Only finance minister of UPA can say there is tremendous echonomic gowth/achievement under their government where as reality is different.
( Posted: Tuesday , May 13, 2008 at 12:43 )
girish
the slowdown means lack of demand. when more then 80 crore will survive on 20 rupee per day then how long the upper class can drive the demand. the agriculture sector is already on suicide track , slowdown in manufacturing will create more panic among the masses- it is high time for the parites to snap ties with the w t o & implement people friendly policy rather then liberalisation, globalisation & privatisation
( Posted: Tuesday , May 13, 2008 at 12:19 )
Ranjan
This is yet another failure from this government!
( Posted: Tuesday , May 13, 2008 at 04:03 )
shemej
All are keen to avoid negative words.
Markets are integrated. And at one end it started falling. The statement that "slow down in manufacturing sector is due to RBI’s tightening money flow" is rubbish. Why, essentially, RBI tightens money? The market compulsions (leading to inflation), which forced RBI to step in, are foreign to the system?
If examine the main reason behind the inflation, (in general terms, not present one- RBI has been interfering for some time now), one can understand that it is closely connected with high liquidity. That means if there was no high liquidity, high inflation wouldn't have been there. And if we try to understand the Indian high growth, one can easily understand it is due to high liquidity. If there was no large scale flow of money into the system, the "India shining phenomenon" and high-growth would not have happened.
If examine the large-scale flow of money to Indian market, we can understand that it happened only because Indian economy is now more and more integrated with global economy. Much of this money flowing to Indian system is speculative in nature. That means positive market sentiments played a major role in ensuring large-scale money flow to India, especially Foreign Institutional Investments.
Market sentiments will have a quick and major impact on the reversal of FIIs and borrowed money.
Now the reverse has started happening. Can we argue that negative market sentiments wont affect Indian economy? 60% of Indian software export is to USA. Several outsourcing companies have started cutting down scale of outsourcing. Indian IT majors are now looking for On-shore software development options. TCS has initiated expansion plan in American continent.
The growth story was a circus by 20% population. Now how do you expect the 20% rich to buy new cars? New refrigerators?
Indian economy is heading for disaster. At least for 3 years form 2009 end, things will be very difficult.
( Posted: Tuesday , May 13, 2008 at 03:27 )
Sachin Purohit
Government is wrong when it says it is an aberration. Consistently, month after month if the IIP figures indicate something then it has got to be a trend. Numbers at macro level don't fluctuate like stock prices. They indicate something. The indication here is quite obvious.
( Posted: Monday , May 12, 2008 at 22:42 )
S. Sharma
!4.8% to Just 3% growth in production clearly means that inflation has adversely effected the production. When Inflation is touching around 8 %, I think time has come to remove large number of services from service tax.Service tax has also led to inflation and it is tax on taxed income. When any politician compares Indian inflation with inflation in other countries,he forgets that India is a very poor nation & crores of people will sleep without food if high cost continues. Agreculture,finance ministers should accept full blame for inflation.
( Posted: Monday , May 12, 2008 at 21:58 )
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