India Economy Thread II

[UDHL]

Originally Posted by MeMumbaikar

in the west i am guessing ikea is a relatively budget option.

They sell cheap stuff (mostly made in China). Things are very easy to break.

[Indiadreams]

Originally Posted by engineer.akash

They have finalised few locations in India

They havent finalised locations yet. The lcoations given are just some representative locations given by BCG consultant , not the country head of Ikea. The country head just says it will be of large formats and they need lot of learning to firm up India strategy.

Personally I feel Mumbai Pune expressway (or for that amtter Blore-Mysore highway) is a wrong choice to set up first store of Mumbai (which anyway is consultant's guess). It will be most probably in western express highway as it would cater to most of target customers- western burbs, western parts of island city and Thane-Ghatkopar zone through JVLR and GB Road.

When he means large formats , it can be just 2-3 lakhs sq ft, which can be easily set up in places like Borivali/Thane, Gurgaon, Whitefield, OMR/ECR(Chennai) or Hinjewadi.

[Suncity]

Bihar - 21.9% growth in 11th Plan

http://articles.economictimes.indiat...conomic-growth

Bihar has been the top performer among the major states in terms of economic growth during the 11th Five Year Plan which ended on March 31, 2012.

According to a Planning Commission report on state finances, only Sikkim and Goa, which are much smaller in size than Bihar, have performed better than the state.

The report reveals that the nominal gross state domestic product (GSDP) growth rate of Bihar was 21.9 per cent during the 11th Plan spread over 2007 to 12.

Among all the states and union territories, Sikkim recorded highest GSDP growth rate of 31.6 per cent during the five year period followed by Goa at 22.9 per cent.

The worst performers include Jharkhand which recorded GSDP growth rate of 9.2 per cent followed by the Puducherry, Nagaland and Manipur (all below 11 per cent).

In case of major states, Haryana clocked the GSDP growth rate of 19.5 per cent followed by Rajasthan at 18 per cent, Kerala at 16.9 per cent, Madhya Pradesh 16.8 per cent, Andhra Pradesh at 16.7 per cent and West Bengal at 16.4 per cent. During the 11th Plan, Gujarat grew at 16 per cent followed by Maharashtra and Uttar Pradesh at 15.3 per cent each.

[Abhishek901]

I am assuming this is an average annual growth rate. Is that right?

[MeMumbaikar]

plus inflation as well.

its nominal growth. State wise inflation can mask the real growth rate.

things are looking up in bihar for sure. I think many government companies should set up headquarters there moving out of mumbai and delhi.

will help the region.


Plus i wont worry about Jharkhand. Once the mining issue is sorted they will be one of the top growers in states in india

[Cosmicbliss]

Originally Posted by MeMumbaikar

plus inflation as well.

its nominal growth. State wise inflation can mask the real growth rate.

things are looking up in bihar for sure. I think many government companies should set up headquarters there moving out of mumbai and delhi.

will help the region.


Plus i wont worry about Jharkhand. Once the mining issue is sorted they will be one of the top growers in states in india

My best friend lives in Jharkhand and says the situation there is bad. Natural resources dont ensure growth. Else Nigeria would be one of the richest countries. Governance ensures development. Nothing else. Till Jharkhand has a good CM, things wont change.

As far as your suggestion about Bihar is concerned, theres little doubt that things are looking up. But the real problem in Bihar and India as a whole is too little investment on infrastruture. Unless you have a massive rise in spending on revamping existing infra and building new infrastructure, you cannot have development. I dont know why, but India's infra seems so poor, especially when you go abroad. In many smaller towns, even pavements dont seem to exist.

[gentem]

Originally Posted by Abhishek901

I am assuming this is an average annual growth rate. Is that right?

21% is nominal average annual growth rate. so 21% growth - 7% inflation is it grew, at around 14% while india gdp grew at 8% in the same period.




Narasimha Rao led India at crucial juncture, was father of economic reform: Pranab
By B V Shiva Shankar, TNN | Dec 31, 2012, 04.44 PM IST

Narasimha Rao was the father of economic reforms, architect of India's 'Look East' foreign policy and the leader who brought peace to terror-ravaged Punjab, the President said.

Another welcome step by Pranab MukherjeePresident Pranab Mukherjee rejects Kasab's mercy pleaPranab Mukherjee kicks off Nobel celebrationsPresident Pranab Mukherjee calls for value-based educationPresident Pranab Mukherjee praises courageous gang rape victim
HYDERABAD: Billing P V Narasimha Rao as the father of economic reforms, President Pranab Mukherjee on Monday said the late former Prime Minster was instrumental in including the second generation reforms in the Congress election manifesto in 1991 as it was a well thought out strategy to steer the country through a distressful economic crisis.

Delivering his lecture at the inaugural P V Narasimha Rao Memorial Lecture series at Jubilee Hall, the President attributed the game changing economic reforms to the far-sighted vision and political sagacity of PVN.

"The idea of economical reforms was not out of blue. It was there in the Congress election manifesto, which was prepared under Narasimha Rao's astute supervision. Then, I used to write the manifesto, and Narsimha Rao used to vet it," said the President.

Pranab said PVN did not do as a regular politician when he chose Manmohan Singh to be his finance minister and the step testified his political sagacity.

"It was not easy for a normal politician to implement economic reforms, and PVN knew it. He was only the second prime minister after Jawharlal Nehru to make a person worked in his capacity as governor of RBI the finance minister. Nehru selected CD Deshmuk, who had worked as the governor of RBI, to be his finance minister in 1950," Pranab said.

He said PVN gave Manmohan Singh full freedom to navigate the crisis and introduce for-reaching economic reforms. Pranab said PVN had himself spearheaded the move for dismantling the license regime as the prime minister while holding additional charge of the industry ministry. He could appreciate the significance of the seminal policy of economic liberalization, Pranabh said, as he witnessed the making of the policy being deputy chairperson of the Planning Commission, and commerce minister in PVN's cabinet.

Pranab lauded PVN for his exemplary achievement in the foreign policy. "The visionary he was, PVN launched the 'look East' policy and gave India's engagement with ASEAN a different meaning. India became a Sectoral Dialogue Partner of ASEAN in 1992 and Full Dialogue Partner in 1996. And now, we sit with them in the summit, as India is the largest trading partner of ASEAN," said Pranab.

Speaking on the occasion, chief minister N Kiran Kumar Reddy said PVN had missed an opportunity to become the President of India in 1987.

ESL Narasimhan, Governor of AP, K Rosaiah, Governor of Tamil Nadu, and PVN's daughter Vani Rao spoke on the occasion.

gandhi family hates PVN, also pranab mukherjee once rebeled against gandhi family thats why they dint make mukherjee PM. pranab taking revenge here. if gandhi family was in power in 1991 we would still rot in socialism, and private sector jobs would be miniscule

[MeMumbaikar]

Originally Posted by Cosmicbliss

My best friend lives in Jharkhand and says the situation there is bad. Natural resources dont ensure growth. Else Nigeria would be one of the richest countries. Governance ensures development. Nothing else. Till Jharkhand has a good CM, things wont change.

As far as your suggestion about Bihar is concerned, theres little doubt that things are looking up. But the real problem in Bihar and India as a whole is too little investment on infrastruture. Unless you have a massive rise in spending on revamping existing infra and building new infrastructure, you cannot have development. I dont know why, but India's infra seems so poor, especially when you go abroad. In many smaller towns, even pavements dont seem to exist.

Jharkhand still have a bellow average per capita income. nobody is saying that the situation will be great there.

While nigeria may have the mineral wealth its only recently they have started to make the best use of it. Prior to that there were conflicts.


As far as Bihar goes, infra and law and order is the cause of this growth. all nitish kumar does is use the funds from central government to build roads and other basic infra. Construction (which includes infra) is the biggest source of growth in bihar. Obviously with the economic route from above Bihar will hit a wall soon. But not for another 10 years imo. We have to realise that bihar is growing from a very low base even by Indian standards. Income per person in bihar as it stands is 40% of India. It will take another 10 years of similar growth for that to reach from 40% currently to about 80% before Bihar needs a new economic model.


I think is current trends continue then bihar will overtake MP and Uttar pradesh in 10 years time.

[Cosmicbliss]

Originally Posted by MeMumbaikar

Jharkhand still have a bellow average per capita income. nobody is saying that the situation will be great there.

While nigeria may have the mineral wealth its only recently they have started to make the best use of it. Prior to that there were conflicts.


As far as Bihar goes, infra and law and order is the cause of this growth. all nitish kumar does is use the funds from central government to build roads and other basic infra. Construction (which includes infra) is the biggest source of growth in bihar. Obviously with the economic route from above Bihar will hit a wall soon. But not for another 10 years imo. We have to realise that bihar is growing from a very low base even by Indian standards. Income per person in bihar as it stands is 40% of India. It will take another 10 years of similar growth for that to reach from 40% currently to about 80% before Bihar needs a new economic model.


I think is current trends continue then bihar will overtake MP and Uttar pradesh in 10 years time.

Sorry one correction: the situation in Jharkhand is really bad, not just bad.

[MeMumbaikar]

Originally Posted by Cosmicbliss

Sorry one correction: the situation in Jharkhand is really bad, not just bad.

hmm dont know about that

cant comment but the recent national games were held in ranchi and from what pics i saw on ssc india and in the indian newspapers at the time i thought it looks good.

[karkal]

Jobs up by 7.8%, wages by 18.1% in FY11

Total persons engaged in different industries were 1.27 cr in 2010-11 as compared to 1.17 cr in 2009-10

Industries offered employment to 7.8% more people in 2010-11, while real wages also rose 18%, an official data showed today.

According to Annual Survey of Industries (ASI), total persons engaged in different industries were 1.27 crore in 2010-11 as compared to 1.17 crore in 2009-10.

The data is significant since the 12th five year plan (2012-13 to 2016-17) showed that over 5 million jobs were lost during 2005-06 to 2009-10.

Tamil Nadu was the leading state in providing employment with 15.4% share, followed by Maharashtra at 13.4%, Andhra Pradesh at 10.3% and Gujarat at 10.1%.

According to the survey, in terms of emoluments or compensation to employees, 'basic metals' units have the highest share of 11.2% followed by machinery and equipment at 8.3% and motor vehicles and trailers at 8%.

In terms of payment to various factors of production, growth in rent declined to 12.6% in 2010-11 from 23.03% in 2009-10, while growth in interest paid went up sharply to 20.08% from 6.75%. Profit also expanded 19.55% against 10.36%.

The sample size of the survey was 61,573 which represent 27% of workforce in all the industries registered under Factories Act, 1948, and Bidi and Cigar Workers (Conditions & Employment) Act, 1966.

The number of factories grew by 8.38% to 2.11 lakh in 2010-11, higher than a growth of 2.29% the previous year, ASI data showed.

The highest numbers of factories were in ‘Food products’, which accounts for about 16.1% of the total factories followed by ‘Other non-metallic mineral products’ (11%) and ‘Textiles’ (8.8%). Among the states, highest number of factories was in Tamil Nadu at 17.4%, followed by Maharashtra (13.2%), Andhra Pradesh (12.4%), Gujarat (10.1%) and Uttar Pradesh (6.5%).


While capital improved its efficiency, others turned out to be less efficient.

The capital-output ratio, which is a measure of the capital required to produce one unit of net output (net value added), decreased marginally from 2.28 in 2009-10 to 2.26 in 2010-11. This means that less amount of capital is required to produce output and reflects efficiency in the economy.

On the other hand, output-input ratio declined to the lowest level in at least 10 years at 1.22 in 2010-11 against 1.23 in 2009-10, indicating that output requires more inputs. If juxtaposed with capital-output ratio, it means that factors other than capital--worker, land, etc-- were not as efficient.

There were 74 employees per factory, the same as previous year. On the other hand, workers per factory declined to 47 in 2010-11, the lowest since 2001-02, versus 58 workers in 2009-10.

According to the ASI data, the invested capital saw a growth of 23.88%, lower than 25.52% in 2009-10. Even fixed capital recorded a lower growth than last year, at 18.91% (lowest in three years), versus 28.05% in 2009-10.

The data showed that the output growth was at a four year high of 25.51% in 2010-11, versus a 14.06% growth in 2009-10. This reflects the lag effect of high investment in 2009-10.

After the slowdown in 2008-09 and the first half of 2009-10 due to the US banking crisis, industries recorded a 20.36% growth in their net value addition in 2010-11 compared to 12.19% in the previous year, an official data showed today. In 2008-09, the growth stood at 9.59%.

In 2009-10 and 2010-11, the economy grew by 8.4% each after the growth slipped drastically to 6.7% in the crisis period of 2008-09. The three consecutive years prior to 2008-09 saw the Indian economy expanding by at least 9% each.

The ASI trend on output was in sync with the index of industrial production (IIP) data, as IIP had returned to the high growth path in 2010-11 recording a growth of 8.2% against 5.3% in 2009-10.

Output growth given in ASI is generally higher than IIP expansion. IIP excludes smaller companies, whose base is lower and may show higher growth.

ASI provides a more reliable data compared to IIP, as it is based on the companies’ audited data.

From the 2012-13 data onwards, the ASI data collection is likely to be through a web portal.

[ChennaiIndian]

Cross-posting from TN thread. Courtesy: saysenthil

Originally Posted by saysenthil

Folks, i dont kknow if you missed it... I am a avid reader of the yearly article "State of States" published in the magazine India Today for more than a decade now. Check out for the performance of TN.....

[Suncity]

Good to see West Bengal jumping to position six from seventeen in the survey. So what has changed in Bengal so dramatically? Law and order is down the hill. Industry is down the hill. The state has even more debt now. There have been "annoucments" of recruiting more teachers and police. So what are the "experts" at India Today saying about this dramatic turn around? Or is it that other states have gone downhill in one year even faster?

[wO_Ow]

Manufacturing PMI in December jumps to 54.7; highest in six months

BANGALORE: The country's manufacturing activity surged to a six-month high in December, boosted by strong factory output and a spike in new orders, both of which hit their highest levels since June, a business survey showed on Wednesday.

The HSBC Markit India Manufacturing PMI, which gauges the business activity of India's factories but not its utilities, jumped to 54.7 in December from 53.7 in November, its biggest monthly rise since January 2012.

The PMI index has now stayed above the 50 mark that separates growth from contraction for almost four years.

"Activity in the manufacturing sector picked up again, led by faster output growth and a further uptick in new orders, which led to a faster increase in backlogs of work as companies struggled to keep up with demand," said Leif Eskesen, economist at HSBC.

Official data released last month showed industrial output soared 8.2 per cent annually in October, its highest in more than a year, although the rise was attributed by economists to a low base a year earlier.

[gentem]

I-T finds Tirupur man with US bonds worth $5bn
By Binoy Valsan, TNN | Jan 3, 2013, 03.51 AM IST

Income tax sleuths raiding the house of a financial consultant near Tirupur on New Year's Eve were in for a surprise. T M Ramalingam, 45, who lives in a modest one-storey house 80km from Coimbatore, had US treasury security bonds worth $5 billion (Rs 28,000 crore).

COIMBATORE: The investigation wing of the Income Tax (I-T) department in Coimbatore has seized US treasury bonds worth about Rs 27,500 crore from a 45-year- old man claiming to be a financial broker-cum-business consultant in Dharapuram in Tirupur district.

I-T sleuths here said the bonds were seized in a raid on December 31 at the residence of T M Ramalingam on Dharapuram-Palani Road near Upputhurai, about 80 kms from Coimbatore, in Tirupur district. The bonds are worth $5 billion. The investigating officers have also seized other financial documents from him including Rs 1.5 crore in fixed deposit receipts from banks in Tirupur district.

They have sent the seized bonds to the financial intelligence unit wing in New Delhi for verifying its authenticity. They will also probe his source of income and financial status to confirm whether he had procured the bonds on his own or was acting as a conduit for any other industrial baron in the state, especially in the western region.

"We have seized the bonds and are now trying to verify whether those are genuine. The raid was conducted on Wednesday on the basis of a tip-off from financial consultants. This appears to be the most baffling raid as the individual does not seem like a person who could raise such a huge amount. But we are verifying and tracking his financial transaction and business dealings to confirm these details," said a senior I-T official here in Coimbatore.

According to I-T officials, Ramalingam, who claims to be a financial broker involved in numerous business deals, was in possession of the bonds issued by the US Federal Reserve, which had his name and address printed on it. Sources claimed the dates mentioned on the bonds were 2014 and 2015. "It looks genuine but we cannot confirm anything at the moment," said a senior I-T official.

The officials claimed that they were stunned on seeing bond receipts worth $5 billion in Ramalingam's possession. Ramalingam, who is married with two children, owns an Innova car and has agriculture land holdings. His passport entries indicate that he was a frequent flyer to countries including Brazil, China and Myanmar. Ramalingam told TOI that he had travelled abroad a dozen times but only to countries like Dubai and not to China.

A senior official claimed that Ramalingam has some business interests in Singapore. "We are probing his financial records. His arrest and further actions will be handled by other agencies," an I-T officer said.

However, Tirupur SP Amit Kumar Singh said I-T department, which conducted the operation, was yet to file a police complaint.

When a TOI correspondent visited Ramalingam's house, it turned out to be a modest building, with an SUV parked outside. Ramalingam confirmed to TOI that sleuths had raided his place. "I admit that they took away financial documents, mostly international bills of exchange worth $5 billion. They also checked my bank locker and sealed them," Ramalingam said. As per Indian laws, a resident Indian can invest up to $200,000 in a financial year to buy foreign currency assets.

Ramalingam told officials that he received the bonds from a friend in Brazil. "We have some details about the Brazilian. After we got the tip-off from a few financial brokers, we sent an official posing as a buyer of the bonds. Initially, Ramalingam didn't believe our official. We then opened a bank account in the official's name and showed the account balance of a few crores of rupees to win his confidence. He asked the 'buyer' to come to various places before finally showing the bonds."

Another team of IT officials raided his house and collected documents including Rs 1.5 crore in fixed deposit receipts from banks. "As per his bank details, Rs 30 crore was deposited in his account a few months ago and after few days, Rs 20 crore was transferred to another account. We are probing these transactions," the officer said.

Investigators said Ramalingam, on interrogation, spoke about his dream of starting a Rs 40,000 crore oil refinery in Ramanathapuram, in southern Tamil Nadu. He had approached real estate brokers in Ramanathapuram to buy 600 acres, they said.

Now we know who bailed out america in 2008 maybe rajnikanth's valet fell on his house

[karkal]

Water & power likely to get dearer

Brace up for hike in prices of power, drinking water, irrigation and public transport as the government has sought recommendation from the 14th finance commission, set up on Wednesday, on insulating pricing of public utility services from policy fluctuations through statutory provisions. Finance minister P Chidamabaram announced the setting up of the commission under the chairmanship of former RBI governor YV Reddy.

Insulating pricing of public utility is one of the terms of references set up for the commission by the finance ministry. Being asked whether the government is signalling price hike of the public utilities Chidambaram said, “We are not giving any signals. We are just highlighting the matters pertaining to the country’s finances over the five years period beginning 2015.”

“These are matters which cannot be ducked or shrugged away. We have to face these matters,” he added. The commission will have to make its report available by October 31, 2014, covering a period of five years commencing on April 1, 2015. The Reddy commission has four members —Planning Commision member Abhijit Sen, former finance secretary Sushma Nath, M Govinda Rao, director National Institute for Public Finance and Policy and Sudipto Mundle, former acting chairman, National Statistical Commission.

Another issue that the commission has been mandated to recommend upon is subsidy, among others. “The commission will have to look into the level of subsidies that are required, having regard for the need for sustainable and inclusive growth, and equitable sharing of the subsidies between the central government and the state governments,” said Chidambaram.

Chidambaram clarified that the ministry will also adhere to the fiscal consolidation roadmap recommended by the Kelkar Committee. The committee, in its report, submitted to the finance ministry has recommended drastic cuts in subsidies to rein in the widening fiscal deficit.

[chennaidesi]

Originally Posted by gentem

I-T finds Tirupur man with US bonds worth $5bn
By Binoy Valsan, TNN | Jan 3, 2013, 03.51 AM IST


Now we know who bailed out america in 2008 maybe rajnikanth's valet fell on his house

Tamil Nadu own Ambani.

[wO_Ow]

[petchiselvam]

Originally Posted by wO_Ow

Gujarat&modi both r overhyped

[whatever123]

Originally Posted by petchiselvam

Gujarat&modi both r overhyped

What employment is this ? If it includes agriculture then it is irrelevent economically though important socially.