Indian Economy-News & Updates

[CZAR]

what a terrible idea

Cut rate when India inflation hits 11 months High = Commit Suicide

Just because guys like you get off to sensational headlines from india courtesy of google, does not mean that you have begun to understand the indian economy.

Most analysts / economists here concur that high inflation has been a by product of supply-side constraints and is not induced by demand pressure. Hence, there is only so much that a tight monetary policy can hope to achieve.

In such a scenario, hurting demand to compensate for lack of investment on the supply side is a quick fix which will do more harm than good.

 

[laman12345]

You have cited figures for the CPI. Do you understand the difference between what CPI and WPI are?? Quit making a mockery of yourself.

(Updated)

Food Inflation over 10%, I feel so sad for India poor people

The highest price rise in October was seen in sugar, which rose by 19.61 per cent year-on-year, followed by edible oils and fat, which went up by 17.92 per cent, while pulses and cereals were costlier by 14.89 per cent.

Vegetable prices in the month saw a rise of 10.74 per cent, while meat, fish and egg rates increased by 12.18 per cent.

Food, clothing prices push inflation up to 9.75% in Oct

India's worst on record trade deficit of $20 billion


India: double very bad data shock

Data released on Monday shows that India’s industrial production contracted 0.4 per cent in September year-on-year, an unpleasant surprise given widespread expectations of an increase of 2 per cent or more. And to make things worse, the trade deficit hit a record $21bn in October – up from $18bn in September.

On the foreign exchanges, the rupee fell 0.74 per cent against the US dollar, taking its decline for this year to more than 9%.

Barclays said in a note that this was a “shock” and added: “Market expectations for IP growth once again covered a wide range (from 1.2% to 5.0%) and again the actual outcome fell well below the range.”

India: double data shock

how can India solve this critical situation?

 

[CZAR]

(Updated)

Food Inflation over 10%, I feel so sad for India poor people

I feel sad for you, my friend. The way you obsess, furiously googling reports / articles in a desperate hope of massaging your ego, hints at some kind of mental illness.

how can India solve this critical situation?

Please read post# 3968.

 

[ajtr]

The Hindu : Business News : Imports surge to $44.2 bn

 

[laman12345]

I feel sad for you, my friend. The way you obsess, furiously googling reports / articles in a desperate hope of massaging your ego, hints at some kind of mental illness.

lol personal attack

I just tell the real data & real updated news but some Indians can't accept the reality

 

[AADHAAR]

lol personal attack

I just tell the real data & real updated news but some Indians can't accept the reality

Dear commie friend, please accept reality.

You are unable to sleep at night ... scared or paranoid about India, whatsoever.

Please consult a non-chinese doctor (you know, for obvious reasons) .. and refer a few of your other mates for consultation too.

Get well soon..

 

[CZAR]

lol personal attack

I just tell the real data & real updated news but some Indians can't accept the reality

Call it a personal attack, if it pleases you. But i am merely amazed at the diligence with which you strive to massage your ego. I guess the extent of your efforts is directly proportional to the degree of emasculation.

As for facts. I have not sought to challenge the facts that you presented, but have merely refuted the amateurish conclusions that you have somehow managed to arrive at.

I had requested to look through post# 3967. It has a point-wise rebuttal of your flimsy arguments about the CAD. Here it is -

Enough with the stupidity, my friend.

Are you aware of something called - financing of the CAD?? It is possible for countries to continue for years with a Current Account Deficit, by developing mechanisms to finance this deficit. And india has more than enough financial muscle to tackle these deficits in the foreseeable future.

India has recently undertaken various initiatives for relaxing the FDI norms to attract foreign investment - such as FDI in retail, aviation, media, insurance, etc. Also, there are further initiatives in the pipeline which are likely to attract further investment.

Also read up a bit on what General Anti Avoidance Rules. It is a sensitive issue with respect to FIIs. India has also relaxed its stance on GAAR, paving the way for greater investment interest from foreign investors - as is visible from healthy trading and trajectory of indian stock exchanges (BSE and NSE).

Add to this the lose monetary policy of western economies (eg - QE3), and what you have are billions of dollars which will be following emerging economies such as India.

And even if the FDI / FII inflows are depressed for a couple of fiscals - india still has dollar reserves of over USD 250 billion. Whichever way you choose to spin it, India is more than capable of the financing these deficits through inflows and reserves.

Moreover, to reduce the current account deficit, India has undertaken steps such as slowly freeing the prices of petroleum products from subsidies. There is also a drive against investment in gold in favour of more productive investment, as in terms of value, it is the second biggest item on the import list, after oil.

Your arguments rest on sensational headlines and are on a weak footing.

 

[laman12345]

India has largest debt-to-GDP ratio among developing nations

India's Debt Higher than Spain

Considering its increasing debt, ratings agency Fitch had cut India's outlook to negative from stable in the last week. "If the debt to GDP ratio continues to accelerate further, the Indian economy will be exposed to the risk of further downgrades by other major rating agencies."

Greece is not the only country that is feeling the pain of rising debt. There are some nations, including India, that have massive debt.

High debt to GDP ratio tends to dampen the credit worthiness of the Indian economy. Viewing its increasing debt, Fitch had cut India's outlook to negative from stable in the last week.

India has largest debt-to-GDP ratio among developing nations: Report - Economic Times

 

[laman12345]

India FDI inflows declined by 60% in April-August 2012

Foreign direct investment (FDI) in India declined by about 20 per cent to $ 2.26 billion in August compared to same month in the previous year

During April-August 2012 the FDI inflows dipped by 60 per cent to $ 8.16 billion from $ 20.63 billion in the same period last year, an official in the Department of Industrial Policy and Promotion (DIPP) said.

Decline in foreign investments puts pressure on the country’s balance of payments (BoP) and could also impact the rupee.

Business Line : Industry & Economy News : FDI dips 20% to $ 2.26 bn in August

 

[AADHAAR]

^^^ ....

 

[Aramsogo]

The Hindu : Business News : Imports surge to $44.2 bn

Do Indians even understand this chart ???????

HINT: See the DOWN arrows??

 

[conworldus]

Do Indians even understand this chart ???????

HINT: See the DOWN arrows??

Bro why do you think the Indians still haven't finalized their MMRCA deal? They are out of money.

Hyperflation in a stagnant economy. Enjoy.

India's consumer price inflation rises to 9.75 percent - NY Daily News | NewsCred SmartWire

 

[CZAR]

India has largest debt-to-GDP ratio among developing nations

India's Debt Higher than Spain

Considering its increasing debt, ratings agency Fitch had cut India's outlook to negative from stable in the last week. "If the debt to GDP ratio continues to accelerate further, the Indian economy will be exposed to the risk of further downgrades by other major rating agencies."

Greece is not the only country that is feeling the pain of rising debt. There are some nations, including India, that have massive debt.

High debt to GDP ratio tends to dampen the credit worthiness of the Indian economy. Viewing its increasing debt, Fitch had cut India's outlook to negative from stable in the last week.

India has largest debt-to-GDP ratio among developing nations: Report - Economic Times

Thanks for this post. It only reaffirms my faith in your lack of understanding of how the indian economy works.

The numbers might look ominous to the layman. However, a detailed look at the data will tell you that a large part of india's debt is rupee denominated. Moreover, large chunk of the govt bonds have been lapped up by the big pubic sector banks where the govt enjoys a controlling stake. So in essence, the govt owes money to itself!!

Also, since majority of the debt is rupee denominated, it acts as a natural shield against forex rate volatility. FYI, India's external debt is limited to merely 20% of the GDP.

External debt to GDP ratio rises to 20% in FY12 - Indian Express

 

[cirr]

Just because guys like you get off to sensational headlines from india courtesy of google, does not mean that you have begun to understand the indian economy.

Most analysts / economists here concur that high inflation has been a by product of supply-side constraints and is not induced by demand pressure. Hence, there is only so much that a tight monetary policy can hope to achieve.

In such a scenario, hurting demand to compensate for lack of investment on the supply side is a quick fix which will do more harm than good.

The RBI doesn't seem to agree with you。

Are you suggesting that the guys “manning” the RBI are a bunch of utter fools？

If so，what makes you so ****-sure that those economists who trumpets high inflation are not a bunch of bigger fools？

 

[kawaraj]

the trade deterioration is partly due to the weakening currency.

but yes, the Indian economy is in bad shape if GOI don't offer some stimulus plan it's going to be worse. I agree with the Rate cut ideas. the Point is if you are still in progress, inflation is never a concern.