Indian Economy-News & Updates

[laman12345]

India Econ Collapse?

Falling exchange rate of rupee against dollar is due to hyperinflation. Dr. Manmohan Singh was comparing Indian currency crisis against dollar to Brazil. It’s not true, our Prime Minister was trying to manipulate. Hyperinflation in India, I am afraid, will have to be compared to hyperinflation in Zimbabwe. When Zimbabwe won independence from British in 1980, the Zimbabwean dollar was more valuable than the US dollar. Slowly but steadily wrong economic and land reform policies implemented by Zimbabwean President Robert Mugabe led to total debacles. Production of food and manufacturing outputs fell drastically (60%), this led to unemployment (80%), Mugabe government was not ready to admit errors and to impliement remedial actions while continued to print currency notes which had no purchasing power since there was no production of goods and services. Zimbabwe Dollar denominations were ranging from 10 to 100 billon still with very little value. The magnitude of the currency scalars signifies the extent of the hyperinflation. In 2009 Zimbabwe currency was dead and was laid to RIP, so currencies of other countries are used. What is happening is no laughing matter. For Zimbabweans – bread, meat, margarines, even once ubiquitous morning cup of tea – have become unimaginable luxuries. Where India is heading to?

 

[baker]

inflation is killing us.... petrol price increased by 7.5 rs per litre

 

[Holmes]

petrol price increased by 7.5 rs per litre

India-Middle East corridor to grow by 34% by 2013: UAE

DUBAI: India and the Middle East trade corridor is expected to grow by 34 per cent to become one of the world's fastest-growing by next year, UAE's Minister of Foreign Trade has said.

"The India-Middle East corridor is expected to grow by 34 per cent to emerge as one of the world's fastest-growing trade corridors by 2013," said the Minister, Sheikha Lubna bint Khalid Al Qasimi.

"Given that it is the second-most populous country in the world with an enormous consumer base of over 1.2 billion, India is definitely among our priority partners moving forward," she said at the Third Arab-India Partnership Conference which got underway in Abu Dhabi yesterday.

According to India's Foreign Ministry officials, trade between India and the Arab world increased from USD 114 billion in 2008-09 to USD 144 billion in 2010-11.

She added that capital flows from the Gulf Cooperation Council (GCC) to India amounted to around USD 2.6 billion from April, 2000 to January, 2012, while India's FDI contribution to the GCC for the same period was at USD 2.4 billion.

The Minister said it would be ideal for both the countries to ink an Free Trade Agreement to boost commercial partnership.

"To date, power, services and construction account for the majority of inflows from the GCC to India, which has emerged as one of our major sources of FDI.

"...it would be ideal for both our parties to reach a Free Trade Agreement that can further increase and expand our bilateral FDIs," she said.

The two countries should also work on initiatives to fully optimise business and investment partnerships, such as boosting the frequency of delegate visits, removing some non-tariff related barriers, and expanding trade beyond traditional exports and imports, she added.

"India is also the first trade partner of the UAE, with our bilateral exchange topping USD 144 billion last year," the minister said.

Over 40 leading Indian companies have established a presence here and almost all major Indian banks are represented locally, Sheikha Lubna said.

There are 500 weekly flights between the UAE and various Indian cities that has helped facilitate dynamic business ties as well, aside from encouraging more travel between the two countries, she added.

"We would like to encourage our Indian partners to consider investments and ventures with our more than 208,000 small and medium enterprises or SMEs which comprise almost 80 per cent of the UAE's private sector," she said.

The conference is being organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in association with India's Ministry of External Affairs, the Secretariat of Arab League and Abu Dhabi Chamber of Commerce and Industry.
India-Middle East corridor to grow by 34% by 2013: UAE - The Economic Times

 

[laman12345]

Will India Collapse?

Falling exchange rate of rupee against dollar is due to hyper-inflation. Dr. Manmohan Singh was comparing Indian currency crisis against dollar to Brazil. It’s not true, our Prime Minister was trying to manipulate. Hyperinflation in India, I am afraid, will have to be compared to hyperinflation in Zimbabwe. When Zimbabwe won independence from British in 1980, the Zimbabwean dollar was more valuable than the US dollar. Slowly but steadily wrong economic and land reform policies implemented by Zimbabwean President Robert Mugabe led to total debacles. Production of food and manufacturing outputs fell drastically (60%), this led to unemployment (80%), Mugabe government was not ready to admit errors and to impliement remedial actions while continued to print currency notes which had no purchasing power since there was no production of goods and services. Zimbabwe Dollar denominations were ranging from 10 to 100 billon still with very little value. The magnitude of the currency scalars signifies the extent of the hyperinflation. In 2009 Zimbabwe currency was dead and was laid to RIP, so currencies of other countries are used. What is happening is no laughing matter. For Zimbabweans – bread, meat, margarines, even once ubiquitous morning cup of tea – have become unimaginable luxuries. Where India is heading to?

India economy is false, India dont produce much export item other than software which no one need in downtrand.

India will get no money to buy oil due to huge trade deficit

 

[dearone4u_22]

India economy is false, India dont produce much export item other than software which no one need in downtrand.

India will get no money to buy oil due to huge trade deficit

No oil no prob i will buy this thing


Mahindra Reva NXR at 2012 Delhi Auto Expo - Zigwheels.com

India's Only No-Petrol two-seater - YO Bykes

Shift the Transport of Good thru Trains......Which any way is the most Economical mode of transport.........Expand Freight transport......Any more Prob sir

 

[laman12345]

TERRIBLE!

Rupee drops almost 40% in one year, will india collapse?

 

[Tridibans]

TERRIBLE!

Rupee drops almost 40% in one year, will india collapse?

So how is rupee dropping from 41 to 56 a 50% drop, genious?

 

[Koovie]

India Econ Collapse?

Falling exchange rate of rupee against dollar is due to hyperinflation. Dr. Manmohan Singh was comparing Indian currency crisis against dollar to Brazil. It’s not true, our Prime Minister was trying to manipulate. Hyperinflation in India, I am afraid, will have to be compared to hyperinflation in Zimbabwe. When Zimbabwe won independence from British in 1980, the Zimbabwean dollar was more valuable than the US dollar. Slowly but steadily wrong economic and land reform policies implemented by Zimbabwean President Robert Mugabe led to total debacles. Production of food and manufacturing outputs fell drastically (60%), this led to unemployment (80%), Mugabe government was not ready to admit errors and to impliement remedial actions while continued to print currency notes which had no purchasing power since there was no production of goods and services. Zimbabwe Dollar denominations were ranging from 10 to 100 billon still with very little value. The magnitude of the currency scalars signifies the extent of the hyperinflation. In 2009 Zimbabwe currency was dead and was laid to RIP, so currencies of other countries are used. What is happening is no laughing matter. For Zimbabweans – bread, meat, margarines, even once ubiquitous morning cup of tea – have become unimaginable luxuries. Where India is heading to?

Is that your brain fart or the one of another so called economist ????

Indian economy resilient enough to overcome challenges: Pranab

Amid declining value of rupee and rising inflation, Finance Minister Pranab Mukherjee on Wednesday said Indian economy is resilient enough to overcome challenges and the government will make efforts to moderate the rate of price rise and reduce current account deficit (CAD).

“I have full faith in the resilience of the Indian economy and am sure that we will be able to overcome the current economic challenges successfully as we have done in the past, many times,” he said.

“Our efforts are directed towards overcoming difficulties facing the economy and aim at moderate inflation and have acceptable level of fiscal deficit and CAD,” Mr. Mukherjee added.

The minister said this while addressing a meeting of the probationary officers of the Indian Economic Service (IES) at his office in the North Block.

The Indian economy, he said, too was facing “some challenges” due to the ongoing crisis in the eurozone countries and its impact on other parts of the world.

While the current account deficit (CAD), which indicates the difference between inflow and outflow of foreign exchange, is expected to rise to 4 per cent of the GDP in 2011-12 from 3.3 per cent a year ago, high crude oil prices is expected to put pressure on government finances.

More importantly, steep fall in rupee’s value, which crossed Rs. 56 to a dollar, is expected to push up the cost of imports, especially the petroleum products and imported fertiliser. Oil Marketing Companies (OMCs) have been clamouring for increase in prices of petroleum products.

The efforts of the government, Mr. Mukherjee said, would be to put the economy on high growth trajectory.

Indian economy was growing at over nine per cent before the global financial meltdown in 2008 pulled down the growth rate to 6.7 per cent in 2008-09. Thereafter, the economy recorded a growth rate of 8.4 per cent for two consecutive years before sliding again to 6.9 per cent in the previous fiscal.

On the positive side, Mr. Mukherjee said services sector and agriculture have recorded good growth. “Farm sector growth is likely to be good due to expected good monsoon,” he added.

Referring to political compulsions of the UPA government, he said, “as a ruling party we have to carry all partners with us and that's why it sometimes takes little longer. But at the end we are able to take decisions and implement it.”

As regards the price situation, headline inflation, represented by the wholesale price index, rose to 7.23 per cent in April from 6.89 per cent in the previous month, while retail price inflation (CPI) entered double digits of 10.36 per cent in April from 9.38 per cent in March.

The Hindu : Business / Economy : Indian economy resilient enough to overcome challenges: Pranab

 

[Aramsogo]

Dude, that's nothing. 8 Rupees were worth $1 in 1980. The last 10 years have been unusual for the rupee. It usually loses 50% of its value every 7 years.

 

[Great Sachin]

India Econ Collapse?

Falling exchange rate of rupee against dollar is due to hyperinflation. Dr. Manmohan Singh was comparing Indian currency crisis against dollar to Brazil. It’s not true, our Prime Minister was trying to manipulate. Hyperinflation in India, I am afraid, will have to be compared to hyperinflation in Zimbabwe. When Zimbabwe won independence from British in 1980, the Zimbabwean dollar was more valuable than the US dollar. Slowly but steadily wrong economic and land reform policies implemented by Zimbabwean President Robert Mugabe led to total debacles. Production of food and manufacturing outputs fell drastically (60%), this led to unemployment (80%), Mugabe government was not ready to admit errors and to impliement remedial actions while continued to print currency notes which had no purchasing power since there was no production of goods and services. Zimbabwe Dollar denominations were ranging from 10 to 100 billon still with very little value. The magnitude of the currency scalars signifies the extent of the hyperinflation. In 2009 Zimbabwe currency was dead and was laid to RIP, so currencies of other countries are used. What is happening is no laughing matter. For Zimbabweans – bread, meat, margarines, even once ubiquitous morning cup of tea – have become unimaginable luxuries. Where India is heading to?

Megaton supersonic F A R T........

 

[Holmes]

India-Pakistan trade declines 30 per cent to $1.56 billion in Apr-Jan FY'12

NEW DELHI: Bilateral trade between India and Pakistan has declined by about 30 per cent to $1.56 billion during April-January, 2011-12.

During the same period of 2010-11 fiscal, the bilateral trade was $2.22 billion, Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Lok Sabha.

He added that as a result of the bilateral discussions held over the past year between the two countries, Pakistan has replaced its 'positive list' - comprising 1,963 items that could be exported by India - with a 'negative list' of 1,209 items.

"This implies that except for these 1,209 items, all other items can be exported. Such substantial increase in tradable commodities is expected to reduce trade through third countries," Scindia said.

In another reply, the minister said trade between India and Japan during April-January 2011-12 has surpassed the figure of total trade in 2010-11.

During April-January 2011-12, the two-way commerce aggregated at $14.7 billion compared to $13.71 billion in 2010-11.

During the 10-month period of last fiscal, India's exports to Japan stood at $4.97 billion, while imports were $9.79 billion.

The comprehensive economic partnership agreement between India and Japan was implemented on August 1, 2011.

In another reply, Scindia said the approval of Director General of Foreign Trade (DGFT) is not required for registration of export contracts.

"Field offices of the Directorate are authorised to issue the registration certificates for export of cotton after verification of required documents," he said.

India-Pakistan trade declines 30 per cent to $1.56 billion in Apr-Jan FY'12 - Economic Times

 

[Dance]

Rupee still has room to fall further: Lombard Odier

SINGAPORE: The Indian rupee, Asia's worst performing currency this year, still has room to fall further after policy missteps by a struggling government, said Swiss private bank Lombard Odier's chief investment officer for Asia.

"I do not see clear skies for India at the moment," said Pranay Gupta, Asia chief investment officer at Lombard Odier, which manages 145 billion Swiss francs for its clients.

"The rupee still has some more downside." India's economic growth has slumped to a near three-year low and its current account deficit is the highest since 1980, a gap that is difficult to control when the rupee is at a record low.

The currency dropped to a record low against the dollar on Wednesday, sparking mild intervention from a central bank seen by traders as reluctant to be more aggressive against such a strong down trend.

The rupee has been battered by India's wide current account and fiscal deficits, global risk aversion fuelled by the euro zone crisis and sluggish economic policymaking.

"You have a few personalities which are hellbent on stifling any kind of prudent economic policies that are laid out, and you cannot have a governing structure which facilitates that," said Gupta. "Democracy today is a failed experiment in India."

Just this month, the government delayed plans to tax foreign investors after an exodus of funds, partly driven by concerns the tax could be applied retroactively, battered the rupee.

Gupta, who sold all his personal stockholdings over the last three months, also expects further downside for equities due to the high probability of a messy break up of the euro zone and political uncertainty in the US

He advised investors to buy short term Asian corporate bonds for income, but added that he may look to pick up equities around September after the situation in Europe and the US improves.

As China shifts its focus away from an investment-led economy to a consumption based one, Southeast Asian countries that supply consumer goods to China including Indonesia stand to benefit, but export-oriented economies such as Taiwan may suffer.

Rupee still has room to fall further: Lombard Odier - The Economic Times

Indian shares fall on rupee; Bharti Airtel hit

May 23 (Reuters) - Indian shares fell 0.6 percent on Wednesday, to close at their lowest since January 2012, as the rupee dropped to a new record low for the sixth consecutive session.

Bharti Airtel fell 4.7 percent, leading the decline in telecom stocks, ahead of an upcoming telecom ministry meeting, on Thursday, to take decision on spectrum pricing.

Idea Cellular fell 3.7 percent and Reliance Communications ended 2.2 percent lower.

India's main 30-share BSE index provisionally fell 0.61 percent to 15,928.77 points. The broader 50-share NSE index fell 0.51 percent to 4,835.65 points. The Indian rupee dropped to a record low of 56.19 to the dollar amid renewed global risk aversion.

Indian shares fall on rupee; Bharti Airtel hit | Reuters

 

[laman12345]

Rupee drops to new record low; sentiment weak

May 24, 2012

(Reuters) - The rupee opened weaker on Thursday and fell to a new record low, with traders waiting for the impact of India's petrol price hike on domestic equities for further direction.

 

[shuttler]

rupee is still on the downfalling trajectory this morning towards 56.3 - 56.5 mark.

someone on other thread has downplayed the severity of the downfall of rupees on the economy as business as usual. It's is ignorance to great extent.

india economy has all the sickening symtoms:

high inflation 7.2%; high unemployment 9.4%; high debt to gdp ratio; double deficits, high dependence on crude oil, poor government, deeply embedded social and political problems, poor liquidity. You can see the weight of the problems when all these factors are added up!

Its economics 101!

 

[cloud_9]

Looks at those curves
Most of the currencies from emerging economies are hitting a new low each day but still I think INR is the worst performer.