The Case for India: Free to Succeed

[rcrmj]

OK ! Grandpa. what makes you think my 'reality' is different from yours ? Forget your complex

He used that coz he didnt like to hear nice things said about India.

you should change is part to 'you do not use to hear things that only happens in reality'

 

[Spitfighter]

kid i am already living in reality, all i care is to make lots of money and nice confort life, so i go anywhere can offer me the most (economically and socially) if China and India's situation switched I would definitly move to India in that case, however maybe in another life



we use the 'caste system' as the reality hammer to hammer you back to your real own position

Relax man, in any case time will tell.

 

[Interpreter]

I recently have watched a BBC documentary showing discrimination based on caste system is still prevalent in university campus which even led to some students committing suicide. Is it complete over exaggeration by BBC then? How can you tell what people's caste is? Is it by last name? skin color? or something else?

Some Indians might thought the West would praise their so-called democracy if they didn't see how VOA described India as a country where people sold their daughters to maintain their poor families.

In fact,we don't want transfer these reports because every country has its own problems,but some hyesteric persons here always like to prove their success by disparaging China.

Real success do not need achieved by belittling another country!

 

[beijingwalker]

the article attacks China's banking and monetary system,but the truth is,Chinese banking and monetary system is highly effective and India's seems to be in a mess.

Infosys Says India Should Learn From China in Managing CurrencyOctober 21, 2011, 5:19 AM EDT
Businessweek
Oct. 21 (Bloomberg) -- India should manage its currency to reduce volatility like China guides its yuan exchange rate, Infosys Ltd.’s Chief Financial Officer V. Balakrishnan said, after the rupee today extended losses to a two-year low.

The Reserve Bank of India should “step in at appropriate times,” the executive in charge of hedging at the nation’s second-biggest software exporter said in an e-mail response to a query. The rupee has slumped 11 percent this year, the worst performance among Asia’s 10 most-traded currencies, compared with a 3.2 percent gain in the yuan.

An inflation rate that has stayed untamed even after 12 interest-rate increases since March, 2010, nine quarters of current-account deficit and a prolonged debt crisis in Europe have caused the rupee to tumble this year. The fluctuation erodes profitability at Infosys, which will have $742 million of its revenue covered by risk-mitigating currency derivatives by the end of December, according to Bangalore-based Balakrishnan.

“Rupee’s depreciation at such extreme levels is not desirable when the Indian economy is going through slower growth due to high inflation,” he said. “India should learn to manage its currency like China.”

The rupee fell 0.8 percent to 50.2075 against the dollar at 1:16 p.m. in Mumbai, according to data compiled by Bloomberg. It touched 50.2125 earlier today, the lowest since April 2009.

Least Cover

Infosys has the lowest foreign-exchange cover among India’s three biggest information technology companies, wrote Bhuvnesh Singh, an analyst at Barclays Capital in Mumbai, in an Oct. 18 report. The company hedges 40 percent of its revenue, compared with bigger rival Tata Consultancy Services Ltd., which protects 80 percent of its sales, and No. 3 Wipro Ltd., which covers about 110 percent, the report said.

A stronger currency makes products more expensive for overseas buyers, reducing demand, while weakness boosts revenue when the company repatriates earnings. Every 1 percent movement in the Indian rupee against the U.S. dollar has an impact of approximately 50 basis points on Infosys’s operating margin, the company said in its annual report.

Infosys derived 65 percent of its revenue from companies in North America and 22 percent from Europe in the year ended March 31. The code writer that counts BP Plc and Neiman Marcus Group Inc. among its clients reported a 10 percent increase in net profit in the quarter ended Sept. 30, beating estimates.

The People’s Bank of China sets a daily reference rate for the yuan and allows it to trade up to 0.5 percent on either side, a policy that has invited criticism from U.S. officials including Federal Reserve Chairman Ben S. Bernanke. Failure to allow faster gains against the dollar has impeded a global shift in demand toward emerging markets that would bolster the global economy, according to him.

Economic ‘Dynamism’

The yuan has appreciated 10 percent, adjusted for inflation, since mid-2010, a pace that’s too slow, U.S. Treasury Secretary Timothy F. Geithner said on Oct. 11. In contrast, he wrote in a guest column in India’s Hindustan Times in November, that India is demonstrating economic “dynamism” that comes from promoting internal growth, while allowing currency flexibility.

India’s rupee is headed for a third monthly loss as a government report on Aug. 30 showed the gross domestic product grew 7.7 percent in the three months ended June 30, the slowest pace in six quarters. Another report showed factory output expanded at the slowest pace in 29 months in August.

The central bank has boosted its benchmark rate by 3.5 percentage points since March 2010 as wholesale-price inflation stayed above 9 percent for 10 straight months through September.

--Editors: Sam Nagarajan, Arijit Ghosh

 

[Huan]

To the author of this TIME article, how is democracy the ultimate key ingredient in economic progress? Provide real technical fundamentals please. Look at the United States and the European Union. OMG lol

I should nominate this article for the Joke of the Year award, etc.

 

[Paan Singh]

To the author of this TIME article, how is democracy the ultimate key ingredient in economic progress? Provide real technical fundamentals please. Look at the United States and the European Union. OMG lol

I should nominate this article for the Joke of the Year award, etc.

democracy is required..see the examples of arab spring and other dictators.even burma is slowly catching up
you cant feed people on the bases of development

 

[beijingwalker]

now even more and more western economists admit that so called western democracy is not the only way to economic success and advocate for the idea of regulated economy.

China belongs to eastern Asia block,all countries from this block have or had strict laws to regulate everything when first started economic take off.

 

[IND151]

China has directed the massive investment percentage of GDP into the creation of industrial capacity, aimed substantially at export markets. It is therefore vulnerable to downturns in global markets, particularly in the USA. Significantly since 2004 China has commenced a slow re-orientation towards strengthening consumption in the home market relative to investment. The savings rate in China has been exceptionally high, and the level of credit in relation to GDP has been very low by world standards. The level of consumption had fallen to 38% of GDP by the end of 2005, just about the lowest level of any major world economy. Coupled with this we note that the excess capacity generated by the high level of investment relative to consumption has resulted in overcapacity, stagnating or reducing prices, growing levels of unsold inventory and pressures on profitability. Excessive construction and the reluctance of the majority of the population to draw down on savings have prompted falling prices in the property sector. One economist has recently calculated that if personal consumption in China as a percentage of GDP had remained at its 1990 level it would be 30 per cent above current levels - a more rational balance in relation to other GDP components (Lardy 2006). There is sufficient spare capacity and inventory backlog in China to enable consumption to rise significantly without resulting in price inflation.

India has followed a different path. The major point of difference has come about as a result of demographic change. The size of India's middle class has quadrupled to almost 250 million people over the past 15-20 years. Overall population growth has slowed considerably, with large gains in per capita income. I India's demographics are beginning to resemble those of the developed West - a move away from a high birth rate, overpopulation and predominant poverty towards smaller families and increased average income. There still remains, of course, a major issue of poverty and poor education. If, however, one looks at the economy as a whole, as the current generation of potential baby boomers matures and the consumer sector of the economy continues to prosper, spending power and modern consumer behaviour look set to “trickle down” through the economy for decades. The big issue in all this is that India has relied considerably on a combination of growing domestic market demand and investment in knowledge-intensive industry and services, which has meant that India has been to a great extent insulated from global downturns affecting physical trade. Personal consumption accounts for just over 60 per cent of Indian GDP, making it increasingly comparable with a fully-developed Western economy. Thus it has been argued (for example Das 2006) that India’s “boom” is intrinsically more durable than China’s, noting that China’s population is likely to peak around 2030, whereas India’s will continue to grow, on current projections, till about 2065.

special thanks to Indo Carib who posted the article and its link

 

[Developereo]

democracy is required..see the examples of arab spring and other dictators.even burma is slowly catching up
you cant feed people on the bases of development

If people have jobs, the streets are safe, and the home prices keep going up, most people don't give a damn who runs the country. The vast majority of people are apolitical. In fact, that is a valid measure of a government's success that people don't care who runs the country.

The "democracy" nonsense is drudged up by the Western media because they are running out of bad things to say about China's rise.

 

[Paan Singh]

If people have jobs, the streets are safe, and the home prices keep going up, most people don't give a damn who runs the country.

The "democracy" nonsense is drudged up by the Western media because they are running out of bad things to say about China's rise.

i dont think so..libyan dictator was good in providing facilities and even mushy did good job unlike few others..even egypt had good economy and growth.so real power is in the hands of people.Better to give them early,otherwise face the result.

 

[Developereo]

i dont think so..libyan dictator was good in providing facilities and even mushy did good job unlike few others..even egypt had good economy and growth.so real power is in the hands of people.Better to give them early,otherwise face the result.

Not true. Libya had 20% unemployment and one third lived below the poverty level (according to wiki). Egypt had a disasterous economy; most of the American aid went to Mubarak and his cronies. Musharraf was also corrupted by power and interfered in the justice system and matters that affected everyday people.

By contrast, China's rulers make sure people's day-to-day life is relatively smooth. The fruits of the economic progress are not as well distributed as they should be, but democratic countries don't necessarily do better on that score either. China's biggest challenge is to spur more grassroots entrepreneurship and I am not sure if democracy is relevant to that.

 

[Shadow_Hunter]

If people have jobs, the streets are safe, and the home prices keep going up, most people don't give a damn who runs the country. The vast majority of people are apolitical. In fact, that is a valid measure of a government's success that people don't care who runs the country.

The "democracy" nonsense is drudged up by the Western media because they are running out of bad things to say about China's rise.

truly a China's pup, obviously, the people who haven't democracy themselves won't understand its value....

 

[Developereo]

truly a China's pup, obviously, the people who haven't democracy themselves won't understand its value....

Uh, I live in Australia.

Unlike India and Pakistan, voting is mandatory here. And I know exactly how much thought the average voter puts into his/her vote.

 

[Shadow_Hunter]

Uh, I live in Australia.

Unlike India and Pakistan, voting is mandatory here. And I know exactly how much thought the average voter puts into his/her vote.

Are u a pakistani citizen or a australian one?

 

[beijingwalker]

the recent figures show that instead of catching up,India's economy is further left behind comparing to China,and the gap is getting bigger every passing day just like what has happened in the last 3 decades.truth always hurts and facts always dash idoits dreams.

India Loses More Ground on China
October 20, 2011, 9:00 AM IST

There were only a few people to begin with who really thought India’s economic growth rate would outpace China’s – at least anytime soon.

Now, those voices are likely to be fewer and weaker.

As China’s economic growth hovers close to double digits, India is having to admit its 9% Gross Domestic Product expansion goal for the year ending March 31 is now pretty unrealistic.

“Let me not hide the fact that I have been disappointed by our growth performance over the last few months. It is evident that India’s growth rate in 2011-12 will be less than what we were expecting in February when I presented the Budget,” Finance Minister Pranab Mukherjee said in a speech during a media event on Wednesday.

In February, the finance minister said India’s economy was on track to expand 9% in the year through March 2012. On Wednesday, he hinted that 8% – or less –was more like it. That’s what “most observers” are expecting, Mr. Mukherjee said. He stopped short of making a formal growth forecast, saying he’ll share that with Parliament in December.

Those observers would appear to include the World Bank, which in a report released Wednesday echoed Mr. Mukherjee’s fears: it said that India’s economic growth is likely to slow from 8.5% last year to between 7% and 8% over the next two years. In other words, all those GDP headlines are likely to include a 7, or 7 point something, not the 8 or 9 or even 10 of the government’s dreams.

So what’s to blame? In his speech, Mr. Mukherjee said global financial woes – from high oil prices to the volatility of other commodity prices and capital flows – were largely responsible. Monetary policy tightening and interest rates, a response to the country’s uncomfortably high inflation, didn’t help either, he noted. These are points the World Bank also covered.

If –as the finance minister put it – “the dark clouds [that] have gathered in the global skies” are to blame, why isn’t China also suffering?

It appears that Beijing has done better than New Delhi at boosting domestic demand, an area that acquired greater relevance as Western countries are struggling with a prolonged economic slowdown.

“With the slow growth expected in core OECD countries, India’s GDP growth will have to rely on domestic growth drivers,” the report said. To do this, it said major structural reforms aimed at achieving fiscal consolidation (another big challenge for India) and at encouraging investment would be necessary. It said that “regulatory uncertainties” – ranging from environmental clearances to land acquisition laws to tax reforms – were holding back investors, an issue that is less of a problem in China. To strengthen domestic growth, it urged India to clear these up and to invest in infrastructure, among others.

China, by comparison, is now relying more heavily on its domestic demand and this is already helping its economy make up for a weaker export market.

Figures released earlier this week show that China’s gross domestic product expanded 9.1% in the quarter ended Sept. 30 from a year earlier, only slightly under analyst expectations of 9.2% growth.

The World Bank report also said that, compared to the current year, in the year through March 2011 India benefited from the strong performance of its agricultural sector, something that depends largely on a good monsoon.

Mr. Mukherjee invited his audience to look at the brighter side (rather than East.) “This is disappointing but at the same time we must not lose perspective of the global situation.”

However, China didn’t crop up in his comparison, which focused instead on debt-strapped Western countries – and their less than 2% growth