India’s GDP to expand by 7.9% this fiscal: Goldman

[Mo12]

It's a tough choice for all countries...
No or very little automation-----low-skill-----number of jobs is high------very little profit-----prolonged poverty
Automation-----high-skill-----number of jobs is low-----high profit but high unemployment----social unrest

Yep just like China 20 years ago.

 

[AndrewJin]

Yep just like China 20 years ago.

20 years ago the new technological revolution had not started.

 

[Shankranthi]

20 years ago the new technological revolution had not started.

LOL.

That will be a disaster if you ask me in a growing population country. We should give farmers enough incentives to continue farming, and encourage his next generation to choose farming too. Industrial labor forces can be filled by the land less low income urban dwellers.

The main problem is, we look at farming as a low end job, taken by people without any formal education. But we have to change this outlook.

Farming and Hunting is the lowest form of economic activity.

Idea is to provide them with the opportunity that will help them climb up the ladder towards higher productivity and resources.

Farmers should be given incentive to educate their child and make the next generation part of the knowledge industry. Easy access to education and resources is the key, not continuing to create a large class of serfs.

 

[+4vsgorillas-Apebane]

Why are people looking forward to implementation of GST? If its the same as the GST we have here in Australia and New Zealand, then its a 10 percent price hike across the board.

 

[Echo_419]

Why are people looking forward to implementation of GST? If its the same as the GST we have here in Australia and New Zealand, then its a 10 percent price hike across the board.

GST will create unified market & cut the red tape. Next big reforms are going to be in the labor & Land sector

 

[Shankranthi]

GST will create unified market & cut the red tape. Next big reforms are going to be in the labor & Land sector

The biggest reform however has to be in the monetary sector and that is unlikely to happen under Modi.

 

[Echo_419]

The biggest reform however has to be in the monetary sector and that is unlikely to happen under Modi.

Do name it

 

[Shankranthi]

Do name it

I just did.

 

[Echo_419]

I just did.

I just did.

I mean, what particular reform are you suggesting in Monetary sector?

 

[Shankranthi]

I mean, what particular reform are you suggesting in Monetary sector?

In Switzerland and Denmark the interest rate is - 0.75% (negative). . ....... this means Swiss and Danish citizens have to PAY the Banks to keep their money.

In Sweden the interest rate is - 0.35% (negative) ... they too PAY the bank to keep their money.

In Japan and rest of Europe the central bank Interest rate is 0% .... people are just thankful that they have agreed to keep the money in the bank for free.

In the US the interest rate is 0.5%.

In India, Banks offer 7.5 % interest rate on FD if you put your money in the bank.

Ever wonder why investors in Europe, US and Japan do not rush to India to simply park their money and live off the interest?

THIS is what monetary reforms should be all about.

 

[Mo12]

In Switzerland and Denmark the interest rate is - 0.75% (negative). . ....... this means Swiss and Danish citizens have to PAY the Banks to keep their money.

In Sweden the interest rate is - 0.35% (negative) ... they too PAY the bank to keep their money.

In Japan and rest of Europe the central bank Interest rate is 0% .... people are just thankful that they have agreed to keep the money in the bank for free.

In the US the interest rate is 0.5%.

In India, Banks offer 7.5 % interest rate on FD if you put your money in the bank.

Ever wonder why investors in Europe, US and Japan do not rush to India to simply park their money and live off the interest?

One question, why doesnt India exchange rate increases when its IR is so much higher?

 

[Shankranthi]

One question, why doesnt India exchange rate increases when its IR is so much higher?

This is a simplistic answer but address the root of your question,

1. Because we IMPORT more than we EXPORT. We have to purchase more USD to bridge the gap.
2. INFLATION. i.e value of Rupee decreases every year and THIS trend has continued for 75 years of Indian independence.

Also supported by,

3. Low economic activity due to higher interest rates. People find it safer to put it in bank than invest it in more productive markets.
4. Poor Economic climate (license raj, law of jungle) which makes for poor economic health and lowers existing productivity.

 

[Echo_419]

In Switzerland and Denmark the interest rate is - 0.75% (negative). . ....... this means Swiss and Danish citizens have to PAY the Banks to keep their money.

In Sweden the interest rate is - 0.35% (negative) ... they too PAY the bank to keep their money.

In Japan and rest of Europe the central bank Interest rate is 0% .... people are just thankful that they have agreed to keep the money in the bank for free.

In the US the interest rate is 0.5%.

In India, Banks offer 7.5 % interest rate on FD if you put your money in the bank.

Ever wonder why investors in Europe, US and Japan do not rush to India to simply park their money and live off the interest?

THIS is what monetary reforms should be all about.

Have a little faith in RBI, the land & the labor reforms are needed first

 

[Shankranthi]

Have a little faith in RBI, the land & the labor reforms are needed first

LOL. What a naive statement.

Do you even know what Labour reforms are ACTUALLY required ? I am going to bet a million $ that you will tell me that companies should have the right to fire employees without hassles


Labour is controlled by economic realities, not "laws".

RBI has been the chief architect of our Economic mess for the last 7 decades. You can continue to have faith in them to keep doing what they have done for close to a century.

 

[kadamba-warrior]

The farmer suicide can be curbed by having a better logistics to transport food across India within a week. I believe the crop insurance can and will reduce it to a large extent.

I believe linking Farmers directly with consumers across India by freeing them from the clutches of leeching APMC's and the middlemen will do wonders to Indian farmers and might also help control inflation.

The present system benefits only the middlemen and is one of major factors in compelling farmers to commit suicide!

It is astonishing to think that exploitation of farmers by APMC middlemen has been institutionalized for a long time and no party -- bar the recent e-market initiative by Modi -- has done anything substantial to rectify the anomaly!