Dismiss Notice
Welcome to IDF- Indian Defence Forum , register for free to join this friendly community of defence enthusiastic from around the world. Make your opinion heard and appreciated.

Economy News

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

  1. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

    Joined:
    Jun 10, 2017
    Messages:
    232
    Likes Received:
    286
    Country Flag:
    India
    Why do you think we need more 2000 notes for circulation? If we're really looking for digitalisation then i don't find any.
     
    Abingdonboy likes this.
  2. Sancho

    Sancho Lt. Colonel Technical Analyst

    Joined:
    May 3, 2011
    Messages:
    5,542
    Likes Received:
    3,377
    Interesting, I was in India in June and got 2000s in most ATMs.
    Seems like you were right mate!

    http://m.economictimes.com/news/eco...rency-ban-coming/amp_articleshow/59772306.cms
     
    Grevion likes this.
  3. Grevion

    Grevion Professional Think Troll ELITE MEMBER

    Joined:
    Oct 20, 2016
    Messages:
    1,844
    Likes Received:
    3,051
    Country Flag:
    India
    That will be a brilliant step towards the purification of economy. Most of the illegal cash stock holders had exchanged their money with the new 2000 rp notes. If 2000 rupee notes are called back then that will break the backbone of black economy further.
    I read somewhere that govt is planning to introduce new 200 rupee denominations.


    Here it is -
    RBI stops printing Rs 2000 notes, focus turns to Rs 200 notes

    http://m.hindustantimes.com/busines...0-notes/story-kijiPYAtTj1i6hsFjhvWaK_amp.html
     
    Angel Eyes likes this.
  4. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,799
    Likes Received:
    15,548
    Country Flag:
    India
    I fully support scrapping of 2000 rupee notes and 500 rupee as the largest currency with only 10% of total currency in circulation as 500 rupee.
     
  5. Sancho

    Sancho Lt. Colonel Technical Analyst

    Joined:
    May 3, 2011
    Messages:
    5,542
    Likes Received:
    3,377
    If they already have exchanged to 2000 bills, why should they do the same to 500 or any new bills? Also we already have seen that the first round of demonetisation had a negative impact on the economy and the government already admitted that, while the recovery of blackmoney was behind early expectations right? So at what point do you hurt yourself more, than the possible benefit of this policy? Not to mention the cost of this whole stunt.
     
  6. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

    Joined:
    Aug 3, 2011
    Messages:
    2,926
    Likes Received:
    5,789
    Country Flag:
    India
    I'm disappointed with growth numbers of internet banking in last few months. Average is not good enough!. :dude:
     
    Abingdonboy and Sahil ecclstone like this.
  7. lca-fan

    lca-fan Major SENIOR MEMBER

    Joined:
    Sep 9, 2015
    Messages:
    2,375
    Likes Received:
    4,766
    Country Flag:
    India
    Give Nifty, take Doklam! Stellar show of Indian stocks leaves Chinese green in envy
    By
    Amit Mudgill
    , ETMarkets.com|
    Updated: Jul 28, 2017, 04.43 PM IST
    [​IMG]
    The IMF recently said that India would stay ahead of China in terms of growth in 2017 and 2018.
    NEW DELHI: The Nifty50 is the source of a bigger grudge for the Chinese than Doklam, or so it seems!

    More than a month into the eyeball-to-eyeball standoff between the two armies, Chinese media is suddenly talking a lot about the impressive 20 per cent year-to-date surge in India’s Nifty index, which has just zipped past the 10,000 mark.

    Chinese people on social media are talking more grudgingly about the Nifty’s stellar show this year than the tense war of words between the two nuclear powers over Doklam, a narrow plateau lying in the tri-junction region of Bhutan, India and China. It is a disputed territory claimed by both Bhutan and China and India and China are engaged in a tense standoff in this dispute.

    The People's Daily newspaper on July 26 cited intensive discussions on Chinese social media as to why China’s A-share market has not been able to perform as well as its neighbour’s equity market.

    A-share stocks of mainland China-based companies are traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. These shares are quoted in the renminbi and can only be traded by either Chinese or investors under the Qualified Foreign Institutional Investor (QFII) and the Renminbi Qualified Foreign Institutional Investor (RQFII) rules.

    The Shanghai Stock Exchange’s A-share index is up just 5 per cent so far this year, which pales in comparison with the 22 per cent surge in India’s 50-stock benchmark. This happened despite the MSCI decision to add mainland China-A largecap stocks in the MSCI Emerging Market index.

    An article in China’s Global Times noted that stock market is a mirror of an economy, and thus, the divergent stock market performances in China and India actually reflect the different focuses of the two economies in the years to come. It said gains by the Indian benchmarks left the Chinese mainland stock markets in the dust.

    In May this year, Moody’s Investors Service downgraded China’s credit ratings for the first time in nearly 30 years. It cut China’s long-term local and foreign currency issuer ratings by one-notch to A1 from Aa3.

    [​IMG]


    (Source: IMF)

    Acknowledging dramatic changes since 2014, the daily noted that turmoil in China’s A-share market spooked investors in 2015, even as the government stressed on tightening financial regulations to prevent risks and deleveraging and eliminate bubbles.

    In 2015, in order to halt a plunge in Chinese stocks, Beijing’s securities markets regulator had ordered shareholders with more than 5 per cent holdings from selling shares for six months.

    The Chinese authorities have also taken steps to bring stability in the domestic stock market. In January this year, the China Insurance Regulatory Commission (CIRC) restricted insurers from investing no more than 5 per cent of total assets at the end of the previous quarter in a single stock.

    Taking a positive view of Prime Minister Narendra Modi’s ‘aggressive’ approach on policy reforms, the daily noted that encouraged by the implementation of demonetisation and the goods and services tax, besides easing of foreign direct investment regulations, foreign portfolio investors have begun to warm up to Indian stocks.

    “Expectations of an interest rate cut (by the Reserve Bank of India) and robust economic growth have also enhanced investor confidence in Indian equities,” it noted.

    The IMF recently said that India would stay ahead of China in terms of growth in 2017 and 2018 with GDP growth of 7.2 per cent in 2017-18 and 7.7 per cent in 2018-19 compared with China’s 6.7 per cent in 2017 and 6.4 per cent in 2018.

    The Global Times article talked about need for restoration of confidence in China’s stock markets and prevention and reduction of systemic risk in the system.

    http://economictimes.indiatimes.com...hinese-green-in-envy/articleshow/59806531.cms
     
  8. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

    Joined:
    Aug 3, 2011
    Messages:
    2,926
    Likes Received:
    5,789
    Country Flag:
    India
  9. Abingdonboy

    Abingdonboy Major Technical Analyst

    Joined:
    Oct 18, 2016
    Messages:
    2,755
    Likes Received:
    12,321
    Country Flag:
    United Kingdom
  10. Abingdonboy

    Abingdonboy Major Technical Analyst

    Joined:
    Oct 18, 2016
    Messages:
    2,755
    Likes Received:
    12,321
    Country Flag:
    United Kingdom
    This is signifcant progress, not too long ago this issue of "spoiled foodgrains" was a pretty substantial poltical scandel:

    [​IMG]
     
  11. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

    Joined:
    Aug 4, 2013
    Messages:
    6,182
    Likes Received:
    902
    When demonetization failed 1st time around

    Why do you expect it to succeed next time ?

    RBI is ashamed to admit that they received more notes than printed by them
     
    Last edited by a moderator: Aug 3, 2017
  12. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

    Joined:
    Aug 3, 2011
    Messages:
    2,926
    Likes Received:
    5,789
    Country Flag:
    India
    Revised semiconductor policy on anvil

    With its earlier policies failing to attract electronic chip makers to invest in India, the government is now looking to rework policy to incentivise technology firms and investors to set up semiconductor wafer manufacturing units in the country.

    In February 2014, the Union Cabinet had approved two proposals for setting up of semiconductor wafer fabrication units, or fabs, in the country.

    While the Jaiprakash Associates-led consortium, including IBM and Israel’s Tower Semiconductor, had pulled out in March last year, things were not moving ahead for the consortium led by HSMC Technologies, according to sources. The two projects are worth more than ₹63,000 crore.

    “[The] Empowered Committee has decided to meet major electronics industry associations and apex chambers to seek their views on the way forward to set up semiconductor fabs in the country,” an IT Ministry official told The Hindu.

    The Union Cabinet had authorised the Empowered Committee to take all the decisions to implement fab projects.

    The official added the HSMC consortium was finding it difficult to raise funds for the facility and has hence approached the government to schedule “an investors’ meet wherein Ministry officers can participate and respond to the queries of the investors”.

    ‘Salvaging HSMC project’
    However, the official added that the HSMC project was more or less ‘scrapped’. “However, we are still trying to see if anything can be done to put the project back or track. We might hold a meeting with investors this month.” The Minister for Electronics and IT, Ravi Shankar Prasad, has instructed the IT Secretary Ajay Prakash Sawhney to work on a war footing on getting a semiconductor fab in India, it is learnt.

    HSMC has not yet submitted the documents required for Demonstration of Commitment.

    While the last date for submission of these documents was April 28, 2014, “several extensions were provided to both consortia as per their requests.”

    Semiconductors form about 30% of the cost of all electronic products, including mobiles.

    “The setting up of a Semiconductor Wafer Fabrication unit is a critical pillar required to promote Electronics System Design and Manufacturing (ESDM) in India,” the official pointed out, adding that these will also help check the import of electronic products.

    As per industry estimates, the Indian ESDM market is expected to grow from $31.6 billion in 2015 to $400 billion by 2020 and consumption of semiconductors is expected to increase to approximately $55 billion in 2020.

    The Jaiprakash Associates-led consortium with U.S.-headquartered IBM and Israel-based Tower Semiconductor as partners with a project cost of ₹34,399 crore was to be built at Yamuna Expressway in Uttar Pradesh. The other, led by HSMC Technologies with ST Microelectronics and Silterra Malaysia Sdn Bhd as partners and project cost of ₹29,013 crore was to come up at Prantij, Gujarat. The proposed FABs were expected to create direct employment for about 22,000 people and indirect employment for about one lakh people

    According to a Niti Aayog report, contribution of electronic industry to GDP in India is only 1.7% as compared to 15.5% in Taiwan, 15.1% in South Korea and 12.7% in China.

    In India, most of the OEM (Original Equipment Manufacturing) is confined to last mile assembly indicating that the industry remains in the early stages of development.

    http://www.thehindu.com/business/Economy/revised-semiconductor-policy-on-anvil/article19409941.ece

    @Abingdonboy @anant_s @Ankit Kumar 001 @PARIKRAMA
     
    Angel Eyes and Abingdonboy like this.
  13. Abingdonboy

    Abingdonboy Major Technical Analyst

    Joined:
    Oct 18, 2016
    Messages:
    2,755
    Likes Received:
    12,321
    Country Flag:
    United Kingdom
    Good stuff, I have no doubt a policy drafted by Modi/NDA in this area will be 100x more effective than one drafted under UPA.
     
  14. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

    Joined:
    Oct 16, 2016
    Messages:
    632
    Likes Received:
    1,590
    Country Flag:
    India
  15. nik141993

    nik141993 2nd Lieutant FULL MEMBER

    Joined:
    Oct 22, 2016
    Messages:
    230
    Likes Received:
    413
    Country Flag:
    India
    Kaushik Basu slams India's demonetisation programme but lauds GST
    [​IMG]
    Kaushik Basu, India's former chief economic adviser
    Image by Amit Verma

    Kaushik Basu, India's former chief economic adviser, has panned the government’s demonetisation move, calling it a “very big mistake”, which was a huge shock and led to the country's pace of growth slowing down.

    “Demonetisation was a very big mistake. The government gave several justifications for demonetisation, which was aimed to rid the country of the problems of counterfeit currency in the system, to ridding the country of the problem of black money, digitalization and creating a less-cash economy,” Basu told a packed audience at the 23rd Lalit Doshi Memorial lecture in the city.

    “But this was a shock to 86 percent of the value of currency in the market…it was no surprise that the economy went into a short recoil,” Basu said.

    Growth at constant prices fell to just 6.1 percent for the January to March 2017 quarter and 7.1 percent for the full fiscal year 2016-17. The real estate and financial services sectors were particularly hit by demonetisation at that time.

    Basu, former senior vice president and chief economist at the World Bank, said that fake currency notes are like any other currency. “They (fake) currency are bad at the point of injection, once they are moving in the system, it is like any other note. If you feel that there are too many notes, the [government should] have taken steps to remove those notes specifically”.

    “Demonetisation has slowed down growth. We should have crossed the 8 percent level by now, but we are at 6.1 percent and will probably remain so for some time. Luckily this is a one-time shock, if we don’t make a similar mistake, it will go away,” Basu said, while talking about India’s growth prospects.

    He urged the government to create a system where the merit of policies could be openly discussed and planned for. He made a reference to the opening up of India’s economy between 1991 to 1993 and the easing up of foreign exchange flows, both outward and inward. “Clear thinking was being translated into policy and policy translated into economic policy,” he said.

    Basu calls the Goods and Services Tax (GST) “as a good move”. “It is not perfectly designed but it is complicated, so there may be the glitches, which I expect will gradually go away.” The main plus point, Basu said was that GST would allow goods to flow freely from one state to another quickly and the amount of bureaucratic wastage would come down. “The cutting down of transaction cost which will be hugely beneficial to India,” he said.

    On digitization, Basu said that India is moving like several other countries – from cash to cashless…but we do not need a shock treatment, he said. He also lauded the latest bankruptcy laws, which aim to hasten the number of days within which the process to close down a firm will come down rapidly. “In the UK, it takes about a year, so we can do it in 180 days that would be very good.”

    Basu said that all these moves would help to lower India’s rank in the ease to do business. The 14th edition of the World Bank’s Doing Business report—commonly referred to as ease of doing business (EODB)—ranks India at 130 out of 190 countries.

    India is at rank 136 in matters relating to closing down a business. “We need to move into the top 100 first and then the top 50,” Basu said.

    He said that India in coming years should focus on becoming a hub for higher education for the world, similar to what USA and United Kingdom are. This would bring valuable money into the Indian economy and help boost “our soft power”.

    Basu expressed concerns over the pace of growth of the western economies which are “moving through one of their longest, but not deepest, crises”. Several European economies have struggled to cope with the fallout of a range of crisis – starting with the collapse of the financial firm Lehman Brothers, followed by the subprime property crisis, the European sovereign debt crisis, falling oil and commodity prices and then the social and political trouble (of Syrian refugees migrating to the EU).

    Basu stressed that the changing face of technology could lead to greater problems which global economies and India will have to deal with. “First there were labour saving technologies (machines) which began to do jobs that humans did. Now the problem will come from what I call labour linking technologies,” Basu said, which allows people to work for global companies from remote locations with the assistance of the internet and digital link-ups.

    “I do believe that there is something fundamental beneath the surface, which will still play out. It is not a problem for India, but will become one at some stage”.

    As workers are getting displaced in the rich countries, wages are also becoming income in the hands of people who own the machines and robots. Wages are vanishing along with the jobs, Basu said. The share of the wage bill to GDP for most countries has been falling between 1975 and 2015.
    The wage bill to GDP for the EU countries has fallen to 56 percent from 66 percent, for Japan it has slid to 60 percent from 77 percent and the US to 51 percent from 61 percent.

    “This problem needs radical thinking....in the rich countries, some amount of profit sharing arrangement is called for otherwise we could see social turmoil.”
    http://www.forbesindia.com/article/...emonetisation-programme-but-lauds-gst/47789/1
     

Share This Page