Low growth, high inflation likely to persist in India

[Chinese-Dragon]

Hey brother, long time no see how are you?

I'm good brother.

Of cos, i remember these Indian "wet dreams" however since i got long memory, how can we miss this one?

Make Mumbai No 1: PM

I can't forget this stuff, it's the best comedy in the world, even though it is unintentional.

 

[Fattyacids]

Indian economy is doing bad ,much wont change till elections.....hopefully the congress wont come back to power ..its hurting the country like anything ........and regarding quarelling with neighbours is to distract the population from real problems...who else better than someone from china can understand that.

What is Modi going to do? I hear a lot about Modi here, but I've yet to see any economic reform plan.

 

[Fattyacids]

Hey brother, do you remember this?

From India's favourite President:

India to become superpower by 2012: Kalam - Economic Times

Or this...

Which was said by India's finance minister Chidambaram back in 2010:

India poised to overtake China's growth rate: Chidambaram - Times Of India

No idea why they always have to mention China for no reason.

Apparently the new India central bank chief said something about India overtaking China LOL. Let me see if i can find the article.

 

[HariPrasad]

as per Wiki i read long back

India will remain below a middle income country till 2050

I am sure you would not have read it.

http://timesofindia.indiatimes.com/...onomy-by-2050-Report/articleshow/12447197.cms

Report: India to be world's biggest economy in 2050 – Business 360 - CNN.com Blogs

http://in.finance.**********/photos/top-ten-economies-in-2050-1333617884-slideshow/

Why India will be world's No. 1 economy by 2050 - Rediff.com Business

http://www.telegraph.co.uk/finance/...ds-biggest-economy-in-less-than-40-years.html

 

[Chinese-Dragon]

What is Modi going to do? I hear a lot about Modi here, but I've yet to see any economic reform plan.

Modi's economic model is actually quite good:

Gujarat's economy: India's Guangdong | The Economist

It's similar to China's economic model, with emphasis on investment and industry. No wonder that Modi's province of Gujarat has the highest sustained growth rate amongst all Indian provinces, as well as being a manufacturing powerhouse in that country.

Whereas if Congress got back into power, look at their economic policies, they would finish the job they started by destroying India's economy.

 

[India_rocks]

Modi's economic model is actually quite good:

Gujarat's economy: India's Guangdong | The Economist

It's similar to China's economic model, with emphasis on investment and industry. No wonder that Modi's province of Gujarat has the highest sustained growth rate amongst all Indian provinces, as well as being a manufacturing powerhouse in that country.

He is a pro-China bro..

 

[Chinese-Dragon]

He is a pro-China bro..

That's never a bad thing.

 

[chhota bheem]

Don't worry, they "will" be better "soon",



So you still think just a election can change the condition?

Its not the elections which will change but the power to over throw the corrupt and directionless Gov will change things.

 

[Fattyacids]

Modi's economic model is actually quite good:

Gujarat's economy: India's Guangdong | The Economist

It's similar to China's economic model, with emphasis on investment and industry. No wonder that Modi's province of Gujarat has the highest sustained growth rate amongst all Indian provinces, as well as being a manufacturing powerhouse in that country.

Whereas if Congress got back into power, look at their economic policies, they would finish the job they started by destroying India's economy.

So this Modi is taking a clue from the Chinese model, replacing agriculture with more manufacturing. Quite a brief article from economist, not much else was said. Pardon my cynicism, I doubt he could replicate it on a national level even if he wins. The regional politicking within the coalition is a gigantic task to overcome.

Congress has a more protectionist approach, not so open to outside investment. I guess their base voters must be among the rural folks.

 

[Chinese-Dragon]

So this Modi is taking a clue from the Chinese model, replacing agriculture with more manufacturing. Quite a brief article from economist, not much else was said. Pardon my cynicism, I doubt he could replicate it on a national level even if he wins. The regional politicking within the coalition is a gigantic task to overcome.

Congress has a more protectionist approach, not so open to outside investment. I guess their base voters must be among the rural folks.

Your cynicism is right and correct, not to mention the fact that he probably wouldn't be able to win in the first place, having already been branded a "mass murderer" by Congress for a decade now.

But look at the policies of the Congress party and you'll see the biggest nightmare you can imagine.

They have by FAR the worst fiscal deficit and trade deficit in the entire developing world, and yet they are creating the largest socialist schemes in the entire world like FSB and NEGERA. They are handing out "free everything" to everyone in reach, subsidizing everything, without any productivity gains to pay for it.

Just look at any of their policies, they are so ridiculous. They have good economists like Singh at the head, but Singh can't do anything without clearance from Italian Sonia.

And recently, they had a big slowdown in economic growth and a falling currency, and they INCREASED the interest rates.

India's Central Bank Surprises Markets With Interest Rate Increase - WSJ.com

They are not investing for the long-term, they are spending all the money they can get their hands on (mostly by borrowing and getting into debt)... all in order to launch these massive socialist schemes, and essentially bribe the voters to vote for them. Even while destroying their long-term economic health.

 

[GURU DUTT]

Bhai Jaan Ham Pakistani Balley hi Ghareeb Ho,Baate hum bari bari krte hay

just like sheikh chilli

 

[Fattyacids]

Your cynicism is right and correct, not to mention the fact that he probably wouldn't be able to win in the first place, having already been branded a "mass murderer" by Congress for a decade now.

But look at the policies of the Congress party and you'll see the biggest nightmare you can imagine.

They have by FAR the worst fiscal deficit and trade deficit in the entire developing world, and yet they are creating the largest socialist schemes in the entire world like FSB and NEGERA. They are handing out "free everything" to everyone in reach, subsidizing everything, without any productivity gains to pay for it.

Just look at any of their policies, they are so ridiculous. They have good economists like Singh at the head, but Singh can't do anything without clearance from Italian Sonia.

And recently, they had a big slowdown in economic growth and a falling currency, and they INCREASED the interest rates.

India's Central Bank Surprises Markets With Interest Rate Increase - WSJ.com

They are not investing for the long-term, they are spending all the money they can get their hands on (mostly by borrowing and getting into debt)... all in order to launch these massive socialist schemes, and essentially bribe the voters to vote for them. Even while destroying their long-term economic health.

MMS track record as Finance Minister was stellar, even after he became PM, growth was good, but he was hard done by the global slowdown caused by subprime, Lehman and the European debts crisis. Now with the Fed going to taper the QE program, India and other emerging countries was dealt with a new crisis, currency depreciation.

To be honest, I doubt the Italian waitress knows anything about economy. Congress has always been a socialist-welfare party much like the UK prior to Margaret Thatcher's reform in the 80s. The only difference is UK is industrialized, it could afford more welfare scheme than India which is pretty much an agricultural based economy.

In terms of monetary policy, I think it was the correct move. Higher interest attracts more capital. If the goal was to stabilize the rupee, then they cannot cut interest. If the goal was to tame inflation, then they have to hike rate. Otherwise inflation will erode any growth, real growth could even be negative.

The govt spending comes under ministry of finance, it's govt's budget if you like, they empty their coffer if they wish. But Monetary policy under central bank is independent of the govt/ministry of finance influences. Their focus is the overall economy, consists of govt and private sectors.

 

[Chinese-Dragon]

MMS track record as Finance Minister was stellar, even after he became PM, growth was good, but he was hard done by the global slowdown caused by subprime, Lehman and the European debts crisis. Now with the Fed going to taper the QE program, India and other emerging countries was dealt with a new crisis, currency depreciation.

To be honest, I doubt the Italian waitress knows anything about economy. Congress has always been a socialist-welfare party much like the UK prior to Margaret Thatcher's reform in the 80s. The only difference is UK is industrialized, it could afford more welfare scheme than India which is pretty much an agricultural based economy.

In terms of monetary policy, I think it was the correct move. Higher interest attracts more capital. If the goal was to stabilize the rupee, then they cannot cut interest. If the goal was to tame inflation, then they have to hike rate. Otherwise inflation will erode any growth, real growth could even be negative.

The govt spending comes under ministry of finance, it's govt's budget if you like, they empty their coffer if they wish. But Monetary policy under central bank is independent of the govt/ministry of finance influences. Their focus is the overall economy will consist of govt and private sectors.

What do you think of their massive socialist schemes that are providing free everything to everyone?

Especially considering they have the worst fiscal deficit in the developing world to start with, as well as one of the highest debt-to-GDP ratios in the world?

How can you give free things to everyone if you are already up to your eyeballs in deficit and debt? Who is going to pay for it, the 3% of people who pay taxes? That won't cover even a small percentage of it.

Why aren't they putting that money into long-term investment?

 

[Fattyacids]

What do you think of their massive socialist schemes that are providing free everything to everyone?

Especially considering they have the worst fiscal deficit in the developing world to start with, as well as one of the highest debt-to-GDP ratios in the world?

How can you give free things to everyone if you are already up to your eyeballs in deficit and debt? Who is going to pay for it, the 3% of people who pay taxes? That won't cover even a small percentage of it.

Why aren't they putting that money into long-term investment?

One, it is any socialist party ethos to do that. Two, their vote base are these rural folks and election is coming.

In any democracy, retaining power is the first and foremost objective.

From my limited following of India's news, the govt recently liberalized many sectors, including retail and defence sectors, to attract investment, aka foreign capital. I guess they are banging on this one to pay for the welfare scheme, while maintain the current debt and deficit until they win the next election.

 

[Fattyacids]

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