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India’s Q1 GDP growth falls to 5.7%, hits 3-year low

Discussion in 'World Economy' started by Agent_47, Aug 31, 2017.

  1. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    Every benefit of GST in whatever form has been taken away by keeping fuel out of it. And for other products, a cess has been added to offset the losses by states like Tamilnadu for loss of income from taxes. We all know how badly the economy of TN is managed with freebies by successive govts. Now a person sitting in Delhi who gets no such freebie will have to pay for excesses of TN govt. Give me example of one thing for which rates have been reduced? Wherever GST brought down the rate, they have either increased the slab or added cess. As long as we have NaMo, we will never be able to get rid of cesses. In Gujrat he was not known as Chief Minister but as Cess Minister.
     
  2. NKVD

    NKVD Lieutenant FULL MEMBER

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    GST council Meeting Due tomorrow Some revisions Will be Expected

    I am Not saying it perfected But Total GST implementation Will take at-least a year And correction Will Made Simultaneously
     
  3. Sancho

    Sancho Lt. Colonel Technical Analyst

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    Or that you don't understand the point in the first place, because I was not comparing economies, but the effect the global financial crisis had to emerging countries.
    When western countries and companies reduced imports and FDI drastically, India was still one of the few countries that interesting for both, while orders and cash were withdrawn rapidly from other countries.
    You can't blame the growth reduction or limited FDI and ignore that the trade market broke down, that investments were stopped or diverted to safe countries.

    Not just economically, but more importantly back then also because Indian banking sector was not as liberalised as in many other countries, which resulted in less effect for the Indian financial sector too, while western banks were going down and which again was based on MMS policies. So there is no way to take the growth and the limited effect of the crisis as an achievement for India and not a mismanagement like you said.

    So because our GDP falls, we suddenly have another global crisis? Last I checked US and European GDPs are on track, so that's no excuse either. Especially since our own FM admitted that we see effects from the policies that were implemented, so there is no room to distract and point fingers anymore.

    It's wrong because you answered or to a question of me with another question. So I guess we agree, that there are not many economic reforms done in the last 3.5 years.
    And no I am not ok with corruption of course, that's why I keep saying that the UPA were voted out for the right reasons. However I distinguish between what really was wrong and what was just public perception. Economy certainly was not wrong, because the crash was not caused by own policies but external issues and we still got back to 6.9%.
    Now however, we see the crash based on own policies and that needs to corrected. That's why acknowledging the problem is important and not finding excuses.

    The same distinctions need to be made in defence too. You can't be ok with blanket blacklisting and cancelled tenders today and point to the former government as an excuse. Each side must be judged by what they did or didn't.
     
  4. The enlightened

    The enlightened Lieutenant FULL MEMBER

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    GST as proposed by Kelkar commission was to be a single tax levied on production and sales of goods and services at a single uniform rate (14%) with a dozen exemptions, administered by the Center to replace the circus of Indian indirect taxes namely
    • Excise Duty - Levied on production of goods - administered by the centre
    • VAT - Levied on sale of goods within the state - administered by each state separately
    • CST - Sale of goods between states - admin by centre - but basically the VAT/CST architecture meant that every state in essence worked as a different country
    • Service Tax - The worst of them all - Administered by Centre - Most complex rules made by human designed to befuddle an already hopelessly befuddled population along 1 trillion exemptions - yeah good luck reading that
    The other problem was Cenvat Credit - you couldnt use the credit of Excise or Service Tax to pay VAT or CST or that of VAT and CST against EXcise/ST. You couldn't use any credit against CST at all - all of which allowed for double taxation. Besides that each tax had its own laws, procedures, compliance's, besides VAT where every state had its own laws, rates, exemptions, administrations, procedures, compliance's etc.

    Yup, India a third world shithole

    The GST we got has 8 different tax rates, some goods which are still covered under previous acts, three different taxes - CGST, SGST, IGST, most of the rules and procedures of Service tax, most of service tax exemptions, IGST which replaces CST still doesn't allow using CENVAT credit.

    But we get a unified administration, uniform rates and exemptions, fully computerized procedures creatikng a single Indian market which ultimately makes all the pain worth it. Hopefully with BJP winning more states, law will be further simplified.
     
  5. Sancho

    Sancho Lt. Colonel Technical Analyst

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    He didn't changed the DPP since the tender were still under buy and make India policies, but invited privat players to team up with foreign partner. That's the base for the Tata / Airbus JV for Avro replacement, just as the the BAE / Mahindra JV for M777, or L&Ts for self propelled howitzers. So that remarks the start of make in India in defence tenders, not the make in India marketing campaign.

    Antony deserves far more credit and far less blame, especially if we look at the last 3.5 years, but I wouldn't consider him as a good DM either.
     
  6. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    Bullshit will happen. Asking a FM to reduce taxes is like snatching away a bone from the mouth of a dog-Impossible.
     
  7. The enlightened

    The enlightened Lieutenant FULL MEMBER

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    Note the 'growing economy' at the end of 013-14

    [​IMG]
     
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  8. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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    Unlike other emerging economies we are depended on global trade. That is the basic point. i'm making.

    Please explain the bold part, What do get affected in a financial crisis for a country? Economy !

    No its not, because its stupid now to keep bank closed now. MMS just followed pre liberalised era policies by not giving equal access. Public sector banks are the reasons for NPA which holds 60-70% market share. While Private sector is performing splendidly. Which is why this government is merging and disinvestmenting PSB. There is no comparison to western banks because RBI have heavy hand in the indian financial sector even on private. A bubble like in west is impossible with current regulation climate here.

    Again, global trade by value is declining every year.

    [​IMG]

    So, are you saying FM admitted we are having problems ?

    Again, we are far more resilient from outside shock than other emerging economies. We got back to 6.9% in spite of flat export growth after 2008. Which is because of our SMBs.

    He did change DPP and its under separate chapter. I said make in india worked for FDI as a whole not in defence (its highest ever).
     
  9. Flyboy!

    Flyboy! Lieutenant FULL MEMBER

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    The implementation of both demonetization and GST is like not studying for an exam and expecting an A grade. It happens when those in power are anpadhs. People are all idiots for wasting a decade or more of their lives in studies. Revamp the judiciary and education system in india and there will be no need for any other policies. sab thik hoga.
     
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  10. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    If we need to file 3 different returns for each state you operate in

    Then how have we got a single market

    We have as many different markets as the no of states you operate in

    Just the earlier system gst was supposed to remove

    :cheesy::cheesy::cheesy::cheesy::cheesy::cheesy::cheesy::cheesy:
     
  11. NKVD

    NKVD Lieutenant FULL MEMBER

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    India's economic slowdown an aberration: World Bank
    HIGHLIGHTS
    • World Bank also said that the GST is going to have a hugely positive impact on the Indian economy.
    • Responding to questions, the World Bank president insisted that this slowdown is temporary.
    • He added that Prime Minister Modi has made a huge commitment to the sanitation issue in India.


    WASHINGTON: The recent slowdown in India's economic growth+ is an "aberration" mainly due to the temporary disruptions in preparation for the GST, the World Bank said on Thursday, pointing out that it will get corrected in the coming months.

    World Bank President Jim Yong Kim also said that the Goods and Services Tax (GST) is going to have a hugely positive impact on the Indian economy.

    "There's been a deceleration in the first quarter, but we think that's mostly due to temporary disruptions in preparation for the GST, which by the way is going to have a hugely positive impact on the economy," Kim told a group of reporters during a conference call ahead of the annual meeting of the International Monetary Fund and the World Bank here.

    Finance minister Arun Jaitley would be leading the Indian delegation to the annual meeting next week.

    Kim was responding to questions on slowdown in India's growth in the first quarter, which the opposition and several economists have attributed to demonetisation and the GST.

    India's GDP grew 5.7 per cent on a year-on-year basis during the April-June period (Q1). During the previous quarter (January-March) the GDP had grown by 6.1 per cent.

    The GDP growth rate for the same quarter last year was 7.9 per cent.

    Responding to questions, the World Bank president insisted that this slowdown is temporary.

    "We think that the recent slowdown is an aberration which will correct in the coming months, and the GDP growth will stabilise during the year. We've been watching carefully, as Prime Minister (Narendra) Modi has really worked on improving the business environment, and so, we think all of those efforts will pay off as well," Kim said.

    Next week, both the World Bank and the IMF are expected to come out with their new GDP figures and growth projections for India and the rest of the world.

    "Let me just say, as I said from the beginning. I'm not sure that I could say that any country in the world is investing enough in their human beings. I think there's no country in the world that can't improve its healthcare system. There's no country in the world that can't improve its educational system," Kim said.

    Ahead of the annual meeting, Kim said after years of disappointing growth, the global economy has begun to accelerate, and trade is picking up as well, but investment remains weak.

    "We are concerned that downside risks such as a rise in protectionism, policy uncertainty, or possible financial market turbulence could derail this fragile recovery," he said.

    "Countries need to continue to advance their reform agenda, they need to invest in people. They need to build resilience against overlapping challenges, including the effects of climate change, natural disasters, as well as conflict, forced displacement, famine and disease."

    Responding to a question on India and human capital, Kim said Prime Minister Modi has made a huge commitment to sanitation issues, and 'Swachh Bharat' is one of the "most effective programmes" anywhere.

    "I know that Prime Minister Modi himself personally is very committed to improving opportunities for all of India. But, India has a lot of challenges. We look at some of the educational outcomes, we've looked at some of the health outcomes, and India has room to improve, like most other countries," he said.

    "Our job is to take the political will and commitment that Prime Minister Modi has clearly demonstrated and has communicated to everyone, and then bring to India the most effective intervention that will, as quickly as possible, improve the stock of human capital," Kim said.

    That's the message for every country in the world, he said.

    "The Bank stands ready, with lots of new insights on how to improve health outcomes and improve education outcomes to help every country in the world with financing, with technical knowledge, and with direct support around implementation that will lead to a situation where we can talk about an emerging equality of opportunity, which has got to be the central focus of all this work," he said.

    Kim said investing in people drives economic growth. But far too many leaders undervalue the contribution of human capital which one builds through effective investments in people through health care, quality education, jobs and skills.

    "Human capital is the key to reducing poverty and to reducing inequality," he said.



     
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  12. The enlightened

    The enlightened Lieutenant FULL MEMBER

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    Another example of Modi hatred choking rational thinking and causing mass delusions.
     
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  13. Bloom 17

    Bloom 17 2nd Lieutant FULL MEMBER

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    If Modi doesn't reduce the tax burden on the middle class he is done for in 2019. I believe everything depends on the tax reform he will do next year. Tthe middle class is literally pissed with him. They haven't seen any benefit in the last 3 years but additional burden of taxes.
     
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  14. NKVD

    NKVD Lieutenant FULL MEMBER

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    These Propaganda is momentary

    BY 2019 Starting Indian growth rate Will be 7.5+ %

    He already winning gujrat as per current surveys

    Gujarat elections 2017: Clear path for the BJP - Livemint
     
  15. TSUNAMI

    TSUNAMI Captain SENIOR MEMBER

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    He will not lose because people don't have any other option. But in last 3 years only thing Modi have achieved is becoming lesser evil compared to others from a good leader. And yes middle class is really pissed. Just that they can not go back to Congress and Others.
     
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