Indian Economy : News,Discussions & Updates
- Thread starter Butter Chicken
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That's what happens when govt declares orgs as "too big to fail".
Basically the company continues despite bad practices that should have killed it.
The moral is: if you make a money play big enough that it will have political effects, your company is safe.
Us is officially in bear market - crossed 20% down from the peaks.
It is still close to what it was in April 2019.
India is much less affected by Chinese supply chain compared to the western world.
Golden - repeat again - GOLDEN opportunity to establish itself as an alternative supply chain to China.
Right time to have sagarmala, dedicated freight corridor established to reduce logistics costs(something we should have done in the 90s or 2000s)
Also - IT/BPO services sector in India feeding rest of the world can work from home -can chinese manufacturing sector employees do the same?
Even shipments from China are going to be an issue.
It is still close to what it was in April 2019.
India is much less affected by Chinese supply chain compared to the western world.
Golden - repeat again - GOLDEN opportunity to establish itself as an alternative supply chain to China.
Right time to have sagarmala, dedicated freight corridor established to reduce logistics costs(something we should have done in the 90s or 2000s)
Also - IT/BPO services sector in India feeding rest of the world can work from home -can chinese manufacturing sector employees do the same?
Even shipments from China are going to be an issue.
India’s current account deficit narrows sharply to USD 1.4 billion in Q3
The country’s current account deficit (CAD) narrowed sharply to USD 1.4 billion, or 0.2 per cent of GDP, for the December 2019 quarter, the Reserve Bank of India (RBI) said on Thursday. The deficit had stood at 2.7 per cent in the corresponding quarter a year ago and 0.9 per cent in the previous quarter. The sharp contraction in the deficit was mainly due to a lower trade deficit of USD 34.6 billion, and a rise in net services receipts, the central bank said.
The CAD, a critical indicator of macroeconomic health, represents the gap between the overall foreign exchange expended and received in the economy. The release of the data, coming at a time when markets are spooked due to the coronavirus concerns, will help provide hope to investors. The foreign exchange market tracks the gap closely, and the release of the data comes on a day when the rupee depreciated to a 17-month low of 74.24 against the dollar. During the ‘taper tantrum’ episode of 2013, the CAD at record highs was one of the reasons for the rupee to be hammered. For the first nine months of the financial year, the CAD has narrowed to 1 per cent, the RBI said.
During the December 2019 quarter, the trade deficit narrowed to USD 34.6 billion as against USD 49.3 billion for the same period a year ago, the RBI data said adding that the dip was largely driven by a correction in imports. The Indian economic growth may slow to a decadal low of 5 per cent for the financial year 2019-20, driven largely by consumption, which seems to have impacted the imports as well. On the services front, the net earnings increased to USD 21.9 billion, which was marginally higher as compared to the USD 21.7 billion in the year-ago period. The RBI said the receipts increased on the back of a rise in net earnings from computer, travel and financial services.
In what can be seen as a surge in remittances by the diaspora, the private transfer receipts rose 9 per cent to USD 20.6 billion for the quarter, the RBI said. The net foreign direct investment was also higher at USD 10 billion in the December 2019 quarter, as against USD 7.3 billion in the year-ago period.
Foreign portfolio investments recorded a net inflow of USD 7.8 billion as against an outflow of USD 2.1 billion last year on account of net purchases in both the debt and equity market, it said. The external commercial borrowings by Indian companies increased to USD 3.2 billion for the quarter, up from the USD 2 billion in the year-ago period, the RBI said. There was an accretion of USD 21.6 billion to the foreign exchange reserves on a balance of payment basis as against a depletion of USD 4.3 billion in the third quarter, the RBI said.
India’s current account deficit narrows sharply to USD 1.4 billion in Q3
The country’s current account deficit (CAD) narrowed sharply to USD 1.4 billion, or 0.2 per cent of GDP, for the December 2019 quarter, the Reserve Bank of India (RBI) said on Thursday. The deficit had stood at 2.7 per cent in the corresponding quarter a year ago and 0.9 per cent in the previous quarter. The sharp contraction in the deficit was mainly due to a lower trade deficit of USD 34.6 billion, and a rise in net services receipts, the central bank said.
The CAD, a critical indicator of macroeconomic health, represents the gap between the overall foreign exchange expended and received in the economy. The release of the data, coming at a time when markets are spooked due to the coronavirus concerns, will help provide hope to investors. The foreign exchange market tracks the gap closely, and the release of the data comes on a day when the rupee depreciated to a 17-month low of 74.24 against the dollar. During the ‘taper tantrum’ episode of 2013, the CAD at record highs was one of the reasons for the rupee to be hammered. For the first nine months of the financial year, the CAD has narrowed to 1 per cent, the RBI said.
During the December 2019 quarter, the trade deficit narrowed to USD 34.6 billion as against USD 49.3 billion for the same period a year ago, the RBI data said adding that the dip was largely driven by a correction in imports. The Indian economic growth may slow to a decadal low of 5 per cent for the financial year 2019-20, driven largely by consumption, which seems to have impacted the imports as well. On the services front, the net earnings increased to USD 21.9 billion, which was marginally higher as compared to the USD 21.7 billion in the year-ago period. The RBI said the receipts increased on the back of a rise in net earnings from computer, travel and financial services.
In what can be seen as a surge in remittances by the diaspora, the private transfer receipts rose 9 per cent to USD 20.6 billion for the quarter, the RBI said. The net foreign direct investment was also higher at USD 10 billion in the December 2019 quarter, as against USD 7.3 billion in the year-ago period.
Foreign portfolio investments recorded a net inflow of USD 7.8 billion as against an outflow of USD 2.1 billion last year on account of net purchases in both the debt and equity market, it said. The external commercial borrowings by Indian companies increased to USD 3.2 billion for the quarter, up from the USD 2 billion in the year-ago period, the RBI said. There was an accretion of USD 21.6 billion to the foreign exchange reserves on a balance of payment basis as against a depletion of USD 4.3 billion in the third quarter, the RBI said.
India’s current account deficit narrows sharply to USD 1.4 billion in Q3
Excise duty on petrol, diesel up by Rs 3 per litre as oil prices decline
Congrats, fund raising to bail out some crony friends, or that MLA buying fund is little short now?
I use to give benefit of doubt to this government, thinking it's bad loan, congressi mismanagement, fiscal constraints that government had to take these steps.
That common man had to pay the price for greater good but when you look at defaulters, the ease with which they are bailed out, same names, same association it makes you wonder if "incorruptible" leader is really honest?
After giving corporate tax break was it not enough that they are out there to skin common man alive to bail out Subhash Chandra and cousins? What kind of honest compassionate leader be that sick that he keep doing it repeatedly?
You have already started appointing Cronies lapdogs as secretaries over IAS, Tax processing is outsourced to TCS, why not just declare Antilia as new GoI headquarters and stop this facade of government already.
Congrats, fund raising to bail out some crony friends, or that MLA buying fund is little short now?
I use to give benefit of doubt to this government, thinking it's bad loan, congressi mismanagement, fiscal constraints that government had to take these steps.
That common man had to pay the price for greater good but when you look at defaulters, the ease with which they are bailed out, same names, same association it makes you wonder if "incorruptible" leader is really honest?
After giving corporate tax break was it not enough that they are out there to skin common man alive to bail out Subhash Chandra and cousins? What kind of honest compassionate leader be that sick that he keep doing it repeatedly?
You have already started appointing Cronies lapdogs as secretaries over IAS, Tax processing is outsourced to TCS, why not just declare Antilia as new GoI headquarters and stop this facade of government already.
He became Rajyasabha member after full BJP support, they went a step further to make him MP without numbers by disqualifying votes of opposition.
Right wing banks? What are you talking about?
Not sure if you are trolling or not. Increase in duty on oil increases cashflow to the government not to some corporate.
In 2013-14 Excise duty revenue was around $10 billion now its $35 billion ! Common man is not paying more but paying the same. When inflation is in control government can choose to increase cashflow.
This kind of sick sadistic narrative of 'giving money to corporate' gave us socialist hindu growth rate. We should be attacking government for not opening up enough. Lack of dramatic free market reform is the problem not going back to socialist era.
'Tax processing is outsourced to TCS', nothing but idiotic whining. Who else should do it ? is there any PSU half as capable. They build entire IT infrastructure of European banks. Maybe we should have given to some big american company just to satisfy your insecurity.
And where does that "increase cash flow" goes? Few replies back I posted main defaulters of Yes Bank, now it's being bailed out while common man is screwed.
Private banks go bust in an open economy, they are not bailed out so before throwing words like "open market" and free economy please see the context in which you are using them.
Oh really! How so? When Crude is at 30 comman is paying 72 for petrol. How come when tax is increased on a commodity common man pays the same?
If you and others who pressed the like button to this gem would care to enlighten. Shouldn't the deregulated Petrol and diesel governed by free market pass on the benefit to consumer when they pass on the increase every single day?
Picking up one thing from whole sentence doesn't really do justice to the context of what I was saying but even then I suppose you are unaware of recent incident with TCS where they were charging bribe for faster tax processing but that didn't stop you from replying.
When you outsource everything to cronies as a favor without any robust mechanism of checks and balance this is what happens.
As far as any PSU being half as capable goes here are few in IT Field-
NIC maintains and create almost every single website of Indian government and state government and they are managed pretty well.
CRIS an in-house team of Indian Railways manages IRCTC which sell around a Million tickets per day.
NPCI manages transactions to the tune of $1 Billion/day just by UPI (RuPay and other transactions not counted).
And I bet most of the people here saying private is so awesome have never seen recruitment advert into any of these organizations. Capacity does not get built automatically, if you don't assign work, don't hire people they won't automatically become capable as TCS. I am not against roping in experts, they must be used to enhance your products but should never be given executive authority, that should lie with people appointed by Governor or President, not Narayan Murthi as long as there is illusion of 'government by the people, of the people' is there.
Now since economic terms like "Hindu rate of growth" and others are used so carelessly can you give me a simple answer about the effect of indirect taxes on economy?
Indirect taxes kills the purchasing power of masses as they tax people earning 1lac per month and 10k per month same. The goal of an economy is to slowly move towards very low indirect taxes and more towards direct taxes, however from past 10years share of indirect tax is increasing which is very unhealthy.
Please when you use such heavy words put them in context.
Is that rhetorical ? or do i have to explain how economy works now?
So you better let the depositors of the bank suffer ? You think they bailed out the promoters? They lost substantially and the CEO in question is in jail.
Every economy will have failed businesses. We fixed bankruptcy issue of regular businesses with IBC but we yet do not have an effective system for financial systems.
Financial Sector Legislative Reforms Commission (FSLRC) recommendations should be implemented as fast as possible.
Which is exactly i was saying, We did not reform fast enough.
Common man paid the same when Crude was at $60. For him it doesnt matter when inflation is under control.
Increasing tax has nothing to do with free market !. Tax is in purview of the state everywhere.
There is no freaking context on saying we should have given to a non existent PSU instant of top five indian ITS.
Just like that, I can point you to 999 inefficient broken PSUs.
From the example, First two took 30 years to evolve to become effective in their specific domain which cannot hold water to any big indian IT firms. A 50 member team in my hometown manage more websites than NIC with better service.
And NPCI is not a PSU. But its 51% owned by PSU banks. Huge distinction. RBI is even trying make an alternative to it make it a market system.
Capacity is build with market incentives (competition) to make it efficient. Not by investing decades on useless reservation seekers and hoping it will turn good someday.
Dont call out on others using heavy words when you go all melodramatic 'common man is screwed' and 'they should make Antilia as new GoI headquarters'.