India's growth is in barely positive territory: US think tank

[The Accountant]

That's not a convincing reply I guess. There is an economic slowdown and that is a fact very well acknowledged by our FM publicly. And it's not just thus Think Tank, almost all major rating agencies across the glob who cover Indian economy as well as the World bank and IMF had re-rated our economy. So I guess those who really matter does care about all these developments.



We are not in any Panic mode right now. There is enough surplus with most LargCap and MidCap companies. It's just that the economic activities have just slowed down and I think it's cyclic. Every few years this should happen so that the weak hands get out and only competitive businesses flourish. The end result should be encouraging.

A good post which invite debates. However, I would like to disagree that this is cyclic. I thinks it is very much ill-timed at the time when India was flexing its muscles in global arena to partially take world manufacturing share at the same time world enter into a recession hence the investment done by India for export are now in trouble. It is now to see who can survive that below and how long this recession will continue.

 

[Gandhi G in da house]

U.S GDP have been always less than 6%, (3.8% average to be precise) for the last 200 Years. Yet see where they are now ??

Compared to that if any country is able to consistently maintain a GDP growth rate above 5% for half a century or more will be handsomely rewarded I guess. And I don't think India's growth rate will nose dive too drastically so easily and even if that happen, it won't stay there for long. Our population is our blessing in disguise. We were and are always a consumption story.

What we are seeing for sometime now is our bad governance. Under any bad governance India will grow at a rate of 4% plus and under a better/good governance we have a chance to grow above 10% plus.

Do you think the Congress was handling the economy better ?

 

[Chhatrapati]

Congress was handling the economy better

There is not big of a policy difference between BJP or Congress, only that this time economy is better handled, less freebies and less government regulation leads to better fiscal health. Together with low inflation.

The slow down is mainly due to the reforms taken, such as GST, formalization of many economic activities that once were done through shadow banking, and the slow down in real estate sector, which started with demonetization.

 

[Gandhi G in da house]

There is not big of a policy difference between BJP or Congress, only that this time economy is better handled, less freebies and less government regulation leads to better fiscal health. Together with low inflation.

The slow down is mainly due to the reforms taken, such as GST, formalization of many economic activities that once were done through shadow banking, and the slow down in real estate sector, which started with demonetization.

I genuinely feel that the economy was in a much better health during the UPA terms. From 2004 to 2011, we were growing well and fast and we had bounced back very strongly after the 2008 financial crisis. things started going downhil from 2011/2012 onwards. But during Modi's time the economy has not revived at all. In fact, it has tanked even further since demonetisation in 2016.

Now I am not an economist, but I say that as a citizen from observing the markets and general consensus among the population during these phases.

 

[Tom M]

Do you think the Congress was handling the economy better ?

Why not ?? The biggest achievement was the economic liberalization of 1991/93 which paved way to a lot of MNC to establish their businesses as well as attracted a lot of FDI investments in India which was the driving force. The benefits that we reap now were all their contribution, especially Dr. Manmohan Singh. That's main reason India could benefit from the IT boom of late 90's and early 2000's

Why should we shy away from giving credit where it is due ???

 

[Sheikh Rauf]

If india is going thru what Pakistan have been facing india would have been in many pieces by now
India knows that Pakistan is much strong and they cant beat Pak in its worst and india on its peak 2020 super power.

 

[Gandhi G in da house]

Why not ?? The biggest achievement was the economic liberalization of 1991/93 which paved way to a lot of MNC to establish their businesses as well as attracted a lot of FDI investments in India which was the driving force. The benefits that we reap now were all their contribution, especially Dr. Manmohan Singh. That's main reason India could benefit from the IT boom of late 90's and early 2000's

Why should we shy away from giving credit where it is due ???

Not shying away. I was just asking your opinion in the context of UPA's performance in 2004 to 2014 as compared to NDA's performance in the last 6 years.

And yes, I agree about 1991, but I believe that liberalisation should have happened much before 1991 and
Congress was sitting on it.

 

[Tom M]

Not shying away. I was just asking your opinion in the context of UPA's performance in 2004 to 2014 as compared to NDA's performance in the last 6 years.

And yes, I agree about 1991, but I believe that liberalisation should have happened much before 1991 and
Congress was sitting on it.

Well there where Geo-political factors for that I guess. It was a bipolar world before 91. And we as everyone know where close to then U.S.S.R. That's why our markets were not as open to the world as it happened after 91.

And yes, 2004-2014 was rather a great period compared to post 2014. And it's not me alone, but the experts as well as numbers that say so.