Indian Economy

[Suryavanshi]

there is more the story than tax breaks and subsidies. India is such a place that binary logics come to die.

after a proper ground feedback is taken from the business owners, it might even be the case that issue is with MBA wallahs telling their bosses not to take risks, simply because their education does not allow them to think outside their box. let the money bags talk more about it in earnest first.

research clusters in India are concentrated more south of vindhyas.

View attachment 18332

The focus was entirely different, south is reaping the benefits of it

 

[ezsasa]

The focus was entirely different, south is reaping the benefits of it

and this effects the discourse as well, discussion on manufacturing R&D in chennai or bangalore will bring out very different points than a discussion that happens on this topic in delhi or mumbai.

and those who are already into R&D, and those who are not interested.

 

[crazywithmath]

Reason why capex in India doesn't translate to much growth. Majority of it goes to importing equipment and machinery while in china majority of it stays in the economy plus enables their industry to export more capital goods abroad.

Not true.

The post covid Capex boom is not translating into a broad based economic boom because the purchasing power of the masses has been negatively affected. A combination of fiscal loosening and rate cuts would have helped but the gormint is too obsessed with their fiscal discipline (even though they cannot/won't spend what they are saving because of limited state capacity).


Heck, I doubt the correct feedbacks are even reaching the PMO. Concentration of power at the topmost echelon and viewing anyone outside that elite circle with utter contempt have been hallmarks of the Modi admin for the past few years. Worse, both the party org and the administration are happy to oblige. This is also why you have so many l̶a̶m̶p̶p̶o̶s̶t̶s̶ punching bags heading important Ministries who know/care very little about the state of decisionmaking at their own Ministries.

This is also why abusing/badmouthing Tai achieves nothing. She is not really in charge of anything.

 

[ezsasa]

Not true.

The post covid Capex boom is not translating into a broad based economic boom because the purchasing power of the masses has been negatively affected. A combination of fiscal loosening and rate cuts would have helped but the gormint is too obsessed with their fiscal discipline (even though they cannot/won't spend what they are saving because of limited state capacity).


Heck, I doubt the correct feedbacks are even reaching the PMO. Concentration of power at the topmost echelon and viewing anyone outside that elite circle with utter contempt have been hallmarks of the Modi admin for the past few years - both the party org and the administration are happy to oblige. This is also why you have so many l̶a̶m̶p̶p̶o̶s̶t̶s̶ punching bags heading important Ministries who know/care very little about the state of the decisionmaking at their own Ministries.

This is also why abusing/badmouthing Tai achieves nothing. She is not really in charge of anything.

on fiscal loosening, where is it supposed to be spent on?

 

[GodEmperorDoom]

View: https://x.com/GuhaSarbendu/status/1866858019080089912

Told ya
Everything they use is imported
And all excuses given we need to eat drink then do this and that are rubbish
Many smaller and lesser critical components apart from these are imported
Their rnd department exist for namesake where employees beg to get transferred to other departments as there is no scope of experience and knowledge

From Defense perspective, they spent 20Billion on Su-30 Import Program entirely and maybe like 1/10th of it on Development of Tejas. I doubt it even crosses 1 Billion. They spent a fucking 5 Billion on S-400 but even if 500 Million is given to a DRDO+Private Consortium they could come up with decent product.

All those R&D costs are excuses.

 

[crazywithmath]

on fiscal loosening, where is it supposed to be spent on?

Where do I even begin?

Option 1: Do a DBT transfer on the lines of PM Kisan Nidhi of 2019-20. Possibly, a limited nationwode ladli behna too. Will stop the whining of FMCGs and automakers. Good for the economy too.

Option 2: Fund more PLIs. Bring research linked incentives.

Option 3: More urban/rural housing.

Option 4: Double down on hard infra. Fund more expressways, border highways, HSRs, DFCs, RRTS, the greenfield SHSR corridors between important cities they themselves proposed to develop in parallel to their upcoming HSRs.

Option 5: Fund the armed forces. Let them develop Mk 2, AMCA, Kaveri. Procure some Rafales.

Option 6: Do some limited tax cuts.

Option 7: Cut fuel prices, crude is down globally. Keeping the price artifically inflated helps the OMCs, PSUs and Ambani make record breaking profits but discourages consumption.

Option 8: Offload stakes in some PSUs.

If the gormint does not have the capacity to spend on productive stuff they should hand their money back.

 

[ezsasa]

From Defense perspective, they spent 20Billion on Su-30 Import Program entirely and maybe like 1/10th of it on Development of Tejas. I doubt it even crosses 1 Billion. They spent a fucking 5 Billion on S-400 but even if 500 Million is given to a DRDO+Private Consortium they could come up with decent product.

All those R&D costs are excuses.

in hind sight it might look that way, when a time line of sequence of events along with diplomatic state of affairs at that point in time is made, it might look differently.

decision to import SU-30 has to be taken into account along with 98 nuclear tests, and sanctions that came after the tests. sanctions means technology denial list. not much is talked about these days, but in modi first term there used to be discussions from ISRO wallahs that some programmes could not be undertaken because some material which was a few microns thin could not be imported because of India being on technology denial list.

for S400 too, there would be a similar back story.

public has the tendency of being "lord of small things", they assume the tiny bit of information that comes out in public domain is the entirety of the story, and make extrapolations based on those tiny bits of information. on top of it, there are bias and prejudice in the way information is perceived.

Bharat is a country of continental proportions, nothing is ever that simple here.