Indian Economy : News,Discussions & Updates
- Thread starter Butter Chicken
- Start date
-
- Tags
- indian defence forum
The Govt has learned through its mistakes, where earlier it artificially sucked out liquidity from system, with demonetization, which jolted National Growth rate, some sectors were completely eliminated - like unorganized small scale companies, as it didn't have time to adjust. (ex. can anyone find Rs10 plastic fly beater in market, none are produced now in India, as they had no migration time to continue production & shut down permanently, this sector provided huge low scale jobs too)
So now Govt is trying to do reverse - pump in massive liquidity with low cost loans in organized sector, it will have a minor inflationary impact (but should be ok, as its quite low) Congress too has done similar things, sometimes foolishly done too much causing inflation to grow faster than growth rate, hurting average person like in UPA2 era.
But short answer - currently inflation is low, increasing liquidity in economy can boost growth by couple of points, double digit is possible, if all things remain good.
Imagine, I had written precisely this as a way to revive econoly and boost growth. we have saying in my village, "Ghar ka jogi jogda, parayeh gaon ka siddh". or grass is green on the other side of the hill. You may have the most knowledgeable person aound you, but since familiarity breeds contempt, you tend to listen to lesser qualified people about whom you may have very limited knowledge.
I don't know if you noticed, I remained apolitical in answering economic question, by criticizing both BJP & Congress. Grass is greener whoever creates rain water shed in village, for grass to grow & stay greener. Meaning I appreciate whoever is right on issue base, incase you are interested I voted BJP.
Last edited:
Thanks. I never asked anyone to vote for any party. For me my political choice is as personal to me as my God and religion. But yes, we were taken for a ride by Raghuram Rajan and Urjit Patel who were here to sabotage our economy and they got an idiot as a FM who knew nothing about Finance, monetary issues and fiscal policies. People call ME Asia economies as being oil based economies. But if you ask me, Ours is a true oil based economy. Check the amount of taxes we get from oil and related things. Mr. Jai-Italyji knows nothing about finance and only knows how to use oil as a way of mopping up taxes. I was very vocal about the disaster that Raghuram Rajan and Urjit Patel were leading us to and that too right from 2016. You can read my posts on other forum which we have left to start this forum. We are happy being fastest growing economy with 7-7.5% growth rate but what we miss is that we are underperforming and our true groth rate today should have been double digit. AND we should have achieved it in 2017 itself post demonetisation.
It seems I misunderstood you - "in grass is greener in other side" quote, as directed towards me, hence my response. Now I understand it was towards govt functioning & advisors.
Last edited:
Yes you did. My post was a general post not directed against anyone on this forum or anyother forum also. I only quoted an equivalent english idiom to our local LOKOKTI.
We are doing the same stupidity which Raghuram Rajan and Urjit patel did. Why buy USD and create an excessive Forex? use this money to get our own infra going to boost the Growth. Rupee will appriciate as a result. Let it happen. We are net importers and not net exporters. The same stupid and warped logic of oil based economy is forcing GOI or rather Jai-Italyji to do this.
Overseas investors pour in over Rs 2,700 crore into Indian capital markets in March so far
Overseas investors have pumped in a net Rs 2,741 crore into the Indian capital markets in the first five trading sessions of March, mainly due to positive market sentiment. As per analysts, the positive change is triggered by domestic as well as global factors and the trend is likely to continue for some time. In February, foreign portfolio investors (FPIs) had invested a net amount of Rs 11,182 crore in the capital markets (both equity and debt).
According to depositories data, FPIs put in a net amount of Rs 5,621 crore in equities during March 1-8. However, they pulled out a net sum of Rs 2,880 crore from the debt markets, leading to an overall investment of Rs 2,741 crore in the capital markets.
Stock markets were closed on March 4 on account of Mahashivratri. "The inflows in equity can be attributed to the confidence investors are building towards positive outcome of upcoming election, in the light of recent cross border events. In addition, recently the Reserve Bank of India lifted the cap on FPI investment in corporate bonds.
"Earlier, FPIs could only invest upto 20 per cent in corporate bonds. This should also open doors for more inflows once the political conditions are stable," chief operating officer at Groww Harsh Jain said. On the global front, Fed's statement that the rate hikes are on hold is a major change in stance of the world's largest central bank and triggered inflows in the Indian capital markets, chief investment strategist at Geojit Financial Services, VK Vijayakumar said. He further noted that the change in Fed's stance has the potential to change the course of capital flows towards risky assets like equity. Also, India is likely to attract continuing capital flows for the rest of the year, he said.
Overseas investors pour in over Rs 2,700 crore into Indian capital markets in March so far
Overseas investors have pumped in a net Rs 2,741 crore into the Indian capital markets in the first five trading sessions of March, mainly due to positive market sentiment. As per analysts, the positive change is triggered by domestic as well as global factors and the trend is likely to continue for some time. In February, foreign portfolio investors (FPIs) had invested a net amount of Rs 11,182 crore in the capital markets (both equity and debt).
According to depositories data, FPIs put in a net amount of Rs 5,621 crore in equities during March 1-8. However, they pulled out a net sum of Rs 2,880 crore from the debt markets, leading to an overall investment of Rs 2,741 crore in the capital markets.
Stock markets were closed on March 4 on account of Mahashivratri. "The inflows in equity can be attributed to the confidence investors are building towards positive outcome of upcoming election, in the light of recent cross border events. In addition, recently the Reserve Bank of India lifted the cap on FPI investment in corporate bonds.
"Earlier, FPIs could only invest upto 20 per cent in corporate bonds. This should also open doors for more inflows once the political conditions are stable," chief operating officer at Groww Harsh Jain said. On the global front, Fed's statement that the rate hikes are on hold is a major change in stance of the world's largest central bank and triggered inflows in the Indian capital markets, chief investment strategist at Geojit Financial Services, VK Vijayakumar said. He further noted that the change in Fed's stance has the potential to change the course of capital flows towards risky assets like equity. Also, India is likely to attract continuing capital flows for the rest of the year, he said.
Overseas investors pour in over Rs 2,700 crore into Indian capital markets in March so far
I know a company which has done the survey all over north India and they told me that they have found possibility of huge oil deposits in Ganga basin in north India and lots of gold deposits in south India including uranium.