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Economy News

Discussion in 'World Economy' started by Indian_Idol, Jun 2, 2010.

  1. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Population Growth
    India ranks second after China in total population. Its population is growing 20% per decade, leading to problems that include food deficits, sanitation deterioration and pollution. Although economic growth numbers look promising, the living standards of most citizens are not changing. Over 30% are living below the international poverty line, and there are not enough jobs to change that condition.

    The food and nutrition deficit has created a 20% death rate due to malnutrition. Clean drinking water is in short supply, and severe water shortages are common. Sanitation is a massive ongoing problem that the government has been unable to address. For example, 8% of India's population has no access to toilets, and 75% of surface water is contaminated by human waste. Moreover, 60% of India's GDP is lost to health-related costs.

    China and India are the two most egregious environmental polluters in the world. India uses coal for 80% of its power requirements, and it has been slow to transition to cleaner energy sources. New Delhi and other cities in India are among the most polluted in the world, and car emissions in these urban areas are creating breathing and skin ailments.

    Crumbling Infrastructure
    India has not been able to improve its deteriorating infrastructure in business, education and health care. In business, a study found that China manufacturing is 1.5 times more efficient than India. In terms of economic freedom, India ranks as the 128th freest economy in the world.

    Public transportation and roadways have not kept pace with population growth. Housing, sanitation and power facilities are woefully inadequate. The education infrastructure is backward, and over 280 million adults are illiterate. Many children do not attend school at all and instead begin working before reaching their teen years.

    India's health care infrastructure is also abysmal, ranking 112th of 190 countries. More than 70% of the population has limited or no access to health care services.

    India lags behind the modern world in many ways. Over 50% of the population is still involved in agriculture, which is an extraordinarily high number for a country trying to make giant technological strides in the 21st century. Indians involved in agriculture have the least access to basic education and health care necessities.

    Graft and Corruption
    The great Indian-born writer Salman Rushdie once commented in regard to India's graft and corruption that "Indian democracy is one man, one bribe." The problem costs India's economy 6.3% of GDP per year.

    A recent survey found that 60% of respondents point to corruption, bad business practices and delays as the biggest problems that entrepreneurs face, inhibiting growth of their businesses. The reasons for this damaging practice include competing government bureaucracies, a complex and opaque tax system and a lack of clear laws and procedures. Corruption is also strengthened by poverty and lack of opportunity in the job market.

    The problem is immense and deeply ingrained in India's culture. A solution is not imminent.



    Read more: 3 Economic Challenges India Faces in 2016 | Investopedia http://www.investopedia.com/articles/investing/012516/3-economic-challenges-india-faces-2016.asp#ixzz4b9xOQngK
    Follow us: Investopedia on Facebook
     
  2. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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  3. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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    A few links at the bottom of that very article lulz:

    http://www.investopedia.com/article...dia-why-it-might-pay-be-bullish-right-now.asp

    http://www.investopedia.com/articles/investing/082015/understanding-trends-driving-indias-rise.asp

    http://www.investopedia.com/article...rging-markets-why-india-continues-impress.asp

    http://www.investopedia.com/stock-a...ing-market-bright-spot-epi-infy-pin-scif.aspx
     
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  4. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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  5. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    Not really, it changes every decade,
    21% last decade while 12% projected for this decade.
    Ends up lower than expected always as population growth is slow.
    Just by posting all statistics and saying living standards didn't change doesn't mean they won't.
    30% poverty ratio? India brought it down from 35% (2005-06) to 7.7 in 2011 @$1.25

    From 29% (2009-10) to 21.9% (2011-12) at 2005-06 MER or just 12.4% at 2011-12 MER at $1.9.
    And 6 years have passed since then.
    FY161-7 was promising for rural growth.
    Let's wait next stats of poverty ratio on new poverty line!:D

    HDI
    2013: 0.554
    2014: 0.586
    2015: 0.609
    (Biggest gainer of HDI in recent years)

    Translation of Economic growth into well being of citizens:
    India: 0.75
    China: 0.69
    Unemployment ratio around halved from 9.5% to 4.8% this quarter.:biggthumup:
    A lot more to list up.
    (Ask for links which I didn't post because of time.)

    Seriously, just by quoting the India obsessed stereotyping journos and posting old stats can only give you a good sleep at night but gonna it help you anyway or change reality?

    Let me do you a favour, posting outdated numbers has become a fashionable & most required thing when comes to India bashing.
    Post 1950 numbers, when India's GDP per capita was $86 and poverty ratio above 75%.

    Watch CNN & BBC reports and stay happy always.
     
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  6. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    Chinese Official Journo GT
    China should pay more attention to India’s increasing manufacturing competitiveness
    India dying from left to right, tip to toe.:)
     
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  7. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    One would have to be quite an optimist to straight line India s growth for the next 15 years.
     
  8. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    No one is being straight line optimist, we know very well about our limitations.
    Problem is there with people doing one sided analysis,
    Desperately even using outdated and false information to ask people to not to invest in India.
     
  9. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Am not sure that India would be a bad place to invest if you know what your doing. I cant conceive of a country that has more then 800 people a square mile. Where I live some homes are zone to be only one home per five acres, the next county is mostly one home per ten acres.
     
  10. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    Population density doesn't really make much difference.
    Densely populated Japan is far richer place than lightly Brazil.

    In fact, Japan (0.780) is ahead of United States (0.761) in terms of inequality adjusted HDI.

    You know, projected population increment for India till 2045 (from 2015) averages just 0.7% compared to United States 0.6%. I will call it a tie.
    The population projection for India goes down every year.

    Reason is that India's fertility rates are very low, falls behind even western cases. So, Indian citizens use a self imposed two child policy.

    Now, too slow growth like in case of China or Japan resulting decline will actually affect economy adversly. India is doing well at its place.

    Plus, I'm aware about those western shows who try to make perception of rush in India like countries everywhere, a congested place. Seriously, we have much more space to live than those shows. Ever have a tour here.;)
     
  11. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    Surat, Jaipur to be new metros by 2018 with Rs 800 billion household income[​IMG]Ladies celebrate Shak in Surat. Surat is earmarked to become a metro soon.
    Regarding the current top 8 Metro Cities, we've already discussed & calaculted GDP and given their current growth rate, well above India's national average, major Indian Metropolitans will be close to middle income economies,
    https://qz.com/755971/by-2030-five-...ies-as-big-as-middle-incomes-countries-today/

    Let's take example of Mumbai & New Delhi whose GDP (PPP) per capita's are in order of $15,000-$17,000s toady being equal to lower middle income economies.
    Though, they have been growing in double digits, let's assume that their growth rate will be same as that of India which is for multiplying Indian Economy by 5-6 times and GDP (nominal) per capita by 4-5 times.
    So, similar growth assumption for these cities (which is actually higher) projects a per capita income between $50,000 - $75,000 close to modern developed countries at that time.

    Looks pretty good, we can have our own cities in league of developed countries.
    I've more hopes with Navi Mumbai and the new tech city to release pressure from Bengaluru planned by Karnataka government.:)

    One thing to note here, cities don't trap in middle income trap like Nations. Because they are supplied with labour from around immediately at low cost which ensures growth of megacity.
     
  12. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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  13. Grevion

    Grevion Think Tank TROLL ELITE MEMBER

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    A very good debate is going on in the parliament on the key provisions of GST bill.

    Mar 29, 2017 07:50 PM IST | Source: Moneycontrol.com
    Lok Sabha GST Bill Debate LIVE: Arun Jaitley says smaller taxes like entry tax will go away
    Lok Sabha is deliberating the GST Bill for consideration and passage. Catch live updates here.

    [​IMG]
    7.45 pm: Pooled soveriegnity gives states 2/3rd right to vote while Centre get 1/3rd power to vote on taxes, Jaitley says. I have no illusions that smaller taxes like entry taxes will go after GST rollout, he says.

    7.40 pm: Congress leader Veerappa Moily interrupts the Finance Minister, asks if GST Council will have more say in fixing tax rates as Parliament will no longer have power to change or amend tax laws.

    7.35 pm: The new tax regime will place larger impetus on self assessment of taxes, it will do away with multiple levels taxation for citizens, he says.

    7.30 pm: GST will aid free flow of goods and services across India which is missing currently, Jaitley says. Goods will become slightly cheaper after new tax law is implemented, he says.

    Multiple taxation regime has hurt the country's economy in the past, he says. "The objective of the new tax regime was to establish such a system that when goods and services flow across company, taxes are levied at a uniform rate and a single window," Jaitley said.

    7.25 pm: Finance Minister Arun Jaitley has started address the House. He defends the GST Bills. States and Centre have pooled their sovereignty for GST, he says.

    6.30 pm: Independent leader from Idukki Joice George cautions that with GST Council, Parliament won't have power to decide tax rate. He raises apprehensions over GST Council taking over Parliament's powers to fix tax rates.

    6.00 pm: Trinamool's Saugata Roy says businesses aren't prepared yet for GST, let's not make haste, he says. Roy adds that he supports the GST Bill with a heavy heart and a lot of reservations.

    5.30 pm: A few MLAs digress. Assam's Sirajuddin Ajmal speaks on welfare of northeastern states, while BJP MP from Jamnagar Poonamben Maadam sees holistic development from GST.

    5.15 pm: One more voice seeks clarity on classification of goods. Rashtriya Lok Samata Party's Ram Kumar Sharma Khushwaha asks government to bring petroleum under the ambit of GST. He also asks for a timeline from the government for the same.

    4.40pm: BJP MP Poonam Mahajan cites an Akbar-Birbal tale to drive home the point that GST will benefit the country. GST will make one nation, one tax a reality, she says. Taking a dig at the voices against GST, she asks whether they're interested in progress in states.

    4.10 pm: Words of caution coming from Nationalist Congress Party. NCP's Supriya Sule asks whether there are protocols in place to protect taxpayers' data. Any data breach from the GSTN — Goods and Services Tax Network, a repository of taxpayer data — can cost the country highly, she says.

    3.50 pm: YSR Congress Party's Varaprasad Rao asks government to take a relook at cess on consumer durables. The cess which may touch 48 percent will affect the common man, he says adding that higher cess on aerated drinks such as Pepsi too will affect masses.

    Next, he asks if the government plans to bring alcohol and petroleum products under the GST umbrella

    3.45 pm: Mulayam Singh Yadav stands up and goes off track — Takes up farmer suicides, prompting Raman Deka (in chair) to bring him back to GST debate. The Samajwadi Party supremo says GST does nothing for the rural population. Can the govt bring a legislation to tackle farmer suicides?" he asks.

    3.30 pm: CPM's Mohammed Salim targets GST Bill — it will only "increase inequality" between the rich and the poor, he says. It's a unifying tax regime but one which divides people, he adds.

    3.05 pm: As Lok Sabha debates GST, an important development in the auto industry has taken place. The Supreme Court has put a ban on sale of BS-III vehicles from April 1. The verdict seals the fate of nearly 1 million vehicles. Auto bodies say the ban will impact about 20,000 dealers financially and employment-wise and 9,00,000 vehicles.

    Read more: Supreme Court bans sale of BS-III vehicles from April 1

    3.00 pm: TRS leader from Chevalla, Konda Vishweswara Reddy compares GST with "Ugadi patchaddi" — a chutney served during Ugadi which marks the beginning of a new year. GST sweet, sour and bitter just like the chutney, he says. "It's healthy and wholesome," he says.

    2.55 pm: Telugu Desam Party leader Jaydev Galla spells out the impact GST will have on Andhra Pradesh. He asks Finance Minister to explain by when CST dues will be paid to the state. Graduating from a new tax regime, welcome the proposal to set up special purpose vehicle, he adds. GST will usher in a new horizon, but implementation should be aligned with evolving mechanisms, he says.

    2.50 pm: To bring you up to speed with the developments, here's a timeline spelling out the course of GST in the past 11 years

    GST Timeline: 11 years, 3 governments, 3 Finance Ministers

    2.22 pm: Mahtab questions the GST Council's decision to keep the clean environment cess as part of tax collections (which will be made available to all states) and says the Centre should increase royalty on mining of natural resources such as coal and pass it on to states such as Odisha where they are mined.

    2.14 pm: Speaking of the BJD, the party, which has often had a blow-hot-blow-cold relationship with the BJP, is said to be growing wary of the national party's increasing popularity in Odisha.

    Unsurprisingly, the BJD MP is measuring his words while talking about the GST.

    2.08 pm: BJD's Bhartruhari Mahtab says that his party believes that it would be "illusory to believe the bill will bring about great change".

    "The benefits would be: fewer taxes, no cascading impact, free inter-state trade, comprehensive zero rating," he says. "But do not expect too much from the GST. It all depends on the revenue neutral rate."

    "At the current rate structure, I do not think there will be great increase in tax collections or fall in prices."

    1.56 pm: West Bengal MP Kalyan Banerjee starts speaking, lauds the role of state FM Amit Mitra in bringing about consensus between states on the crucial tax, and gives him credit "for making sure businesses under Rs 1.5 crore remain under states' purview."

    Mitra is the chairman of the GST Council.

    Additionally, he says that it will not be easy to roll out GST as per its current July 1 deadline. He says that the government should considering deferring its launch to September 1. "July 1 is not the ending".

    1.50 pm: MP Babu expresses concerns over the structure of the GST Council, exemption of certain items (such as petroleum products) and the revenue neutral rate.

    He, however, says the NDA government has taken considerable steps to assuage states' concerns.

    1.43 pm: While appearing to express support to the bill, the AIADMK MP says the tax rollout will be a technological challenge and says the government should make sure that any issues arising in the aftermath should be taken care of swiftly.

    1.41 pm: The AIADMK had opposed passage of the GST Bill for a long time as Tamil Nadu, a manufacturing state, was seen as taking a big loss from the tax's rollout.

    1.38 pm: AIADMK MP TG Venkatesh Babu starts speaking, speaking homage to late party chief Jayalalithaa.

    1.36 pm: The Delhi North West MP keeps on regurgitating the same talking points -- he must have used the word 'gamechanger' at least five times in his speech -- after which the speaker reminds him to end his speech.

    "There are 12 members remaining to speak," he says.

    1.33 pm: Dr Raj also pooh-poohs the Congress' charge that the government lost Rs 12 lakh crore due to the delay in GST's rollout. "It is not because of us. It is because of you."

    1.26 pm: It must be noted that the BJP was opposed to the GST when the Congress-led UPA spearheaded the legislation. The two parties swapped their roles of being proponent and opponent of the draft law after their roles changed in 2014 as governing and opposition parties.

    It must be, however, be pointed out that consensus between states was not arrived at during the UPA rule, and that FM Jaitley has gone to considerable lengths to assuage their concerns over compensation of losses.

    "You left it (compensation) to us," Dr Raj says.

    1.22 pm: Udit Raj also criticises the Congress' opposition to the GST, and says the party's fears over tax's potential for disruption is overstated.

    He also says that had the UPA government ensured states' losses from the CST rollout were compensated, GST would have been rolled out earlier.

    1.16 pm: The GST's four-rate tax structure -- 5 percent, 12 percent, 18 percent and 28 percent -- is intended to make sure there is minimal disruption from the tax's rollout.

    The government aims to make sure the GST rates for various goods and services are closest to their existing indirect tax rates.

    Overall, though, experts expect the average rate for goods to fall while the tax rate for services may increase marginally.

    1.12 pm: "The GST will create a national market and achieve the government's dream of bringing tax terrorism to a close," he says. "It will benefit the country's 125 crore people as a single indirect tax rate for any single good or service will solve a lot of problems."

    1.06 pm: BJP's Dr Udit Raj is now speaking.

    1.04 pm: Moily also takes aim at the various exclusions in the GST, such as real estate being kept out of its ambit.

    12.58 pm: Meanwhile, a close reading of the GST bills has given rise to worries that the draft laws have proposals that introduce newer forms of taxes on the formal sector.

    For instance, e-commerce transactions are expected to come under the tax ambit. Further, this morning, there were reports that even previously-untaxed transactions, such as benefits provided to employees outside the CTC (such as food coupons or pick-up/drop services) will come in the bracket.

    12.54 pm: Moily adds that the GST has fundamental contradictions with the Indian Constitution "as it abrogates its basic provisions". He adds that the GST Council, which has been given the power to decide tax rates, is impeding on the Parliament's legislative powers.

    12.49 pm: Congress leader Veerappa Moily is speaking in Parliament now. Saying that the GST fails to live up to its promise of creating a national market, Moily maintains that the GST suffers from various problems. "It does not have a single tax rate," he says. (The GST follows a four-rate tax structure).

    Moily adds that backend too has not been prepared and says implementing it will be a "technological nightmare".

    "This is not a gamechanger. If anything, this is taking only baby steps [towards reforms]."

    12.45 pm: The GST will replace a waft of indirect taxes and levies: from excise to VAT to service tax and bring in a single tax. This is expected to give a boost to the inter-state trade, which is currently suffering because of differential tax rates in various states.

    Being value added in nature, it will also eliminate the problem of cascading taxes (tax on tax).

    12.41 pm: The GST Bill has been 11 years in the making, been worked upon by three governments and as many finance ministers.

    Here's a detailed timeline outlining its journey.

    12.38 pm: "The GST Bill will ensure free movement of goods across the country," the FM says. "It will end tax terrorism".

    12.36 pm: The bills will head to the Rajya Sabha after they are passed in the Lower House. Post that, states and union territory assemblies will take up the bills for passage.

    12.34 pm: A total of five bills -- for taxes pertaining to centre, state, inter-state, union territory and compensation for states' losses -- will be taken up by the LS.

    12.33 pm: The debate is expected to last a whopping eight to 10 hours as lawmakers take turns to raise their objections and provide suggestions. The Congress is expected to dig in its heels and has threatened to block its passage. The GOP, however, has little by way of strength in the LS.

    12.32 pm: It promises to be a rivetting discussion (for bill watchers, at least) as the FM is expected to provide the most elaborate rationale behind various proposals of the bill.

    12.30 pm: Welcome to the live coverage of the GST Bill, which has been taken up for discussion, consideration and passage in the Lok Sabha.

    Finance Minister Arun Jaitley kicks off the debate by introducing the bill to lawmakers.
     
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  14. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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  15. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    Call of duty.. witty heading :cheers:

    70% of mobiles are now assembled in the country.But value addition in India is only 15-20%,rest of the components are imported from China,Taiwan,Korea
     
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