Indian Economy

[Spacemarine]

Gormint and its supporters itself forgets what one of the farm laws was for when every year you have onion and tomato being sold for 100 rs+ /kilo and there is talk of controlling 'food inflation'. Bhugto abhi Khalion ki appeasement karne ke bad.

Hopefully Modi learnt the lesson, if you appease a community they always become more aggressive, sicks have lost their pumped up fake goodwill that was one of the positive came out of it.

States can make their own similar agricultural laws no one stopping them.

 

[FalconSlayers]

In 2014 it was a speculative promise from deep state that they would shift all the manufacturing from China to India. Gobhiji took the words seriously and started the make in India initiative instead of investing much in r&d and creating an ecosystem.
10 years later no meaningful manufacturing has been taken out from China and the one that did did not meet the quality that people were expecting.
Russia helped indian economy from 2022 much more than burgericans ever did

When your entire fake in India scheme is to bring more foreign OEMs to assemble imported stuff here, you can never scale up. We literally incentivise Foxconn to assemble imported components here for creating a few thousand jobs. Yes, I know that supply chains are created in later phases, localisation increases, but the localisation has a limit. Even china doesn't make majority of iPhones, so whats their obsession with throwing it's production numbers? Which even in absolute terms is just double digit billion USD?

India should've been incentivising our own industry and OEMs, through R&D funds and industrial subsidies while inviting foreign OEMs at the same time.

 

[Spacemarine]

When your entire fake in India scheme is to bring more foreign OEMs to assemble imported stuff here, you can never scale up. We literally incentivise Foxconn to assemble imported components here for creating a few thousand jobs. Yes, I know that supply chains are created in later phases, localisation increases, but the localisation has a limit. Even china doesn't make majority of iPhones, so whats their obsession with throwing it's production numbers? Which even in absolute terms is just double digit billion USD?

India should've been incentivising our own industry and OEMs, through R&D funds and industrial subsidies while inviting foreign OEMs at the same time.

India literally has one of the most incentivised industry, nothing comes out of it.

India companies just wait for JVs with outside manufacturers which brings in money, machinery and regular pipelines of orders,
Have you ever seen any Indian companies even investing even world average on R&D? Thats how our industry is built.

 

[Miss Firing]

https://swarajyamag.com/news-brief/counterproductive-fiscal-policy-economists-criticise-modi-government-as-gdp-growth-hits-lowest-in-seven-quarters

'Counterproductive Fiscal Policy': Economists Criticise Modi Government As GDP Growth Hits Lowest In Seven Quarters​

 

[sameer]

When your entire fake in India scheme is to bring more foreign OEMs to assemble imported stuff here, you can never scale up. We literally incentivise Foxconn to assemble imported components here for creating a few thousand jobs. Yes, I know that supply chains are created in later phases, localisation increases, but the localisation has a limit. Even china doesn't make majority of iPhones, so whats their obsession with throwing it's production numbers? Which even in absolute terms is just double digit billion USD?

India should've been incentivising our own industry and OEMs, through R&D funds and industrial subsidies while inviting foreign OEMs at the same time.

Electronics is fine, more investment and integration will happen at a later level. We're still in baby steps in that industry. Solar is also doing ok.

Where he failed badly is labour intensive manufacturing. Textiles, furniture, Shoes, apparel, Toys and general white goods stuff. Anything that has the potential to employ the masses just hasn't taken off.

 

[ezsasa]

India should've been incentivising our own industry and OEMs, through R&D funds and industrial subsidies while inviting foreign OEMs at the same time.

this conversation is going in circles for a few years now, let's move the needle forward a bit, now that we have recent examples that can be cited.

take ola, mahindra and ather EVs, those came out of domestic r&d, it's not like public are buying them because there is a domestic r&d component in those products. Indian public's priority is value for money, Indian public is not saying "take my money, and please keep innovating".

since this is a defence forum, defence is a sector where there is active and visible r&d spending. and we are seeing how orders are panning out in each product category.

in a market where customer's top priority is value for money, some one has to pay for the high risk proposition and failures.

if banks fund such risks, news headlines will say "growing NPAs".
if RBI funds such risks, news headlines will say "growing interest rates".
if gormint fund such risks, news headlines will say "growing interest payments".
if companies fund such risks, news headlines will say "XYZ company has not been profitable for n years".

any direction taken, there will be risks and tradeoffs.

point being, r&d investment is not a binary proposition of "every one should do it or no one is doing it".

i think we need to dig a bit deeper into commercial aspect of r&d spending, other than news paper opeds that deal with this subject at macro level, not sure how much info is available for Indian scenarios.

 

[Spacemarine]

https://swarajyamag.com/news-brief/counterproductive-fiscal-policy-economists-criticise-modi-government-as-gdp-growth-hits-lowest-in-seven-quarters

'Counterproductive Fiscal Policy': Economists Criticise Modi Government As GDP Growth Hits Lowest In Seven Quarters​

View attachment 16953

GDP growth rate will go upwards not all data comes at once couple of decimal points up, also India needs to start rebase its GDP last time I think it was in 2015, lots of regions and sectors are a miss.

Again socialism on the scale Modi has started will push inflation up, the solution is to keep up the Govt spending on productive sectors not reduce it.

More socialism should be countered by More Govt spending on Infrastructure.

 

[ezsasa]

GDP growth rate will go upwards not all data comes at once couple of decimal points up, also India needs to start rebase its GDP last time I think it was in 2015, lots of regions and sectors are a miss.

Again socialism on the scale Modi has started will push inflation up, the solution is to keep up the Govt spending on productive sectors not reduce it.

More socialism should be countered by More Govt spending on Infrastructure.

which socialism is this, schemes from budget documents?

https://prsindia.org/files/budget/budget_parliament/2024/Union_Budget_Analysis_2024-25.pdf

 

[Spacemarine]

which socialism is this, schemes from budget documents?

https://prsindia.org/files/budget/budget_parliament/2024/Union_Budget_Analysis_2024-25.pdf

80 crore getting free food
subsidised electricity, fuel
Free healthcare, medicines
Ladli behna lots of them

that’s socialism no country does this on India’s scale.

Modi is the true Samajwadi the biggest socialist leader ever in modern history..

He can change the name from BJP to SJP it will be better suited

 

[bakofbakchod]

Electronics is fine, more investment and integration will happen at a later level. We're still in baby steps in that industry. Solar is also doing ok.

Where he failed badly is labour intensive manufacturing. Textiles, furniture, Shoes, apparel, Toys and general white goods stuff. Anything that has the potential to employ the masses just hasn't taken off.

Everyday a mega factory goes to vietnam. 15000 workers! is there a single garment factory in vishwacoolie that employs this many workers? Useless BJP has been talking about PM mitra park for 4 years, and to date not a single one has finished work (most have yet to start construction).

Nghe An to welcome $590 million textiles project

Mega Textile Singapore Private Limited will invest in a garment and textile project worth $590 million in the central province of Nghe An.

vir.com.vn

How India can compete in labour-intensive manufacturing

Lessons from a superstar exporter

www.economist.com

Our biggest garment exporter, Shahi Exports, himself said that India's labour act prevents them from opening big factories. Instead they are forced to open small multiple factories, which significantly dimishes economies of scale

 

[bakofbakchod]

Absolute masterstroke of GDP growth from BJPee

• Real GDP growth for Q2 FY 2024-25: 5.4% (down from 8.1% in Q2 FY 2023-24).
• Agriculture & Allied sector growth: 3.5% in Q2 FY 2024-25, showing a recovery.
• Manufacturing sector growth slowed to 2.2% in Q2 FY 2024-25.
• Construction sector growth: 7.7% in Q2 FY 2024-25, supported by domestic steel consumption.
• Tertiary sector growth: 7.1% in Q2 FY 2024-25 (up from 6.0% in Q2 FY 2023-24).
• Private Final Consumption Expenditure (PFCE): Grew by 6.0% in Q2 FY 2024-25.
• Government Final Consumption Expenditure (GFCE): Rebounded to a 4.4% growth.
• Mining & Quarrying experienced negative growth (-0.1%) in Q2 FY 2024-25.
• Nominal GDP growth: 8.0% in Q2 FY 2024-25, valued at ₹76.60 lakh crore.
• Gross Fixed Capital Formation (GFCF): Grew by 5.4% in Q2 FY 2024-25.
• Exports grew by 2.8%, and imports declined by 2.9% in Q2 FY 2024-25.
• Passenger traffic at airports saw a 7.8% growth, while cargo traffic increased by 16.1%.
• Commercial vehicle sales dropped by 11.0% in Q2 FY 2024-25.
• Aggregate bank credits increased by 13.7%, while deposits grew by 10.8%.
• CPI inflation: 4.2% in Q2 FY 2024-25, indicating a decline from the previous quarter.
• Index of Industrial Production (IIP): Manufacturing grew by 3.1%, mining shrank by 0.1%.



Absolute state of this vishwacoolie. $5 trillion before 2030 seems impossible.

View: https://x.com/ani_digital/status/1862454319439585474?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1862454319439585474%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=

How did construction grow at 7.7% when cement volume growth was 2% and prices declined by 10%?

 

[ezsasa]

80 crore getting free food
subsidised electricity, fuel
Free healthcare, medicines
Ladli behna lots of them

that’s socialism no country does this on India’s scale.

Modi is the true Samajwadi the biggest socialist leader ever in modern history..

He can change the name from BJP to SJP it will be better suited

whether these are causing inflation, more data needs to come. % of budget allocations for 100% centrally funded schemes have been dropping since modi first term.

within inflation there are good kind and bad kind. good kind is where consumption patterns have changed and market trying to adjust to a new pattern, and bad kind is the one that exists in argentina and up until recently in western countries(excess cash in the system). it doesn't look like we have large amount of excess cash in the system.

for example, during this 5kg free rice scheme, consumption of egg, meat and fruits have increased, which is good. whether causation or correlation, more study is required to be done by gyanis.

and moreover bringing politics into economy related discussions, ruins the objectivity of the discussions anyways. we are a socialist country as per constitution after all.