India's crazy deficit, when it will explode?

[Kyusuibu Honbu]

For years, people are talking manufacture moving to India. Yet still such a huge deficit, incredible.

And Manufacturing did improve in India.

India among world’s top 10 manufacturing nations: UNIDO

 

[Jayanta]

Indian economy is on a death spiral. Inflation is skyrocketing and poor are getting poorer. People are venting their anger in the streets. This year, India's crisis will become impossible to cover up anymore.

Do not worry Mr Wu...elections are coming in 2014...and Narendra Modi will be the Prime Minister...all deficits will be covered up. Oops...sorry you might not know the meaning of election..so let me explain..it is democratic process where in the citizen come out of their house and cast vote to elect their representatives.

In China the poor are getting poorer too...unfortunately they do not and cannot protest against the government...

 

[neehar]

With only $200 billion government revenue, India should affort $200 billion fiscal deficit and $200 billion trade deficit.

How crazy India government are? It seems like a person earns $200B a year but expend $600B. even far more crazy than Greece. Overdraft for false prosperity would not last on.


So who can tell me when it will explode? It will hurt others too.

India's trade deficit widens to $20 bn in January

domain-b.com : India's trade deficit may hit $200 billion in FY'13

r u trying to make a fool out of urself with this post??looks like u dont know the difference between trade deficit and a fiscal deficit..worse i doubt whether u even know whats a fiscal deficit and a trade deficit..


heres for u:
Definition of 'Trade Deficit'
An economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.
.$20 billion trade deficitis not equal to $20 billion loss..its just that our imports exceeded our exports by $20 billion for THIS MONTH..they fluctuate every month..
heres more in numbers for u
GOVERNMENT OF INDIAMinistry of Commerce
India Trade Statistics | India Export Import Statistics

 

[chinapakistan]

What an foolish assessment.....Indian manufacturers finds it cheaper to import goods made from china due to cheaper electricity, chinese slave labour, size of production, and cheap loans.

Once the price competitiveness of chinese goods wears off .....Indian goods will again flood the Indian market.

...but looks like lot of Indian fools have thank you for that post ...no wonder they keep getting fed such cr@p from BBC, or chinese propaganda soldiers.

I really feel sad about people who are living in virtual world. Have a look at your untouchable group before blaming china. Oh sorry I forgot in your virtual world there is no such thing and India has already dominated the universe. you must be a Bollywood movie director. very funny to play u.

 

[Koovie]

Do not worry Mr Wu...elections are coming in 2014...and Narendra Modi will be the Prime Minister...all deficits will be covered up. Oops...sorry you might not know the meaning of election..so let me explain..it is democratic process where in the citizen come out of their house and cast vote to elect their representatives.

In China the poor are getting poorer too...unfortunately they do not and cannot protest against the government...

I guess some people think that Modi is some kind of magician who WILL win the elections and WILL bring back higher growth rates

 

[Jayanta]

I guess some people think that Modi is some kind of magician who WILL win the elections and WILL bring back higher growth rates

No he is not a magician...but a good administrator...and above all a person with no corruption charges. People may damn him as a religious fanatic....but the fact is that Gujrat had communal riots 1969,1980, 1982, 1985,1990-1991- 1992. People know it as Muslims were killed...but out of 1000 killed there were 250 Hindus...now that's off topic. The thing to be noticed it there has been no riots since 2002...what India needs is a leader who knows how to administrate, one who is patriotic and someone corruption free...NAMO has proved himself...no doubt there has been a series of attacks on him using the media as a tool..but now people are smart enough to understand how secular are the so-called secular parties.

 

[zaxcolix]

I really feel sad about people who are living in virtual world. Have a look at your untouchable group before blaming china. Oh sorry I forgot in your virtual world there is no such thing and India has already dominated the universe. you must be a Bollywood movie director. very funny to play u.

...I am feeling quite happy looking at your frustration and desperation ....and I am sure most Indians in this forum is enjoying that as well.

Virtual world must be really important for 50 cents soilder boys...no wonder you keep talking about it. ...........chinese impotent men are the laughing stock of the world.

 

[Roll in deep]

Business Line : Industry & Economy / Economy : WPI inflation declines to 6.62% in Jan

Another post full of Brain fart.Skyrocketing InflationToday India's inflation figure hit 3 years low.

And GDP growth is 10 years low.

 

[Bobby]

Oh my God.....Sky is falling

 

[Roll in deep]

Indian economy in a shambles
Tuesday, 12 February 2013 15:51 PNS | New Delhi / Mumbai

The Government's forecast of a mere 5 per cent rise in GDP this fiscal was fortified on Monday by two major indicators of economy. In the first major indicator domestic annual car sales are set to be in the negative territory for the first time in a decade. Automobile sector affects a big base of small and big ancillary industry in the country.

In another such indication, Reserve Bank Governor Duvvuri Subbarao warned that the country was headed for the highest ever current account deficit (CAD) this fiscal as the CAD rose to 5.3 per cent of GDP in the second quarter.

Completing the woeful economic scenario, he went on to add that inflation which had slowed down to a three-year low of 7.18 per cent in December 2012, is “still high”. He painted the grim picture while addressing the convocation of the central bank-promoted Indira Gandhi Institute of Development Research in Mumbai.

“Last year, CAD was 4.2 per cent of GDP, but this year we expect it would be significantly higher than that. It's going to be historically the highest CAD measured as a proportion of GDP,” the Governor said adding that it would not be a great worry if the widening CAD is on account of import of capital goods, but here it is high on account of import of oil and gold. The trade gap is widening mainly because of higher import of oil and gold. The third quarter numbers are expected later this week.

He also expressed concern over the way the CAD, which is the gap between forex gained and forex spent, is being financed by volatile inflows instead of more foreign direct investments.

High CAD and seriously slowing automobile sector suggest that the country is headed for a much more gloomy situation and the slump is yet to hit the bottom.

On inflation, he said, “if you take the macroeconomic context today, you find that growth has moderated, inflation has come off the peak, but even at 7 plus per cent, it is still high.”

His comments on inflation gain greater significance as January figures on price rise expected later this week would form the basis for the mid-quarter review by RBI on March 19.

Subbarao said, “though it (inflation) has declined from peak, it still is above our comfort level,” and pointed out that “structural and cyclical factors are driving the inflation.”

“Crude oil and food inflation are driving inflation up. There is inflation from the high fiscal deficit as well apart from those coming in from demand pressures. How do we balance between declining growth and stubborn inflation? How do we calibrate the balance? That's a constant struggle in the Reserve Bank,” the Governor said.

He said along with a deceleration in economic growth, investment has not only decelerated but also declined.

Subbarao addmitted that the RBI is faced with a dilemma in the inflation-growth paradox trade-off - striking a balance between growth and inflation.

The final word on the overall economic scenario was completed by the automobile industry body SIAM, which on Monday sounded the death knell for the sector.

SIAM said that its growth forecast of 0-1 per cent for this fiscal will not be met as gloomy macro- economic factors and negative sentiments continue to hit demand. The statement comes on the back of January numbers also showing a decline of 12.45 per cent, the third consecutive monthly decline since November last year.

According to its latest data, domestic passenger car sales declined to 1,73,420 units in January this year compared to 1,98,079 units in the same month of 2012. Tata Motors saw the steepest fall in sales while, with domestic sales crashed by 60.76 per cent.

In January SIAM had lowered car sales growth projection to just 0-1 per cent for this fiscal, from 1-3 per cent and 9-11 per cent announced in October and July, 2012 respectively. The last time car domestic sales witnessed a decline was in 2002-2003, when it dropped by 2.09 per cent, SIAM Director General Vishnu Mathur said.

“In the April-January period this fiscal, the domestic passenger car sales have declined by 1.8 per cent to 15,56,283 units compared to the year-ago period. The overall economic situation is low and the consumer sentiments are deeply negative despite the recent notional rate cuts by the RBI,” Mathur said, adding even new model launches have not been able to have a major uplifting impact.

Mathur said the auto industry has put forward demands to the government to reduce excise duties on small cars to 10 per cent and big cars to 22 per cent in the upcoming Budget.

In January all the major car makers struggled to post good sales numbers. Market leader Maruti Suzuki India posted a marginal rise at 88,557 units from 88,377 units in the same month last year. Rival Hyundai Motor India Ltd had posted 1.45 per cent growth at 34,247 units as against 33,756 units last year, while Tata Motors' domestic sales crashed by 60.76 per cent to 11,192 units from 28,529 units in January last year.

However, motorcycle sales in January this year grew by 7.45 per cent to 8,86,527 units from 8,25,050 units in the same month of previous year. Market leader Hero MotoCorp (HMC) had posted sales of 4,94,109 units as against 4,66,110 units in the same month last year. Rival Bajaj Auto posted sales of 1,96,023 units as compared to 2,02,214 units in January last year, while that of Honda Motorcycle and Scooter India (HMSI) was at 1,05,968 units as compared to 68,212 units in the year-ago month.

Total two-wheeler sales in January 2013 increased by 8.46 per cent to 12,06,937 units from 11,12,767 units in the same period of previous year, SIAM said. Scooter sales were up by 12.24 per cent in January this year at 2,52,094 units as against 2,24,612 units in the same month last year.

During the month, market leader HMSI had scooter sales of 1,10,757 units as against 1,08,927 units last year, while that of HMC was at 53,732 units as against 39,239 units in the year-ago month.

Total sales of commercial vehicles during the period declined by 9.51 per cent to 63,218 units from 69,865 units in the year-ago period. Three-wheeler sales during January stood at 48,519 units as against 45,633 units last year, up 6.32 per cent.

“Usually, the commercial vehicles segment is an indicator of the health of the economy and the numbers in the segment clearly shows something is wrong in the economy,” SIAM Deputy Director General Sugato Sen said.

Indian economy in a shambles

 

[Azazel]

And GDP growth is 10 years low.

Why don't you wake up and smell the coffee.There is a global recession going on.Your country's economy is growing at a meagre 1%,a far cry from its booming past.

 

[Roll in deep]

Why don't you wake up and smell the coffee.There is a global recession going on.Your country's economy is growing at a meagre 1%,a far cry from its booming past.

We earn 30 times of yours.

 

[Azazel]

We earn 30 times of yours.

Who cares,You don't even have a decent airfield to Park your fighter jets

 

[Roll in deep]

Who cares,You don't even have a decent airfield to Park your fighter jets

GDP per capita 2012: Singapore $45000 India $1300
Exports 2012: Singapore $430B India $280B

Yes, we are a small city, but compare to India, it seems like we are giant.

 

[Azazel]

GDP per capita 2012: Singapore $45000 India $1300
Exports 2012: Singapore $430B India $280B

Yes, we are a small city, but compare to India, it seems like we are giant.

Duh,Look at that number idiot,Your country's total nominal GDP is just $270 billion.How do you export $430Billion.Some one needs to go to school.