Indian Economy-News & Updates
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eachus
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India opens the finance market to foreign investment. so the FDI number is not meaningful similar to UK. UK with a tiny island receive some $1000 FDI sometimes more than US, many times larger than China while ago. FDI is just change hand info. for instance,
a country call Green Island has only one company call Green Tech. last year German bought it for $2B, G.Island had FDI $2b last year. this year, German sold it to UK for $2.5b, UK sold it to US for $2.6b, and US sold it to India for $2.4. then G.island has 2.5 + 2.6 + 2.4 = $7.5B FDI, the media will report Green Island won #1 growth in FDI, total FDI this year is 7.5B almost 275% growth of last year. but does it mean anything?
FDI is one way street statistic accumulation. it does not count the number of selling. only add up the buys.
I will rather look at the currency exchange rate.
if it goes up, that means you are going fine, if it goes down spells trouble.
RISING SUN
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India has $6 trillion wealth, but 'human capital' growth very slow says new study
How does one measure the wealth of a country? The most popular measure is the "gross domestic product" (GDP) which adds up the values of everything produced in the country in one year. But this leaves glaring holes. It is not a measure of wealth but a measure of incomes. Moreover, natural resources and, people's skills and education levels are not factored in. Neither is the all important question of sustainability - whether a country is living beyond its means at present, putting in danger future generations. To measure human wellbeing, the Human Development Index (HDI) is used. But that excludes hard economic progress.
A study led by Cambridge economist Partha Dasgupta proposes a new "Inclusive Wealth Index" (IWI) attempts to make up for these gaps. It measures four kinds of capitals or assets in 20 countries - human, manufactured, natural and health. These are measured from 1990 to 2008 to get the trends. Further adjustment is done to account for effect of climate change, technology and oil prices. The study report was released at the recent Rio+20 Summit by United Nations University and the UN Environment Programme.
The US retains its top position with an estimated inclusive wealth $117.8 trillion (constant 2000 dollars), followed by Japan at $55.1 trillion and then China at $20 trillion. India is estimated to have inclusive wealth of $6.1 trillion.
The report stresses that it is the way this wealth has been changing in the past 19 years that really matters - because sustainability of growth is what matters in the long term. In terms of growth rates, the study results turn all existing rankings of economies based on just GDP or HDI topsy turvy. India, China, Chile and Kenya show the highest growth rates in IWI over the studied period while other conventionally "strong" or "rich" economies like the US, UK, Japan, Germany and Saudi Arabia clock in lower down.
Of the 20 studied countries, 19 show positive growth rates. This means that these countries are on paths that are largely sustainable - to different degrees. Only Russia has a negative growth rate.
However, large populations of countries like India and China skews the IWI in their favor, the report says. To get a better measure, the IWI is calculated on a per person basis.
This brings a dramatic change in the rankings. China emerges at the top with a per capita IWI of 2.07 because of its phenomenal increase in manufactured capital. France (1.44) and Germany (1.83) move up. India along with Japan and Brazil are in the middle now with a per capita IWI of 0.91. US (0.69) and UK (0.88) remain laggards.
India's slow pace of IWI growth - 0.9 percent in 19 years - is because of "precipitous decline in natural capital" and slow progress in developing human capital according to the report. India's natural capital declined from $1928 million (constant US dollars of year 2000) in 1990 to $1330 million in 2008 and its human capital increased from $1926 million to $2388 million in the same period. That's a 31% decline in natural capital and a 24% increase in human capital China increased its human capital in the same period by over 33% while its natural capital went down by 23%, according to estimates of the report.
But the most affected by factoring in population are countries like Kenya, Saudi Arabia, Nigeria, Columbia, South Africa, and Venezuela, the report says. For instance, Kenya experienced relatively high absolute IWI growth of 2.85, while only managing a per-capita IWI growth rate of 0.06. The others experienced negative per-capita IWI growth. These countries have two options to reverse this trend: they must either reduce population growth rates or re-invest in the different capital asset bases to increase the rate of IWI growth. Their poor performance is mainly due to higher population growth but also higher rate of depletion of natural resources.
Comparing the growth rates of IWI, GDP and Human Development Index (HDI) of these twnty countries over 1990 to 2008, the report points out that for all countries except Germany and France GDP growth rates were higher that IWI growth because capital stocks are not keeping pace with GDP growth.
Inclusive Wealth Index per capita
Yearly Growth Rate (1990-2008)
Inclusive Wealth
($ trillion, constant 2000)
India
0.9
6.1
China
2.1
20.0
Germany
1.8
19.5
Brazil
0.9
7.4
Japan
55.1
UK
13.4
US
0.7
117.8
Russia
-0.3
10.3
Nigeria
-1.8
0.89
Source: Inclusive Wealth Report 2012
India has $6 trillion wealth, but 'human capital' growth very slow says new study - The Times of India
India has $6 trillion wealth, but 'human capital' growth very slow says new study
How does one measure the wealth of a country? The most popular measure is the "gross domestic product" (GDP) which adds up the values of everything produced in the country in one year. But this leaves glaring holes. It is not a measure of wealth but a measure of incomes. Moreover, natural resources and, people's skills and education levels are not factored in. Neither is the all important question of sustainability - whether a country is living beyond its means at present, putting in danger future generations. To measure human wellbeing, the Human Development Index (HDI) is used. But that excludes hard economic progress.
A study led by Cambridge economist Partha Dasgupta proposes a new "Inclusive Wealth Index" (IWI) attempts to make up for these gaps. It measures four kinds of capitals or assets in 20 countries - human, manufactured, natural and health. These are measured from 1990 to 2008 to get the trends. Further adjustment is done to account for effect of climate change, technology and oil prices. The study report was released at the recent Rio+20 Summit by United Nations University and the UN Environment Programme.
The US retains its top position with an estimated inclusive wealth $117.8 trillion (constant 2000 dollars), followed by Japan at $55.1 trillion and then China at $20 trillion. India is estimated to have inclusive wealth of $6.1 trillion.
The report stresses that it is the way this wealth has been changing in the past 19 years that really matters - because sustainability of growth is what matters in the long term. In terms of growth rates, the study results turn all existing rankings of economies based on just GDP or HDI topsy turvy. India, China, Chile and Kenya show the highest growth rates in IWI over the studied period while other conventionally "strong" or "rich" economies like the US, UK, Japan, Germany and Saudi Arabia clock in lower down.
Of the 20 studied countries, 19 show positive growth rates. This means that these countries are on paths that are largely sustainable - to different degrees. Only Russia has a negative growth rate.
However, large populations of countries like India and China skews the IWI in their favor, the report says. To get a better measure, the IWI is calculated on a per person basis.
This brings a dramatic change in the rankings. China emerges at the top with a per capita IWI of 2.07 because of its phenomenal increase in manufactured capital. France (1.44) and Germany (1.83) move up. India along with Japan and Brazil are in the middle now with a per capita IWI of 0.91. US (0.69) and UK (0.88) remain laggards.
India's slow pace of IWI growth - 0.9 percent in 19 years - is because of "precipitous decline in natural capital" and slow progress in developing human capital according to the report. India's natural capital declined from $1928 million (constant US dollars of year 2000) in 1990 to $1330 million in 2008 and its human capital increased from $1926 million to $2388 million in the same period. That's a 31% decline in natural capital and a 24% increase in human capital China increased its human capital in the same period by over 33% while its natural capital went down by 23%, according to estimates of the report.
But the most affected by factoring in population are countries like Kenya, Saudi Arabia, Nigeria, Columbia, South Africa, and Venezuela, the report says. For instance, Kenya experienced relatively high absolute IWI growth of 2.85, while only managing a per-capita IWI growth rate of 0.06. The others experienced negative per-capita IWI growth. These countries have two options to reverse this trend: they must either reduce population growth rates or re-invest in the different capital asset bases to increase the rate of IWI growth. Their poor performance is mainly due to higher population growth but also higher rate of depletion of natural resources.
Comparing the growth rates of IWI, GDP and Human Development Index (HDI) of these twnty countries over 1990 to 2008, the report points out that for all countries except Germany and France GDP growth rates were higher that IWI growth because capital stocks are not keeping pace with GDP growth.
Inclusive Wealth Index per capita
Yearly Growth Rate (1990-2008)
Inclusive Wealth
($ trillion, constant 2000)
India
0.9
6.1
China
2.1
20.0
Germany
1.8
19.5
Brazil
0.9
7.4
Japan
55.1
UK
13.4
US
0.7
117.8
Russia
-0.3
10.3
Nigeria
-1.8
0.89
Source: Inclusive Wealth Report 2012
India has $6 trillion wealth, but 'human capital' growth very slow says new study - The Times of India
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
http://economictimes.indiatimes.com...-the-eurozone-crisis/articleshow/14709610.cms
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
India has plenty of lessons to learn from the eurozone crisis - The Economic Times
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
India has plenty of lessons to learn from the eurozone crisis - The Economic Times
6 Jul, 2012, 07.29PM IST, Reuters
India cash rates rise on late funding trades
India cash rates rise on late funding trades - The Economic Times
India’s FDI inflow up 30% in ‘11: Unctad
By Yogima Seth Sharma Jul 05 2012 , New Delhi
Tags: FDI, India, inflow, Economy
After a slowdown for two years in running, India's foreign direct investment (FDI) inflows
grew by 30.5 per cent in 2011, says the United Nations Conference on Trade and Development’s (Unctad) World Investment Report 2012, but it is yet to touch pre crisis levels of $43.4 billion FDI inflows in 2008, the highest received by India in a year. FDI inflow fell to $35.5 billion in 2009 and $24.2 billion in 2010.
The Unctad report released on Thursday, said FDI inflows into India went up by 30.5 per cent in 2011 to $31.6 billion vis-à-vis 24.2 billion in 2010, thus pushing up the overall inflow to South Asia by 23 per cent to $39 billion. Inflows into India, however, continue to be far less than China at $123.9 billion.
Pakistan, though the second largest FDI recipient in South Asia, saw a 35 per cent dip in inflows last year at $1.3 billion vis-à-vis $2.0 billion in the preceding year while Sri Lanka registered a decline of 40 per cent at $0.3 billion as compared to $0.5 billion in 2010.
India is opening up to FDI in a big way. While the government enhanced the FDI ceiling on single brand retail from 51 per cent to 100 per cent last year, there have been intense efforts to open up FDI into multi-brand retail to the extent of 51 per cent along with opening up of aviation. Cabinet has already given a clearance for 51 per cent FDI in multi-brand retail but the issue got stuck in the absence of a nationwide political consensus.
Unctad predicts that the growth rate of FDI will slow in 2012 with flows leveling at $1.6 trillion with the value of both cross-border mergers and acquisitions and greenfield investments retreating in the first five months of 2012. “Weak level of M&A announcements also suggest sluggish FDI flows in the later part of this year,” the report said.
In the medium term, global FDI inflow is expected to increase at a moderate but steady pace o reach $1.8 trillion and $1.9 trillion in 2013 and 2014.
How does one measure the wealth of a country? The most popular measure is the "gross domestic product" (GDP) which adds up the values of everything produced in the country in one year. But this leaves glaring holes. It is not a measure of wealth but a measure of incomes. Moreover, natural resources and, people's skills and education levels are not factored in. Neither is the all important question of sustainability - whether a country is living beyond its means at present, putting in danger future generations. To measure human wellbeing, the Human Development Index (HDI) is used. But that excludes hard economic progress.
A study led by Cambridge economist Partha Dasgupta proposes a new "Inclusive Wealth Index" (IWI) attempts to make up for these gaps. It measures four kinds of capitals or assets in 20 countries - human, manufactured, natural and health. These are measured from 1990 to 2008 to get the trends. Further adjustment is done to account for effect of climate change, technology and oil prices. The study report was released at the recent Rio+20 Summit by United Nations University and the UN Environment Programme.
The US retains its top position with an estimated inclusive wealth $117.8 trillion (constant 2000 dollars), followed by Japan at $55.1 trillion and then China at $20 trillion. India is estimated to have inclusive wealth of $6.1 trillion.
The report stresses that it is the way this wealth has been changing in the past 19 years that really matters - because sustainability of growth is what matters in the long term. In terms of growth rates, the study results turn all existing rankings of economies based on just GDP or HDI topsy turvy. India, China, Chile and Kenya show the highest growth rates in IWI over the studied period while other conventionally "strong" or "rich" economies like the US, UK, Japan, Germany and Saudi Arabia clock in lower down.
Of the 20 studied countries, 19 show positive growth rates. This means that these countries are on paths that are largely sustainable - to different degrees. Only Russia has a negative growth rate.
However, large populations of countries like India and China skews the IWI in their favor, the report says. To get a better measure, the IWI is calculated on a per person basis.
This brings a dramatic change in the rankings. China emerges at the top with a per capita IWI of 2.07 because of its phenomenal increase in manufactured capital. France (1.44) and Germany (1.83) move up. India along with Japan and Brazil are in the middle now with a per capita IWI of 0.91. US (0.69) and UK (0.88) remain laggards.
India's slow pace of IWI growth - 0.9 percent in 19 years - is because of "precipitous decline in natural capital" and slow progress in developing human capital according to the report. India's natural capital declined from $1928 million (constant US dollars of year 2000) in 1990 to $1330 million in 2008 and its human capital increased from $1926 million to $2388 million in the same period. That's a 31% decline in natural capital and a 24% increase in human capital China increased its human capital in the same period by over 33% while its natural capital went down by 23%, according to estimates of the report.
But the most affected by factoring in population are countries like Kenya, Saudi Arabia, Nigeria, Columbia, South Africa, and Venezuela, the report says. For instance, Kenya experienced relatively high absolute IWI growth of 2.85, while only managing a per-capita IWI growth rate of 0.06. The others experienced negative per-capita IWI growth. These countries have two options to reverse this trend: they must either reduce population growth rates or re-invest in the different capital asset bases to increase the rate of IWI growth. Their poor performance is mainly due to higher population growth but also higher rate of depletion of natural resources.
Comparing the growth rates of IWI, GDP and Human Development Index (HDI) of these twnty countries over 1990 to 2008, the report points out that for all countries except Germany and France GDP growth rates were higher that IWI growth because capital stocks are not keeping pace with GDP growth.
Inclusive Wealth Index per capita
Yearly Growth Rate (1990-2008)
Inclusive Wealth
($ trillion, constant 2000)
India
0.9
6.1
China
2.1
20.0
Germany
1.8
19.5
Brazil
0.9
7.4
Japan
55.1
UK
13.4
US
0.7
117.8
Russia
-0.3
10.3
Nigeria
-1.8
0.89
Source: Inclusive Wealth Report 2012
India has $6 trillion wealth, but 'human capital' growth very slow says new study - The Times of India
India has $6 trillion wealth, but 'human capital' growth very slow says new study
How does one measure the wealth of a country? The most popular measure is the "gross domestic product" (GDP) which adds up the values of everything produced in the country in one year. But this leaves glaring holes. It is not a measure of wealth but a measure of incomes. Moreover, natural resources and, people's skills and education levels are not factored in. Neither is the all important question of sustainability - whether a country is living beyond its means at present, putting in danger future generations. To measure human wellbeing, the Human Development Index (HDI) is used. But that excludes hard economic progress.
A study led by Cambridge economist Partha Dasgupta proposes a new "Inclusive Wealth Index" (IWI) attempts to make up for these gaps. It measures four kinds of capitals or assets in 20 countries - human, manufactured, natural and health. These are measured from 1990 to 2008 to get the trends. Further adjustment is done to account for effect of climate change, technology and oil prices. The study report was released at the recent Rio+20 Summit by United Nations University and the UN Environment Programme.
The US retains its top position with an estimated inclusive wealth $117.8 trillion (constant 2000 dollars), followed by Japan at $55.1 trillion and then China at $20 trillion. India is estimated to have inclusive wealth of $6.1 trillion.
The report stresses that it is the way this wealth has been changing in the past 19 years that really matters - because sustainability of growth is what matters in the long term. In terms of growth rates, the study results turn all existing rankings of economies based on just GDP or HDI topsy turvy. India, China, Chile and Kenya show the highest growth rates in IWI over the studied period while other conventionally "strong" or "rich" economies like the US, UK, Japan, Germany and Saudi Arabia clock in lower down.
Of the 20 studied countries, 19 show positive growth rates. This means that these countries are on paths that are largely sustainable - to different degrees. Only Russia has a negative growth rate.
However, large populations of countries like India and China skews the IWI in their favor, the report says. To get a better measure, the IWI is calculated on a per person basis.
This brings a dramatic change in the rankings. China emerges at the top with a per capita IWI of 2.07 because of its phenomenal increase in manufactured capital. France (1.44) and Germany (1.83) move up. India along with Japan and Brazil are in the middle now with a per capita IWI of 0.91. US (0.69) and UK (0.88) remain laggards.
India's slow pace of IWI growth - 0.9 percent in 19 years - is because of "precipitous decline in natural capital" and slow progress in developing human capital according to the report. India's natural capital declined from $1928 million (constant US dollars of year 2000) in 1990 to $1330 million in 2008 and its human capital increased from $1926 million to $2388 million in the same period. That's a 31% decline in natural capital and a 24% increase in human capital China increased its human capital in the same period by over 33% while its natural capital went down by 23%, according to estimates of the report.
But the most affected by factoring in population are countries like Kenya, Saudi Arabia, Nigeria, Columbia, South Africa, and Venezuela, the report says. For instance, Kenya experienced relatively high absolute IWI growth of 2.85, while only managing a per-capita IWI growth rate of 0.06. The others experienced negative per-capita IWI growth. These countries have two options to reverse this trend: they must either reduce population growth rates or re-invest in the different capital asset bases to increase the rate of IWI growth. Their poor performance is mainly due to higher population growth but also higher rate of depletion of natural resources.
Comparing the growth rates of IWI, GDP and Human Development Index (HDI) of these twnty countries over 1990 to 2008, the report points out that for all countries except Germany and France GDP growth rates were higher that IWI growth because capital stocks are not keeping pace with GDP growth.
Inclusive Wealth Index per capita
Yearly Growth Rate (1990-2008)
Inclusive Wealth
($ trillion, constant 2000)
India
0.9
6.1
China
2.1
20.0
Germany
1.8
19.5
Brazil
0.9
7.4
Japan
55.1
UK
13.4
US
0.7
117.8
Russia
-0.3
10.3
Nigeria
-1.8
0.89
Source: Inclusive Wealth Report 2012
India has $6 trillion wealth, but 'human capital' growth very slow says new study - The Times of India
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
http://economictimes.indiatimes.com...-the-eurozone-crisis/articleshow/14709610.cms
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
India has plenty of lessons to learn from the eurozone crisis - The Economic Times
India has plenty of lessons to learn from the eurozone crisis
A 2005 study carried out to analyse the costs and benefits to Britain for being a member of the European Union concluded that unless the EU agrees to adopt competitive and free markets, and makes an effective commitment not to bail out insolvent states, it made sense for Britain to leave the eurozone. Seven years later, it would seem that Greece has validated that conclusion.
A number of countries and financial institutions have admitted to making contingency plans for the extreme scenario of Greece being forced out from the eurozone. With India going through its own economic problems - a Crisil study recently revised India's GDP growth forecast for 2012-13 downwards to 6.5% from the earlier estimate of 7% - it would be pertinent to focus on key lessons from the Greek episode.
First, incentives matter. High economic growth is sustainable only if there is a competitive private sector, which raises the productive capacity of the economy. Barriers to entry and exit of labour and capital curtail business expansion by raising the cost of production .
Excessive protection to domestic industry, lack of regulatory clarity and good institutional framework, slow decision-making and poor governance do not incentivise businesses to improve efficiency. At present, in India, key input sectors such as mining, power and utilities are adversely affected due to similar problems.
Second, living beyond your means year after year can lead to bankruptcy. This is especially true if borrowed money is not used for productive purposes. Greece wrongly believed that it could continue to milk the EU for subsidies and fiscal transfers. With fiscal transfers not linked to productivity , wages raced ahead of productivity growth, thereby eroding competitiveness and also raising inflationary pressures .
Here, in India, we have seen fiscal deficit ballooning in recent years with nearly three-fourths of government expenditure being channelled towards consumption expenditure , which has put more money into hands of people without significant improvements in productivity.
Third, trust is everything. Had Germany and France trusted Greece and other peripheral eurozone countries to cut government spending once their economies recovered from the current recessionary phase, the pressure to carry out large-scale public sector spending cuts now would have been lower. However, once you lose investors' trust due to a poor track record, immediate and drastic action is demanded and needs to be complied with.
Imagine if Greece left the eurozone. The Indian economy, like the rest of the world, would be adversely impacted via trade, investment and confidence channels. Exports would nosedive, foreign capital would fly out, depreciation pressure on the currency would rise, and domestic investor sentiment would be hurt. The economy would need both fiscal and monetary stimuli to revive.
The fiscal stimulus could entail raising government spending and/or cutting taxes, which would raise the already high fiscal deficit even further . Given India's inability to roll back government expenditure in the past, investors, both domestic and global, would react adversely if the fiscal deficit worsens, making it difficult to provide stimulus to the economy.
India has plenty of lessons to learn from the eurozone crisis - The Economic Times
6 Jul, 2012, 07.29PM IST, Reuters
India cash rates rise on late funding trades
India cash rates rise on late funding trades - The Economic Times
India’s FDI inflow up 30% in ‘11: Unctad
By Yogima Seth Sharma Jul 05 2012 , New Delhi
Tags: FDI, India, inflow, Economy
After a slowdown for two years in running, India's foreign direct investment (FDI) inflows
grew by 30.5 per cent in 2011, says the United Nations Conference on Trade and Development’s (Unctad) World Investment Report 2012, but it is yet to touch pre crisis levels of $43.4 billion FDI inflows in 2008, the highest received by India in a year. FDI inflow fell to $35.5 billion in 2009 and $24.2 billion in 2010.
The Unctad report released on Thursday, said FDI inflows into India went up by 30.5 per cent in 2011 to $31.6 billion vis-à-vis 24.2 billion in 2010, thus pushing up the overall inflow to South Asia by 23 per cent to $39 billion. Inflows into India, however, continue to be far less than China at $123.9 billion.
Pakistan, though the second largest FDI recipient in South Asia, saw a 35 per cent dip in inflows last year at $1.3 billion vis-à-vis $2.0 billion in the preceding year while Sri Lanka registered a decline of 40 per cent at $0.3 billion as compared to $0.5 billion in 2010.
India is opening up to FDI in a big way. While the government enhanced the FDI ceiling on single brand retail from 51 per cent to 100 per cent last year, there have been intense efforts to open up FDI into multi-brand retail to the extent of 51 per cent along with opening up of aviation. Cabinet has already given a clearance for 51 per cent FDI in multi-brand retail but the issue got stuck in the absence of a nationwide political consensus.
Unctad predicts that the growth rate of FDI will slow in 2012 with flows leveling at $1.6 trillion with the value of both cross-border mergers and acquisitions and greenfield investments retreating in the first five months of 2012. “Weak level of M&A announcements also suggest sluggish FDI flows in the later part of this year,” the report said.
In the medium term, global FDI inflow is expected to increase at a moderate but steady pace o reach $1.8 trillion and $1.9 trillion in 2013 and 2014.
eachus
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guys, some more bad news.
I read a news(from Wall Street) said Rupee will touch $1 = R60 in this summer.
so the Rupee rebound may not last. the trend is still down.
years ago, maybe back in 1998 or so, the rate was $1 = R25.
around 3 or 4 years ago it was rested $1 = $40 for long time, then start moving on the trend.
last year was $1 = R45,
today is $1 = R55.5
When the currency drop very fast indicate something is going wrong. I dont know, you dont know but the foreign hot-money knows. smart money left early, some slower money folllows,,, I tell what what I see, no fake stories plz.
I read a news(from Wall Street) said Rupee will touch $1 = R60 in this summer.
so the Rupee rebound may not last. the trend is still down.
years ago, maybe back in 1998 or so, the rate was $1 = R25.
around 3 or 4 years ago it was rested $1 = $40 for long time, then start moving on the trend.
last year was $1 = R45,
today is $1 = R55.5
When the currency drop very fast indicate something is going wrong. I dont know, you dont know but the foreign hot-money knows. smart money left early, some slower money folllows,,, I tell what what I see, no fake stories plz.
RISING SUN
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StanChart upgrades rupee; says India may miss fiscal target - Money Matters - livemint.com
StanChart upgrades rupee; says India may miss fiscal target
India to focus on enhancing trade ties with West Africa
India is focussing on enhancing economic and trade co-operation with West African nations and has set sights on increasing the trade turnover with such African countries to around $20 billion by 2015 from the present $14.1 billion per annum.
In addition, the focus would be on acquisition of energy assets, including oil and gas, and penetrate African markets for the pharmaceutical sector with generic drugs taking the lead. As a step in this direction, India will be holding a three-day ‘India Show’ in Ghana from July 9 in which nearly 100 leading Indian companies, including Airtel, L&T, Reliance Industries, Sun Group, Ashok Leyland, Apollo Hospitals and Tata Group are taking part.
Besides, Commerce and Industry Minister Anand Sharma will lead a delegation of businessmen and officials to explore the vast business opportunities in the Economic Community of West African States (ECOWAS), which includes nations such as Mali, Niger, Togo, Congo and Senegal, according to Vikramjit Singh Sahani of Sun Group and lead the delegation on behalf of Federation of Chambers of Commerce and Industry (FICCI).
The delegation comprised representatives from sectors such as fertilizer, oil and gas, agriculture, food processing, services, health, IT, telecom, manufacturing, energy, pharmaceuticals, textiles and education, Mr. Sahney said.
Interestingly, Defence Research and Development Organisation (DRDO), the research arm of the Ministry of Defence, will also be showcasing its innovations that have civilian application and particularly in areas where there is suitability for the African sub-continent.
NEW DELHI: India's oil imports from Iran fell 18.2 percent in June from a year earlier in a third straight monthly decline, although the pace slowed as refiners built stocks ahead of Western sanctions against Tehran's nuclear programme that took effect by July.
The sanctions are designed to restrict the flow of funds to Iran because the West believes the Islamic Republic is trying to build nuclear weapons, but Tehran says its nuclear program is for civilian purposes.
India, one of the biggest buyers of crude from OPEC's second largest producer, last month secured a waiver from U.S. sanctions by reducing imports by more than 20 percent.
In June, refiners imported about 346,600 barrels per day (bpd) of Iranian oil, up 42.5 percent from May, tanker discharge data made available to Reuters showed.
Monthly imports from Iran may fall 13 percent to 300,650 bpd in July, when the OPEC member's daily oil exports could decline to a maximum of 1.1 million bpd, about half of the 2011 average, industry sources told Reuters.
In April and May India imported about 40 percent less oil from Iran than in corresponding period a year earlier.
IRAN PUSHED TO FIFTH POSITION Energy-hungry India, which imports about 80 percent of its oil needs, has allowed state refiners to buy oil using Iranian ships and insurance cover to lock in supplies from its third biggest source for a period of six months.
Falling imports have pushed Iran down to fifth position in the list of India's biggest crude oil suppliers in the second quarter, compared with the third position it enjoyed a year ago and second in the first quarter of 2011.
In the January-June period, India's oil imports from Iran rose 4 percent to 367,800 bpd form a year ago, the data showed.
Refiners are expected to cut volumes by more than 20 percent under the term deals they started inking on April 1, according to Reuters' calculations, while the government says it aims for imports to be down 11 percent from 2011/12, to about 310,000 bpd.
India is making up for the shortfall in Iranian cargoes by raising imports from the world's largest exporter, Saudi Arabia, and fellow OPEC member Iraq, which emerged as the second biggest oil supplier to New Delhi, replacing Tehran.
New Delhi: India today underlined the need for jointly exploring ways to promote tourism in SAARC (South Asian Association for Regional Cooperation) countries, whose growth potential have not yet been fully utilised.
"SAARC countries should explore the ways and means for more exchange of tourists amongst them," Tourism Minister Subodh Kant Sahai said while inaugurating the conclave of SAARC tour operators here.
There are about 45 leading tour operators from India, Maldives, Afghanistan, Bhutan, Nepal, Bangladesh and Pakistan participating in the conclave. The conclave is focusing on various strategies to promote tourist destinations and products in the SAARC region.
"We must motivate each SAARC country in such a way that tourism becomes the focus of economic and political agenda," he said.
Acknowledging the potential of the region, Sahai said that SAARC nations have immense growth potential, which till date has not been fully utilised.
"If it could be fully utilised in all possible ways, the SAARC region has the potential to steer the economy of the world. The cultural diversity of the SAARC region is unique, and the combination of scenic landscapes, natural beauty, and ethnic multiplicity - only add to its international appeal.
"All these facts unite to make the SAARC region a great tourist attraction. In fact, most SAARC nations have already realised this potential at individual level but with a concerted effort, the success culminated would be many folds," he said.
The seven-member countries are an important source market for India as 1,013,516 tourists from SAARC region visited India in 2011 as compared to 9,98,179 in 2010.
StanChart upgrades rupee; says India may miss fiscal target
India to focus on enhancing trade ties with West Africa
India is focussing on enhancing economic and trade co-operation with West African nations and has set sights on increasing the trade turnover with such African countries to around $20 billion by 2015 from the present $14.1 billion per annum.
In addition, the focus would be on acquisition of energy assets, including oil and gas, and penetrate African markets for the pharmaceutical sector with generic drugs taking the lead. As a step in this direction, India will be holding a three-day ‘India Show’ in Ghana from July 9 in which nearly 100 leading Indian companies, including Airtel, L&T, Reliance Industries, Sun Group, Ashok Leyland, Apollo Hospitals and Tata Group are taking part.
Besides, Commerce and Industry Minister Anand Sharma will lead a delegation of businessmen and officials to explore the vast business opportunities in the Economic Community of West African States (ECOWAS), which includes nations such as Mali, Niger, Togo, Congo and Senegal, according to Vikramjit Singh Sahani of Sun Group and lead the delegation on behalf of Federation of Chambers of Commerce and Industry (FICCI).
The delegation comprised representatives from sectors such as fertilizer, oil and gas, agriculture, food processing, services, health, IT, telecom, manufacturing, energy, pharmaceuticals, textiles and education, Mr. Sahney said.
Interestingly, Defence Research and Development Organisation (DRDO), the research arm of the Ministry of Defence, will also be showcasing its innovations that have civilian application and particularly in areas where there is suitability for the African sub-continent.
NEW DELHI: India's oil imports from Iran fell 18.2 percent in June from a year earlier in a third straight monthly decline, although the pace slowed as refiners built stocks ahead of Western sanctions against Tehran's nuclear programme that took effect by July.
The sanctions are designed to restrict the flow of funds to Iran because the West believes the Islamic Republic is trying to build nuclear weapons, but Tehran says its nuclear program is for civilian purposes.
India, one of the biggest buyers of crude from OPEC's second largest producer, last month secured a waiver from U.S. sanctions by reducing imports by more than 20 percent.
In June, refiners imported about 346,600 barrels per day (bpd) of Iranian oil, up 42.5 percent from May, tanker discharge data made available to Reuters showed.
Monthly imports from Iran may fall 13 percent to 300,650 bpd in July, when the OPEC member's daily oil exports could decline to a maximum of 1.1 million bpd, about half of the 2011 average, industry sources told Reuters.
In April and May India imported about 40 percent less oil from Iran than in corresponding period a year earlier.
IRAN PUSHED TO FIFTH POSITION Energy-hungry India, which imports about 80 percent of its oil needs, has allowed state refiners to buy oil using Iranian ships and insurance cover to lock in supplies from its third biggest source for a period of six months.
Falling imports have pushed Iran down to fifth position in the list of India's biggest crude oil suppliers in the second quarter, compared with the third position it enjoyed a year ago and second in the first quarter of 2011.
In the January-June period, India's oil imports from Iran rose 4 percent to 367,800 bpd form a year ago, the data showed.
Refiners are expected to cut volumes by more than 20 percent under the term deals they started inking on April 1, according to Reuters' calculations, while the government says it aims for imports to be down 11 percent from 2011/12, to about 310,000 bpd.
India is making up for the shortfall in Iranian cargoes by raising imports from the world's largest exporter, Saudi Arabia, and fellow OPEC member Iraq, which emerged as the second biggest oil supplier to New Delhi, replacing Tehran.
New Delhi: India today underlined the need for jointly exploring ways to promote tourism in SAARC (South Asian Association for Regional Cooperation) countries, whose growth potential have not yet been fully utilised.
"SAARC countries should explore the ways and means for more exchange of tourists amongst them," Tourism Minister Subodh Kant Sahai said while inaugurating the conclave of SAARC tour operators here.
There are about 45 leading tour operators from India, Maldives, Afghanistan, Bhutan, Nepal, Bangladesh and Pakistan participating in the conclave. The conclave is focusing on various strategies to promote tourist destinations and products in the SAARC region.
"We must motivate each SAARC country in such a way that tourism becomes the focus of economic and political agenda," he said.
Acknowledging the potential of the region, Sahai said that SAARC nations have immense growth potential, which till date has not been fully utilised.
"If it could be fully utilised in all possible ways, the SAARC region has the potential to steer the economy of the world. The cultural diversity of the SAARC region is unique, and the combination of scenic landscapes, natural beauty, and ethnic multiplicity - only add to its international appeal.
"All these facts unite to make the SAARC region a great tourist attraction. In fact, most SAARC nations have already realised this potential at individual level but with a concerted effort, the success culminated would be many folds," he said.
The seven-member countries are an important source market for India as 1,013,516 tourists from SAARC region visited India in 2011 as compared to 9,98,179 in 2010.
IndoCarib
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(Reuters) - India has rebuffed a request by IKEA to relax rules on buying goods locally, a government source said on Friday, raising the prospect of a delay in the world's largest furniture maker entering the Indian retail market.
IKEA, famous for its self-build flatpacks and huge stores, said last month it would invest $1.5 billion euros and open 25 outlets, throwing a lifeline to the government in India where economic growth has slowed sharply.
But the Swedish company sought a 10-year window to comply with rules that foreign retailers source 30 percent from local small and medium-sized firms, a requirement which overseas companies say discourages investment.
When contacted by Reuters, IKEA said a short delay in its formal application to enter the Indian market would not affect its decision to open stores, and hoped to start operations soon.
The stakes are high for both sides.
India offers IKEA a huge new market while the government is battling heavy criticism over its management of Asia's third-largest economy where growth has slipped to its weakest pace in nine years.
Prime Minister Manmohan Singh said on Friday that IKEA's planned entry was proof that investors still had confidence in India.
WINDOW
A government source involved in formulating retail policy called IKEA's proposed phase-in period "too long".
"They'll rework it, I'm sure," the source said, speaking on condition of anonymity because of the sensitivity of the matter.
An IKEA spokesman said the time period to implement the sourcing rules was "not set in stone".
The requirements underscore the potential pitfalls for foreign retailers as they seek entry to a market of 1.2 billion people with a swelling middle class.
A plan to open India's retail sector to foreign supermarkets such as Wal-Mart stalled last year after a fierce political backlash, although the government is now pushing to revive it.
IKEA announced its plans to invest in India over a period of 15-20 years after the government removed foreign investment caps in single-brand retail in January.
Apart from IKEA, Coca-Cola Co is the only other foreign company to announce big India investments in recent months.
Coke last month announced a further $3 billion in investment in India over the next eight years as the world's biggest soft drinks maker seeks to expand in a country where its flagship brand trails rival Pepsi.
Singh took over the running of the finance ministry in June, raising investor hopes of movement on major policy decisions as he promised to revive the Indian economy's "animal spirit" and end a "climate of pessimism".
The government's requirement that foreign retailers source locally is designed to ensure that domestic manufacturers share the benefit of an influx of foreign capital.
"We will source at least 30 percent of the purchase value of products sold in India from our direct and indirect supply chain comprising Indian small industries," IKEA said in a statement.
"In the longer term however, the mandatory sourcing of 30 percent of the value of goods sold in India from domestic small industries remains a challenge," it said.
IKEA hits snag with India venture | Reuters
Hopefully both parties will overcome the snag and IKEA money starts flowing in !
IKEA, famous for its self-build flatpacks and huge stores, said last month it would invest $1.5 billion euros and open 25 outlets, throwing a lifeline to the government in India where economic growth has slowed sharply.
But the Swedish company sought a 10-year window to comply with rules that foreign retailers source 30 percent from local small and medium-sized firms, a requirement which overseas companies say discourages investment.
When contacted by Reuters, IKEA said a short delay in its formal application to enter the Indian market would not affect its decision to open stores, and hoped to start operations soon.
The stakes are high for both sides.
India offers IKEA a huge new market while the government is battling heavy criticism over its management of Asia's third-largest economy where growth has slipped to its weakest pace in nine years.
Prime Minister Manmohan Singh said on Friday that IKEA's planned entry was proof that investors still had confidence in India.
WINDOW
A government source involved in formulating retail policy called IKEA's proposed phase-in period "too long".
"They'll rework it, I'm sure," the source said, speaking on condition of anonymity because of the sensitivity of the matter.
An IKEA spokesman said the time period to implement the sourcing rules was "not set in stone".
The requirements underscore the potential pitfalls for foreign retailers as they seek entry to a market of 1.2 billion people with a swelling middle class.
A plan to open India's retail sector to foreign supermarkets such as Wal-Mart stalled last year after a fierce political backlash, although the government is now pushing to revive it.
IKEA announced its plans to invest in India over a period of 15-20 years after the government removed foreign investment caps in single-brand retail in January.
Apart from IKEA, Coca-Cola Co is the only other foreign company to announce big India investments in recent months.
Coke last month announced a further $3 billion in investment in India over the next eight years as the world's biggest soft drinks maker seeks to expand in a country where its flagship brand trails rival Pepsi.
Singh took over the running of the finance ministry in June, raising investor hopes of movement on major policy decisions as he promised to revive the Indian economy's "animal spirit" and end a "climate of pessimism".
The government's requirement that foreign retailers source locally is designed to ensure that domestic manufacturers share the benefit of an influx of foreign capital.
"We will source at least 30 percent of the purchase value of products sold in India from our direct and indirect supply chain comprising Indian small industries," IKEA said in a statement.
"In the longer term however, the mandatory sourcing of 30 percent of the value of goods sold in India from domestic small industries remains a challenge," it said.
IKEA hits snag with India venture | Reuters
Hopefully both parties will overcome the snag and IKEA money starts flowing in !
eachus
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International tourism, number of arrivals | Data | Table
International tourism, number of arrivals
Year of....2007.......2008.......2009........2010.......WorldBank.data
China 54,720,000 53,049,000 50,875,000 55,664,000
H.Kong, China 17,154,000 17,319,000 16,926,000 20,085,000
Macao, China 12,945,000 10,610,000 10,402,000 11,926,000
Taiwan,China 6,000,000 6,000,000 6,000,000 6,087,484
France 80,853,000 79,218,000 76,764,000 77,148,000
U.S.A 55,979,000 57,937,000 54,884,000 59,791,000
Spain 58,666,000 57,192,000 52,178,000 52,677,000
Italy 43,654,000 42,734,000 43,239,000 43,626,000
U.King 30,870,000 30,142,000 28,199,000 28,295,000
Turkey 22,248,000 24,994,000 25,506,000 27,000,000
Germany 24,421,000 24,884,000 24,220,000 26,875,000
Malaysia 20,973,000 22,052,000 23,646,000 24,577,000
Russian 22,909,000 23,676,000 21,339,000 22,281,000
Mexico 21,370,000 22,637,000 21,454,000 22,260,000
Austria 20,773,000 21,935,000 21,355,000 22,004,000
Ukraine 23,122,000 25,449,000 20,798,000 21,203,000
Canada 17,935,000 17,142,000 15,737,000 16,097,000
Thailand 14,464,000 14,584,000 14,150,000 15,936,000
Greece 16,165,000 15,939,000 14,915,000 15,007,000
Egypt. 10,610,000 12,296,000 11,914,000 14,051,000
Saudi 11,531,000 14,757,000 10,897,000 10,850,000
.
.
.
.
.
.
India 5,082,000 5,283,000 5,168,000 5,776,000
Year of....2007.......2008.......2009........2010.......WorldBank.data
International tourism, number of arrivals
International tourism, number of arrivals | Data | Table
International tourism, number of arrivals
Year of....2007.......2008.......2009........2010.......WorldBank.data
China 54,720,000 53,049,000 50,875,000 55,664,000
H.Kong, China 17,154,000 17,319,000 16,926,000 20,085,000
Macao, China 12,945,000 10,610,000 10,402,000 11,926,000
Taiwan,China 6,000,000 6,000,000 6,000,000 6,087,484
France 80,853,000 79,218,000 76,764,000 77,148,000
U.S.A 55,979,000 57,937,000 54,884,000 59,791,000
Spain 58,666,000 57,192,000 52,178,000 52,677,000
Italy 43,654,000 42,734,000 43,239,000 43,626,000
U.King 30,870,000 30,142,000 28,199,000 28,295,000
Turkey 22,248,000 24,994,000 25,506,000 27,000,000
Germany 24,421,000 24,884,000 24,220,000 26,875,000
Malaysia 20,973,000 22,052,000 23,646,000 24,577,000
Russian 22,909,000 23,676,000 21,339,000 22,281,000
Mexico 21,370,000 22,637,000 21,454,000 22,260,000
Austria 20,773,000 21,935,000 21,355,000 22,004,000
Ukraine 23,122,000 25,449,000 20,798,000 21,203,000
Canada 17,935,000 17,142,000 15,737,000 16,097,000
Thailand 14,464,000 14,584,000 14,150,000 15,936,000
Greece 16,165,000 15,939,000 14,915,000 15,007,000
Egypt. 10,610,000 12,296,000 11,914,000 14,051,000
Saudi 11,531,000 14,757,000 10,897,000 10,850,000
.
.
.
.
.
.
India 5,082,000 5,283,000 5,168,000 5,776,000
Year of....2007.......2008.......2009........2010.......WorldBank.data
International tourism, number of arrivals
International tourism, number of arrivals | Data | Table
TopCat
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Quick fix will do more damage to the economy in the long run. Urban elites are pushing their politicians to a disaster leaving the 52% of the people in the mercy of god.
God bless India.
SpArK
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Koovie
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8 % growth not ‘God given right’: Montek
In the wake of a “sharp deterioration” in the global economic environment and its impact on India, a scale-down in the country’s growth projection is now official, almost. Planning Commission Deputy Chairman Montek Singh Ahluwalia, on Friday, conceded that achieving a GDP (gross domestic product) expansion of 8 per cent in the next five years through the XII Plan would require a “major effort” and would not come about as a “God given right”.
Interacting with journalists on the sidelines of a first-time conference with state planning boards here, Mr. Ahluwalia pointed out that achieving an average GDP expansion of 9 per cent during 2012-17 as enunciated in the XII Plan Approach Paper was out of question and a scale-down of the ambitious growth target for the five-year period would be internally discussed in the Planning Commission.
“It is not possible to think of an average of 9 per cent. I think somewhere between 8 per cent and 8.5 per cent is feasible...When I say feasible, that will require [a] major effort. If you don’t do that, there is not [a] God given right to grow at 8 per cent,” he said.
Last year, while vetting the Approach Paper for finalising targets for the Plan period, the Planning Commission had obtained approval for pegging the annual average economic growth target at 9 per cent from the National Development Council (NDC), the country’s highest decision-making body headed by the Prime Minister and with all Chief Ministers and Cabinet Ministers on board.
Mr. Ahluwalia noted that following the changes in the economic scenario, both globally and at home, once the new growth numbers are discussed internally, they would be placed before the NDC for inclusion in the Plan document.
The NDC, presided over by Prime Minister Manmohan Singh, is expected to meet in September.
Barring the changes in growth numbers, work on the Plan document is on track. “We have targeted the NDC meeting in September. I think we are on track,” Mr. Ahluwalia said while pointing out that in the run-up to the NDC meeting, a meeting of the full Planning Commission chaired by Dr. Singh was likely to be convened next month.
As for the expected GDP growth during the current fiscal year, Mr. Ahluwalia said: “Given that the world economy deteriorated very sharply over the last year, the growth rate in the first of year of the Plan (2012-13) is likely to be 6.5-7 per cent.”
At the day-long conference, Principal Advisor Pronab Sen made a presentation before the state planning board chiefs to explain why it would be “difficult to grow faster than 8 per cent, without being more efficient in our use of resources”. For one, the XII Plan has begun at a time when the economic conditions are not favourable and, therefore, a new strategy would have to be put in place to achieve higher growth. Such a strategy would involve optimal utilisation of natural resources and improvement in credit flow to small units, agriculture and the infrastructure sector.
However, if the Plan target is to achieve a growth rate of 9 per cent, the country would need to expand exports by 20 per cent each year for the five-year period and increase its engagement with the world to lure more foreign investments, Dr. Sen said.
Another scenario would be to opt for a GDP expansion of 8.5 per cent wherein the country’s economy would have to maintain a farm growth rate of 4 per cent along with manufacturing growth at the rate of 10.5 per cent.
This apart, it would have to generate 25 million new work opportunities in the non-farm sector and raise the green cover by one million hectare each year.
Alongside, the number of people below the poverty line would also have to be reduced by 10 per cent during the five-year period, or by an average 2 per cent each year, if a GDP growth of 8.5 per cent is to be achieved, he said.
The Hindu : News / National : 8 % growth not
In the wake of a “sharp deterioration” in the global economic environment and its impact on India, a scale-down in the country’s growth projection is now official, almost. Planning Commission Deputy Chairman Montek Singh Ahluwalia, on Friday, conceded that achieving a GDP (gross domestic product) expansion of 8 per cent in the next five years through the XII Plan would require a “major effort” and would not come about as a “God given right”.
Interacting with journalists on the sidelines of a first-time conference with state planning boards here, Mr. Ahluwalia pointed out that achieving an average GDP expansion of 9 per cent during 2012-17 as enunciated in the XII Plan Approach Paper was out of question and a scale-down of the ambitious growth target for the five-year period would be internally discussed in the Planning Commission.
“It is not possible to think of an average of 9 per cent. I think somewhere between 8 per cent and 8.5 per cent is feasible...When I say feasible, that will require [a] major effort. If you don’t do that, there is not [a] God given right to grow at 8 per cent,” he said.
Last year, while vetting the Approach Paper for finalising targets for the Plan period, the Planning Commission had obtained approval for pegging the annual average economic growth target at 9 per cent from the National Development Council (NDC), the country’s highest decision-making body headed by the Prime Minister and with all Chief Ministers and Cabinet Ministers on board.
Mr. Ahluwalia noted that following the changes in the economic scenario, both globally and at home, once the new growth numbers are discussed internally, they would be placed before the NDC for inclusion in the Plan document.
The NDC, presided over by Prime Minister Manmohan Singh, is expected to meet in September.
Barring the changes in growth numbers, work on the Plan document is on track. “We have targeted the NDC meeting in September. I think we are on track,” Mr. Ahluwalia said while pointing out that in the run-up to the NDC meeting, a meeting of the full Planning Commission chaired by Dr. Singh was likely to be convened next month.
As for the expected GDP growth during the current fiscal year, Mr. Ahluwalia said: “Given that the world economy deteriorated very sharply over the last year, the growth rate in the first of year of the Plan (2012-13) is likely to be 6.5-7 per cent.”
At the day-long conference, Principal Advisor Pronab Sen made a presentation before the state planning board chiefs to explain why it would be “difficult to grow faster than 8 per cent, without being more efficient in our use of resources”. For one, the XII Plan has begun at a time when the economic conditions are not favourable and, therefore, a new strategy would have to be put in place to achieve higher growth. Such a strategy would involve optimal utilisation of natural resources and improvement in credit flow to small units, agriculture and the infrastructure sector.
However, if the Plan target is to achieve a growth rate of 9 per cent, the country would need to expand exports by 20 per cent each year for the five-year period and increase its engagement with the world to lure more foreign investments, Dr. Sen said.
Another scenario would be to opt for a GDP expansion of 8.5 per cent wherein the country’s economy would have to maintain a farm growth rate of 4 per cent along with manufacturing growth at the rate of 10.5 per cent.
This apart, it would have to generate 25 million new work opportunities in the non-farm sector and raise the green cover by one million hectare each year.
Alongside, the number of people below the poverty line would also have to be reduced by 10 per cent during the five-year period, or by an average 2 per cent each year, if a GDP growth of 8.5 per cent is to be achieved, he said.
The Hindu : News / National : 8 % growth not
Delayed Rains Strain India Economy
7-7-2012 6.50pm
NEW DELHI—Swaths of northern India are facing water shortages due to the late arrival of monsoon rains, deepening already acute power shortages and disrupting the sowing season of staple food crops at a time when India's economy is fragile.
On Friday, Sharad Pawar, India's agriculture minister, acknowledged for the first time the weather's toll on crops. "June rainfall was not satisfactory for agriculture and water reservoirs," Mr. Pawar said.
India's Delayed Monsoon Worsens Economic Gloom - WSJ.com
7-7-2012 6.50pm
NEW DELHI—Swaths of northern India are facing water shortages due to the late arrival of monsoon rains, deepening already acute power shortages and disrupting the sowing season of staple food crops at a time when India's economy is fragile.
On Friday, Sharad Pawar, India's agriculture minister, acknowledged for the first time the weather's toll on crops. "June rainfall was not satisfactory for agriculture and water reservoirs," Mr. Pawar said.
India's Delayed Monsoon Worsens Economic Gloom - WSJ.com
Jon Snow
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Finally, Monsoon makes some rapid progress
NEW DELHI: Monsoon made rapid progress on Friday bringing heavy rains in the parched regions of eastern Rajasthan, parts of Uttar Pradesh, Uttarakhand, Punjab, Haryana and Himachal Pradesh intensifying sowing activities, which has been lagging behind due to deficient rains.
The rainfall narrowed down the cumulative season deficit to 28% indicating revival of monsoon after stuttering for five week. In last two days, persistent rains in the central and northern India have almost halved the cumulative deficit from 49%.
The weather department says that conditions are favourable for further advancement of monsoon into some more parts of Rajasthan, Punjab, Haryana and remaining parts of Uttar Pradesh in next 2-3 days. The national capital Delhi, which received medium to heavy pre monsoonal showers on Friday, is also likely to get its first monsoon shower in next couple of days.
Finally, Monsoon makes some rapid progress - The Economic Times
NEW DELHI: Monsoon made rapid progress on Friday bringing heavy rains in the parched regions of eastern Rajasthan, parts of Uttar Pradesh, Uttarakhand, Punjab, Haryana and Himachal Pradesh intensifying sowing activities, which has been lagging behind due to deficient rains.
The rainfall narrowed down the cumulative season deficit to 28% indicating revival of monsoon after stuttering for five week. In last two days, persistent rains in the central and northern India have almost halved the cumulative deficit from 49%.
The weather department says that conditions are favourable for further advancement of monsoon into some more parts of Rajasthan, Punjab, Haryana and remaining parts of Uttar Pradesh in next 2-3 days. The national capital Delhi, which received medium to heavy pre monsoonal showers on Friday, is also likely to get its first monsoon shower in next couple of days.
Finally, Monsoon makes some rapid progress - The Economic Times
Adnan Faruqi
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India's to export record basmati rice in 2012/13
India's annual basmati exports may rise as much as 15 percent in 2012/13, touching a record 3 million tonnes, after New Delhi, grappling with unmanageable rice stocks, scrapped a floor price for overseas sales, industry officials said on Friday.
India, the world's second biggest rice producer and top basmati seller, was offering the aromatic grain at above $700 per tonne, while no such floor existed for common variety.
New Delhi earlier this week scrapped the $700 base price for overseas sales of basmati rice.
Traders said ending the export price of basmati rice would help exporters sell even lower grades of basmati, which may fetch prices below $700 a tonne. India's premium basmati rice is quoted at $1,055-$1,065 per tonne FoB.
"Removal of the MEP (minimum export price) is logical when there is no curb on non-basmati rice," D.K. Gupta, an advisor at state-run export registration agency- Agricultural and Processed Food Products Export Development Authority (APEDA), told Reuters.
India produced a record 103 million tonnes of rice in 2011/12 crop year that ended in June, a jump of about 8 percent from the previous year, including 5.0 million tonnes of basmati.
In the last fiscal year that ended in March India exported 2.6 million tonnes, said Gupta, adding the decision to end floor price for exports would spur demand for the premium rice from markets in Saudi Arabia and Iraq, Europe and the United States.
India lifted a four year export ban on common rice, which competes with supplies from Thailand, in September as part of a strategy to cut surplus stocks.
With its bumper harvest in recent years and choc-a-block warehouses, India could emerge as the world's second largest rice exporter behind Thailand in 2012, shipping around 7 million tonnes.
India's rice stocks stood at 32.1 million tonnes on June 1 against the targeted 12.2 million tonnes.
"Basmati export will rise by 10 to 15 percent in 2012/13," said R.S. Seshadri, director of Tilda Riceland, a leading New-Delhi-based basmati exporter.
Traders said the country has so far exported about 5 million tonnes of common rice since September, when the ban on non-basmati rice was lifted.
Indian common rice varieties are quoted around $375-$420 per tonne, making supplies from the south Asian country attractive compared to those from Thailand.
The benchmark 100 percent B grade Thai white rice was steady at $600 per tonne for the fifth straight week on Wednesday.
India's to export record basmati rice in 2012/13 — BlackSeaGrain - All information on agriculture and food industry
India's annual basmati exports may rise as much as 15 percent in 2012/13, touching a record 3 million tonnes, after New Delhi, grappling with unmanageable rice stocks, scrapped a floor price for overseas sales, industry officials said on Friday.
India, the world's second biggest rice producer and top basmati seller, was offering the aromatic grain at above $700 per tonne, while no such floor existed for common variety.
New Delhi earlier this week scrapped the $700 base price for overseas sales of basmati rice.
Traders said ending the export price of basmati rice would help exporters sell even lower grades of basmati, which may fetch prices below $700 a tonne. India's premium basmati rice is quoted at $1,055-$1,065 per tonne FoB.
"Removal of the MEP (minimum export price) is logical when there is no curb on non-basmati rice," D.K. Gupta, an advisor at state-run export registration agency- Agricultural and Processed Food Products Export Development Authority (APEDA), told Reuters.
India produced a record 103 million tonnes of rice in 2011/12 crop year that ended in June, a jump of about 8 percent from the previous year, including 5.0 million tonnes of basmati.
In the last fiscal year that ended in March India exported 2.6 million tonnes, said Gupta, adding the decision to end floor price for exports would spur demand for the premium rice from markets in Saudi Arabia and Iraq, Europe and the United States.
India lifted a four year export ban on common rice, which competes with supplies from Thailand, in September as part of a strategy to cut surplus stocks.
With its bumper harvest in recent years and choc-a-block warehouses, India could emerge as the world's second largest rice exporter behind Thailand in 2012, shipping around 7 million tonnes.
India's rice stocks stood at 32.1 million tonnes on June 1 against the targeted 12.2 million tonnes.
"Basmati export will rise by 10 to 15 percent in 2012/13," said R.S. Seshadri, director of Tilda Riceland, a leading New-Delhi-based basmati exporter.
Traders said the country has so far exported about 5 million tonnes of common rice since September, when the ban on non-basmati rice was lifted.
Indian common rice varieties are quoted around $375-$420 per tonne, making supplies from the south Asian country attractive compared to those from Thailand.
The benchmark 100 percent B grade Thai white rice was steady at $600 per tonne for the fifth straight week on Wednesday.
India's to export record basmati rice in 2012/13 — BlackSeaGrain - All information on agriculture and food industry
TopCat
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I am surprised to know, how Indian agriculture is so much dependent on monsoon. You guys need some real reform in the way your economy is going.
I used to hear the same story of late monsoon in Bangladesh Agriculture when I was a kid. Those days are long gone.
cirr
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All the talks about a rising India aren't worth anything，for a single visit to India will make you realize how poor India still is even after the relative fast growth of the last 10 years or so。
The best way to get a grip on where India stands economically in relation to other countries，especially the major emerging ones，is to spend a month in the country。
People will be shocked to learn how far reality is from the self-congratulatory news reporting。
The best way to get a grip on where India stands economically in relation to other countries，especially the major emerging ones，is to spend a month in the country。
People will be shocked to learn how far reality is from the self-congratulatory news reporting。
