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“India Shining”? Or the Greece of Asia?

India debt ratio is more worse than Spain, Will India Collapse?

1 China Huge trade surplus
1. India Huge trade deficit

2. China low inflation
2. India high inflation

3. China Low Debt
3. India High Debt

4. China low unemployment (too many jobs, not enough labour hehe)
4. India high unemployment

5. China $ rises to historically HIGH
5. India $ drops to historically LOW

India debt ratio is more worse than Spain! Fix it quickly or your country will collapse faster than Spain

How can u be so brainless?
Spain is a small country with a small population, but india is such a big country with lotta population...
India managed well even before our growth started cos of Domestic consumption or called Domestically driven economy...
Just posting these same news in all threads.. Just hope some people use their brains well...
 
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Conditions may be bad, but it is stupid to compare us with Greece.......
Even with immense political,and internal as well as external economical turmoil, we have managed a 6.5% growth........
The greece economy contracted 6.9 % in the same period!!!
India is a country with a huge population, opportunities and does not depend upon any one sector or country very much.
This was the problem with Greece, their economy consists of mostly service sector(85%) and and that too exports for Italy , Germany and Spain counting for 30% in that. During the recession and the 2011 crisis, the European nations started to reduce their imports from Greece due to various reasons and caused additional strain on it...........
 
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“India Shining”? Or the Greece of Asia?
“India Shining”? Or the Greece of Asia? | Via Meadia

“What ails India?” So asked the FT‘s Mumbai bureau chief of a Western investor recently. The answer? Everything. “On every indicator we look at, there is a red flag,” the investor said. “This country is close to becoming the Greece of Asia.”

Growth has stalled. Inflation, thought to be under control, jumped up again on Monday. Data last week showed industrial output declining and the trade deficit growing. This week the rupee fell to its lowest rate ever against the dollar.

There are a number of reasons why India, once Asia’s most promising economy, is slipping. One is the decline of the License Raj, the long accepted patronage network of businessmen and politicians, the system of permissions, licences, and investment that kept India’s economic machine churning at a high rate. Recently, the Raj has come under attack—from a zesty media and active public who want more transparency, from foreign investors who want an easier way to get a piece of the pie, from an empowered Supreme Court and government auditors.

As India’s economy continues to modernize, there will be inevitably be times of slow growth, inflation, corruption scandals, and skittish investors. Prime Minister Manmohan Singh, who championed the wildly successful economic reforms of the 1990s, has not had that kind of success in the next round of reforms. His government may be cracking down on corruption, but partly as a consequence of the complicated politics of Indian coalition-building, vital decisions have been deferred and even the low hanging fruit has been left hanging on the tree.

Singh’s government will pay a steep price if the economic climate does not change by the time elections roll around in 2014. His Congress Party was battered in provincial elections a few months ago. One frontrunner to replace him, Narendra Modi, is a divisive figure and, due to widely credited reports of his personal responsibility for massacres of Muslims, he is not beloved by the international community. His party, the BJP, is usually identified with Hindu nationalism, and elements of that party have been labeled fascist.

But Modi is a champion of business in his home state of Gujarat. Gujarat has consistently been one of the great success stories in the Indian economy, and Via Meadia can envision Modi pushing that line with some success during national elections. If Singh’s government can’t prove its current policies will brighten things up once again and continue India’s great success story (“India shining”), then we may well see Narendra Modi waltzing triumphantly into Delhi in the near future. If so, the world will have to hope that Modi the prime minister will live up to the best elements of his mixed record.

The rise of great powers is complicated; look at the way that Andrew Jackson, one of the great American advocates of popular democracy, was also a slaveholder. India’s story is going to be at least as complicated and as difficult — for itself, and for countries whose strategic interests are closely bound up in its fate.



India isn't shining
India isn't shining

Saying ‘forget fundamentals, it’s all about the flows’ worked well in Q1, with $8 bn flowing into Indian equities. But already the last few weeks have looked more uncertain, as concerns on Spain have re-appeared, and fears on China’s outlook have grown. Meanwhile, US growth expectations are already high, so there is less scope to surprise on the upside. This implies that, at best, we’re in for a phase of consolidation, with less of a clear direction in the global macro data. That suggests a more discerning market and more focus on India’s fundamentals. So, how bad do they look?

The big events of March all ended up being neutral to disappointing: the Reserve Bank of India (RBI) left the repo rate unchanged; UP elections were disappointing for Congress and the Budget was relatively safe and neutral.

The combination of elections, ‘coalgate’, GAAR confusion and retrospective tax amendments have once again triggered negative foreign investor perceptions about India. Yet, the government seems to assume that despite policy paralysis, overreaching executive actions and now retrospective tax amendments, foreign investors will just keep on coming.

In the run-up to 2008, a lot of the foreign investment into India was chasing ‘India shining’, seeing the world’s second fastest growing major economy, a model of high growth, fiscal consolidation and macroeconomic improvement. That picture is quite different today. Yes, growth is still high, relative to almost every other global economy. And, yes, that economic potential remains remarkable. But, there are lots of issues that need to be worked through before one can unambiguously become bullish about India macro. Be bullish on India micro; on states, sectors, themes and stocks, but to get more bullish on India macro is going to take some time.

There is a struggling coalition government. A lack of balance in economic policy, with a fiscal deficit that doubled from 2008 to now, and overemphasis on monetary policy to combat structurally high inflation, resulting in overly aggressive rate hikes, discouraging investment and impairing growth. There is then the unhelpful issue of oil running at an all-time high in rupee terms. Every 10 per cent increase in global crude prices could have a direct impact of 0.5 per cent increase on WPI inflation, as well as dragging down growth.

We think RBI will cut the repo rate in April, but that it will be unable to cut rates aggressively or decisively in FY13. So, whilst the picture should slowly improve, for now, I’m cautious.

In Such case Greece of Asia would include-

Rank Country GDP Rate 2011
1 *Yemen -2.5
2 *Syria -2
3 *Japan -0.5
4 *Sudan -0.2
5 *Cyprus 0
6 *Azerbaijan 0.2
7 *Croatia 0.8
8 *Thailand 1.5
9 *Bahrain 1.5
10 *Lebanon 1.5
11 *Czech Republic 1.8
12 *Pakistan 2.4
13 *Iran 2.5
14 *Jordan 2.5
15 *Brunei 2.8
16 *Algeria 2.9
17 *United Arab Emirates 3.3
18 *Nepal 3.5
19 *South Korea 3.9
20 *Mauritius 4.2
21 *Oman 4.4
22 *Morocco 4.6
23 *Philippines 4.7
24 *Ukraine 4.7
25 *Israel 4.8
26 *Taiwan 5.2
27 *Malaysia 5.2
28 *Singapore 5.3
29 *Burma 5.5
30 *Kuwait 5.7
31 *Hong Kong 6
32 *Tajikistan 6
33 *Bangladesh 6.3
34 *Indonesia 6.4
35 *Saudi Arabia 6.5
36 *Maldives 6.5
37 *Kazakhstan 6.5
38 *Cambodia 6.7
39 *Kyrgyzstan 7
49 *Afghanistan 7.1
41 *India 7.8
42 *Bhutan 8.1
43 *Sri Lanka 8.3
44 *Laos 8.3
45 *China 9.5
46 *Iraq 9.6
47 *Qatar 18.7

Some Smoke Some Where!!
 
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How can u be so brainless?
Spain is a small country with a small population, but india is such a big country with lotta population...
India managed well even before our growth started cos of Domestic consumption or called Domestically driven economy...
Just posting these same news in all threads.. Just hope some people use their brains well...

india is in a mess! it has been in a mess for a long time! large domestic consumption means you export sucks. you dont open up your retail market because you are afraid that foreign products will flood your supermarkets. Have you granted your operating license to Wal-mart? China has Wal-mart, Carrefour for 20-30 years now! Even a common soft-drink like Coke has met tons of troubles in india! We have Coke, Sprite, Fanta ...selling alongside our own Huiyuan, Huahaha, Wanglaoji in China!

Now the inflation of indian exceeds 7%. A weakening rupees mean your import of oil which accounts for 80% of your consumption is getting more expensive. How do the poor people live through their days without your fuel subsidies. But more subsidies will render your budget expenditure more out of control!

Your foreign exchange is thinning! But you are still spending crazily on stupid projects. All your conventional weaponry developments are classic receipes for failures!
 
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india is in a mess! it has been in a mess for a long time! large domestic consumption means you export sucks. you dont open up your retail market because you are afraid that foreign products will flood your supermarkets. Have you granted your operating license to Wal-mart? China has Wal-mart, Carrefour for 20-30 years now! Even a common soft-drink like Coke has met tons of troubles in india! We have Coke, Sprite, Fanta ...selling alongside our own Huiyuan, Huahaha, Wanglaoji in China!

Now the inflation of indian exceeds 7%. A weakening rupees mean your import of oil which accounts for 80% of your consumption is getting more expensive. How do the poor people live through their days without your fuel subsidies. But more subsidies will render your budget expenditure more out of control!

Your foreign exchange is thinning! But you are still spending crazily on stupid projects. All your weaponry development are classic receipes for failures!

China is Best...please come and put Red Flag on Indian Soil.
 
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india is in a mess! it has been in a mess for a long time! large domestic consumption means you export sucks. you dont open up your retail market because you are afraid that foreign products will flood your supermarkets. Have you granted your operating license to Wal-mart? China has Wal-mart, Carrefour for 20-30 years now! Even a common soft-drink like Coke has met tons of troubles in india! We have Coke, Sprite, Fanta ...selling alongside our own Huiyuan, Huahaha, Wanglaoji in China!

Now the inflation of indian exceeds 7%. A weakening rupees mean your import of oil which accounts for 80% of your consumption is getting more expensive. How do the poor people live through their days without your fuel subsidies. But more subsidies will render your budget expenditure more out of control!

Your foreign exchange is thinning! But you are still spending crazily on stupid projects. All your weaponry development are classic receipes for failures!
Okay....agreed
But the question is how will anyone enforce all these descisions??
the govt is blackmailed by her allies, and the opposition is divided in factions...........
We will have to wait till 2014 most probably when the next general elections will take place...........maybe then the situation will improve...:undecided:
 
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india is in a mess! it has been in a mess for a long time! large domestic consumption means you export sucks. you dont open up your retail market because you are afraid that foreign products will flood your supermarkets. Have you granted your operating license to Wal-mart? China has Wal-mart, Carrefour for 20-30 years now! Even a common soft-drink like Coke has met tons of troubles in india! We have Coke, Sprite, Fanta ...selling alongside our own Huiyuan, Huahaha, Wanglaoji in China!

Now the inflation of indian exceeds 7%. A weakening rupees mean your import of oil which accounts for 80% of your consumption is getting more expensive. How do the poor people live through their days without your fuel subsidies. But more subsidies will render your budget expenditure more out of control!

Your foreign exchange is thinning! But you are still spending crazily on stupid projects. All your weaponry development are classic receipes for failures!

Talking about weaponaries, China has doing a great copy cat jobs, which u r proud of...
Oh yes, Exports in india is a new thing... Export alone dont determine the economy of a country...
China is the largest exporter, but y china's GDP is smaller than USA>? Think brainless... It depends on domestic driven economy.. If EURO falls, china's export oriented economy will be definitely hit more compared to india... And every country subsidies their fuel to some extent....
FDI is hold up cos of one women, and we will find a way soon...
But i have saw, many fake Wal marts and apple in china too competing with real wal mart...
This is a very worst situation for a foreign company to invest there....
 
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UPA policies are to be blamed for the present economic scenario. We hope 2014 comes sooner.
 
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Talking about weaponaries, China has doing a great copy cat jobs, which u r proud of...
Oh yes, Exports in india is a new thing... Export alone dont determine the economy of a country...
China is the largest exporter, but y china's GDP is smaller than USA>? Think brainless... It depends on domestic driven economy.. If EURO falls, china's export oriented economy will be definitely hit more compared to india... And every country subsidies their fuel to some extent....
FDI is hold up cos of one women, and we will find a way soon...
But i have saw, many fake Wal marts and apple in china too competing with real wal mart...
This is a very worst situation for a foreign company to invest there....

Keep harping on the losers' comeback of " copycats ... blah blah" .

We are not comparing with usa which is still no.1 economy. But in terms of export, we are no 1. USA has a strong perhaps the strongest service industry which sustains in part for their maintianing economy no 1.

These things indians with stunted brains will never understand.

we have first class roads, excellent logistics, container ports, airports, uninterrupted power supplies, a skillful and hardworking labour force, a well developed supply chain and an established client base, our currency is stable, our financial industry is getting more matured, politically more stable than india. We are the investment of choice for the last 3 decades and still going strong!

If Euro or elsewhere falls, anywhere outside of China will fall harder. It is not us to be blamed for. And we still have a 1.3 bln domestic market and a strong balance sheet to weather through the severest of storms!
 
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your real GDP growth is -17%, because Rupee drops almost 20% this year. Wake up

Another epic failure by an ignorant and biased mind. Real GDP is GDP adjusted for inflation the figure you are trying to allude to would be nominal GDP. real GDP actually shows India's economy is growing!!


Just shows that certain members have no right to pass any comment on matters they are illinformed or uneducated in. Ask any economist and they will tell you India will come good and by 2050/55 will be vying for top spot on global economic league table.

6% growth is noto be written of or smirked at, this still makes India one of the fastest growing economies on earth. And with GoI forecasting return to 7-8% growth in FY 2013 we shouldn't be throwing the towel in or focusing on short term issues.
 
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@ On the topic

Indians are too fast in claiming themselves a next superpower and other people are too fast in claiming India a sick man of Asia. As usual the reality is lying somewhere in-between.
 
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