Indian Economy : News,Discussions & Updates

CountryFirst said:
So why can't PM fire Urjit Patel??
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it might happen now. GST collections have crossed one lak crore per month and this gives leeway to the govt to include fuel in GST and also go for big ticket economic reforms including reducing interest rates. Urjit Patel is being an impediment and he will get the boot or asked to resign.
 
vstol Jockey said:
it might happen now. GST collections have crossed one lak crore per month and this gives leeway to the govt to include fuel in GST and also go for big ticket economic reforms including reducing interest rates. Urjit Patel is being an impediment and he will get the boot or asked to resign.
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But propaganda is being pushed to portray BJP as "undemocratic" by media saying don't touch democratic institutions like RBI and CBI. I think govt. is being blackmailed from changing these traitors. So if govt. changes them before election, it is going to be more propaganda items to exploit for congress.

I'm so sad, but all the whats app group is speqing these kind of info and people are so misinformed. And they are also brainwashed that if we expose them, they just label us a BJP and move away instead of thinking. The lie is so big there is no way fixing the people soon enough.
 
CountryFirst said:
But propaganda is being pushed to portray BJP as "undemocratic" by media saying don't touch democratic institutions like RBI and CBI. I think govt. is being blackmailed from changing these traitors. So if govt. changes them before election, it is going to be more propaganda items to exploit for congress.

I'm so sad, but all the whats app group is speqing these kind of info and people are so misinformed. And they are also brainwashed that if we expose them, they just label us a BJP and move away instead of thinking. The lie is so big there is no way fixing the people soon enough.
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I am neither on FB nor on Twitter or anyother social media including whatsapp grps. I prefer to read things on my own to make an opinion about issues rather than get swayed by propaganda.
The rupee slide could have been very effectively countered if this idiot Patel had reduced rates but he stated that Rupee is doing better than other currencies. he has single handedly reduced our growth rate by over 2%. The present 6.5-7% rate could have been easily 8.5-9% if we had lower interest rates which was the need of the hour just after demonetisation and GST implementation.
 
The appreciation of USD was a concern for FII inflows but the way to counter was to accelerate industrial growth thru increased lending. That is where RBI faulted and supported IMF which wanted Indian Rupee devalued. Urjit Patel did exactly that. If members had read my earlier posts about rupee devaluation, they will know that I had even at that time stated that we must lower interest rates and increase money supply for higher lending. I was laughed at by some who can't differentiate their elbow from their *censored*. I stand vindicated today with all that is being published. RBI Governor has acted against the interests of the nation and must be branded a cheat and thrown into prison.
many will argue that it brings higher returns for FII if rupee devalues. This is oft repeated lie. FIIs invest in stocks and real Investors look for returns thru long term projects which include the devaluation/inflation of rupee in long term but they get much higher returns as the interest rates in India are the highest in the world. If you do an FD in US bank, you will not get more than 2.5% interest, In India you will get 9.5%.
The largest amount of money which has come into India is not FII for stocks but for infrastructure projects. Which incidently happens to be the black money stashed abroad by Indians only.
 
let us debate how Raghurajan created NPAs and than created a furor over them to ruin our economy.
  • He increased interest rates for taming inflation. Inflation can be tamed by restricting money supply and also with higher growth rates.
  • Reducing money supply will reduce growth and increase the cost of capital. In India the cost of capital that we take is about 15% and for my biz, i work on an EBITDA of 22%, EBITDAR of 40%.
  • With 15% as cost of capital thru banks in India and 35% effective corporate tax rate, we are left with just about 4% to play with. Add to that delayed payments and litigations.
  • What we get is a perfectly profitable business turning loss making and the net result is inability to service loans from banks.
  • We go to banks asking for more loans or restructuring of loans with better terms but what we get is higher interest rates and refusal to lend more bcoz Raghurajan had changed the criteria for classification of NPAs.
  • Now a company with very strong topline in black finds itself having a red bottom line in P & L statements.
  • Raghurajan did exactly what a person out to ruin a booming economy will do.
  • It was well known in 2013 that UPA is not coming back to power and so he changed the rules for specifying NPAs in 2013 to ensure that whichever govt came to power is lame duck as far as banking is concerned.
  • A large number of infra projects which have turned NPA would have been profit making had it not been for the changed rules by Raghurajan and also fully enforced by Ujrit Patel. Can you believe that we have solar power projects on sale at below par in India? We need to see why we must we hire these idiots from so called mature economies who themselves are responsible for ruining those very economies.
 
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All of you know that I used to call Gadkari-Gadhakari but him and Piyush Goel have emerged as the best performing ministers of NDA-2. Jai-Italyji is the worst of them.
Gadkari made a statement that he saved about 300lak crores from being NPAs. He was absolutely true in his statement. He is a bizman who knows how things work. He is in-charge some real big ticket infra projects. He started giving guarantees from GOI to those who got the contracts to allow banks to lend at lower rates. He also gave such guarantees for projects which were stuck for want of land acquisition or money.
Rig Veda Dasham Mandal written by Rishi Bhardwaaj states that Brahmins were born out of the mind of Lord Brahma, Kshatriyas from the arms, Vaishyas from the thighs and Shudras from the foot.
Do you even know the meaning of it for a nation?
We have class one gazetted officers in cat-1 jobs which are Armed forces, IAS, IFS, IPS after that we have cat-2 jobs or class-2 gazetted officers. This classification is recreation of Rig veda.
Kshatriyas from arms means power to fight and defnd oneself as weapons used to be fired from hands or carried in arms that is why we call them armament.
Thighs for Vaishya bcoz its business alone which gives money fto a nation thru taxes to sustain itself and provide support to various welfare activities for the population including the down trodden.
The shudra at the bottom were the MOBILITY which this structure needed. A shudra is not untouchable or exploited but a class-4 employee who ensures that these segments of the society work to their best abilities. The maid you hire, the driver you hire, the peon you hire, the boatman who takes you across the river or the washerman who washes your cloths are all this service class or the class-4 employees.
There were just two classes of people who were untouchables inVvedic India-Mailadhonaywaley-those who cleaned toilets and carried shit away and Charmkaar who skinned dead animals. AND the reason is well known even in this modern world. They have the highest chance of contamination and spreading disease to population. If you don't believe me ask all Doctors all over the world not to wear masks or gloves.
What happens if the most important oart of society the Legs/Foot stop working?
The thighs will become useless, hands will have to pull the body along and will not be able to defend the body or hold shashtras and the mind will be bogged down in somehow keeping balance of this deformed body.
 
The communists with help from Nehru and Gandhi have projected this most important segment of our society as exploited while the truth is very different. They merged a Daas (Slave) with Shudra and created division in Hindu society. Who was that man who used to roam in Hastinapur as the man leading the blind Dhritrashtra? If he was untouchable, how could he hold the hand of that blind king and be his charioteer? How can you get your shoes made without the shoemaker touching you or how can wear cloths which are impure as they have been washed by an untouchable? How can you use the garland made by a maali for performing yagna, how can you worship your god/goddess who has been crafted by a sculpture?
FYI, all these people are part of SC/ST in MODERN INDIA. Tell me who had a better society, Vedic India or the so called Modern India heaped on us by all the misinformation of communists and Gandhians and our own Sharia Court of India?
 
vstol Jockey said:
The communists with help from Nehru and Gandhi have projected this most important segment of our society as exploited while the truth is very different. They merged a Daas (Slave) with Shudra and created division in Hindu society. Who was that man who used to roam in Hastinapur as the man leading the blind Dhritrashtra? If he was untouchable, how could he hold the hand of that blind king and be his charioteer? How can you get your shoes made without the shoemaker touching you or how can wear cloths which are impure as they have been washed by an untouchable? How can you use the garland made by a maali for performing yagna, how can you worship your god/goddess who has been crafted by a sculpture?
FYI, all these people are part of SC/ST in MODERN INDIA. Tell me who had a better society, Vedic India or the so called Modern India heaped on us by all the misinformation of communists and Gandhians and our own Sharia Court of India?
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The division in Hindu community is not result of any foreign powers, but because of castism and cast discrimination built into its soul by the upper cast peoples. When you divided the society as high cast peoples and low cast peoples and treat low cast peoples as less than human, that system will create division. The history of India is not a perfect one nor is our culture and it has as much shit or in some cases more than other countries. And yes, the vedic India was not great considering the fact that majority of peoples in this country was treated as animals by the castist elites.

Gandhians united Indic peoples belongs to different cast, religion and ethnicities as who used to be fighting each other and killing each other all our existence under an ideology and vision acceptable for most . Rajaputs, marathas, Bengalis, tamils,keralites, tribes in North east and all others in whole country was killing each other and backstabbing each other in bulk all their existence. The contribution of Gandhians and Indian national congress to the Indian nationalism is unparallel. Lets not forget that. Honorable Supreme court of India is the guardian and guarantor of Indian constitution. Just because you didn't like some of Honorable court's judgement didn't make it sharia court.
 
Hellfire said:
The bold remains antithetical. Higher growth rates can not be achieved on backs of restricted money supply as that shall disrupt the circulation of monies in the economy, one of the basic and most fundamental tenet of Economics, something your succeeding point does drive in. A restricted supply will choke off the credit system, and grind to halt new projects/initiatives and job creation, both necessary for driving growth (on backs of increased competitiveness).
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What I meant was that you can either restrict the money supply OR go for higher growth to tame inflation. By giving credit at lower rates, you help industry and job creation which in turn boosts all segments of the economy. But by restricting money supply as done by RBI, you kill growth, create joblessness and destroy every segment of economy.
A very simple explanation is the increased spending when the new crop comes in. People use the money to buy new things for the house/family. There is a very old saying-Have money, will buy.
 
The RBI has been increasing rates in order to curtail govt spending and maintain inflation below 4.4% for the second half of this year.
 
Hellfire said:
Agreed sir. But what I have indicated here is that although that (the ease of access to finance) is a good thing, the same can not be implemented in letter and spirit without the fiscal policy supporting the monetary policy.
And where will your deficit be made up from? Another few years of poor infrastructure?
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What happens when you increase spending? You boost growth across all segments of economy from manufacturing to agriculture to infrastructure as the same money rotates hands and gets back to the govt kitty in terms of more taxes and higher GDP. When you talk of Monetary policy vs fiscal policy you need to look at China and learn how increased spending helped them be where they are today. They have one of the largest Debt to GDP ratio but they also have over 3trillion dollar reserves. Our obsession with controlling fiscal deficit and not concentrating on growth has caused all the problems for the nation. The truth is that we have no economic model of our own but a khichdi model thrust upon us by western ideas which have failed within those very countries by those very people who masterminded the rout with their stupid ideas. This obsession with Monetary & fiscal policy balancing act will never work. For a growing economy there will always a story of lead and lag. some part must lead and some part will lag behind. But there should be no compromise on growth and for that the monetary policy must support growth. A good fiscal discipline is required but not at the cost of killing growth.
In 2003 we had interest rates down to about 6.5% the lowest that I have seen in my life and it was this which boosted our growth to about 9% from typical Hindu growth rate of 3-5-4.5% which we had followed for decades. Study about any economy anywhere in the world and show me one example which supports your thesis.
 
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we keep talking that we will convert our cities to Shanghai. Do you know why China has one of the best infrastructure in the world? What if they had also tried to balance fiscal and monetary policy like us Indians? they too would have been as badly off as we are today.
 
Hellfire said:
Agreed sir. But what I have indicated here is that although that (the ease of access to finance) is a good thing, the same can not be implemented in letter and spirit without the fiscal policy supporting the monetary policy.

You can not blame the RBI for refusing to heed the advice of GoI asking RBI to provide easier access to money (reducing the parameters of due diligence which has led to the mushrooming of NBFCs) and at the same time, not aligning your fiscal policy to support the same by imposing the corporate tax at the rates prevailing now and the 'surcharge' on those who are earning more than Rs 50 Lacs. Instead of incentivizing the former by increasing their PAT to diversify/upscale/create jobs and the latter by the fact of more spending power generates more demand and as a consequence stimulates demand and jobs in economy, the present GoI is playing a farce, howsoever you want to spin it otherwise.

Instead of the approach being taken by the GoI now, they should and could have done what I have been mentioning earlier too: Do away with exemptions thereby enabling mandatory filing of taxes and thereafter transfer the 'tax' for those who actually need relief, bring down the corporate tax to 10%, remove the surcharge and reduce the overall Tax burden by rationalizing upto 25 % (in western nations it is 40 to 45% in majority of places), mandate 10% towards National Health Scheme and Insurance and enforce laws by clamping down on illegal sales of those items that can generate tax revenues like Apple products and high end DSLRs in places like Gaffar Market, Crawford Market etc. And the creme de la creme is the placement of Fuel, Oil & Lubricants under GST.

I can also assure you that stringent enforcement of traffic rules and taking a page from practices in countries like UAE, will enable the State governments to mop up significant revenues, while at the same time, generating jobs to a certain extent as infrastructure will need to be created and maintained.

Making RBI a fallguy is the easiest. And our people are ignorant enough to not be able to understand that the fiscal policy is the cue that creates the relevant monetary policy and one can not create a monetary policy without the fiscal policy to back it up.




All Members: Stop posting caste and religion posts here.



Really? Then you feel offended if you are labeled a troll by members!



And where will your deficit be made up from? Another few years of poor infrastructure?
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Lol! Modi becoming RBI governor is a lot less fantastic than Modi putting all 1000 Rupee notes (85% of currency) out of circulation overnight :LOL:. Main to choti choti batt kar raha hoon.
 
Long back on this very thread I had written about the pathetic condition of MSME sector and how the banks had gone bonkars in demading over 125% guarantee for advancing loans. It seems MOdi has now realised that situation is really bad and has now decided to give loans on very liberal terms to this sector thru a special portal with shortest approval time. Hosh main aayeh par dair main.
 
I have read what you wrote in detail. I am also against mindless lending which happened during UPA time. I know how the loans used to get sanctioned as I too was asked a price for getting loans approved for my projects. But Jai-Italy is right about that period and that happened under the watch of our dear Raghurajan and outstanding economist PM. After that the same man created the NPA shit to curtail lending turning many more projects into NPA. There has been a systematic effort to ruin our banking and economy by powers alien to India. Our own Jaichands and Mir Jaffers did this to us, Raghurajan and Urjit Patel are an addition to these two most hated names of India.
I agree that we must remove all exemptions to taxes except for medical, housing, children education and govt tax free bonds and raise the IT limit to over 5 lakh to boost consumption. I am an ardent supporter of this move. I also want the corporate taxes to be reduced and replaced by a transaction tax of 2-2.5% for businesses. This will help govt generate more money and more companies will show their true value in terms of profits instead of cooking the account books to show marginal profits besides curbing growth of black money/economy.

However I do not support your arguments that RBI is holy Cow. They are cheats and should be called as such. The due dilligence is done for all loan requests. When I had applied for loan to various banks for my airline, I used to make biz plan presentations myself and every bank agreed to lend but thanks to Vijay Mallya and Air India, most banks had exhausted their lending limits to aviation sector for reasons I wrote above-Bribes to Italian waitress and her political adviser. My bizplan was vetted by even SBI Caps who took an option of converting the loan to equity at a time of their choosing. They were so impressed and also sanctioned the loan. But that made news in the market and after we had decided to launch based on this sanction, SBI withdrew the sanction as they decided to lend more to Kingfisher.

Now I have betted property worth over 500 crores to get a fund based loan of INR 100 crores and non fund based loan of 400 crores. This is based on 70% market value of the property but I am now being asked to bring in additional property worth 200 crores to have these limits. This has happened due to revised criteria created by RBI. In 2009, SBI had asked me for a security of 25% for fund based limits and only 10% for non fund based limits.
I decided to dump Indian banks and have gone for MNC banks who have given me what I want and at better terms. So who gets benefited? The MNC banks which planted Raghurajan and Urjit Patel on us. Do you see how things work? I have to do all my biz transaction including USD/Euro payments thru them besides making my employees open salary accounts with this MNC bank including their Debit and credit cards linked to Visa. What happens to NPAs now and who will bail out Indian banks? Ever thought of it.
 
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There is a limit to my patriotism. If you honour a traitor and agent of enemy, I will turn a rebel. Do you know what happens when I am forced to do business with foreign MNC banks? Mastercard/Visa get more biz which are based in USA like IMF and have stake in IMF, the dollar stays high as they will deal with my remmitences from abroad. The profits made by them will benefit USA directly and our own RuPay will suffer and so will our banking sector in general. The RBI rules are applicable for Indian Banks only, MNC banks have to adhere to RBI guidelines but they have freedom to chose about lending terms. Indian Banks do not have that freedom. Thanks to Raghurajan and Urjit Patel, most businesses have migrated to MNC banks. tell me one major client among top 100 Indian Companies which have an Indian Bank as its main bank?
 
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