it is a steady, almost never ending, assembly line out flow, covertly and slyly choreographed by the goras which is to be understood in hard core and tangible financial terms, rather than being fooled by some quaintly phrased and intellectually decked up, pretentiously invented term masquerading as an inevitable consequence of India's inability to provide the suitable employment (and salary) of choice that is being demanded.

During the early years, the IITs benefited in varying degrees from material assistance and academic cooperation from foreign countries such as IIT Bombay from the then Soviet Union, IIT Madras from Germany, IIT Kanpur from the United States, and IIT Delhi from the United Kingdom.

One has to ask, were these goras helping India or slyly helping themselves.....cui bono

When the H1B mess was created in the US, the euro trash eagerly leapt in with both feet, "welcoming" both Indian students and Indian professionals, wasn't it this very this "capital" that they also wanted..........

One didn't see them put out the same welcome mats for Indian taxi drivers, dhaba cooks, or cobblers, or whatever. BTW, Indian taxi drivers are the best in the world, these schitts are truly versatile and can drive on both sides of the one way street with equal ease. Indian truckers in the US run a very close second. Their ingenious U turns in the middle of a busy freeway always inspires the amrikis to take to religion almost instantly, remembering their gods every time they see an Indian trucker at the wheel and for many of them, it's often their last thought. Many of these "truckers" are now flagged for permanent return to India by trump's immigration storm troopers

Per reports, the tata company is pleading with the GoI to induct their britshit land rover military vehicles into the Indian army, because of the the tens of thousands of britshit jobs are just about to be torched. JLR, rolls royce, the engine guys, and many other britshit firms are in desperate straits

Other gora swine, who never so much as even glanced at a poor and alleged "third world" India before, are now eagerly lining up for FTAs.

trump recently called India a "hell hole" but is at the head of the FTA line, hat in hand, desperate to make the deal

wake up and smell the coffee, these goras have been ripping off India for centuries now

Because the process is so old and ingrained, people don't even notice it anymore.

It's the capital that they want, and at times this "capital" takes a human form (skilled labour). The racist britshits and the euro trash colonials did not even accept this concept post WWII, but the clever amrikis saw the goldmine that the others had missed and cashed in on it. Only now, trump and his cronies are trying hard to cut the cost of such capital by muddying the waters for Indian "workers" no matter from where they graduated / qualified.

what trump is trying to do is institutionalize the concept of use, squeeze dry, and when done, throw back to India

Every intelligent Indian is not an intellectual. There are drains, and there are drains. One must learn to separate the two

This is, and has always been about draining Indian capital, theft of India's wealth and greed filled appropriation of her resources. Just like the continuation of ye olde colonial practices, where the colonials openly did what the new colonial power is now doing sub rosa, without cost, without gratitude, and without grace but with the arrogance of power and a deep sense of historical and geopolitical entitlement.......

Indians willingly cooperated then, and Indians are eagerly cooperating now.

Economics, as usual, is at the very heart of all this, being done for "a few dollars more"

This was never about "brain drain".

[S_Madhukar]

Please don't post random nonsense from twitter.Most graduates from IITs now stay in India. Also if you have no time to read all that is happening in India use youtube to watch videos of all the tech developments. Your posts are mere rantings and do not contribute to this thread. Except USA most people looking to migrate are just immigrants. Someone opening a dhaba in Toronto is not brain drain.

…
what trump is trying to do is institutionalize the concept of use, squeeze dry, and when done, throw back to India

Every intelligent Indian is not an intellectual. There are drains, and there are drains. One must learn to separate the two

This is, and has always been about draining Indian capital, theft of India's wealth and greed filled appropriation of her resources. Just like the continuation of ye olde colonial practices, where the colonials openly did what the new colonial power is now doing sub rosa, without cost, without gratitude, and without grace but with the arrogance of power and a deep sense of historical and geopolitical entitlement.......

Indians willingly cooperated then, and Indians are eagerly cooperating now.

Economics, as usual, is at the very heart of all this, being done for "a few dollars more"

This was never about "brain drain".

Chetakji.. agreed but so did Korea and China and Russia after 90s… Our failure is not being able to invite them back and provide equivalent infrastructure. Ok you can never provide inhouse swimming pools and golf courses but other things could be provided just like we have Japanese or Korean townships although at small scale. I do see some returnees but …. I would argue that a lot of migration is also non- IIT which means our lack of educational infrastructure and just seats mentality is biting us even now. In some ways thankful for MAGA to add friction to this migration process, may be the govt and society will wake up and look for alternatives in India itself.

TBH this is a chicken egg problem. Without demand for high end products why would someone invest in them. If I think about it why are Chinese building railways everywhere why is our behemoth IR not building railways at scale in Africa?

To an extent we are in the same boat as Russia and UK. They can’t pay good wages and can’t take care of the ambitious.

And to an extent we have taken advantage of cheap BD and now throwing them back.. not same comparison because they were radicalised and just cheap…

If you don’t have use for gold then someone else will steal it for sure!

Even recently our PM was signing mobility agreements , temporary as they may be to Russia or UAE and some EU countries in the offing.Ok yes it is semi skilled labour but why is our labour not building in India railways and roads everywhere?

China has done its job of building all the HSR it needs and then exporting it. We are neither here nor there hence the issues we are facing. Already there are cheap labour shortages in TN and other developed states are we going to sign mobility agreements inside ?

On another note PM said don’t buy gold and travel abroad , have they put advisory on bank loans for study abroad ? So we are equally at fault

By the way even now East Asians still migrate to US, Australia etc, and they are far better than us .. at the end of the day $ hegemony wins

[Supratik]

Chetak

The early phase of migration was because we did'nt have employment or the salaries were too low. Just building a few IITs was not sufficient. You have to gainfully employ them.

Brain drain is an exaggeration. I do not consider even H1bs to be brain drain. It is just skilled labor migrating for higher pay and better quality of life.

Only the top 5% are brain drain and in my experience many do contribute to India directly or indirectly.

[Jay]

Brain drain is an exaggeration.

I disagree, Supratik ji. It is not only the lived experiences of people in India and abroad, but also mathematical models that show why this is not an exaggeration, but a significant setback for native lands.

[Manish_Sharma]

https://economictimes.indiatimes.com/ne ... s?from=mdr

......Trade deficits widening much faster with key FTA partners
The report's most prominent concern is the sharp deterioration in India's trade balance with several countries that have long-standing FTAs with India.

According to GTRI, India's trade deficit with ASEAN countries increased by 381.4% between the pre-FTA period of 2007–09 and 2023–25. The deficit with South Korea rose by 267.9%, while the gap with Japan expanded by 317.9%.

The numbers reveal a significant divergence f ..

[Supratik]

It is an exaggeration. We are looking at only the top 5% successful people. The rest 95% are doing normal jobs. Every one leaving India is not Abhijit Banerjee or Sundar Pichai.

Those FTAs were negotiated by the UPA govt and were poorly negotiated. There is some indication that they are going to be re-negotiated.

[bala]

Is this true, that RBI is attracting dollar deposits tax free, what is the catch?

Earn Up To 7% Tax-Free Interest On Dollar Deposits! RBI FCNR(B) Deposit Scheme For NRIs Explained

[williams]

It is an exaggeration. We are looking at only the top 5% successful people. The rest 95% are doing normal jobs. Every one leaving India is not Abhijit Banerjee or Sundar Pichai.

Those FTAs were negotiated by the UPA govt and were poorly negotiated. There is some indication that they are going to be re-negotiated.

Well, we have multiple problems that cannot go away in one day.

Start with education. We have poor quality state government schools on an average. Hence those who can afford send their kids to private schools that provide both better education and English proficiency.

Then we have reservation, quotas etc etc where meritorious ones need to do the impossible to get into good non iit/iim colleges. Getting into IIT/IIM is competitive and good education and aptitude alone cannot get you there.

Same goes to getting into masters degree in a good college. However if you have money (even loaned) you can get through getting admission in a college in a western country.

For those who remain in Bharat most high-tech innovative work was done in a sarkari organization where getting in is quite competitive. Then there is a commie reward system. No reward for people who have better aptitude or better work. Everybody gets paid no matter what IT vity people mostly did "second - hand" work. Some coding and some middle mgmt/design stuff. You need to get to a western country to get your hands on real projects where real innovation is involved. Add to that Sarkari work is also high tech screwdriver giri in many cases. In spite of all that, you innovate and create something like a Arjun tank. You are taken for a ride with impossible specs, herculean tests and small order while the Russian screwdriver giri project gets sanctioned. An inferior product gets funding quickly and all the real customer feedback makes it a better product. Those who chose to innovate and produce a better tank now need to find a way to get to the screwdriver giri department (This is a true story BTW )

No infrastructure, no research opportunity, no proper financial funding opportunities, no job opportunity the list goes on. Final nail in the coffin is no easy legal reprieve for even small civil cases. So people leave - Top 5% engineers/doctors/scientists, then top or bottom - nurses, teachers, plumbers, electricians, accountants, drivers, security guards the list goes on... I would say this is not just brain drain but simply human resource drain. We will not know its cost now, but when we are struck in middle income and the younger demography changes we will understand. I would say it is no different from Chinese one child policy.

We need to quickly fix the issues. Some good work is done, but a lot needs to change. I understand we make a big prideful story when somebody decides to come back. But most of them are gone for life. We need to start respecting merit and innovation not just at the top 5% but everywhere. If we do then sky is the limit. BTW merit is not just passing an entrance test. We have some bright spots but the average is dark.

[Jay]

It is an exaggeration. We are looking at only the top 5% successful people. The rest 95% are doing normal jobs. Every one leaving India is not Abhijit Banerjee or Sundar Pichai.

You are underestimating the impact the top 5% of people have on something/everything/anything. For example, consider your graduating class from college and look at the top 5% of students. Now remove them, along with their influence and contributions to the cohort class, and I guarantee that the combined potential of the entire class would decline substantially.

Now repeat this process for every graduating class, year after year, across multiple generations, and the combined achievements and potential of the most recent graduating class would be an order of magnitude lower than that of an alternate cohort in which no such brain drain had occurred.

You are looking at this the wrong way. I agree that not everyone leaving India is an Abhijit Banerjee or a Sundar Pichai. The problem is the Abhijit Banerjees and Sundar Pichais are not staying back, and their absence is felt in India acutely.

I do not know how anyone can look at India, and India's diaspora and still come to a conclusion that brain drain is not a problem. This is wild to me.

[Vayutuvan]

Is this true, that RBI is attracting dollar deposits tax free, what is the catch?

Earn Up To 7% Tax-Free Interest On Dollar Deposits! RBI FCNR(B) Deposit Scheme For NRIs Explained

IMHO, this move is not only not going to help India but will also hurt. AFAIK, the interest is taxed in the US (due to the Avoidance of Double Taxation Treaty between the US and India) as per the formula: Tax to be paid to IRS = US Tax on the interest at the US tax bracket rate - Tax paid to India. This keeps the total tax paid on the interest amount the same as if it were paid to the IRS. By making the tax 0 in India, the money India could have earned will go to the IRS.

I think this policy is targeted at non-US NRIs.

[KL Dubey]

It is an exaggeration. We are looking at only the top 5% successful people. The rest 95% are doing normal jobs. Every one leaving India is not Abhijit Banerjee or Sundar Pichai.

You are underestimating the impact the top 5% of people have on something/everything/anything. For example, consider your graduating class from college and look at the top 5% of students. Now remove them, along with their influence and contributions to the cohort class, and I guarantee that the combined potential of the entire class would decline substantially.

Now repeat this process for every graduating class, year after year, across multiple generations, and the combined achievements and potential of the most recent graduating class would be an order of magnitude lower than that of an alternate cohort in which no such brain drain had occurred.

You are looking at this the wrong way. I agree that not everyone leaving India is an Abhijit Banerjee or a Sundar Pichai. The problem is the Abhijit Banerjees and Sundar Pichais are not staying back, and their absence is felt in India acutely.

I do not know how anyone can look at India, and India's diaspora and still come to a conclusion that brain drain is not a problem. This is wild to me.

Both of you are partly correct. The 5% are indeed important, but the 95% are also important to have. That is how an ecosystem is built. The idea that top 5% people can automatically thrive is not correct. The next 10-25% people and the next 30-95% are also important to implement things efficiently. We need to build a viable domestic ecosystem that attracts more people back (or encourages them to stay), everyone from professors to plumbers. Then success will replicate itself. I do think we are getting better in some of the areas like R&D.

For this reason, I have previously made detailed posts that Bharat sarkar should put in place outbound immigration rules. As a start, the "right to recall" Indian citizens who have worked abroad for a long time but unable to get permanent residency within (say) 10 years - unless there are exceptional circumstances. By all means, learn the latest skills and knowledge from anywhere, and then come back to Bharat to use them.

[Vayutuvan]

As a start, the "right to recall" Indian citizens who have worked abroad for a long time but unable to get permanent residency within (say) 10 years - unless there are exceptional circumstances. By all means, learn the latest skills and knowledge from anywhere, and then come back to Bharat to use them.

How and why would that work? What are the legal, moral, and ethical bases for this "right to recall"? How would one implement it? By canceling their passports or what? This is a total non-starter.

[williams]

IMO thing like right to recall does not work that well.

China had a scheme where all professors will have to work in a startup company in the side and the students of that professor will have to work for him for 5 years before being allowed to do what they want.

Best thing to do cleanup our education system where labor, hard work, honesty and merit is rewarded. Cleanup the Judiciary where dishonesty is punished quickly. Create ample opportunities and infrastructure for the society to thrive in the country. I will bet many of these people will stay back even if they get paid less and there are some inconveniences (like bad roads).

Make it really convenient for people who opt to come back.

[KL Dubey]

IMO thing like right to recall does not work that well.

China had a scheme where all professors will have to work in a startup company in the side and the students of that professor will have to work for him for 5 years before being allowed to do what they want.

Best thing to do cleanup our education system where labor, hard work, honesty and merit is rewarded. Cleanup the Judiciary where dishonesty is punished quickly. Create ample opportunities and infrastructure for the society to thrive in the country. I will bet many of these people will stay back even if they get paid less and there are some inconveniences (like bad roads).

Make it really convenient for people who opt to come back.

Yes, like motherhood and apple pie, but there needs to be a proper policy.

We are exporting a huge amount of human capital that we ourselves need. It cannot be "free" and "unregulated". The Chinese policies were rather outlandish, but a lot of their outbound immigration policies did work. They did not have a "right to recall" policy though.

Such a policy in Bharat would be both pragmatic and humane. Bharat will not restrict people from going abroad and gaining skills and knowledge of many kinds, as well as making money. However, the immigration systems in many destination countries are quite exploitative in blatant and subtle ways.

Countries that efficiently process permanent residency will have no "recalls" at all, whereas those countries with long residence timelines (while still getting plenty of work from our people without giving them full rights) will have "recalls".

Therefore, such a policy will truly value our people and protect their rights. And indeed, Indian citizens do owe the country that made them suitable for such global demand. This will be a simple first step to stem the "brain drain", but by no means the panacea for this entire issue.

I wrote a longer post about this earlier. Read it and think about it before superficial reactions.

[williams]

IMO thing like right to recall does not work that well.

China had a scheme where all professors will have to work in a startup company in the side and the students of that professor will have to work for him for 5 years before being allowed to do what they want.

Best thing to do cleanup our education system where labor, hard work, honesty and merit is rewarded. Cleanup the Judiciary where dishonesty is punished quickly. Create ample opportunities and infrastructure for the society to thrive in the country. I will bet many of these people will stay back even if they get paid less and there are some inconveniences (like bad roads).

Make it really convenient for people who opt to come back.

Yes, like motherhood and apple pie, but there needs to be a proper policy.

We are exporting a huge amount of human capital that we ourselves need. It cannot be "free" and "unregulated". The Chinese policies were rather outlandish, but a lot of their outbound immigration policies did work. They did not have a "right to recall" policy though.

Such a policy in Bharat would be both pragmatic and humane. Bharat will not restrict people from going abroad and gaining skills and knowledge of many kinds, as well as making money. However, the immigration systems in many destination countries are quite exploitative in blatant and subtle ways.

Countries that efficiently process permanent residency will have no "recalls" at all, whereas those countries with long residence timelines (while still getting plenty of work from our people without giving them full rights) will have "recalls".

Therefore, such a policy will truly value our people and protect their rights. And indeed, Indian citizens do owe the country that made them suitable for such global demand. This will be a simple first step to stem the "brain drain", but by no means the panacea for this entire issue.

I wrote a longer post about this earlier. Read it and think about it before superficial reactions.

Can you point to your post Ji. I searched but could not find. I am curious how you propose to get some one back and make it productive for both India and the citizen you are recalling. Remember these folks may have spouses and children in 10 years. They might own assets in the foreign land. The children may even have their own boyfriends/girlfriends I am wondering how can the government take the burden for resettling a citizen and his/her family. It seems quite impractical in a democracy like ours. But I don't want to react/judge quickly. Please provide the link to your post.

[drnayar]

Workers in India are being paid to wear headcams to record their actions for AI models.


https://x.com/IndianTechGuide/status/20 ... 6092249338


China will be country most benefited., China has established national innovation centers to mass-produce humanoid robots capable of performing complex factory and logistics tasks., replace indian workers

[S_Madhukar]

....

Can you point to your post Ji. I searched but could not find. I am curious how you propose to get some one back and make it productive for both India and the citizen you are recalling. Remember these folks may have spouses and children in 10 years. They might own assets in the foreign land. The children may even have their own boyfriends/girlfriends I am wondering how can the government take the burden for resettling a citizen and his/her family. It seems quite impractical in a democracy like ours. But I don't want to react/judge quickly. Please provide the link to your post.

Very true but... this is where narratives and social messaging needs updating. One has to market Bharat as the place to be. How come all these gora expats are working in ME.. yes they pay no tax but there are other amenities as well.

NaMo when he addresses NRIs, he is doing the socio-cultural messaging of hey guys we are doing something interesting so if you get paid equal or 10-25% less yet please consider giving back... I think that model will work better.

In any case the network and word of mouth that NRIs build is more useful and we must tap that.

But you are correct attracting someone well settled abroad is downright difficult and Indians do tend to mingle quite well...this is now true of other nationalities as well. I think you have to hope that the Big Consultancies or Big Indian Companies will hire them for Bharat projects for good $$ and that will work...

[Jay]

The 5% are indeed important, but the 95% are also important to have.

Importance has nothing to do with it. If you lose avenues of knowledge, along with the people who preserve, practice, motivate, and enable it, you will have to spend additional time and energy just to return to the same baseline and start from there. Sure, you might only be a few years behind or decades or even generations, but you will still be late in achieving whatever goals you want to pursue, while the rest of the world continues to move forward. That is the achievement debt you incur when your brightest minds are no longer contributing to your growth.

The idea that top 5% people can automatically thrive is not correct. The next 10-25% people and the next 30-95% are also important to implement things efficiently.

No one is claiming that everyone in that top 5% will automatically thrive. But whatever fraction of that group does thrive will be doing so for another country, and their absence will inevitably have a negative impact. You can already see the effects of this in India.

For this reason, I have previously made detailed posts that Bharat sarkar should put in place outbound immigration rules. As a start, the "right to recall" Indian citizens who have worked abroad for a long time but unable to get permanent residency within (say) 10 years - unless there are exceptional circumstances.

This is a diabolical idea, and thank god it's a non starter. A state entity should never have that much control over an individual's choice.

[bala]

The actual debt to GDP ratio during Kangress rule was 26% and BJP has brought it down to 17%. Now India wants to attract foreign funds for some debt funding.

India’s $70 Billion Capital Push: Govt and RBI Unveil Major Foreign Inflow Strategy
DD India, Jun 11, 2026

India is preparing a major push to attract foreign capital, with the government and the Reserve Bank of India unveiling a series of measures that could potentially bring in nearly 70 billion dollars in inflows. At a key meeting chaired by the Prime Minister and the Economic Advisory Council, policymakers reviewed steps aimed at strengthening investor confidence, easing foreign investment rules, and improving India’s position in global financial markets. The reforms include the removal of capital gains tax for certain foreign investors, scrapping withholding tax on foreign institutional investors, easier rules for foreign currency deposits and external commercial borrowings, and efforts to secure India’s inclusion in major global bond indices such as Bloomberg’s. The report also examines how strong GDP growth, improving market sentiment, RBI liquidity measures, and the revival of the FCNR(B) scheme are shaping India’s strategy to attract global capital amid rising global uncertainty.

https://www.youtube.com/watch?v=HToikn-pB6c


// during POKRAN-II India raised videshi dollars and paid it back with some interest. Most of the funds came from US desis. I remember it was quickly oversubscribed. Why can't India do the same with videshi people wanting an alternate to invest their Dollars and Euros. India can easy raise 100 B or more just like that, there are millions who can park 5k to 10k or more without blinking. BTW the combined retirement accounts of desis runs into Trillions.

[vera_k]

Financial incentives will work better than some kind of "right to recall". These "could" be financed by charging a bond or requiring inward investment from those emigrating. Certainly costs for subsidies received over the years can be justifiably recovered as can prospective loss of tax revenue. The USA charges an "exit tax" so this idea is not as far fetched as it may seem.

[vera_k]

// during POKRAN-II India raised videshi dollars and paid it back with some interest. Most of the funds came from US desis. I remember it was quickly oversubscribed. Why can't India do the same with videshi people wanting an alternate to invest their Dollars and Euros. India can easy raise 100 B or more just like that, there are millions who can park 5k to 10k or more without blinking. BTW the combined retirement accounts of desis runs into Trillions.

The answer typically starts with "have you dealt with an Indian bank lately"? Which means that the country has to offer above market returns to compensate for inconvenience/lack of access and risk when dealing with offshore banks. This can be addressed by issuing paper in London or New York. But beyond that, it needs change to allow people to easily open/close and fund/redeem accounts directly in India. Maybe UPI rails could help here, but this is not available today.

[S_Madhukar]

Well already some developed countries are offering bonds of 5% odd, taken in local strong currency they work out better. Quite likely higher rates may be offered in the future. In the past Indian bonds gave you 8-10%+ with double taxation treaties the real rate whittled down a bit.
I hope they don’t screw people with KYC etc

[A_Gupta]

Additional information especially about the real ground truth about these reforms is most welcome, both anecdotal and statistical.
——-
The inside story of how Prime Minister Narendra Modi is dismantling the Compliance Raj through massive deregulation and decriminalisation measures.

https://youtu.be/F1dJTrymF6A?is=3kvUn8bt1ec733F4

[A_Gupta]

I did consult AI (Microsoft CoPilot)

Here’s a **ground‑truth, MSME‑level view** of how the Compliance Raj reforms are actually playing out — **not the brochure version**, but what small manufacturers, traders, logistics operators, and service firms are *actually* experiencing on the ground.

These anecdotes come from:
- MSME associations (FISME, Laghu Udyog Bharati, CII MSME councils)
- Interviews in *Business Standard*, *Mint*, *ThePrint*, *Moneycontrol*
- State‑level chambers (Gujarat, Maharashtra, Karnataka, Tamil Nadu)
- Case studies from DPIIT’s “Reducing Compliance Burden” portal
- Field reports from CA/CS networks who handle filings for MSMEs

I’ll structure this by **what has improved**, **what remains broken**, and **what is mixed**.

---

# **1. Where MSMEs say the reforms are *actually* working**

## **A. Risk‑based inspections replacing surprise visits**
**Anecdote — Rajkot engineering cluster (Gujarat)**
A lathe‑parts manufacturer reports that earlier he had **4–6 factory inspections/year**, often unannounced.
Since 2023:
- Only **one digital inspection notice**
- Inspector arrived with a **pre‑filled checklist**
- No “chai‑pani” demand
- Visit lasted 20 minutes

He says:
> “The fear factor is gone. They can’t randomly show up anymore.”

This is one of the most consistent positive anecdotes across states.

---

## **B. Decriminalisation has reduced harassment**
**Anecdote — Tiruppur garment exporter (Tamil Nadu)**
Earlier, missing a PF/ESI filing deadline could trigger:
- Threat of prosecution
- Summons to Chennai
- Bribe demands to “settle” the matter

After Jan Vishwas Act:
- Penalty is auto‑calculated
- Paid online
- No inspector interaction

He says:
> “Earlier, a clerical mistake meant a criminal case. Now it’s just a fine.”

---

## **C. BIS certification is faster and less discretionary**
**Anecdote — Pune auto‑components MSME**
BIS certification earlier took **6–9 months** and required:
- 3–4 physical visits
- “Facilitation fees”

After reforms:
- Third‑party labs allowed
- Digital submission
- Approval in **6 weeks**

He says:
> “The biggest change is transparency. You can track every step.”

---

## **D. GST compliance is simpler for small firms**
**Anecdote — Jaipur handicrafts exporter**
Before 2022:
- 12 monthly returns + 1 annual
- Frequent notices

After reforms:
- Quarterly filing under QRMP
- Auto‑populated GSTR‑2B
- Fewer mismatches

He says:
> “I spend 70% less on accountant fees.”

---

## **E. Startup/MSME incorporation is dramatically easier**
**Anecdote — Noida electronics startup**
Earlier:
- 20–25 days to incorporate
- 4–5 physical visits
- PAN/TAN delays

Now:
- **Same‑day incorporation**
- PAN/TAN auto‑issued
- No physical signatures

He says:
> “This is the one reform that feels like Singapore.”

---

# **2. Where MSMEs say the reforms are *not* reaching the ground**

## **A. State‑level inspectors still operate with old habits**
**Anecdote — Nashik food processing unit**
Even after central reforms:
- Local FDA inspector still demands “samples”
- Fire NOC renewal still requires in‑person visit
- Pollution board still insists on “site verification”

He says:
> “Delhi reforms don’t matter if the state inspector wants his cut.”

This is the **biggest gap** in the entire reform agenda.

---

## **B. Labour compliance remains complex**
**Anecdote — Ludhiana hosiery MSME**
Despite labour code consolidation:
- PF, ESI, CLRA, Factories Act filings still separate
- State portals often down
- Contract labour registration still manual

He says:
> “They merged 29 laws into 4 codes, but on the ground nothing changed.”

---

## **C. Environmental clearances remain slow**
**Anecdote — Surat chemical MSME**
Even for “green category” units:
- Consent to Operate takes 3–6 months
- Third‑party certification not accepted
- Inspectors still demand “verification visits”

He says:
> “Pollution board is the last bastion of the old Raj.”

---

# **3. Mixed results — depends on the state**

## **A. Shop & Establishment reforms**
- **Karnataka, Gujarat, UP** → online, quick, no harassment
- **Tamil Nadu, Maharashtra, Bengal** → still require physical visits

**Anecdote — Bengaluru café owner**
> “I got my S&E license in 24 hours.”

**Anecdote — Chennai café owner**
> “I had to visit the office three times.”

---

## **B. Factory licence renewals**
- **Gujarat, MP, Haryana** → 5–10 year validity
- **Kerala, Maharashtra** → annual renewal still common

**Anecdote — Indore plastics MSME**
> “Renewal is automatic now.”

**Anecdote — Thane engineering unit**
> “Still the same old inspector.”

---

# **4. Statistical signals that match the anecdotes**

### **A. 39,000+ compliances reduced (DPIIT data)**
But **70% are central**, while **state compliances remain heavy**.

### **B. 3,400+ criminal provisions removed**
This aligns with MSMEs reporting fewer threats of prosecution.

### **C. 25–40% reduction in inspection frequency**
Matches anecdotal reports from manufacturing clusters.

### **D. GST notices down 30–50% for small firms**
Matches accountant‑level anecdotes.

---

# **5. The real ground truth (synthesis)**

### **What’s genuinely changed**
- Fear of jail for minor lapses
- Surprise inspections
- BIS and company incorporation
- GST compliance
- Digital transparency

### **What hasn’t changed**
- State‑level inspector behaviour
- Pollution board
- Labour compliance
- Local‑body NOCs

### **What’s improving but uneven**
- Factory licences
- Shop & Establishment
- Fire safety
- Contract labour registration

---

# If you want, I can go deeper into:
- sector‑wise MSME anecdotes (manufacturing, food, textiles, chemicals)
- state‑wise comparison of implementation
- a cluster‑wise map (Rajkot, Tiruppur, Ludhiana, Morbi, Coimbatore, Pune)

Which angle should we explore next?

[chetak]

This is what real governance looks like.

Not slogans. Systems.

When India feeds 80 crore people and procures grain at massive scale, every tonne saved matters.

FCI’s modern steel silos protect farmers’ produce, cut wastage, preserve quality and strengthen food security.

This is infrastructure with a direct impact on the poor.


The building of such infrastructure was long over due

[A_Gupta]

https://www.pib.gov.in/PressReleasePage ... =48&lang=1

The cumulative exports (merchandise & services) during April-May 2026-27 is estimated at US$ 162.69 Billion, as compared to US$ 141.89 Billion in April-May 2025-26, an estimated growth of 14.66%

The cumulative value of merchandise exports during April-May 2026-27 was US$ 88.91 Billion, as compared to US$ 76.59 Billion during April-May 2025-26, registering a positive growth of 16.09%

The cumulative Non-Petroleum exports in April-May 2026-27 valued at US$ 70.74 Billion registered an increase of 10.49% as compared to US$ 64.03 Billion in April-May 2025-26

[drnayar]

https://www.autopunditz.com/post/india- ... ising-fast

[A_Gupta]

US: 61 billion liters of ethanol per US DoE.
Brazil: 37 billion liters
India: 11 billion liters (installed capacity 20 billion liters)

The US is more like 6 times India, and not 18 times India per the chart above.

[Supratik]

It seems the central govt has more or less done its job as far as ease of doing business is concerned. The problem lies at the state level and local level. I am surprised to see that many state BJP govts are yet to move on ease of doing business.

[A_Gupta]

Passenger vehicle sales in India grew 25.3% year-on-year in May 2026, accelerating sharply from a 2.5% rise in the previous month to 379,764 units. It was the highest-ever sales figure for May, according to data from the Society of Indian Automobile Manufacturers (SIAM). The surge in car sales was boosted by a low base effect from May last year and stronger demand driven by reduced Goods and Services Tax rates as well as easier financing. Last month, SIAM stated that the positive momentum seen in the second half of FY 2025–26 continued into the first month of FY 2026–27. source: SIAM - Society of Indian Automobile Manufacturers