Indian Economy

As we had often come back to discussing economic benefits/impact of sports I thought it was about time for an economic discussion forum.
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prasen9
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Re: Indian Economy

Postby prasen9 » Sat Dec 15, 2012 6:59 pm

Sandeep wrote:What else can RBI do with the Rupee?
Not artificially hold on to dollars such that the rupee is cheaper. In effect stop the subsidy on the exporters and a tax on everyone else. Inflation can go down if they let the rupee slide down. May be full convertibility.

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Re: Indian Economy

Postby samcool » Wed Jan 09, 2013 5:43 am

Mr Anand Sharma, Minister for Commerce, Industry and Textile, Government of India, shared his views on the future outlook on the Indian economy. . Check out the view of Anand Sharma on Exports in India http://www.ibef.org/resources/perspectives.aspx

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Re: Indian Economy

Postby Sandeep » Wed Jan 09, 2013 4:03 pm

Not artificially hold on to dollars such that the rupee is cheaper. In effect stop the subsidy on the exporters and a tax on everyone else. Inflation can go down if they let the rupee slide down. May be full convertibility.


Not at all true!!! Our government desperately wants the Rupee to appreciate, there is noway it is artificially weak, that is a very wrong perception. Even though the oil prices have come down worldwide, India is not able to take advantage of it due to a weak Rupee. Oil is one of the reasons why our fiscal deficit is bloating and why would our government take such a step as artificially depreciating the Rupee and worsen the situation?

With regards to export incentives, we need to do whatever we can to improve our exports. We have a huge trade deficit and the gap is widening further, increase in exports is not at all in sync with increase in imports. I don't understand your logic behind stopping subsidies for exports. Having said that, no subsidy is going to help India revive its exports unless we pick up our manufacturing sector. There is an immediate need for labor reforms, otherwise manufacturing will die in India. If we want to keep up the pace with ever increasing demand for imported goods, exporting manufactured goods is the only option. You can't live off your entire life only exporting minerals and software products!! India has to realize this. Basically, we have messed up with everything and got our priorities wrong. India is in for a deep financial crisis in my opinion, achieving a 6% growth will also be very difficult in future when 8% should have been a given. I am convinced that we are doomed unless Congress is kicked out from the center which is not going to happen anytime soon!

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Re: Indian Economy

Postby prasen9 » Thu Jan 10, 2013 1:33 am

Sandeep wrote:why would our government take such a step as artificially depreciating the Rupee and worsen the situation?
In order to subsidize our export industry, which employs people, I suppose. All the Asian countries do this. They do this to keep the export industry employing people. In a way everybody pays subsidies to these industries in this way. I do not know if this is sound economics, but, I suspect not. Artificial weakness of rupee. Chidambaram openly argues that we should do it. Devaluation

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Re: Indian Economy

Postby Peter » Tue Aug 06, 2013 8:36 pm

Raghu Rajan is the new RBI governor

Kudos to India for appointing a man of his stature. Rajan predicted the US financial crisis back in 2005 and was vilified by the criminal banking cartel - Bernanke, Geithner et al.

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Re: Indian Economy

Postby jayakris » Wed Aug 07, 2013 1:13 am

When did we start appointing non-career-bureaucrats to such posts? The guy is only 50 for crying out loud! Jay

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Re: Indian Economy

Postby sameerph » Wed Aug 07, 2013 5:37 am

Yes, he is the youngest to become RBI governer since 1949 at 50. :D

I guess they are trying hard to revive the economy but it is difficult to undo all the bad work done by UPA II highlighted by series of scams.

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Re: Indian Economy

Postby Peter » Wed Aug 07, 2013 12:28 pm

jayakris wrote:When did we start appointing non-career-bureaucrats to such posts? The guy is only 50 for crying out loud! Jay


Hmmm...

And an Electrical Engineer to boot :)

Think it is a refreshing change from the recent American appointments to comparable positions.

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Re: Indian Economy

Postby Prashant » Wed Aug 07, 2013 1:58 pm

jayakris wrote:When did we start appointing non-career-bureaucrats to such posts? The guy is only 50 for crying out loud! Jay



That was my thought exactly. Maybe there is hope.

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Re: Indian Economy

Postby gbelday » Wed Aug 07, 2013 2:44 pm

jayakris wrote:When did we start appointing non-career-bureaucrats to such posts? The guy is only 50 for crying out loud! Jay


I like this appointment too but I just hope that our system doesn't transform him into another useless bureaucrat.

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Re: Indian Economy

Postby Sandeep » Thu Aug 08, 2013 2:00 pm

Indian RBI governor has very limited or no role in financial decisions and should not be compared to other countries. Our economic decisions doesn't make any sense at all, so it doesn't matter if it is Raghuram Rajan or Lalu Prasad Yadav at the helm of RBI affairs. India has become hopeless in the last 5 years.

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Re: Indian Economy

Postby PKBasu » Thu Aug 08, 2013 2:43 pm

Manmohan Singh also became RBI governor at the age of 50 :p

But the appointment of Raghuram Rajan is an excellent one. He is eminently suited for the role, but will find himself hamstrung by politics.

The basic issue here, of course, is that the Congress/UPA2 has destroyed the Indian economy, and there isn't much the RBI governor can do when he takes over next month to stem the rot. However, a more pragmatic and reform-oriented government could work wonders in combination with a strong RBI governor like Raghu.

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Re: Indian Economy

Postby Atithee » Thu Aug 08, 2013 4:56 pm

We once had a PM named Rajiv Gandhi. Enough said.

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Re: Indian Economy

Postby prasen9 » Thu Aug 08, 2013 6:42 pm

Sorry for being dense, Atithee. Rajiv was the PM during my latter school years. I remember him doing some pro-poor things, some liberalization, and some moving away from the USSR, some corruption. My impression was that he was about average. Maybe that is why I am missing your point.

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Re: Indian Economy

Postby jayakris » Thu Aug 08, 2013 7:07 pm

I think Atithee is only saying that Rajiv Gandhi was prettty young by Indian standards. In retrospect, he was not a bad PM though, despite making some mistakes here and there. Jay


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