Corruption and Poor Governance Hurt India's Image at Davos 2011

[RiazHaq]

India's factory output grew at a weaker-than-expected rate in May as manufacturing activity slowed.

Industrial output grew by 5.6% in May compared with the same month last year, latest government data showed.

Manufacturing, which accounts for 80% of overall industrial output, also rose by 5.6% in May, compared with growth of 8.9% a year earlier.

The figures come at a time when India has been tightening its monetary policy in an attempt to rein in growth.

"Overall, the data provides further affirmation of the moderating growth trends," said Radhika Rao of Forecast Pte.
Inflation vs growth

India's economy has witnessed robust growth in the past couple of years.

However, the success has come at a price. Consumer prices in the country have surged, affecting the cost of living and becoming a hot political issue.
Continue reading the main story
“Start Quote

This data is unlikely to prevent the RBI from further modest tightening in the second half”

End Quote George Worthington IFR Markets

As a result the government and the Reserve Bank of India (RBI) have intervened to ensure that prices remain in check

The central bank has raised interest rates in the country 10 times since March 2010

Analysts said that with the government focusing on controlling prices, other sectors are likely to suffer.

"We are seeing definite signs of slowdown in interest-rate sensitive sectors," said Rupa Rege Nitsure of Bank of Baroda.
Further tightening?

However, despite the slowdown, analysts said that it was unlikely that the government would change its focus.

They said that given the robust expansion that India's economy has seen in recent times, the current figures are not likely to have a big impact.

"A period of subdued growth should not be a major concern for the authorities," said George Worthington of IFR Markets.

"This data is unlikely to prevent the RBI from further modest tightening in the second half," he added.

Mr Worthington added that manufacturing activity was likely to improve in the coming times "as new investments come on stream, allowing a faster rate of growth without adding to inflationary pressures".

BBC News - India's factory output growth slows

 

[RiazHaq]

India's factory output grew at a weaker-than-expected rate in May as manufacturing activity slowed.

Industrial output grew by 5.6% in May compared with the same month last year, latest government data showed.

Manufacturing, which accounts for 80% of overall industrial output, also rose by 5.6% in May, compared with growth of 8.9% a year earlier.

The figures come at a time when India has been tightening its monetary policy in an attempt to rein in growth.

"Overall, the data provides further affirmation of the moderating growth trends," said Radhika Rao of Forecast Pte.
Inflation vs growth

India's economy has witnessed robust growth in the past couple of years.

However, the success has come at a price. Consumer prices in the country have surged, affecting the cost of living and becoming a hot political issue.
Continue reading the main story
“Start Quote

This data is unlikely to prevent the RBI from further modest tightening in the second half”

End Quote George Worthington IFR Markets

As a result the government and the Reserve Bank of India (RBI) have intervened to ensure that prices remain in check

The central bank has raised interest rates in the country 10 times since March 2010

Analysts said that with the government focusing on controlling prices, other sectors are likely to suffer.

"We are seeing definite signs of slowdown in interest-rate sensitive sectors," said Rupa Rege Nitsure of Bank of Baroda.
Further tightening?

However, despite the slowdown, analysts said that it was unlikely that the government would change its focus.

They said that given the robust expansion that India's economy has seen in recent times, the current figures are not likely to have a big impact.

"A period of subdued growth should not be a major concern for the authorities," said George Worthington of IFR Markets.

"This data is unlikely to prevent the RBI from further modest tightening in the second half," he added.

Mr Worthington added that manufacturing activity was likely to improve in the coming times "as new investments come on stream, allowing a faster rate of growth without adding to inflationary pressures".

BBC News - India's factory output growth slows

 

[rajusri]

Corruption is a concern but not governance it is much better than China or any other countries.

Recent outrages against corruption will bring higher transparency.

mr. Riaz Haq you will see India will have much higher growth than other countries in the region , may be second fastest after china.

 

[kawaraj]

already slower than BD and SL...

 

[MZUBAIR]

India would slow down and may move down in coming years !!!!

 

[IndoCarib]

^^^^
Yeah right ! You wish !

Agree that growth rate is slowing down. Apart from inflation, corruption is eating into growth. But then inflation is not limited India alone. China has done good job in curbing inflation

 

[IndoCarib]

Eh 'Green Media' Screams about to Start

Arent you disappointed that unlike "orange media" cries there there are no "green media" cries in this thread ???!!

 

[Tshering22]

With MMS and his owner in power, I expected nothing less...

 

[IndoCarib]

^^^^^
BJP has to be brought in for rapid turn around in economy and also internal security. For a party which survives on minority votes, country is not a priority. More people like us should go and vote in the coming general elections !! That is the only solution. Unfortunately most of us only internet warriors !!!!!

 

[EjazR]

^^^^^
BJP has to be brought in for rapid turn around in economy and also internal security. For a party which survives on minority votes, country is not a priority. More people like us should go and vote in the coming general elections !! That is the only solution. Unfortunately most of us only internet warriors !!!!!

Not only are you an internet warrior but you unfortunately have a lot of facts wrong as well.

The avg growth rate under MMS is higher than under the NDA despite the fact that GFC happened. Infact, according to the IMF and comparing the same reporting methods between India and China, India was the fastest growing economy in 2010 at 10.36% - a new high.

The UPA came to power because majority of the country voted for them and that means most of the people who voted for them are also Hindus.

The myth that UPA depends on minority votes is nothing more than that.

More than 50% of the Muslim population is in UP, Bihar and Bengal. And in all three states Congress has hardly been in power. In fact, there in Bihar NDA has been coming to power with a decisive minority vote shift to it as well under Nitish Kumar.

The real reason for BJP not winning should be looked into why majority of the Indian public, including Hindus didn't vote for it. Once, people stop clutching at straws in minority vote "blocs" and realize that there is no such thing as en bloc voting except when it comes to security issues, you will find your answer.

 

[IndoCarib]

Not only are you an internet warrior but you unfortunately have a lot of facts wrong as well.

The avg growth rate under MMS is higher than under the NDA despite the fact that GFC happened. Infact, according to the IMF and comparing the same reporting methods between India and China, India was the fastest growing economy in 2010 at 10.36% - a new high.

The UPA came to power because majority of the country voted for them and that means most of the people who voted for them are also Hindus.

The myth that UPA depends on minority votes is nothing more than that.

More than 50% of the Muslim population is in UP, Bihar and Bengal. And in all three states Congress has hardly been in power. In fact, there in Bihar NDA has been coming to power with a decisive minority vote shift to it as well under Nitish Kumar.

The real reason for BJP not winning should be looked into why majority of the Indian public, including Hindus didn't vote for it. Once, people stop clutching at straws in minority vote "blocs" and realize that there is no such thing as en bloc voting except when it comes to security issues, you will find your answer.

India grew because momentum was set long ago by previous governments which spilled into the Congress regime. How do you know that India could not have grown more than that ? If Congress went ahead with reforms we would have seen more growth. But no they had to be populists ! If you remember inflation was very much under control during BJP regime. Now we have inflation almost touching double digits and we have mega scams after scams. It is not only economy but also security. Why did they have to withdraw POTA ? Infact they were even against banning SIMI. Even when US has Patriot. Is India more secular than US ? ! If it is not minority appeasing then what is it ? The list of Congress failures goes on.

And please dont get me wrong. I am all for secular India. I am not for BJP's hindutva ideology. But good thing about is that once they come to power they forget their Hindu ideology. As a citizen I want a progressive India just as you should.

 

[Patrician]

Not only are you an internet warrior but you unfortunately have a lot of facts wrong as well.

The avg growth rate under MMS is higher than under the NDA despite the fact that GFC happened. Infact, according to the IMF and comparing the same reporting methods between India and China, India was the fastest growing economy in 2010 at 10.36% - a new high.

The UPA came to power because majority of the country voted for them and that means most of the people who voted for them are also Hindus.

The myth that UPA depends on minority votes is nothing more than that.

More than 50% of the Muslim population is in UP, Bihar and Bengal. And in all three states Congress has hardly been in power. In fact, there in Bihar NDA has been coming to power with a decisive minority vote shift to it as well under Nitish Kumar.

The real reason for BJP not winning should be looked into why majority of the Indian public, including Hindus didn't vote for it. Once, people stop clutching at straws in minority vote "blocs" and realize that there is no such thing as en bloc voting except when it comes to security issues, you will find your answer.

I see no point of such a growth when food for lack of storage capacity cannot be given for free to those who starve to death. The PM says the food will not be given to them.

I see no point of such a growth when the agriculture minister himself advises people to not consume sugar because sugar prices are rising.

I see no point of such a growth when the process of economic reforms has failed to take off. In fact, without economic reforms, this growth itself is going to be ephemeral.

I see no point of such a growth when a majority of people's money is gobbled up by the Raja's and the Kalmadi's while the PM rues, "Main Majboor Hoon".

I see no point of such a growth when the govt. cannot enact a universal right to food act.

I see no point of such a growth when the poorest of thr poor cannot afford even a basic meal twice a day.

I can go on and on...

 

[IndoCarib]

^^^^
MMS did a wonderful Job as FM under Rao's govt. He is not a PM material. The real culprit in this present govt is the congress high command, read Sonia and Rahul

 

[RiazHaq]

As of July 14, 2011, Karachi stocks are up 2% and Indian stocks are down 9.2% for 2011, according to The Economist market review.

Markets | The Economist

 

[EjazR]

@IndoCarib


You said that the growth rate is slowing down. I showed that in 2010 we had infact the highest growth rate in India's history overtaking China according to the IMF. This is just plain fact. Now you are shifting the goalposts saying if the economy is doing good, then its not because of MMS and the current govt. but all the good work done 10 years ago in the NDA govt.
Does that mean if the economy was bad, it would be right to blame the NDA govt. for that as well? Comon, lets not play such games

Besides, I don't really care about Congress either way. My main point of contention was you saying and implying that the Congress depends only on minority votes to come to power. And I explained that this is a myth. The majority of the votes that Congress got were from Hindus after all. In states were Muslim for the bulk of their population i.e. UP, Bihar and Bengal, the votes have either gone to BSP/SP, JD(U)/BJP or the Left parties / Trinamol Congress in Bengal.

There is no monolith minority vote andit all depends on what the party offers. Ofcourse, if a party will come out hostile and threatening against a community like say what Varun Gandhi did for example in UP did against Sikhs and Muslims, you are pushing voters away for no reason at all.


Now lets have a quick look at some questions you raised about security issues.
Under the NDA regime we actually had a full scale invasion by Pakistan in Kargil and the response by the then govt. was not to cross over the IB. Something that is called the least provacative wars by India as a response of blatant agression.

On POTA, did you know about UAPA. The UAPA passed after the 2008 Mumbai attacks is pretty much the same as POTA. There is ALREADY a law present that does exactly what POTA does and is much more stringent than the Patriot act. You would have known this if you had been following the security developments in India closely.
There are only one or two exceptions, notably that police confessions can't be suitable as evidence in courts. Given that our police routinely tortures confessions out and the many recent cases of innocent youth tortured in jail on trumped up terror charges and then later released, I think it would make a lot of sense to not use just police confessions as a basis of convictions. Even the Patriot act btw does not allow for police confessions and the US police is far more professional than Indian police.


And seriously what does SECULAR have anything to do with any of this? It just doesn't make any sense in this context. Even if India was not a secular country, what I mentioned above still applies.