Indian Economy: News and Discussion (Jan 1 2010)

Suraj · Post by **Suraj** » 13 Mar 2010 05:43

Just a sensationalist headline to gain attention, and little substance behind the whole interview.

vera_k · Post by **vera_k** » 13 Mar 2010 22:18

SwamyG wrote:
vera_k wrote:Is India's Economy Weakening
Hmmmmm....his write-up is just like my son's write up . Look at his references all from the internet. Rediff, Economic Times itiyadi. Even when my son does some school projects we end up going to the local library to pull out few books.

Heritage Foundation is a conservative think-tank.

So are you disputing the conclusion that policy looks to be headed back to the pre-reform era?

Suraj · Post by **Suraj** » 14 Mar 2010 00:27

'Restructure, Not Infrastructure' for a subheading about sums up how shallow that heritage.org article is. The claim that RoI on infrastructure development is minimal is just laughable - just a few days ago I posted an article that summarizes how the returns from infrastructure companies are now outdoing the traditional stars, the IT companies.

The article merely makes a case for reforms on terms beneficial to US businesses, e.g. greater access for US investment, presumably in sectors like financial services and insurance, where the US has consistently sought greater access but has been denied.

joshvajohn · Post by **joshvajohn** » 14 Mar 2010 00:37

Is India's Economy Weakening?
http://www.heritage.org/Research/Report ... -Weakening

LINK DELETED

Indian policymakers should see agriculture as a source of growth, not votes
http://www.economist.com/displayStory.c ... d=15663520

svinayak · Post by **svinayak** » 14 Mar 2010 00:43

joshvajohn wrote:Is India's Economy Weakening?
http://www.heritage.org/Research/Report ... -Weakening
Poverty still a big concern for India
http://www.merinews.com/article/poverty ... 0776.shtml

Indian policymakers should see agriculture as a source of growth, not votes
http://www.economist.com/displayStory.c ... d=15663520

Check to see if they have similar reports on China during this kind of development

vera_k · Post by **vera_k** » 14 Mar 2010 07:50

The larger point made in the Heritage article is that the economy is being managed assuming that the economy will resume higher trend growth and this assumption has allowed deferral of reforms. This faces significant downside risks because of a) the economy's dependence on the monsoon and b) a possible double dip recession in the major export markets.

Suraj · Post by **Suraj** » 14 Mar 2010 10:11

What is 'deferral of reforms ?' There are plenty of big ticket restructuring measures going on, from disinvestment (which has largely occured without negative publicity so far), to acceptance of the 13th finance commission recommendations, to efforts to achieve a sufficient level of federal-state compromise on revenue sharing in order to bring GST into effect, to significantly greater private infrastructure investment in roads, power and telecom (e.g. the 3G auction).

Regarding dependence on monsoon, the last time we had a bad monsoon, annual GDP growth rate was 2-3% . Now it is 'down' to 6% for one quarter, and trends suggesting annual growth of a little over 7%, due to significantly higher growth in other quarters.

Singha · Post by **Singha** » 14 Mar 2010 12:12

I see lots of machinery from german and japanese cos in use here - like cement mixers, road construction, cranes, electrical stuff.....real stuff which builds real things.

the US-UK combine is kind of hamstrung in that dept as their main 'export' is 'financial services' (or atleast the most prominent and vocal export lobby)

in armaments they are already pushing costly arms down our throat where the indian public likes it or not.

Nihat · Post by **Nihat** » 14 Mar 2010 13:47

refrence to heritage article

The author has very stupidly overlooked many factors referring the 6% growth in 3rd quarter. He completly overlook the effects of the drought and the - 2% growth in that sector coupled with the fact that it still accounts for 17% of GDP and he also refers to Fiscal deficiat targets which were intended to be 5.5% for the current year but will turn out to be 7% +. But here, what is not taken into account are the stimulus packages and what impact they had on fiscal gap.

It's an article of convenient facts at best and selective reporting.

Abhijeet · Post by **Abhijeet** » 15 Mar 2010 01:35

An unscientific sample of the relative prices of various things in India. Items can generally be classified into the following categories:

- Things available at "Indian" (or PPP) prices
- Items available at "international" prices i.e. the same as or more than you would pay in a developed country
- Items available at prices somewhere in between.

IMO, the underdevelopment of basic manufacturing capacity in India, coupled with import duties, results in relatively low purchasing power for even well off Indians. Many relatively basic products seem to be imported, or are not significantly cheaper than outside the country even if produced domestically. In the list below, a large part of the annual spending of an average upper middle class Indian family is likely to be in the mid-range and international price categories.

Things available at "Indian" (PPP) prices:
- Unprocessed food
- Unskilled and semi-skilled labour (e.g. domestic help)

Things available at mid-range (between PPP and international prices):
- Processed food
- Housing - rental or real estate rates

Things available at "international" prices:
- Good quality furniture
- Even basic home appliances: refrigerators, washing machines, air-conditioners etc
- Consumer electronics: TVs, computers, music systems, even telephones
- Fuel
- Cars (actually a lot higher than international prices)
- Anything even slightly large, sophisticated or durable. For example, there are plenty of small, low-quality children's toys available at Indian prices. If you want a small children's cycle - a large toy - you will generally pay as much as in the US.

Developing a strong local manufacturing base which can bring wages of workers and prices of goods into parity must be (and, I hope, is) a high level imperative for the country. This, along with the necessary improvements in infrastructure, will go a long way toward increasing the quality of life of the average Indian.

Prem · Post by **Prem** » 15 Mar 2010 03:48

Bentley Mulsanne Rolls Out To Indian Markets, Photos
http://www.panasianbiz.com/all-about-in ... ry-photos/

The 2.9 crore beauty will be delivered to the Indian markets by October this year. “I think our expectations with Mulsanne has always been very strong. We don’t see the sales of the car but wait for its demand in the market. The moment I think would be strong we would probably be sold out, by the end of 2011,” said Chris Buxton the Bentley regional director.

joshvajohn · Post by **joshvajohn** » 15 Mar 2010 04:24

India is not yet under red army or any Marxian rulers to control media critique of the economic situation. I am not suggesting that the poverty can be eliminated by giving them freebies (free food or free clothes) but make people to develop skills to work for their own development. The freebies may be needed for short time but not in long term. But developing skills for people needs investment, networking and microeconomic planning. For example the women network in Tamil Nadu has grown like an industry which is ready to compete with other industries and also in Bangladesh grameen networks have enable people to come out of poverty. I am not certainly an economist but such kind of development approach with the help of the Nongovernment and possibly Faith based organisations might help of convert poverty into industrial investment. Spending on freebies by the government is not going to help in long term because it needs enormous growth and income to maintain them. Without developing micro-level skills and thus development the social support system cannot be withdrawn.

The recommendations of the 13th Finance Commission shrink even the space already available for States to decide spending priorities.
http://www.flonnet.com/stories/20100326270601900.htm

Neshant · Post by **Neshant** » 15 Mar 2010 05:35

I am not certainly an economist but such kind of development approach with the help of the Nongovernment and possibly Faith based organisations might help convert poverty into industrial investment.

huh?

missionaries are good at draining a country of its wealth not adding to it.

plus they brainwash a whole lot of people to hate their country and do subversive activities to put roadblocks in the way of development. Also they promote bad press about the country overseas and push the conversion agenda.

keep all religion out of development. nobody is coming down from heaven with free money.

joshvajohn · Post by **joshvajohn** » 15 Mar 2010 05:45

I mean Faith based organisation includes Ramakrishna mission, RSS and other social service organisation. I did not mean 'FBOS' as a missionary organisations and will not be keen to have missionary organisation involving in these activites which is why I suggest that government itself involves in this and monitor even those faith based organisations in development work and possibly colloborate with them in order to focus on reducing the poverty rather than probagate their fixed doctrines and work for their political agenda.

SwamyG · Post by **SwamyG** » 16 Mar 2010 08:24

vera_k wrote:So are you disputing the conclusion that policy looks to be headed back to the pre-reform era?

I question the sincerity and his agenda. So he is from Unkilland where the economy is sputtering and starting to improve; and here we have desh 7% + growth and one of questions he doubts if India weathered the economic crisis exceptionally well. And he adds 6% is not an accomplishment. What does he want, 15% growth rate? GoI is paying interest, he cites 20%; hey Moody might give India a better rating than UK or USA. He wants to "entice India to return to a market economy path." It just means the corporations in USA want more access to desi folks. Period.

Naah I am not going to take him seriously.

Stan_Savljevic · Post by **Stan_Savljevic** » 16 Mar 2010 08:37

http://www.forbes.com/2010/03/09/google ... getoprated
India: The Gap Is Narrowing ---- Rebecca Fannin

Pulikeshi · Post by **Pulikeshi** » 16 Mar 2010 08:48

joshvajohn wrote:Is India's Economy Weakening?
http://www.heritage.org/Research/Report ... -Weakening

Dr. Scissors indeed!

(no offense to anyone, but what is the point of posting these articles that are an utter joke on this thread?)

Prem · Post by **Prem** » 16 Mar 2010 08:54

India's second tryst with destiny

http://www.moneycontrol.com/news/busine ... 46723.html

It is India’s moment on the world stage now. Our leaders can seize it and build a great nation; or squander it forever

On February 26, a rare confluence of events took place. As Finance Minister Pranab Mukherjee presented the Union Budget, the stock market started rising. The benchmark Sensex remained high even after he re-imposed taxes and duties he had withdrawn last year to help the economy out of a slowdown. Sure, Mukherjee put more money in the hands of the people through income tax concessions, but then that money would be barely enough to buy goods that would become costlier with his excise duty hikes.

Suraj · Post by **Suraj** » 16 Mar 2010 11:31

Mumbai advance tax grows 3.63% in Q4, below expectation

Advance tax collections from the top 100 companies in the Mumbai region for the crucial and last quarter of 2009-10 have grown just 3.63 per cent compared to 24 per cent in the corresponding period last year.

Mumbai accounts for almost half the corporate tax collections in India. The meagre growth in the January-March quarter comes at a time when the economy is widely considered to have made a strong recovery.

Total tax collection from top 100 companies for the quarter is Rs 11,625 crore (Rs 11,218 crore in the same period last year), while annual collection from these companies stood at Rs 46,692 crore (Rs 38,724 crore).

Overall collections have also fallen short of target. Against a target of Rs 142,000 crore, Mumbai region has collected around Rs 106,000 crore tax in 2009-10, with this instalment of advance taxes.

Admitting that collections have been below expectation, a senior official of the Central Board of Direct Taxes (CBDT) said: “The advance tax payment made in the fourth instalment last year was high since companies paid less in the third instalment anticipating a slow pick-up in income. The case has been different this year since companies have been paying the normal instalments.”

Another reason for the relatively low growth in collections was the abolition of Fringe Benefit Tax (FBT) in last year’s Budget, for which the notification came in December 2009. "It has made a difference of little more than Rs 4,000 crore in the tax collection,” the CBDT official said.

Ports register 5% growth in cargo handling

After a year of downturn, major ports in India are back on the recovery track. Traffic handled between April 2009 and February 2010 has increased by 5 per cent from a meagre two per cent growth in 2008-09.

The figure, however, is still short of the pre-slowdown performance — an 11 per cent growth in traffic handled by 12 major ports in 2007-08.

“The economy will take some time to recover. We have witnessed growth over last year, but will take more time to reach the 2007-08 level,” said A Janardhana Rao, managing director, Indian Ports Association. He added that the overall growth for 2009-10 should reach 6-7 per cent by the end of March.

With India’s Gross Domestic Product at 6.7 per cent in 2008-09 due to the economic crisis, as compared to 9.2 per cent the previous year, ports were impacted by dwindling exports which grew 3 per cent compared to 29 per cent in 2007-08 (based on March 2009 quick estimates).

Under commodities, the ‘other cargo’ category saw a growth of 22 per cent in 2009-10 due to sugar imports and a recovery in the textile sector. The iron ore category has grown 6 per cent this year. In 2007-08, it was 34 per cent, which fell to 2.5 per cent last year. “China imported iron ore heavily during the Olympics. That demand has completely dwindled now, hence, the fall,” said Rao. Jawaharlal Nehru Port Trust, which handles the largest container traffic, has shown a growth of 5 per cent. In 2007-08, it was 24 per cent.

SwamyG · Post by **SwamyG** » 16 Mar 2010 19:18

Economics gurus: I have a simple question: "Why are prices raising?".

According to this Watching prices rise, helplessly it is all policy.

Policy - the real culprit

Clearly, neither "cost push" nor drought really accounts for the food price inflation. The larger causes are the "dysfunction in distribution" and a government policy which is short sighted and makes no contingencies for the vagaries of nature. The "dysfunction in distribution", in plain speak, stands for speculative hoarding all along the supply chain from farm gate to consumer's table. And the government policy of exporting surplus agricultural produce without saving for the rainy day profits no one but traders.
It will now be clear why the Government is helpless. While cracking down on hoarding could bring some relief temporarily, it is a difficult option for the governments at the center and in the states, since the trading community is a major source of funds and has close connections with the political parties and politicians. For the Government's economic advisors, this is also anathema - it militates against the direction of reforms to free markets from all shackles. The preferred policy is to correct the markets through imports, but this will not work when international prices are higher or when the requirements are so large that the initiation of imports would drive up world market prices. Unfortunately, this is just the case now with pulses such as toor dal and with sugar.

The current situation of impotence that the Government finds itself in should prompt some soul searching among those who advocate that market mechanisms and free trade across borders will take care of India's food security. With bio-fuels competing with food for farming resources, it will become increasingly dangerous to rely on the international market to make up for large shortfalls in local production. It is perhaps time to rekindle the debate on the need for near self sufficiency in essential foods and investment in food storage infrastructure.

ps: I have no clue on where the author or the website's sympathies lie.

Hari Seldon · Post by **Hari Seldon** » 16 Mar 2010 19:49

well swamygaru, here's more grist for that mill only:
No proposal to provide food subsidy directly to consumer: Pawar
And why not, mantri ji?

ashish raval · Post by **ashish raval** » 16 Mar 2010 20:36

^^ Pawar is a gangster ! He probably has stashed $5b by now in his Swiss account/s. A simple step of importing the food incase of draught situation will solve the problem. It is really a very poor piece of planning, management and execution of food policy in our country. Mafia's rule food, sugarcase and pulses industry. Why dont Govt. privatize the food-distribution system in the country if Govt. feels that corruption in the it is not in its hand to control ! food distribution systems needs to be controlled electronically by local centres ! Shame that nothing works precisely in our country everything just rolls like bullock-cart..just surviving on destiny.

Suraj · Post by **Suraj** » 16 Mar 2010 21:02

No need to be so pessimistic and claim 'nothing ever works in our country'. For one, it doesn't contribute to understanding the problem and what it's solutions are.

That food prices are not rising due to lack of effective storage and distribution facilities has been stated several times before on this thread. Using monetary actions to tame food price inflation is a hugely costly exercise, dampening overall economic activity just to lower food prices, without tackling the symptoms at their root.

SwamyG · Post by **SwamyG** » 16 Mar 2010 21:09

Please correct me if I understood the basics right before moving on to understand currency, politics and other things:
Prices can increase, if:
1. Supply reduces and demand is flat, or
2. Supply reduces and demand increases, or
3. Demand increases and supply remains flat, or
4. Demand increases and supply reduces.

With the development and decades of progress, it is certainly in the realm of possibility that demand from aam family has increased. In addition, the growth would have placed more money in the hands of thousands if not few million people who had earlier not many choices.

Production: Well the "drought" is only a factor; and the news and reports have not been alarmist enough to conclude that drought severely impacted the supply. The effect was there, but how much?

Procurement & Distribution: If production was only marginally impacted, then did we get hit by our procurement & distribution chain? Were these so severe to have been a reason for #1 and #2 above?

All gyaan deeply appreciated.

Suraj · Post by **Suraj** » 16 Mar 2010 21:16

Hi SwamyG: I've learned from gyan from others here (e.g. Theo_Fidel being one prominent contributor) that high-level demand-supply explanations don't quite explain what the issue is. Doubtless, demand has risen, and more so, the nature of demand has changed, from a primarily cereal-based diet to higher consumption of plant/animal proteins and cash crops. But there are specific storage and distribution issues that amplify food price shocks. Theo, if you're around, further input is welcome.

vera_k · Post by **vera_k** » 16 Mar 2010 21:24

Here's a primer by Aiyar on the food price issues. This type of stuff is what I'd call 'deferral of reforms' where the problems have long been understood (MMS's first or second 90's budget proposed lifting fertiliser subsidies), but the politics never seems to work.

New Delhi's Food Failure

An issue that Aiyar doesn't touch upon is the Minimum Support Price mechanism through which the government ends up deciding what crops are grown every year. If the wrong mix is chosen, you get shortages and increase in prices.

IMPACT OF MINIMUM SUPPORT PRICES ON AGRICULTURAL ECONOMY

With this track record, I feel the solution will eventually be increased food imports from crops grown by the private sector in Africa followed by an expansion of NREGA to farmers to take care of the votebanks.

Katare · Post by **Katare** » 16 Mar 2010 21:37

I just came back from India, while there I visited a few smaller towns (in MP) and met several farmers both big and small. I have never seen them happier; this food inflation is a big boon for them in so many ways. Indian policies have been focused on protecting working middle class in cities from food inflation, a worthy goal but for that to happen politicians almost always have robbed farmers in villages.

Another issue that I heard was uncertainty in pricing of their produce. Almost all of the farmers that I met have eliminated or reduced sugar cane acreage this year because the price that they were getting has come down to Rs60/100kg last year. Since this year production decreased exponentially mill owners are now offering up to Rs300/100Kg for same sugar cane. That is a 500% jump in a year. Small farmers can't really take these kinds of price fluctuations. Govt have to ensure that short term fluctuations in prices of essential commodities are smoothed out while long term trends are determined by market prices.

Two other things that I noticed are huge impact of two central programs - Bharat Nirman and NREGS. Almost every village in MP is now connected by a cement/concrete road to the main state roads thanks to Bharat Nirman.

People on ground also reported that exploitation of rural labor by paying next to nothing for hard farm labor and large scale employment based migration has come down drastically. Which is forcing farmers to mechanize their operations as much as possible. Seen a lot of huge “Harvesters” operated by folks from Haryana/Punjab in rural MP.

NERGS is also using modern bank based paying system which is eliminating false muster rolls as reported by a couple of govt officials. They all hate NERGS project since they never get to touch cash, the payments are based on direct bank deposit……

SwamyG · Post by **SwamyG** » 16 Mar 2010 21:57

Vera, Suraj and Katare: Thanks for all the gyan.

Vera:
SSA Aiyar says the following:

But the steady increase of yields ground to a halt by 2000. Government scientists failed to deliver new, more productive seeds for grains like rice and wheat – which the private sector tends not to research because farmers can reuse seeds crop after crop, thus cutting into demand for the private companies' products. The emphasis of the government's rural agricultural spending shifted from investment to subsidies, providing palliatives instead of increasing the production base

India (and World's) population has grown atrociously, so agricultural production has to take change from what it was say 1000 years ago. No doubt about it, but I don't think it is right for any country that its farmers become solely dependent on private companies for the seeds for their next season.

IRRI has several points to why the price of rice is increasing. I don't want to turn this into a discussion of agriculture, but still like to present their points to understand why they think the prices are increasing for rice: Why is it happening?

1.We are consuming more than we are producing
2.Annual growth in yield is slowing.
3.Little room for expansion of rice area.
4.Reduced public investment in agricultureal research and development.
5.Rice has become a popular food in Africa.
6.Population increase.
7.Economic growth.
8.Investments in irrigation have slowed down.
9.Oil prices.
10.Extreme weather.
11.Recurring pest outbreaks.

Katare: So does this mean, in the past the farmers (villages) suffered because of bad policies & other conditions; and now the policies are being corrected the farmers (villages) stand to benefit, but the consequence is that non-farmers are now facing the wrath of price increase?

Suraj · Post by **Suraj** » 16 Mar 2010 23:03

The problem with the general theory of supply and demand is that it does not explain the cyclical food price shocks we see. There's a significant difference between progressive inflation in food prices, and short term price volatility and 'onion scandals' we see; confusing the latter problem for the former would mean that the specific symptoms of the latter are not properly addressed. Almost every year, prices rise during off season and fall post harvest time. That is a symptom of poor storage and distribution capabilities.

The problem with the bonanza for MP farmers today is that a good monsoon would push down prices and lead to their margins being strangled. In the process the whole 'GoI is not pro-poor' and 'aam admi to kya hua' arguments will come right back. It doesn't have to be a zero-sum game benefiting either producer or consumer but not both. In fact, price volatility doesn't really benefit either.

SwamyG · Post by **SwamyG** » 17 Mar 2010 00:25

Suraj: Thanks.

Almost every year, prices rise during off season and fall post harvest time. That is a symptom of poor storage and distribution capabilities.

Few more questions:
1) Does the fall translate to reduced prices of items on the street? That is when our mom's buy toor dhal, rice/wheat and cooking oil do see see prices really falling? For the aam admi this is important. For example in unkilland, gas prices at the gas station rise and fall, we see it and it reflects on our wallets.

2) Does this cyclic rise and fall, create new normals? That is does the price rise from Rs 100 per unit of a grain to Rs 120, then fall to Rs 105; and next year it rises to Rs 125 and fall back to Rs 110 and so forth?

Based on your posts it looks like storage and distribution has to be vastly improved. Have governments done enough on this? Or is the ball in the governments' hands?

Gerard · Post by **Gerard** » 17 Mar 2010 07:13

Conundrum of Kerala's struggling economy

tejas · Post by **tejas** » 17 Mar 2010 09:59

^^^ A Marxist gov't has not lead to prosperity in either Kerala or West Bengal. Where's the conundrum?

Katare · Post by **Katare** » 17 Mar 2010 23:28

SwamiG,

The sugar cane pricing story is just bad policy management/enforcement on part of govt. Farmers have a disadvantage that once their crop is ripe they have to reap all of it, while it is consumed by customers evenly throughout the year. They have to sell it immediately, at least most of it, since they need working capital for planting next crop besides paying past bills. Govt needs to cover this disadvantage especially because we are mostly dealing with subsistence based farming/farmers with little room for loss taking/carryover. In case of Sugar cane, no storage is possible for farmer so they are especially vulnerable in market.

But MMS govt has followed a deliberate policy of substantially increasing support prices for grains like wheat and rice. For instance in 5 years of NDA rule wheat support prices were increased from Rs5/Kg to Rs5.50/Kg at the rate of Rs0.1/year/kg. MMS govt has brought those prices to Rs12-14/Kg in last few years. This makes food expansive for working class and urban poor but farmers are reaping good profits. Since farming supports 60% of jobs and population it makes for good vote bank policy too.

SwamyG · Post by **SwamyG** » 18 Mar 2010 02:50

Since farming supports 60% of jobs and population it makes for good vote bank policy too.

Based on what you are saying can it be extrapolated that 60% of working population have increased income/wages? Consequentially they have better life now. If it is the case, then is it not good?

Abhijeet · Post by **Abhijeet** » 18 Mar 2010 12:42

Rising wages should be based on rising productivity or other measures of value added, not by government fiat, which it is in this case. If the government unilaterally increases the price paid to farmers, with nothing else changing, that's just an inflationary increase, not real wage growth.

Why doesn't the government simply decide to give everyone in India an extra Rs.1000? Wouldn't that make everyone better off?

Sanku · Post by **Sanku** » 18 Mar 2010 14:20

Abhijeet wrote: Why doesn't the government simply decide to give everyone in India an extra Rs.1000? Wouldn't that make everyone better off?

Thats exactly what NREGS is too to most extent.

So the reformist economist PMs has these major achievements in economy

1) Handouts through NREGS
2) Handouts through support prices
3) Loan waivers.
4) Controlling supply side related inflation by depressing overall economy (though high interest rates)

Its good that the NDA govt left the country with a solid economic platform and foundation of
1) Investments and growth in infrastructure
2) Reducing Govt debts and fiscal responsibilities
3) A overall unshackled economy primed for self growth

That has paid for the frivolous expenses by the Govt over last 6 years.

Otherwise we would be in same shape as RG and Congress left India at the end of 80s. Sigh.....

Abhijeet · Post by **Abhijeet** » 18 Mar 2010 17:10

The following facts seem strange in juxtaposition:

1. Farmers are paid too little for their produce to live on (hence high indebtedness, farmer suicides etc)
2. Consumers pay high, and rapidly increasing, prices for food
3. The country produces enough food to adequately feed everybody

In the absence of a production shortage, entities in the distribution channel must be making lots of money if they are able to screw both the producer and consumer.

SwamyG · Post by **SwamyG** » 19 Mar 2010 01:16

Let us not get politics into this thread.

If the farmers were paid low, and if the prices have been adjusted to reflect the market realities. Then it is good no?

shyamd · Post by **shyamd** » 19 Mar 2010 19:40

India Raises Interest Rates for First Time Since 2008 (Update1)

ArmenT · Post by **ArmenT** » 20 Mar 2010 13:03

India and China lift millions out of slums: UN

India has lifted 59.7 million people out of slum conditions since 2000. Slum prevalence fell from 41.5 per cent in 1990 to 28.1 per cent in 2010. This is a relative decrease of 32 per cent, the study found, according to the report called State of the World’s Cities 2010/2011.

China's current slum population is quoted to be 28.0% in the article, India's is 28.1%. However, the article also says that the number of people that live in slums worldwide has gone UP! Guess we now know why Orangi Township in Karachi moved to the #1 slum spot.