INDIAN ECONOMY

[Angad.]

The only thing India needs to be saved from is Corruption!!!

[Angad.]

nice write up angy. very well put. you too an eco student by any chance ??

 

 

Nah...Commerce!! But being in the Finance field....need to be aware of how the economy works !!

[Nemo]

The only thing India needs to be saved from is Corruption!!!

 

AMEN

 

and i am not even asking for a total fool proof corruption less machinery, corruption is imminent, its even there in the developed nations, UK, US, Italy but there the officials actually have a sense of workability post the corruption bit, yahan to (mostly) saala paise de kar bhi kaam nahi hota

 

hell, i say take 12-18% of the total money as bribe but use the other 80+% properly in the thing it is supposed to be used. but NOOOOOOOOOOOOOOOOOOOO

[Angad.]

AMEN

 

and i am not even asking for a total fool proof corruption less machinery, corruption is imminent, its even there in the developed nations, UK, US, Italy but there the officials actually have a sense of workability post the corruption bit, yahan to (mostly) saala paise de kar bhi kaam nahi hota

 

hell, i say take 12-18% of the total money as bribe but use the other 80+% properly in the thing it is supposed to be used. but NOOOOOOOOOOOOOOOOOOOO

 

<Rolls the 'Hindu' newspaper & Slaps Nemo with it>

[jDaMn]

***

[вι¢ннσσвαвα]

Not gonna happen. In India people ape everything western.

 

You remember the article about some Lord from England. He said Indians think everything foreign is good and better than theirs.

Just look at the forums. The buying brands in the what u bought thread, the language use in typing by some, their styles.

 

 

And besides this is a mail forward. I got it like a year back.

 

 

What about condoms??? Ab nirodh use karne ko mat boliyo

 

 

But jokes apart, bro i dont think you realize this, but what you are suggesting will have a huge negative impact on our economy!! Here are some matter-of-facts which not only negates your suggestion but also imposes tha fact that if we do start following your suggestion, our economy will come crashing down:

 

1) Do you realize that more than 40% of our working population works for MNCs. If we stop buying products from these MNCs, then they will obviously close down, and we will have 40% of our working population sitting at home. The domestic companies would not be able to manufacture jobs at such a high rate to accommodate a majority of these, now, jobless people.

 

2) Majority of our (i.e. domestic comapnies) funding depends on investments from these very MNCs. Our sensex rises only because of the investments from FIIs who mainly invest in these MNCs.

 

3) These MNCs bring in competition, experience, infrastructure etc. without which our markets would fail.

 

4) The salary packages in MNCs being high, it gives more purchase power to the consumers, thus resulting in higher savings + expenditure. Therefore there is a healthy circulation of money in the markets.

 

I could go on and on about how we need both the MNCs and Domestic Companies, and eliminating either of them would just spoil the market balance and thus result in a big market crash!!

 

 

Dude!

When a company like Coke does business here, its employing Indians and using Indian resources which in turn its paying taxes too and generating income and employment. The only part which is going to Western countries is the 'profit' part. You know what will happen if other countries start ditching our products ?

 

Your 1$ = 47Rs will go much higher.

 

Balance of Trade will be even more irregular than what it is now.

 

 

wow the Opening post has so much fail !!

 

having a weaker rupee does NOT necessarily mean that the economy is going down.

 

Weaker rupee = More buyers of indian goods from abroad = Indian export industry booming = more forex reserve coming to india.

 

Stronger rupee = less buyers of indian goods abroad, export industry suffers as a result. Not to mention the (huge number of) Indian workers employed in IT out sourcing will suffer.

 

Of course there is a flip side to it,

 

Weaker rupee means having huge import bill and negative in balance of payment (which incidentally is highly negative as it is), India being predominantly an importing country would suffer a bit more if rupee is weak compared to strong, yes.

 

BUT ALL IS NOT BLACK AND WHITE IN ECONOMICS. One cannot just say strong rupee >>>>> weak rupee. Both have their pros and cons, its not so simple, hell even i am not sure about the whole thing when i am in final year of my eco graduation.

 

SO what is needed is not having an extreme value but somewhere in the middle that would enable India to maintain its competitiveness in world market (weak rupee) while also giving faith to foreign investors to invest via FIIs (strong rupee). Now how to go about that ?? rest assured its a complex process and not just solvable by having a mass movement of consuming domestic only goods, there is a Planning commission and a RBI who are more than capable enough to formulate a median.

 

I suggest you to have a read here for a better detail.

EDIT- i am not doubting the effort of scorpioguy, he obviously has a very noble intention but i was just kinda stupefied at the drawing of conclusion w/o thinking ALL the economic complications behind them, sorry if my post came a bit harsh.

 

 

And just to add a fact about the dollar rate fluctuations, there are 10000 reasons for it going up or down. Obviously, outflow of the currency is one of them, but you need to look at other facts as well.

 

Lets see the rate fluctuations first (man...im enjoying this now ):

 

Here are the dollar rates (Monthly average) for the years 2007, 2008 and 2009.

 

Now, you can clearly see that the rate (i.e 39) that you mentioned, started from May 2007 and continued till May 2008. If you remember, this was the golden period for our economy when the IT stocks were booming!! We were getting shitloads of business from US, during this period, and thus the inflow of the foreign currency was enormous. FII were heavily investing in our economy during this period. This brings me to the most important fact that has resulted in the american dollar rate moving from 39 to 50 within just 2 months (August 2008 - October 2008), and that is the sudden decline in the "foreign currency inflow", as the US economy got hit hard by the sub-prime lending fiasco. Due to that, 80% of the business, that we were getting from US, got severly affected (basically we lost all that business). That is the sole reason why the dollar rate moved from Rs.39 to Rs.50!!

 

The whole world's markets (being so dependant on the US economy) fell into recession. India (even though it was HEAVILY dependant on the US economy) was one of the only few countries that had minimal impact of this recession (as compared to the other countries). The domestic companies that are closing down, are not doing so because people are buying products manufactured by the MNCs, but because they had huge investments in the US markets which crashed (there are many other reasons as well).

 

However, we (infact the whole world) is now recovering pretty well (and quickly) from the recession, and you can see how the dollar rate is now steadily depreciating (its now at Rs. 46). Do not worry about the brands n all.....whatever you buy is helping the Indian Economy. Infact, the more you buy, the better the markets perform !!

 

 

Thank you Angy and NEMO for the nice write up on the reality of this world, wanted to know the reason behind the economic slowdown. Just to know the truth i posted it here.

 

i got my answers. I learnt a really valuable lesson today.

 

Thanks to all you people who have put ur inputs

[Liquid ocelot]

Not gonna happen. In India people ape everything western.

 

You remember the article about some Lord from England. He said Indians think everything foreign is good and better than theirs.

Just look at the forums. The buying brands in the what u bought thread, the language use in typing by some, their styles.

 

 

And besides this is a mail forward. I got it like a year back.

 

 

Exactly what I was going to write myself. The Americans look at their country with pride,and stuff made in america has a premium value,and a special place in their heart.

 

Over here the made in India tag, puts a product down.

[Aftrunner]

No offense to the OP but this is really f**king retarded. Just because an item isnt manufactured here doesn't mean its not giving employment to people who live here. Or helping the economy.

 

Really, really retarded.

[93bullets]

this economy thing is really messed up isnt it

 

 

now you know what i am gonna do

 

open a glass of coke put it in the glass and enjoy it while i play some ps3 game :cool:

 

so lets forget about all this coz the only thing that can save india are noble politicians and our nobility as nemo suggested in his earlier post

sucks to the

 

 

 

blablablabla

[Anmolsc]

i agree with u ...indians need to be self reliant but at the same time consumers are rational so they use the best quality products suitable for thier budget...and im afriad apart from a few companies indian products are nowhere close to MNC's products in wuality and service

 

i use airtel and the reason is not because its india because they have good quality if u bring good products people will use it

 

people are using tata sky, airtel and cinthol soaps as well because they are good quality products and offer good service when indian products start stepping up thier game ...then people will automatically buy them

[jDaMn]

***

[Nemo]

<Rolls the 'Hindu' newspaper & Slaps Nemo with it>

 

better than embezzling 80% of the money

[Pushy]

The only thing India needs to be saved from is Corruption!!!

 

+infinity

 

btw foreign products ARE better than Indian counterparts

 

of course with some exceptions

[theneurotoxin]

This is like saying lets all play Desi Adda and games that are made by Indian studios only.Correct me if I am wrong but don't most of the MNCs that have set up shop here employ Indians which is helpful for the growth of the economy.

[apextwin]

i cant believe that this mail is still being forwarded

[shekdown]

Well, the intent in the first post is well appreciated, but the write-up and statements there are completely baseless and 90% BS. The guy who wrote that up has just made up some nonsense without analysing the complete picture.

 

 

I think most mistakes have been pointed out already, so Im not going to stand out and point that again.

[Pyrotek]

I don't subscribe to Scorpio's views. Economies just don't work like that. If not anything, most MNC brands have their manufacturing units here in India. I believe it's falling exports that is the bigger problem. As consumers, you have the full right to buy the best value products irrespective of whether the product is branded by an Indian or foreign brand.

 

Fortunately, indian manufacturing has come of age and quality is definitely up by several notches. But don't buy anything on the basis of such frivolous logic. As long as you keep spending, directly or indirectly and continue to invest, you're doing the economy a world of good.

[Angad.]

Exactly what I was going to write myself. The Americans look at their country with pride,and stuff made in america has a premium value,and a special place in their heart.

 

Over here the made in India tag, puts a product down.

 

 

No it doesnt put the product down, but we do view it with suspicion. And we have a reason to do so, as experience tells us that Indian products are often made out of inferior quality materials, whereas in America if they make infeior products, the citizens would sue their a*s off, thus the manufacturers ensure that the products are made with top-notch quality.

[codedlivess]

Small example,

Some time back 1 US $ = IND Rs 39

And now 1 $ = IND Rs 47

 

Do you think US Economy is booming? No, but Indian Economy is Going Down.

 

 

dude i dont know bout the other points u have made but this point can some what be in favour of INDIAN EXPORTERS

 

c if the Rupee is really strong in comparison to dollar..indian exporters lose a lot of work,As the buyer gets less of what he was originally payin.

 

For example look at the garment export industry ,,few yrs back when the rupee was really strong ,,most of the exporters lost 70% of their business to china. Jus because the Rs is strong ,,it does not entirely imply that our economy is booming..Sometimes even the Indian govt hav to interfere to check the growing Rs ,,so that india does not lose on exports.

[castiel]

a bit of research bfore posting such thread wil b nice cause the whole topic is fail u know how much revenue v get from such imported goods which provide jobs to people and choices to customer unless u want to get stuck with monopoly of sum sorts