Goldman Sachs downgrades India, says rupee can hit 65 to dollar

[Icewolf]

But surely nothing can rival Pakistani Rupee

Pakistan is in a war and has lost 60 billion US dollars since 2001.
I understand your pathetic response to compare to Pakistan
But even then, PKR is not falling as fast as INR.

Im advising you if you live in India to start buying gold before Indian debt bubble collapses... The bigger it is, the harder it falls, and that is true in economic affairs!!

If you are a NRI, save your indian precious rupee please also start buying gold and send it back!!!

 

[Hellraiser007]

India is not devaluing its currency. Its the trader and investors do not have confidence in Indian economy. Trade is just a side affect of it. But I can guarantee you that India will not benefit from inflation will eat up the difference in currency. India need to revamp its economy.

Ours is a consumption based economy, what ever growth we have achieved in the past decade is based on domestic consumption and the growth of middle class. India do not need revamp in its economic model we will continue our consumption based economic growth and we are also entering into manufacturing sector.
Recently the FDI cap has be increased from 22% to 49% and this will bring FDI to India, what ever things happening right now are short term, long term prospects look good and compared to last year this years growth is good and better.

 

[gslv mk3]

Pakistan is in a war and has lost 60 billion US dollars since 2001.
I understand your pathetic response to compare to Pakistan
But even then, PKR is not falling as fast as INR.

Im advising you if you live in India to start buying gold before Indian debt bubble collapses... The bigger it is, the harder it falls, and that is true in economic affairs!!

If you are a NRI, save your indian precious rupee please also start buying gold and send it back!!!

really??It fell from ~70 range to ~100 range in 4 years

 

[Icewolf]

really??It fell from ~70 range to ~100 range in 4 years

Bad governance + instability + WOT caused that. Now things in Pak are picking up pace. You have same GDP growth as Pakistan now.

 

[BigDaddyWatch]

This is some what funny and pitiful comment coming from a chinese, You people have changed the whole meaning of "GDP".
You people fake every thing and how dare you scrutinize India GDP .

China's GDP is "man-made," unreliable: top leader

China's GDP is man-made, unreliable: top leader | Reuters

Read from your own leader

http://www.defence.pk/forums/world-...flated-china-s-gdp-900-billion-last-year.html

close to one trillion is inflated in one year, this is close to 20 percent of your GDP?

And here you are with your attempts .

The real GDP, economic and social welfare stats of Chinese are not known to the world and the all the stats.... I repeat all the stats coming out of China are manipulated to save CCP from common chinese citizen.

India have uplifted millions from the poverty and since we are a democracy transparency is there, where as chinese are known as slaves of CCP and they will come on forums boasting the cooked up stats online and earn their cents.

Regarding Chinese bubble and the present condition the below links are self explanatory.

Job cuts happening in China:

One-Third of China Shipyards Face Closure as Orders Slump

One-Third of China Shipyards Face Closure as Orders Slump - Bloomberg

China Rongsheng Halts Share Trading After Report of 8,000 Job Cuts

China Rongsheng Halts Share Trading After Report of 8,000 Job Cuts | gCaptain

Report: IBM may cut 500 jobs in China

Report: IBM may cut 500 jobs in China - UPI.com

Motorola job cuts spark ire in China
Motorola job cuts spark ire in China - News - BCBCD-The window of China

Sany job cuts signal Chinese slowdown
Sany job cuts signal Chinese slowdown - FT.com


Chinese build ports, airports, ghost malls , ghost cities and Ghost factories and add those figures to GDP rate and boast them selves

Ghost Cities

A video which explains about chinese concrete jungles near to Shangai and other remote areas, fact is 700 million people in China are less than 2 million perday and they cannot spend on these appartments and malls.
They built these concrete facilities and showed them as GDP growth rate and now waiting for some one to fill those places. which is not going to happen for years to come, going by the present chinese economy status.


Chinese ghost cities further hit by slowing economy - Australia Network News (Australian Broadcasting Corporation)

Ghost malls:

World's biggest mall a China 'ghost town'

World's biggest mall a China 'ghost town' - CNN.com

(contd.....)

Government economic data is unreliable no matter which country it is. Its not something unique to China, at least in China we recognise this fact something that perhabs our Indian members haven't yet about the economic data coming from India If you think that the economic data from America, Europe, Japan or India are reliable then you will have another thing coming. The things that are being mentioned in your post about China is happening in other countries as well. But is just simply not being talked about as much. For instance in America there are about 20 million homes that remains empty as we speak. If you take into acount that the population of America is 4,3 times smaller then that of China that equals about 86 million empty homes for China. And since more and more Americans today are working part time or for minimum wage its very unlikely that those homes will be sold off anytime soon. And yet housing construction is going up and home prices is on the rise while at the same time home ownership is going down. But you hardly hear anything about it. I'm sure that in India quite a lot of the projects that are now being build and financied will have a similar faith as those in China. It's going to be underutilized. Because just like China its government directed investment.

 

[gslv mk3]

Bad governance + instability + WOT caused that. Now things in Pak are picking up pace. You have same GDP growth as Pakistan now.

You'll need industrialisation for that..have you got a manufacturing Industry?

 

[Hellraiser007]

Government economic data is unreliable no matter which country it is. Its not something unique to China, at least in China we recognise this fact something that perhabs our Indian members haven't yet about the economic data coming from India If you think that the economic data from America, Europe, Japan or India are reliable then you will have another thing coming. The things that are being mentioned in your post about China is happening in other countries as well. But is just simply not being talked about as much. For instance in America there are about 20 million homes that remains empty as we speak. If you take into acount that the population of America is 4,3 times smaller then that of China that equals about 86 million empty homes for China. And since more and more Americans today are working part time or for minimum wage its very unlikely that those homes will be sold off anytime soon. And yet housing construction is going up and home prices is on the rise while at the same time home ownership is going down. But you hardly hear anything about it. I'm sure that in India quite a lot of the projects that are now being build and financied will have a similar faith as those in China. It's going to be underutilized. Because just like China its government directed investment.

Chinese inflation of their GDP figures and welfare stats are huge thing compared to other countries. Regarding the Ghost towns and cities, Ordos is built for 10 Million people and there are lot more cities like that in China. Fact is Chinese relied on exports and started moving in that direction for almost 2 decades when the global demand slumped they started building ghost cities and maintained that GDP rate, Now because of this the economy inflated to huge extent. To save China from this situation and danger you need huge consumption base who are willing to spend, and the problem is Chinese consumption base is very low.
So the economy of China will remain a slow one for over the year to come.

In India we have consumption base relatively good than China and we can grow steady even though we have some minor glitches.

 

[BigDaddyWatch]

Ours is a consumption based economy, what ever growth we have achieved in the past decade is based on domestic consumption and the growth of middle class. India do not need revamp in its economic model we will continue our consumption based economic growth and we are also entering into manufacturing sector.
Recently the FDI cap has be increased from 22% to 49% and this will bring FDI to India, what ever things happening right now are short term, long term prospects look good and compared to last year this years growth is good and better.

That consumption is what has led India to where it is today. The consistant current account deficits of India was in the past financed by hot money inflows. Now that those funds are drying up India is in trouble. You keep claiming that India is entering the manufacturing realm but last month data show a fall in industrial production.

India's FDI inlows last year went down 22% and with the continuing weakening of the Rupee it doesn't seem to have picked up yet.

FDI inflows to India down 29 % in 2012: UNCTAD - The Hindu

 

[Hellraiser007]

That consumption is what has led India to where it is today. The consistant current account deficits of India was in the past financed by hot money inflows. Now that those funds are drying up India is in trouble. You keep claiming that India is entering the manufacturing realm but last month data show a fall in industrial production.

India's FDI inlows last year went down 22% and with the continuing weakening of the Rupee it doesn't seem to have picked up yet.

FDI inflows to India down 29 % in 2012: UNCTAD - The Hindu

As I said earlier 2012 is some what bad and we are doing better in 2013 , we are expecting good FDI inflow for years.

FDI inflows in India seen rising 15 per cent in 2013: UN economist - NDTVProfit.com

 

[BigDaddyWatch]

Chinese inflation of their GDP figures and welfare stats are huge thing compared to other countries. Regarding the Ghost towns and cities, Ordos is built for 10 Million people and there are lot more cities like that in China. Fact is Chinese relied on exports and started moving in that direction for almost 2 decades when the global demand slumped they started building ghost cities and maintained that GDP rate, Now because of this the economy inflated to huge extent. To save China from this situation and danger you need huge consumption base who are willing to spend, and the problem is Chinese consumption base is very low.
So the economy of China will remain a slow one for over the year to come.

In India we have consumption base relatively good than China and we can grow steady even though we have some minor glitches.

Chinese consumption is growing double digits year after year and the local Chinese brands are in more and more cases winning out against international ones in the Chinese domestic markets. Ordos is a extreme example. But you have to understand that even when homes remains empty in China quite a few of them are already sold out and have owners who paid for them. People are treating these homes as investments rather than a place to live. That's going to cause problems in the future no doubt.

As for the Indian consumers with a falling currency they will have less purchasing power and there for they can't afford to spend like they use to. That's perhabs one of the reasons why there were very few international takers for India's opening up of the retail sector.

As I said earlier 2012 is some what bad and we are doing better in 2013 , we are expecting good FDI inflow for years.

FDI inflows in India seen rising 15 per cent in 2013: UN economist - NDTVProfit.com

The article says "expected" we will see rather that comes true or not. If there is a increase of capital inflow then the currency shouldn't be weakening. And growth shouldn't be down.

 

[Hellraiser007]

Chinese consumption is growing double digits year after year and the local Chinese brands are in more and more cases winning out against international ones in the Chinese domestic markets. Ordos is a extreme example. But you have to understand that even when homes remains empty in China quite a few of them are already sold out and have owners who paid for them. People are treating these homes as investments rather than a place to live. That's going to cause problems in the future no doubt.

As for the Indian consumers with a falling currency they will have less purchasing power and there for they can't afford to spend like they use to. That's perhabs one of the reasons why there were very few international takers for India's opening up of the retail sector.

Yes purchasing power will reduce I agree, But that do not mean FDI won't flow. What India is doing is by devaluing currency India is making the human resources for the multi national companies cheaper. This will attract investments and will aid our GDP.
The falling currency will have temporary problems but longterm growth is assured.

 

[BigDaddyWatch]

Yes purchasing power will reduce I agree, But that do not mean FDI won't flow. What India is doing is by devaluing currency India is making the human resources for the multi national companies cheaper. This will attract investments and will aid our GDP.
The falling currency will have temporary problems but longterm growth is assured.

India is not intentionally devaluing its currency the RBI is fighting a uphill battle trying to prop up the currency by exhausting its forex reserves. Its the markets participants that are redrawing funds out of India. A falling currency means less wealth. That's the opposite of being attractive for investors and investments. If a falling currency is a source of economic progress then Zimbabwe must be booming.

 

[Hellraiser007]

A falling currency means less wealth. That's the opposite of being attractive for investors and investments. If a falling currency is a source of economic progress then Zimbabwe must be booming.

Nope not in this case, wealth attracts wealth is not always true. The strength of Indian economy is its middle class and Human resources. By devaluing the currency India is making it hard for any one in India to buy products of foreign origin, this will increase the demand for local goods so our manufacturing industry will rise.

 

[Snowden]

Indian economy was a debt based consumer economy, once their debts became unsustainable, they were forced to reduced their deficits. Investors have lost confidence in the Indian economy thus their currency is collapsing. Indian Rupee is going to hit 100. Why? Because the Indian economic model was built on quicksand. They have no manufacturing and run large current account deficits. To have manufacturing base, you need good infrastructure to transport the goods from production facilities to warehouses to transport them to domestic retailers or ports for exports. You need a reliable electricity supply. India has dreadful infrastructure as we saw last year with power cuts. Indian regulations are massive which increases the cost to businesses.

I truly believe we are witnessing the end of the Indian economic miracle. It was good while it lasted, but I think they have hit their ceiling. Their political system is insanely corrupt which is ingrained in Hindu culture.

Since the Rupee has collapsed, I predict the Indian economy will fall below the $1 trillion mark.

 

[BigDaddyWatch]

Nope not in this case, wealth attracts wealth is not always true. The strength of Indian economy is its middle class and Human resources. By devaluing the currency India is making it hard for any one in India to buy products of foreign origin, this will increase the demand for local goods so our manufacturing industry will rise.

Without land and labor law reforms even with a weakening currency very few people are going to invest in production in India. The value of a currency reflects the capital flows and the strength of a economy. And the INR right now says that capital is going out and the economy is weak. As for the human resources of India. Yes, there are a lot of very bright Indians. But as it is most of the growing population of Indians have very little formal education or skills to speak of.