The Economist: India China export growth rates

[Roybot]

Basically, India imports more than it exports. The result is a negative trade balance, which means money is leaving India.

America has the largest trade deficit in the world, and it is helping to fuel their national debt to enormous levels. Their current debt is $14 trillion, and their trade deficit is increasing it every year.

Yes but why are Indians are apprehensive about following the Chinese model?

But no one in India wants to fall into China’s trap of giant surpluses that are recycled as loans to weak Western governments.

---------- Post added at 12:57 PM ---------- Previous post was at 12:56 PM ----------

Hi, please provide a source for these data.. 500 billion as exports if true is very huge, considering we are not an export oriented country.. Wooooow

Its from wiki,

List of countries by exports - Wikipedia, the free encyclopedia

 

[IndoCarib]

I don't know why the Economist is trying to bring China into this article, trying to prop India up to its level, when it is far ahead of India in terms of export. The Economist is losing its credibility quickly, becoming more & more like the toilet paper I use.

Yeah Right ! Whichever newspaper shows India in a positive light is loosing credibility ! You might say even WSJ is loosing credibility

Toyota Plans to Export from India by March - WSJ.com

 

[53fd]

[/B]

Yeah Right ! Whichever newspaper shows India in a positive light is loosing credibility !

No, an article to highlight India's economic successes is fine, but to compare it in an attempt to prop it up to China's level, when quite frankly, India is nothing like China, shows how much credibility it is. So why bring China into the article at all? The Economist even started talking about the political situation of Pakistan, which showed me its credibility is of the toilet paper I use in the loo.

 

[Chinese-Dragon]

Yes but why are Indians are apprehensive about following the Chinese model?

I guess they don't like China lending so much money to the West, because it allows them to consume more than they can afford, leading to imbalances. Also, maybe they are doubtful about the West's ability to pay back the loans, though I'm personally not too worried about that (if push comes to shove, they can always raise the taxes on their rich citizens).

If India doesn't want big trade surpluses like China and Germany that is fine, no one is forcing them to do so. However, having a trade deficit is a continuous drain on a country's finances.

 

[IndoCarib]

No, an article to highlight India's successes is fine, but to compare it in an attempt to prop it up to China's level, when quite frankly, India is nothing like China, shows how much credibility it is. So why bring China into the article at all? The Economist even started talking about the political situation of Pakistan, which showed me its credibility is of the toilet paper I use in the loo.

Comparison with China is inevitable. Afterall China is export driven economy. China is a bench mark for us in all terms not just exports alone.

 

[eiffe]

I guess they don't like China lending so much money to the West, because it allows them to consume more than they can afford, leading to imbalances. Also, maybe they are doubtful about the West's ability to pay back the loans, though I'm personally not too worried about that (if push comes to shove, they can always raise the taxes on their rich citizens).

If India doesn't want big trade surpluses like China and Germany that is fine, no one is forcing them to do so. However, having a trade deficit is a continuous drain on a country's finances.

Well recent data has showed exports growth higher than import growth, so hopefully we can reduce CAD.

 

[eiffe]

Firstly, source?

Secondly, according to your link... China's exports in 2010 (1.6 trillion) were bigger than India's ENTIRE GDP for the same year.

Our "cheap and low quality" products are worth more than India's entire economy.



Your trade balance is negative, which means your imports cost more than your exports brought in. That negative trade balance builds up every year.

I think such verbal nuances in economics should not be used. It doesnt seem fair if India says to Pakistan our exports are twice your GDP.
China is an export oriented economy, so naturally it has high export orders which help world growth. By the way India latest data puts it at $ 1.789 trillion economy. You just missed by 189 billion.

Cheers

 

[Roybot]

I guess they don't like China lending so much money to the West, because it allows them to consume more than they can afford, leading to imbalances. Also, maybe they are doubtful about the West's ability to pay back the loans, though I'm personally not too worried about that (if push comes to shove, they can always raise the taxes on their rich citizens).

If India doesn't want big trade surpluses like China and Germany that is fine, no one is forcing them to do so. However, having a trade deficit is a continuous drain on a country's finances.

Could it be because importing stuff from say China is cheaper for Indian businesses rather than manufacturing it themselves?

Not to forget that the export oriented manufacturing gets them bigger profit margins, than say manufacturing for domestic consumption. At the end of the day businesses in India don't worry about creating jobs for Indians, profits is all they care about.

Government can't force them to stop importing, last time they tried doing that, India's economy almost stagnated.

 

[Chinese-Dragon]

Comparison with China is inevitable. Afterall China is export driven economy. China is a bench mark for us in all terms not just exports alone.

Actually, exports only make up 29% of China's economy, according to the World Bank. Which is relatively low.

Exports of goods and services (% of GDP) - World Bank

And we are already working to rebalance it, so that domestic consumption forms a larger part of our GDP. This is necessary due to the rising cost of labour in China.

 

[KALKI]

Well recent data has showed exports growth higher than import growth, so hopefully we can reduce CAD.

Don't be an ignorant fool.

It's good for CD and his flamebaiting, not for you.

Let us first learn what exactly Current account deficit is,

A substantial current account deficit is not necessarily a bad thing for certain countries. Developing counties may run a current account deficit in the short term to increase local productivity and exports in the future.

Read more: Current Account Deficit Definition

 

[Chinese-Dragon]

I think such verbal nuances in economics should not be used. It doesnt seem fair if India says to Pakistan our exports are twice your GDP.
China is an export oriented economy, so naturally it has high export orders which help world growth. By the way India latest data puts it at $ 1.789 trillion economy. You just missed by 189 billion.

Cheers

Buddy, your fellow Indians are always saying that Chinese goods are cheap and worthless, so I think it is fair to show what our products are actually worth in terms of export figures.

And if your friend is going to call me a "fool" then how can you complain when I respond with actual facts?

EDIT: And now he is calling you an "ignorant fool".

 

[IndoCarib]

Steel Guru : Rays of recovery - Indian exports up by 44pct YoY in August - 228781 - 2011-10-08

India’s Sensex Index Climbs to One-Week High on Exports Outlook - Businessweek

 

[eiffe]

Don't be an ignorant fool.

It's good for CD and his flamebaiting, not for you.

Let us first learn what exactly Current account deficit is,



Read more: Current Account Deficit Definition

Thanks, i did'nt know CAD was benign. I think our economic model suits us and will serve us well till about 2015. But after 2015 we should follow CAD surplus cause our workforce will begin to increase whereas of China will begin to decrease and therefore we should invest as much in infra till 2015-16 fiscal, so that we have an export base sector ready. Also R&D should be encouraged.

 

[Chinese-Dragon]

Don't be an ignorant fool.

It's good for CD and his flamebaiting, not for you.

Let us first learn what exactly Current account deficit is,

Read more: Current Account Deficit Definition

From your link:

What Does Current Account Deficit Mean?
Occurs when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.

A substantial current account deficit is not necessarily a bad thing for certain countries. Developing counties may run a current account deficit in the short term to increase local productivity and exports in the future.

So a current account deficit, is not necessarily a bad thing in the "short term", if you are using the time to gain a suplus in the future.

When was the last time India had a trade surplus?

 

[eiffe]

Buddy, your fellow Indians are always saying that Chinese goods are cheap and worthless, so I think it is fair to show what our products are actually worth in terms of export figures.

And if your friend is going to call me a "fool" then how can you complain when I respond with actual facts?

EDIT: And now he is calling you an "ignorant fool".

Well friend, my brother who is in services sector told me about China's manufacturing saying China has two types of manufacturing sectors.: 1 for developed world and 2nd for developing countries like India.

So, China produces excellent quality products for demand in western world but for countries like India, the quality is not upto western standard partly coz demand is mainly for cheap labored prodcuts like plastic toys, etc. So naturally an Indian will feel Chinese product quality is bad, but i think it will improve overtime when demand from India will surge.

Cheers