Indian Economy - News & Discussion Oct 12 2013

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A_Gupta
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by A_Gupta »

And here is an example of the claim that these food losses and waste hits the income of farmers:
https://www.rockefellerfoundation.org/b ... loss-hits/
It’s a fact that’s hard to stomach: One-third of the food produced globally for human consumption is either lost or wasted from farm to fork. Not only is this adding to the food insecurity of 1.2 billion people, it’s devastating for the 470 million smallholder farmers and 290 million people whose livelihoods rely on the agricultural value chain, where post-harvest food loss reduces their incomes by at least 15 percent. Often, these groups overlap in significant ways: Most vulnerable producers are also part of the 25 percent of households in the developing world that are food insecure.

Post-harvest loss and waste are two different problems. In the developing world, nutritious food most often is lost to poor harvesting and storage practices. On-the-ground studies have found the chief culprits to be lack of training and availability of local services to build skills in handling, packaging, and storage; insufficient post-harvest storage facilities or basic on-farm storage technologies; and unreliable access to markets.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by ShauryaT »

disha wrote: ShauryaT'ji - you need to be more specific. Is the land in US or in India?

20 acres to get $20,000 *total income* (not per capita., since per capita for a family of four will by 80k - so I take the lower $20k) will be $1000 per acre *income* (not revenue - this is income after taking out the costs). I think anywhere a $1k (or Rs. 60000) per acre *income* per year is an excellent thing!!!

If it is in India., I am ready to leave my day job right away and do an R2I.
This is in India. Our initial calculation were for about 60,000-100,000 per acre of income after expenses but something or the other keeps hitting to meet this ideal figure. Poor/excess/untimely rains, bad harvest, choice of crops, expected yield, prices, labor issues, costs escalations (seeds, fertilizer), MNREGA, Middle Men, etc.

As I said this is recreational, so we are not even accounting for capital costs, depreciation or any owner sweat. Just the car expenses to go to and from our place of residence to the farm location would not make it worthwhile. Survival yes, but NO way farming can be a thriving profession in India or the US. The data point Theo shared on Japan is instructive. The US provides massive subsidies and price/market controls to its farmers in some key markets.

I do not do this personally a close family member manages this mess, as he loves it and has time. But, it is a waste of time from a productivity stand point. But, this is his way of spending excess time, as I do on BRF :)
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by A_Gupta »

Off-topic, because US - but US family farm incomes: (PDF)
http://www.usda.gov/documents/FARM_FAMILY_INCOME.pdf

Outlook for 2015 (PDF) https://www.fas.org/sgp/crs/misc/R40152.pdf
According to USDA’s Economic Research Service (ERS), national net farm income—a key indicator of U.S. farm well-being—is forecast at $73.6 billion in 2015, down 32% from last year’s level of $108.0 billion......Government payments are projected up by 15% to $12.4 billion, which partially offsets the $25.8 billion decline in crop and livestock receipts.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Theo_Fidel »

A_Gupta

Thanx for the posts. I know there are harvest losses. I'm more curious about the comparison with the west.

AFAIK food in the west is expensive, much more so than India, despite the low harvest losses. Even in season, a Kg of Tomato is minimum $2-$3 or roughly Rs 150+-. I have posted here before that it is cheaper for me to transport my pineapples without refrigeration and accept the 20% losses than to pay a heavy amount to transport by refrigerated truck and zero loss. The cost of refrigeration roughly increases my costs 50% to 100%. If 'Everyone' was required to refrigerate their pineapples, say for health reasons, losses would drop dramatically but your price at consumer level would double. It is quite complicated and I can't make the numbers work is what I'm saying.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

relative to family income , food in america atleast is much cheaper than in india.

take a healthy basket of goods and compare, america is much cheaper....here I have to think twice before buying almonds or apples for myself, i give it to the kids...in america you can enjoy such expensive treats all day, every day on a Itvity income.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Theo_Fidel »

Yes. On IT income. Majority are not on that income and food is expensive.

My main point is western processed food is expensive. It is the expense that reduces waste.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by somnath »

A_Gupta,

Its a complex issue, and I am the first to admit there are no easy answers. But we need to understand a few factors with clear eyes:

1. Terms of trade in agri are irrevocably on a downward trajectory.
2. Land is as much a "psychological" asset as it is a real one. There are huge cognitive biases (as they say in behavioral economics) in decision making w.r.t land. Hence, the decision-making isnt a rational - note what happened in Singur in WB.
3. There is a huge architecture of subsidies in order to support livelihoods. Money that can be better spent in education and health.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by A_Gupta »

India's eco-systems for start-ups - the view from Singapore:
http://e27.co/singaporean-startups-look ... -20150814/
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

I think singapore's days as a base for indian startups are over...with domestic market and direct funding taking off via the indian offices of global VCs. the whole "tight, disciplined, great airport, global hub" thing is a bit redundant when we have our own VCs, airports, tech parks etc now and way more manpower.

if you note, MNCs used to have their asian regional HQs in singapore and ran india ops and china ops from there a decade ago.
now they have local offices and zones carved out and no more of this big bosses based in singapore thing atleast for cos with considerable sales.

flipkart has no sales outside india, so they must be there with a PO box to claim some tax or investment benefit like people have PO boxes in mauritius and bahamas. their founders all sit in bengaluru for sure :oops:

what is the future of singapore time will tell. china too does not need singapore as a "base" to route investments when china itself is the hottest destination for business travellers and boasts of world class hotels, airports, roads and rail .

maybe they will get caught in the middle income trap.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

here is a 1-page doc a summary of a mckinsey report titled india of 2025, trying to predict high growth urban clusters that will capture most of the growth and hence rise in income levels

http://www.business-standard.com/conten ... 114_01.pdf
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

^^ lucknow, saharanpur, bareilly, agra, varanasi in UP (pop 200 mil) and only patna in bihar (po 80 mil) among the 49 cities.

map tells its own tale - N,W,S is green while east is mostly a blank.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

if we sort the table in this link by 2014 GDP

https://en.wikipedia.org/wiki/List_of_I ... tes_by_GDP

tamil nadu with a pop of 67 mil has nearly caught up with UP with 204 mil pop and will cross it next yr for sure
tamil nadu GDP is more than twice that of bihar 100 mil pop.

bihar and UP are bottom 2 when sorted by GDP per capita. with assam as third from bottom.

not surprisingly these two states have perhaps the highest co-relation of caste to political choices and assam has been a congress fiefdom for decades with the agp also becoming another type of congress before flaming out.

people can rant about "corruption" but all states have corruption but some states are delivering high growth year after year despite "corruption". so I think corruption is not the main issue, economic and political decisions at state level and the caliber of people in leadership of state govt and executive matters more. when people have a job, meat in the pot and some savings corruption recedes as a factor to rant about as a cause of economic woes.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Rishirishi »

Fix UP, Bihar and Bengal, and you will turn the indian economy arround.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

together their population is 400mil, around 33% of india. massive gains in GDP will accrue from small improvements due to this huge base effect.

right now its a boat anchor behind the "strike carrier" loaded to the gunwales with JSFs and ready to go 8)
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Theo_Fidel »

Oddly enough WB looks to be doing OK. Mostly due to Kolkatta probably but still. GDP is in the ball park even with pop of 80 million.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Supratik »

Why is Karnataka not in the picture?
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Supratik »

South Bengal around Kolkata is heavily urbanized. Unfortunately it looks more like ghettos with no infra rather than TFTA.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

in karnataka, the bangalore region around 100km x 100km consumes around 60% of the electricity. that should tell you something. I got this 60% from this article today http://www.bangaloremirror.com/bangalor ... 473443.cms

on 4 highways going from blr to mysore, tumkur, hoskote and hosur there are 10s of km of industrial parks. only the 5th highway north to anantapur via devanhalli is yet to industrialize much - areva, ITC, komatsu are there.

the other urban centers - mysore , tumkur, shivamoga, hospet, hubli, dharwad are not that big in pop or industry.
bellary steel industry is hit after the coal scam. many steel plants there were highly polluting...you have to visit the place to see it in real life.
mangalore-udupi belt is thickly settled but not much industry.
hubli-dharward is on the map as #34.

most of interior karnataka is fairly low pop density if you drive around...and there are stretches that are fairly desolate like the long road from hiriyur (tumkur highway) to bellary or the road from tumkur to shivamoga and on via sagar to honnavar on the coast.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

Supratik wrote:South Bengal around Kolkata is heavily urbanized. Unfortunately it looks more like ghettos with no infra rather than TFTA.
I recall from my college days ... long before howrah the place was like a never ending series of small decrepit towns with hordes of people and rickshaws at each level crossing...bandel..kolaghat....north of howrah to assam same picture until one hits the green rice fields and bolpur heaves into view. its like 1000 mismanaged & underinvested towns formed a giant coalition.
due to suburban trains in all directions, people could live a long way out and still do jobs in kolkata.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by disha »

http://www.huffingtonpost.in/2015/08/13 ... 81410.html
Rising Industrial Production, Low Inflation Raises Confidence In Indian Economy

Reuters | By Rajesh Kumar Singh
Posted: 13/08/2015 15:41 IST Updated: 13/08/2015 15:41 IST INDIA ECONOMY

NEW DELHI — India's retail inflation cooled to a record low in July and annual growth in industrial production hit a four-month high in June, bringing cheer to investors fretting that gridlock in parliament is stalling reforms.

Consumer prices rose 3.78 percent year-on-year in July, their slowest pace on record, compared with a 4.42 percent rise predicted by analysts. The sharp cooling, however, was in large measure due to a favourable base effect.

Output at factories, utilities and mines expanded an annual 3.8 percent in June, helped by a sharp rebound in demand for consumer goods.

Wednesday's economic data comes as a political logjam in parliament has stalled Prime Minister Narendra Modi's reform agenda, putting in doubt the fate of a major tax overhaul that will create one of the world's largest single markets.

A crash in global commodity prices has helped inflation slip below the Reserve Bank of India's (RBI) medium-term target of 6 percent, giving it room to cut interest rates by 75 basis points this year.

The central bank left the policy repo rate on hold last week, leaving the door open to ease further depending on the inflation outlook.

The latest inflation data, coupled with China's move to devalue its currency, has bolstered hopes of further monetary easing.

"The number is a big downside surprise," said A. Prasanna, an economist at ICICI Securities Primary Dealership. "This increases chances of RBI cutting interest rate one more time in this fiscal year ending March."

CURRENCY CONCERNS

China's yuan has fallen almost 4 percent in two days since the central bank announced the devaluation on Tuesday to help resuscitate a slowing economy.

This is bad news for Indian exports, which have fallen for seven straight months. Exporters are already complaining about a relatively stronger rupee that has appreciated by 10 percent on a real trade-weighted basis since the middle of last year.

Indian companies are worried the yuan's devaluation will flood the local market with cheaper Chinese imports, worsening the bilateral trade deficit.

"Along with the yuan devaluation move, I think there is a case for more (and) not less accommodation," said Jyotinder Kaur, principal economist at HDFC Bank. "The sooner the Reserve Bank of India steps on the easing pedal, the better it is."

The RBI, however, is worried about entrenched high inflationary expectations which are feeding into higher wages and other prices.

A central bank survey last week showed households expect consumer inflation to hit 10.1 percent within three months.
Consumer price inflation will remain tepid for the next 3-6 months (just like the downside surprise economists got when they expected @4.4 percent inflation and what they got was only @3.7 percent).

House holds when they find that the reserves they have earmarked for "expected inflation" are going to be useless - they will start purchasing. It will show up 3-6 months hence in simple things like food (restaurants), clothing, transport, education and health. I may have read this wrong already since the car/vehicle purchase has already jumped. So technically we have to track "two Indias" from now on.
INDIA: Car market up 7.5% in latest quarter
By Dave Leggett | 13 August 2015Font size Email Print

India's car market continues its recovery in the first quarter of the fiscal year. During the April-July 2015 period, passenger vehicles sales in India increased 7.46% year-on-year to 875,670 units, according to data from Society of Indian Automobile Manufacturers (SIAM).

Within the passenger vehicles segment, while sales of vans and utility vehicles decreased 1.43% and 0.32%, respectively, passenger car sales grew 10.68%.

In commercial vehicles segment, sales of light commercial vehicles declined 5.24% whereas medium & heavy commercial vehicle sales increased 24.86%.

During the April-July period, exports made by the automobile industry increased 8.59%.

Overall, 7,799,546 vehicles were manufactured in the industry during the four months, reflecting a year over year growth of 1.8%.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by vina »

^^ lucknow, saharanpur, bareilly, agra, varanasi in UP (pop 200 mil) and only patna in bihar (po 80 mil) among the 49 cities.

map tells its own tale - N,W,S is green while east is mostly a blank
Amazing. In TN, all the major cities (Madras, Coimbaore, Trichy and Madurai) cluster as "High Performing" . The spill over will be around 100 km radius around each city, and that pretty much has the entire TN covered!
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Kakkaji »

This is what the poorest in India want. The rest is all hot air:

District Zero: She folds the Indian flag and unfolds her dream
But Nabarangpur is also District Zero. On all key indicators, it sits at the bottom of the development barrel with a literacy rate of 46.43 per cent (the national average is 74.04 per cent); approximately one government doctor for 27,000 people; 1,667 hamlets without electricity (only 12.6 per cent households use electricity as the source of lighting, against the national average of 67.2 per cent); no government college; and, not one railway line.

What really matters here is not the Parliament washout or the Pakistani terrorist but what most of the rest of India take for granted every day — a doctor, electricity, Internet connectivity.

“There were gaps until the fifth five-year-plan (1974-79), because the government policy earlier was to preserve the way of life of tribals. This affected certain development aspects, particularly in health and education. But now, the people themselves are demanding change,” he said.

After explaining how life was miserable without electricity, he walked up to the jeep to say goodbye, then stretched out his right hand, palm open, as if he was seeking alms. His eyes filling up, he said, “Humein current de do, hum aapka naam har din yaad karenge (Please give us electricity, we will remember you every day).”

Seeking a connection

If Jinu needs electricity, Tularam Majhi, a school teacher, wants a doctor at the health centre near his village, Deepti Baidya wants better facilities for higher education, Simanchal Bisoyi, a paddy farmer, hopes for a “strong” Internet signal for his BSNL connection, and U C Mishra, the ITI college principal, demands jobs for his students.

Asked to make a wishlist, Majhi said: “We need industries, a railway project, an engineering college, a dam on the Tel river up north for which a survey report has been completed. I can go on and on.

Until then, there is “no doubt in my mind that Nabarangpur will remain the poorest district in India”.

Back at the Biju Patnaik (ST) College for Women in Umerkote, Deepti carefully places the national flag inside the cupboard. She has a wishlist, too: “I want tap water in my home so that I don’t have walk all the way to the tubewell every day, I want a pucca road in my village, I want a good job.”
No electricity in a state that has huge reserves of coal. :(

All this "preservation of tribal way of life" is cr@p as the tribals themselves now want electricity, jobs, schools, roads, hospitals.

Plants like POSCO, Mittal, Vedanta etc would have spawned a huge number of indstries and jobs downstream. But 10 years of UPA killed all those prospects.

And this noise over "saving the farmers' land" is also BS. If properly communicated, the marginal farmers will gladly sell their land for infrastructure and jobs.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Kakkaji »

Big bang reforms for govt banks
Finance Minister Arun Jaitley on Friday announced a seven-pronged strategy to revamp public sector banks (PSBs) so that selection of their chiefs could be transparent, their bad debts reduced and their performance improved. Highlighting that political interference in the functioning of these banks had to be minimised, the government also appointed chief executive officer (CEO)-managing directors (MDs), as well as chairmen for five such lenders, two of them from the private sector, a first.

Termed 'Indradhanush', the seven-pronged strategy includes streamlining of appointments, setting up of a bank board bureau (BBB) to scout for heads of PSBs, recapitalisation measures and facilitating easing of non-performing assets (NPAs) to help ensure improved credit. The seven broad heads of the strategy are appointments, a BBB, capitalisation, de-stressing PSBs, empowerment, framework of accountability and governance reforms.

On Friday, MD and CEOs of five banks were appointed, as were non-executive chairmen of five lenders, with Canara Bank, Bank of Baroda and Bank of India common to both the segments. CEO-MDs of IDBI Bank and Punjab National Bank were also named, while non-executive chairmen were appointed for Vijaya Bank and Indian Bank.
Can the Econ Gurus comment on how significant these steps are?

Thanks
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Gus »

TN has major hub cities that cover almost all industries. Manufacturing and services in chennai. Textiles in tirupur and Coimbatore. Transport in Salem and Namakkal. Agri in delta. Madurai and south is a bit underdeveloped compared to these hubs. The only sick district is dharmapuri krishnagiri area as they don't have rain or educated population base for industry and service.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by ShauryaT »

Theo_Fidel wrote:My main point is western processed food is expensive. It is the expense that reduces waste.
There is merit to the argument but there is a point of equilibrium at which it becomes worthwhile. Processing, storage, transport, packaging of foods does entail a higher cost that needs to be compared to the costs of wastage and the net commensurate ROI for the farmer. However, if each of these major costs are optimized in a certain economy, which are unreasonably high in India due to a lack of infrastructure and flawed taxation policies and rigged market dynamics. Many of these costs are also import dependent by way of technology, capital or fuels, which are input costs for "processing". At some point they should have an equilibrium point just like using better seeds and fertilizers, although increasing input costs for agriculture do provide higher yields resulting in a net ROI. What is that point can be debated but even then may not be worthwhile for all, but will it be worthwhile for most to invest in these aspects to reduce waste and maybe get a higher price for their produce?

One advantage in India is unlike the US, which has a largely industrialized farming structure, where the producing areas are not necessarily in close proximity to the consumers, the scale at which farming is done and the general lifestyle in the US necessities high consumption of processed foods making the whole chain worthwhile for US markets. However in India, much of the consumption is local, the scales are smaller and eating fresh food is still valued by most. In the US, there is a micro industry that harps on local produce being consumed in an area itself.

India should choose wisely on how much and what to store, transport and process based on our own eco-systems, needs and life styles. Somehow, imagining a walmart or costco style supply chain does not pass the smell test for the Indian environment. But India is a huge market too and there are at least 4-5 classes of eco-systems from the ultra rich to the BPL that exists in the country. There is no one answer for all things. Many urban customer would love to pay that higher price to get quality pineapples in off seasons.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

>> The only sick district is dharmapuri krishnagiri area as they don't have rain or educated population base for industry and service.

well the IMs there have a leather industry. I am expecting hosur will spread south and bring industries to that region soon, esp as the highways are really good, toward chennai from krishnagiri it is already 6 laned.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by A_Gupta »

The economics of cold storage in Kerala.
http://www.emergingkerala2012.org/pdf/F ... -KSIDC.pdf (PDF)
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by sudarshan »

Singha wrote:if we sort the table in this link by 2014 GDP

https://en.wikipedia.org/wiki/List_of_I ... tes_by_GDP

tamil nadu with a pop of 67 mil has nearly caught up with UP with 204 mil pop and will cross it next yr for sure
tamil nadu GDP is more than twice that of bihar 100 mil pop.

bihar and UP are bottom 2 when sorted by GDP per capita. with assam as third from bottom.

not surprisingly these two states have perhaps the highest co-relation of caste to political choices and assam has been a congress fiefdom for decades with the agp also becoming another type of congress before flaming out.

people can rant about "corruption" but all states have corruption but some states are delivering high growth year after year despite "corruption". so I think corruption is not the main issue, economic and political decisions at state level and the caliber of people in leadership of state govt and executive matters more. when people have a job, meat in the pot and some savings corruption recedes as a factor to rant about as a cause of economic woes.
This is the pic I posted in the Historical Maps of India thread back in Dec. 2014.

Image
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Austin »

Latest figure from WB on Gross domestic product 2014, PPP

http://databank.worldbank.org/data/download/GDP_PPP.pdf
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Singha »

For a city state Singapore is punching high in that list....things are not cheap there either.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Picklu »

Somethings are going OK in WB, rest is miserable.

For eg, WB top the state list in Swatch Bharat mission with 25 cities out of top 100.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by somnath »

Kakkaji wrote:Big bang reforms for govt banks


Thanks
Not a guru by any stretch, but they are still scratching the surface as far as PSU banks are concerned. Generally, the low hanging fruits are being plucked. Structurally,

1. Recapitalisation needs to be worked out - they need to commit significant capital so that banks can clean up their balance sheets are become ready for growth.
2. Appointing CEOs from the pvt sector is a good start, but a couple of pvt sector CEOs (actually only one is a proper pvt sector guy, Jayakumar) isnt going to cut it. A wholesale change in personnel policy on recruitmenet and compensation needs to be put in place.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by gakakkad »

^^ w.r.t recapitalization , can something be done in policy that can reduce NPAs after recapitalization ? because if say the GOI commits big capital , say 30-50 B and that too goes down the drain , than we can be in bit of a soup...
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by srin »

So if a big PSB bailout has to be done and it needs to be done by public money, why should the Govt do it out of tax money ? Better to do it through an FPO - that dilutes the Govt (and everybody else) share - where public can invest money directly.

Also, needs to be some sort of consolidation. There are a couple of dozen of these nationalized banks. Merge all the state bank of mysore/travancore/patiala/etc to baby-SBI or something, and sell off stakes in others - corporation bank, canara bank, etc.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by somnath »

gakakkad wrote:^^ w.r.t recapitalization , can something be done in policy that can reduce NPAs after recapitalization ? because if say the GOI commits big capital , say 30-50 B and that too goes down the drain , than we can be in bit of a soup...
The big issue is of governance. The current bunch of NPAs are largely due to "govt encouraged" lending, to the infrasturtcure sector on projects that have gotten stuck. PSBs need to be board run organisations, rather than finance ministry run (as is the case today). There is an interesting idea to create a holding company for all PSBs (largely to list the HoldCo and raise some money), but we havent seen anything concrete yet. Governance, along with better personnel policies are required.
srin wrote:So if a big PSB bailout has to be done and it needs to be done by public money, why should the Govt do it out of tax money ? Better to do it through an FPO - that dilutes the Govt (and everybody else) share - where public can invest money directly.

Also, needs to be some sort of consolidation. There are a couple of dozen of these nationalized banks. Merge all the state bank of mysore/travancore/patiala/etc to baby-SBI or something, and sell off stakes in others - corporation bank, canara bank, etc.
Both are valid ideas in the medium term, but onworkable in the short term right now. On FPOs, most PSBs are trading @ less than 1X book today, wrong time to dilute equity. Its better to recapitalise them and then dilute @ better valuations. Consolidation too works if there are banks with surplus capital that can take over those that are struggling. None of the banks, not even SBI (which is doing quite ok comparatively) are really surplus capital.

In the short term, PSBs need to be recpaitalised, a proper roadmap on autonomy laid out and then we can execute the more "market facing" measures.
somnath
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by somnath »

No one writes on Indian agri as well as Ashok Gulati.

http://indianexpress.com/article/opinio ... t-feed-us/

The key point he makes is on farmers "raking risk". That is really the fundamental question - is a farmer, supporting a family of 5-6 on a 2 acre farm, the best economic agent to take such outsize risks?
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by Rahul M »

http://www.cmie.com/kommon/bin/sr.php?k ... pe=TIDINGS

Manufacturing sector gets new investments proposals worth Rs.1.3 trillion
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by KJo »

INR value falling. Just Rs 65 to $1.

It's been falling ever since Modi took power.
Last edited by KJo on 18 Aug 2015 07:15, edited 1 time in total.
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Re: Indian Economy - News & Discussion Oct 12 2013

Post by A_Gupta »

Any take on this
http://seekingalpha.com/article/3446126 ... no-to-fall

Summary

Government of India has been running like a giant Enron.
India's trade deficit, financed by foreign debt, equity and remittances, is unsustainable.
An imminent currency crisis in India can trigger the fall of the first domino in a global chain.
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