Chennai Economy thread - Page 19

ranga · March 25th, 2011, 06:26 PM

Quote:

Originally Posted by Raji7373

Chennai - GDP growth is Behind Kolkatta, Bangalore & even Pune !!!!!!!! Amazed

Its not GDP growth but absolute GDP figure.GDP figure is also related to standard of living of the people of the cities.Comparable city in population to chennai is Bangaluru but higher GDP figure of Bangaluru denotes higher standard of living in that city when compared to chennai.Majority of chennaites should develop the mindset of wealth creation thru value addition in their activites not just depending on freebies.

greatshankar · March 25th, 2011, 06:45 PM

What was the GDP growth projection about Bangalore, Pune 15 years back?. Things will change over the period. This is the projection based on the current growth rate, it will differ. May/May not be in better way.

ChennaiIndian · March 25th, 2011, 11:33 PM

Sabbbbaa, arambichiteengala! Adhu enna quality-of-life?

Last I heard, Blore and Pune were in India and not in the US.

Raji7373 · March 26th, 2011, 05:45 AM

Quote:

Originally Posted by ranga

Its not GDP growth but absolute GDP figure.GDP figure is also related to standard of living of the people of the cities.Comparable city in population to chennai is Bangaluru but higher GDP figure of Bangaluru denotes higher standard of living in that city when compared to chennai.Majority of chennaites should develop the mindset of wealth creation thru value addition in their activites not just depending on freebies.

Higher standard of Living !!!. Adhu enna sir, I live in Bangalore now but I don't find any difference in my standard of living from Chennai to Bangalore. Infact quality of living has decreased

Also "Freebies" are not for people like me. We depend on our earnings only.

One doubt - are they including new / greater chennai in different surveys now a days or jus the older limits (this does not have any relevancy to the Mc.Kinsey report)

neversayno · March 26th, 2011, 10:02 AM

Quote:

Originally Posted by Raji7373

Chennai - GDP growth is Behind Kolkatta, Bangalore & even Pune !!!!!!!! Amazed

Hi there,
My question may be plain silly or is that naive.......due to non economics background. How is GDP calculated? Heavy inds. (engg., automobiles, mfg inds.) Port, customs, industries of various hues, captive consumption of the local populace pattern all adds up to the GDP I believe. How different is Bangalore/Pune from Madras, there seems to be something is terribly wrong. On one hand some reports claim there would be a marginal difference in GDP between Madras and Bangalore and this report as compiled by McKinsey shows a more that 60% difference. There seems to be something grossly wrong.

Going by the figures Kolkata should be half of Madras. Some expert economist should review and do a detailed analysis.

ChennaiIndian · March 26th, 2011, 06:13 PM

Quote:

Originally Posted by Raji7373

Higher standard of Living !!!. Adhu enna sir, I live in Bangalore now but I don't find any difference in my standard of living from Chennai to Bangalore. Infact quality of living has decreased

Also "Freebies" are not for people like me. We depend on our earnings only.

One doubt - are they including new / greater chennai in different surveys now a days or jus the older limits (this does not have any relevancy to the Mc.Kinsey report)

I think we can ignore ranga and only reply if he brings in some legitimate points to the table.

neversayno · March 26th, 2011, 07:43 PM

Guys,
Does it really matter if you hold the ESOPs of Infosys/Wipros of the world the GDP WOULD INCREASE? I guess not. There seems to be something grossly wrong.
Todays news says south lags behind Gujarat in growth. Again this is compiled by McKinsey........so all seems grossly erroneous.
My question is IT exports from Madras is second only to Bangalore and whereas on all other Sectors Madras is far ahead, yet the GDP is shown @60% of Bangalores GDP. There should be some serious analysis/debate with some experts.

Raji7373 · March 26th, 2011, 07:54 PM

Quote:

Originally Posted by neversayno

Hi there,
My question may be plain silly or is that naive.......due to non economics background. How is GDP calculated? Heavy inds. (engg., automobiles, mfg inds.) Port, customs, industries of various hues, captive consumption of the local populace pattern all adds up to the GDP I believe. How different is Bangalore/Pune from Madras, there seems to be something is terribly wrong. On one hand some reports claim there would be a marginal difference in GDP between Madras and Bangalore and this report as compiled by McKinsey shows a more that 60% difference. There seems to be something grossly wrong.

Going by the figures Kolkata should be half of Madras. Some expert economist should review and do a detailed analysis.

The method of Calculating India GDP is the expenditure method, which is, GDP = consumption + investment + government spending + (exports-imports) and the formula used is GDP = C + I + G + (X-M)

Where,

C : Stands for consumption which includes personal expenditures pertaining to food, households, medical expenses, rent, etc
I : Stands for business investment as capital (investments on financial products is not included as it falls under savings)
G : The total government expenditures on final goods and services.
X : Stands for gross exports which includes all goods and services produced for overseas consumption.
M : Stands for gross imports

Considering all these components for calculation of GDP I am confused as how Chennai is behind all these cities !!!!!! (Projection 2025) - May be they have not included greater chennai's contribution to Chennai's GDP when they forecasted for 2025.
Income generating places like Sriperambadur, Oragadam, OMR, tambaram etc are under Kanchipuram district and not Chennai district.!!!

There are great economists in this forum who may explain to enlighten us.

GJ10 · March 27th, 2011, 03:25 PM

Quote:

Originally Posted by neversayno

Guys,
Does it really matter if you hold the ESOPs of Infosys/Wipros of the world the GDP WOULD INCREASE? I guess not. There seems to be something grossly wrong.
Todays news says south lags behind Gujarat in growth. Again this is compiled by McKinsey........so all seems grossly erroneous.
My question is IT exports from Madras is second only to Bangalore and whereas on all other Sectors Madras is far ahead, yet the GDP is shown @60% of Bangalores GDP. There should be some serious analysis/debate with some experts.

Do not claim to be an expert, but really its not even anything as controversial or debatable as that, its simply a case that the two reports by McKinsey are based on two different data sets, two (economically volatile) years apart.

You can find the this new 600 cities report is downloadable (pdf) on page 39 of the report they show that the source of their figures re India is from one of their earlier studies published in 2010 but, based on data as at 2008. That report is also downloadable (pdf).

Manu Srivastava, Urban Development Minister of Govt of Maharashtra is an interesting name amongst the list of people discussions were conducted with, especially along with the status of Pune in the results.

In any case, economic events since 2008, mean that the projections and assumptions these figures were based on were pretty much redundant at the time of publishing in 2010, let alone now.

Other report about State GDP growth rates is based on data as of 2010, which do show reduction in GDSP growth rates of Southern States compared to previous years, but still with strong overall GDSP base.

That report isnt downloadable yet, but the title of it is going to be "The Next Wave of Growth - South India", probably by their Chennai office, so am sure it will be of interest on this side of the forum.

ferrari_fan · March 28th, 2011, 06:15 AM

Quote:

Originally Posted by Raji7373

The method of Calculating India GDP is the expenditure method, which is, GDP = consumption + investment + government spending + (exports-imports) and the formula used is GDP = C + I + G + (X-M)

Where,

C : Stands for consumption which includes personal expenditures pertaining to food, households, medical expenses, rent, etc
I : Stands for business investment as capital (investments on financial products is not included as it falls under savings)
G : The total government expenditures on final goods and services.
X : Stands for gross exports which includes all goods and services produced for overseas consumption.
M : Stands for gross imports

Considering all these components for calculation of GDP I am confused as how Chennai is behind all these cities !!!!!! (Projection 2025) - May be they have not included greater chennai's contribution to Chennai's GDP when they forecasted for 2025.
Income generating places like Sriperambadur, Oragadam, OMR, tambaram etc are under Kanchipuram district and not Chennai district.!!!

There are great economists in this forum who may explain to enlighten us.

Thanks for the GDP explanation, Raji - that's really informative...

As you said, I guess Kanchipuram, Chengalpet, Sriperumbudur, Oragadam etc. have not been taken into consideration in this report, and that is where a bulk of the investments into "Chennai" have been made.

ferrari_fan · March 28th, 2011, 06:16 AM

Quote:

Originally Posted by GJ10

Manu Srivastava, Urban Development Minister of Govt of Maharashtra is an interesting name amongst the list of people discussions were conducted with, especially along with the status of Pune in the results.

That report isnt downloadable yet, but the title of it is going to be "The Next Wave of Growth - South India", probably by their Chennai office, so am sure it will be of interest on this side of the forum.

darkprinz · March 28th, 2011, 06:59 AM

Hearing above discussions ,.. enakku Gowndamani sir Dialogue than gyabagam varudhu ...
(morphed version) :P

:: Enangada Bangalore le dhan panam irukku nu solreenga ... Pune le dhan panam irukku nu solreenga ... Appo namma oorla paname illaya ... Irundha panathai ellam ennada paneenga ::

***kannan infratech*** · March 28th, 2011, 02:56 PM

It is possible to create a favourable report from any of those BIG 5 agencies, provided that the state engages one of them them as its consultant.

Even though GDP is a relatively easily available index, I do not accept the accuracy. The CG says inflation is going down, but we all feel that the prices of all that we are using day to day are going up. Weightage for each component is being manipulated to give a fav figure / picture.

In our own space ie INFRA, i see that a single order from the Govt is reflected many times by many people - Principal contractor, consortium partners, sub contractors, suppliers, thus by increasing the GDP.

chennaidesi · March 28th, 2011, 04:26 PM

Many reasons why chennai is lower than Bgl
1)Confusion w.r.t to Metro area boundries
2)Less investment when compared to Bgl
3)Less govt spending etc.
4)High value goods produced are more in Bgl.

vinodgopal · March 28th, 2011, 11:52 PM

Eppo pathallum Bangalore namma compare panrom. Yen oru Singapore compare panna koodadha? Illa oru San Fransisco (i heard it is our sister city as per previous mayor's agreement) or maybe Curitiba or other good cities across the world?

Why cant we compare our infra with that of some of the best cities in the world?

vinodgopal · March 29th, 2011, 01:19 AM

Published: Sunday, Mar 27, 2011, 8:39 IST
By Supriya Ghorpade | Place: Bangalore | Agency: DNA

With politics taking centre-stage in four south Indian states — Karnataka, Andhra Pradesh, Tamil Nadu and Kerala — their combined gross domestic product (GDP) over the last five years has fallen below the national average, according to a McKinsey survey report, commissioned by the Confederation of Indian Industry (CII) in Bangalore on Saturday.

While the national GDP grew at 8.7% between 2005 and 2010, the combined growth rate of the four southern states was merely 7.85%, with Karnataka leading at 8.7%, Kerala 8.1%, Andhra Pradesh and Tamil Nadu at 7.4% each.

North Indian states like Bihar and Uttarakhand, which had for long borne the tag of backward states, have also overtaken the southern states.

The last three years have seen the two states grow at a furious pace of 16% and 14% respectively, albeit on a lower base. Other states ahead of the southern states are Gujarat at 11.3% and Haryana at 11%. Bihar’s GDP growth rate for the last five years at 9.6% is also higher.

Dissecting the dismal performance of southern states at the CII-southern region annual conference on ‘The Next Wave of Growth—South India,’ Ananth Narayanan, partner, McKinsey said: “Industry leaders attribute several factors to the recent slump in south India’s growth. These are the rising land prices, labour shortage, infrastructural bottlenecks, including port capacity and growing urban congestion in Bangalore, Chennai and Hyderabad and concerted efforts of other states in attracting investments in recent years.”

But all is not lost just yet. Despite the slackening pace of growth rate, South India can still bounce back with a vengeance, as it has done in the past. The fact that South India continues to be among the top 10 contributors to the GDP nationally would help.

As per the report, Andhra Pradesh, Karnataka, Kerala, Puducherry and Tamil Nadu contribute 22% of the national GDP and generate 28% of the national employment.

The region’s current GDP at $300 billion, places it just outside of the top 30 economies of the world, but the report predicts South India could spearhead the country’s growth over the next few years with its GDP projected to hit $500 billion by 2016 and close to $650 billion by 2020.

The region’s growth in skill-intensive industries like automotive manufacturing and information technology and information technology-enabled services (IT& ITES) has also outpaced the all-India average.

“We aspire to get the lower income earners into the medium to higher income levels bracket within the next 20-25 years. For this, our main challenge will be how we plan our growth,” said Hari Bhartia, president, CII.

http://www.dnaindia.com/bangalore/re...to-gdp_1524888

ChennaiIndian · March 29th, 2011, 03:40 AM

Quote:

Originally Posted by vinodgopal

Eppo pathallum Bangalore namma compare panrom. Yen oru Singapore compare panna koodadha? Illa oru San Fransisco (i heard it is our sister city as per previous mayor's agreement) or maybe Curitiba or other good cities across the world?

Why cant we compare our infra with that of some of the best cities in the world?

Yaarum compare pannala. Pls don't start it.

Raji7373 · March 29th, 2011, 10:36 AM

Quote:

Originally Posted by ferrari_fan

Thanks for the GDP explanation, Raji - that's really informative...

.

Thankyou.

kongutamizhan · March 29th, 2011, 10:44 AM

Quote:

Originally Posted by vinodgopal

Eppo pathallum Bangalore namma compare panrom. Yen oru Singapore compare panna koodadha? Illa oru San Fransisco (i heard it is our sister city as per previous mayor's agreement) or maybe Curitiba or other good cities across the world?

Why cant we compare our infra with that of some of the best cities in the world?

Remove the names of those cities before they end up suing you for the damages you just did

Raji7373 · March 29th, 2011, 12:01 PM

Quote:

Originally Posted by kongutamizhan

Remove the names of those cities before they end up suing you for the damages you just did

Yeah, Mr.Vinod Gopal - Please remove chennai & replace with coimbatore - so Mr.Kongu is happy and does not oppose.

Nobody should write or speak good about Chennai - that is a criminal offence according to him and he will be the first to first bash / criticise the person / news maker.

He acts as if Chennai & coimbatore are cities in two different rival countries - India & Pakistan.

March 28th, 2011, 06:59 AM	#372
darkprinz dark prinz Join Date: Jul 2008 Location: Chennai Da !!!! Posts: 1,784 Likes (Received): 83	Hearing above discussions ,.. enakku Gowndamani sir Dialogue than gyabagam varudhu ... (morphed version) :P :: Enangada Bangalore le dhan panam irukku nu solreenga ... Pune le dhan panam irukku nu solreenga ... Appo namma oorla paname illaya ... Irundha panathai ellam ennada paneenga :: __________________ *Ping me at FB http://www.facebook.com/venks.varadharajan :)*

March 28th, 2011, 11:52 PM	#375
vinodgopal Registered User Join Date: Jul 2009 Posts: 1,903 Likes (Received): 57	Bangalore Bangalore Bangalore Eppo pathallum Bangalore namma compare panrom. Yen oru Singapore compare panna koodadha? Illa oru San Fransisco (i heard it is our sister city as per previous mayor's agreement) or maybe Curitiba or other good cities across the world? Why cant we compare our infra with that of some of the best cities in the world?

March 29th, 2011, 01:19 AM	#376
vinodgopal Registered User Join Date: Jul 2009 Posts: 1,903 Likes (Received): 57	South Indian states among top 10 contributors to GDP Published: Sunday, Mar 27, 2011, 8:39 IST By Supriya Ghorpade \| Place: Bangalore \| Agency: DNA With politics taking centre-stage in four south Indian states — Karnataka, Andhra Pradesh, Tamil Nadu and Kerala — their combined gross domestic product (GDP) over the last five years has fallen below the national average, according to a McKinsey survey report, commissioned by the Confederation of Indian Industry (CII) in Bangalore on Saturday. While the national GDP grew at 8.7% between 2005 and 2010, the combined growth rate of the four southern states was merely 7.85%, with Karnataka leading at 8.7%, Kerala 8.1%, Andhra Pradesh and Tamil Nadu at 7.4% each. North Indian states like Bihar and Uttarakhand, which had for long borne the tag of backward states, have also overtaken the southern states. The last three years have seen the two states grow at a furious pace of 16% and 14% respectively, albeit on a lower base. Other states ahead of the southern states are Gujarat at 11.3% and Haryana at 11%. Bihar’s GDP growth rate for the last five years at 9.6% is also higher. Dissecting the dismal performance of southern states at the CII-southern region annual conference on ‘The Next Wave of Growth—South India,’ Ananth Narayanan, partner, McKinsey said: “Industry leaders attribute several factors to the recent slump in south India’s growth. These are the rising land prices, labour shortage, infrastructural bottlenecks, including port capacity and growing urban congestion in Bangalore, Chennai and Hyderabad and concerted efforts of other states in attracting investments in recent years.” But all is not lost just yet. Despite the slackening pace of growth rate, South India can still bounce back with a vengeance, as it has done in the past. The fact that South India continues to be among the top 10 contributors to the GDP nationally would help. As per the report, Andhra Pradesh, Karnataka, Kerala, Puducherry and Tamil Nadu contribute 22% of the national GDP and generate 28% of the national employment. The region’s current GDP at $300 billion, places it just outside of the top 30 economies of the world, but the report predicts South India could spearhead the country’s growth over the next few years with its GDP projected to hit $500 billion by 2016 and close to $650 billion by 2020. The region’s growth in skill-intensive industries like automotive manufacturing and information technology and information technology-enabled services (IT& ITES) has also outpaced the all-India average. “We aspire to get the lower income earners into the medium to higher income levels bracket within the next 20-25 years. For this, our main challenge will be how we plan our growth,” said Hari Bhartia, president, CII. http://www.dnaindia.com/bangalore/re...to-gdp_1524888

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March 25th, 2011, 06:45 PM	#362
greatshankar CoolBreeze Join Date: Feb 2005 Posts: 762 Likes (Received): 3	What was the GDP growth projection about Bangalore, Pune 15 years back?. Things will change over the period. This is the projection based on the current growth rate, it will differ. May/May not be in better way.

March 25th, 2011, 11:33 PM	#363
ChennaiIndian Registered User Join Date: Dec 2009 Location: Chicago Posts: 4,585 Likes (Received): 78	Sabbbbaa, arambichiteengala! Adhu enna quality-of-life? Last I heard, Blore and Pune were in India and not in the US.

March 26th, 2011, 07:43 PM	#367
neversayno Registered User Join Date: Jan 2011 Posts: 199 Likes (Received): 2	Guys, Does it really matter if you hold the ESOPs of Infosys/Wipros of the world the GDP WOULD INCREASE? I guess not. There seems to be something grossly wrong. Todays news says south lags behind Gujarat in growth. Again this is compiled by McKinsey........so all seems grossly erroneous. My question is IT exports from Madras is second only to Bangalore and whereas on all other Sectors Madras is far ahead, yet the GDP is shown @60% of Bangalores GDP. There should be some serious analysis/debate with some experts.

March 28th, 2011, 02:56 PM	#373
*kannan infratech* Moderator Join Date: Oct 2005 Location: chennai Posts: 8,021 Likes (Received): 645	It is possible to create a favourable report from any of those BIG 5 agencies, provided that the state engages one of them them as its consultant. Even though GDP is a relatively easily available index, I do not accept the accuracy. The CG says inflation is going down, but we all feel that the prices of all that we are using day to day are going up. Weightage for each component is being manipulated to give a fav figure / picture. In our own space ie INFRA, i see that a single order from the Govt is reflected many times by many people - Principal contractor, consortium partners, sub contractors, suppliers, thus by increasing the GDP.

March 28th, 2011, 04:26 PM	#374
chennaidesi Registered User Join Date: Apr 2008 Location: Philadelphia/Chennai Posts: 2,644 Likes (Received): 75	Many reasons why chennai is lower than Bgl 1)Confusion w.r.t to Metro area boundries 2)Less investment when compared to Bgl 3)Less govt spending etc. 4)High value goods produced are more in Bgl.