Indian Economy-News & Updates

[Gucci Juice]

the bangladesh guy

they are very good at covering up...

i dont want to post any details here, but my friend and my teacher's son have visited china and have told me of their experiences and they aren't the china everyone knows.

anyway i dont want to offend anyone so i wont post it here.

the difference is that Democratic countries are slower than authoritarian countries (remember Russia in the 30s) how they developed so quickly?

 

[Hellfire]

well whether india beats or not is merely speculative right now.

but what is apparent in the background of the recent economic woes, the chinese have been hit hard, primarily due to the fact that they are an export oriented country catering to foreign markets.

India on the other hand is a predominantly self-consuming economy and less dependant on exports. as a result there is even a wide gap in layoffs whereas in China layoffs occurred due to lack of export orders, in India companies managed to bench the workforce due to lack of export orders and simply didnt issue pink slips off hand.

the figures for layoffs can be compared by googling.

Linkin Park had said about discounts and decrease in real estate. Well you are talking about metropolitan centers sir and as such the markets there were already over inflated. come to cities like meerut, jaipur, bareilly and show me where is the depreciation in real estate? in fact there has been 10% appreciation of the costs in these cities.

as for retail markets, it caters to not more than 5-7% of Indian domestic consumer. rural markets rule the roost and there the companies have broken even and made handsome profits. HUL is a very good example as they targetted the rural sector which is too massive for any downturn to ever have an effect.

 

[godsavetheworld]

Nano gets over 2 lakh bookings

Our Bureau


Mumbai, May 4 The Tata Nano has drawn 2.03 lakh bookings valued at nearly Rs 2,500 crore, according to a Tata Motors release issued here on Monday.

The booking window was open from April 9 to 25. The release states that 6.10 lakh booking forms were sold through dealerships, Westside/Croma outlets and banks. Of the total bookings, 70 per cent were financed while the rest of the applicants paid up wholly in cash.

Nearly 50 per cent of the bookings, involving down payment of Rs 1.4 lakh, were for the top-end Nano LX costing Rs 1.9 lakh (ex-showroom Mumbai), followed by 30 per cent for the mid-end Nano CX (Rs 1.2 lakh for a Rs 1.63 lakh car). Only 20 per cent opted for the Rs 1.34 lakh Nano Standard, paying Rs 95,000 upfront.

The total number of bookings caught industry circles by surprise since they expected nearly three times as much for the world’s least expensive car. Yet, the fact remains that the down-payment did not come in cheap and took up over 70 per cent of the price of the car. Corresponding amounts for other compact cars from the Maruti and Hyundai stables are a lot lower though they are priced more. “Had the Nano down-payment been fixed at a level of Rs 40,000-50,000, the total number of bookings would have exceeded six lakh. The bottomline is that Tata Motors has received Rs 2,500 crore while sales of forms fetched an additional Rs 18 crore,” sources said.

Customers could have also been deterred by the prospects of waiting for months on end to get their cars. After all, the interim plant at Pantnagar can only produce 50,000 Nanos annually and big numbers can only be envisaged once the Sanand facility in Gujarat is commissioned next yearAccording to the present arrangement, the first one lakh allottees will be chosen through a computerised random selection procedure. Their names will be announced within 60 days of closure of the booking (June 25). Applicants who do not mind waiting will be paid interest while those keen on cancelling their bookings will be refunded in full. Deliveries will begin in July and are expected to be completed in the last quarter of 2010.

 

[Screaming Skull]

Nano gets over 2 lakh bookings

Our Bureau


Mumbai, May 4 The Tata Nano has drawn 2.03 lakh bookings valued at nearly Rs 2,500 crore, according to a Tata Motors release issued here on Monday.

The booking window was open from April 9 to 25. The release states that 6.10 lakh booking forms were sold through dealerships, Westside/Croma outlets and banks. Of the total bookings, 70 per cent were financed while the rest of the applicants paid up wholly in cash.....................

2500 cr = $ 500 mn in revenues already Great going!

 

[Screaming Skull]

Hey godsavetheworld can you pls post this news in the Indian Economy section too?

 

[Jako]

I think mamata has booked at least 3.......running out of funds you know......btw had you all noticed mamata going to singur to protest against the nano plant in a Tata Sumo!!!

 

[Screaming Skull]

The bookings were open only from Apr 9th to 29th. That means TATA made $500 mn in just 21 days!!!!!!

 

[wtf]

The bookings were open only from Apr 9th to 29th. That means TATA made $500 mn in just 21 days!!!!!!

Just as well too. They were in financial trouble trying to get ways to pay for the Jaguar acquisition and their bridge loans were coming due. They could not raise debt in the international market due to credit downgrades, while their issue of debt to Indian public met with lukewarm response.

They can only produce 100,000 Nanos in a year (best case) and plan to refund the other deposits in a year. So basically they get $250 Mn in temporary financing. It is not much of a loss to public either since all those who get the car in the first year can easily resell them at a higher price.

 

[gpit]

Too many “if”, “will”, and “may” in the article. Please don’t count chickens before they are hatched. I still vividly remember that Government of India, in 2007, proposed having free broadband (2Mbps ) internet access for everyone in 2009, which gave a huge sensation at that time. Where is that now?

Please think more “now”, “currently”, “at the moment”…

This article is also logically weird. If one or two better Indian quarters can be deemed an advertisement for whatever, wouldn’t the past several hundreds worse quarters have already been advertising something thoroughly and sufficiently?

 

[wtf]

This article is also logically weird. If one or two better Indian quarters can be deemed an advertisement for whatever, wouldn’t the past several hundreds worse quarters have already been advertising something thoroughly and sufficiently?

The idea is that the fastest growing country in the world gets disproportionately more media coverage than the second biggest. Hence a single quarter of beating China will convince a lot of investors about India (Or so goes the claim).

Seems like money does flow into growing economies.
Venture Investment Climbs in India, China and Israel - Bits Blog - NYTimes.com

 

[jeypore]

What the thread is lacking is the economic downturn was effected by the banking industries and practices. While non of Indian banks have been effected or needed a bailout money, does not hold true for the Chinese gov't owned banks. The chinese gov't owned bank is just sucking in money from the gov't for there sirvival and has the highest default rate in the world. The gov't is still trying to reforming the banks in 21 century. That is the legacy of communism that is going to hurt China, if they do not keep up with the export market.

 

[wtf]

What the thread is lacking is the economic downturn was effected by the banking industries and practices. While non of Indian banks have been effected or needed a bailout money, does not hold true for the Chinese gov't owned banks. The chinese gov't owned bank is just sucking in money from the gov't for there sirvival and has the highest default rate in the world. The gov't is still trying to reforming the banks in 21 century. That is the legacy of communism that is going to hurt China, if they do not keep up with the export market.

And what is your source of data ? Chinese banks have problems, but default is not the major one yet (except for a bunch of real estate loans). Their problem is the huge investment they made in US real estate through CDO's.

And the problem with China's banks is the same as Indian ones - lack of secondary market for debts (i.e. bonds). And bonds won't be popular until interest rates come down, which won't happen until inflation comes down, which won't happen until FDI flows stop.

Of course, China does have problems allowing foreign companies into their banking sector but they are only one step further out than India which again does not allow fully owned foreign banks. Luckily, Indian rules meet WTO requirements, while China's do not.

 

[jeypore]

And what is your source of data ?

Three of China’s four large state-owned banks, with China Agricultural Bank as the exception, have become diversified stock companies. Shareholders of these banks include Goldman Sachs, Bank of America, HSBC, The Royal Bank of Scotland, and The International Finance Corporation, and their demands must be considered, even while following the government’s instruction. The management of these banks do not believe that once bad loans occur the government will bail them out as it did ten years ago, for they are no long the government’s children. After the Asian financial crisis in 1997-98, the government also increased investment in infrastructure construction and overloaded the bad side of banks’ loan books, but the banks were all state-owned then. The government then injected $60 billion in total into the Bank of China, China Construction Bank, and Industrial and Commercial Bank.

Banks? Lending Reluctance Undermines Stimulus Plan-ChinaStakes.com

The basic problem, they say, is that the Chinese government owns the banks and will continue to control them after the public offerings. The government has always exercised ultimate authority over the banks’ lending decisions and, historically, has forced them to lend to corrupt and inefficient state-owned enterprises. That leaves the banks with a large share of loans that, effectively, default. Despite the recent reforms, that basic interference continues.

Because the government now badly wants to modernize its financial sector and bring it up to Western standards, it has made a clear attempt to clean up the balance sheets of the big banks in preparation for their public offerings. The Industrial and Commercial Bank received a direct infusion of something like $30 billion from the Ministry of Finance and the Chinese central bank. The government also reduced Industrial and Commercial’s ratio of “nonperforming loans” to less than 5 percent from 34 percent in 2000 by taking $35 billion in failed loans off its books and giving them to specially created “asset management

http://faculty.chicagobooth.edu/austan.goolsbee/website/PDFs/escene.06.10.china.pdf

Read this PDF file!!!!
Thanks.

 

[Aeneas]

The basic problem, they say, is that the Chinese government owns the banks and will continue to control them after the public offerings. The government has always exercised ultimate authority over the banks’ lending decisions and, historically, has forced them to lend to corrupt and inefficient state-owned enterprises. That leaves the banks with a large share of loans that, effectively, default. Despite the recent reforms, that basic interference continues.

Because the government now badly wants to modernize its financial sector and bring it up to Western standards, it has made a clear attempt to clean up the balance sheets of the big banks in preparation for their public offerings. The Industrial and Commercial Bank received a direct infusion of something like $30 billion from the Ministry of Finance and the Chinese central bank. The government also reduced Industrial and Commercial’s ratio of “nonperforming loans” to less than 5 percent from 34 percent in 2000 by taking $35 billion in failed loans off its books and giving them to specially created “asset management

http://faculty.chicagobooth.edu/austan.goolsbee/website/PDFs/escene.06.10.china.pdf

Read this PDF file!!!!
Thanks.

my opinion

the way China did in banks is rather stormy but efficient in past years.they will lend money to 10 corporations,five of them profit,the other 5 lose.but the benefit from 5 Profit-making corporation will exceed the lose from 5 unsuccessful corporation a lot.

it is because there were huge economic development space for a huge poor nation like China before.but now,we have to change.the economic of China had developed a lot in past years.there are no more space like before.if we continiue lend money to 10 corporations,and let half of them defeated.the benefit from 5 successful corporations may not match the lose from 5 unsuccessful corporations anymore.so we had to make sure at least 6 of 10 corporations profit.10 years later,we must sure 7 or 8.

 

[Hellfire]

Too many “if”, “will”, and “may” in the article. Please don’t count chickens before they are hatched. I still vividly remember that Government of India, in 2007, proposed having free broadband (2Mbps ) internet access for everyone in 2009, which gave a huge sensation at that time. Where is that now?

Please think more “now”, “currently”, “at the moment”…

This article is also logically weird. If one or two better Indian quarters can be deemed an advertisement for whatever, wouldn’t the past several hundreds worse quarters have already been advertising something thoroughly and sufficiently?

interesting

can you give the necessary link for this professed free broadband?