Indian Economy: Growth -3

[shamu]

[quote name='Bharatvarsh2' date='03 April 2010 - 11:36 PM' timestamp='1270317509' post='105618']

http://www.visualeconomics.com/wp-conten...l-debt.gif

[/quote]



Something is fishy about the data about India.

[Guest]

[quote name='shamu' date='13 April 2010 - 12:57 PM' timestamp='1271143173' post='105869']

Something is fishy about the data about India.

[/quote]

This is correct. India is borrowing too much.

[Guest]

[url="http://www.financialexpress.com/news/indias-debt-at-41.7-of-gdp-in-fy08/306114/"] link[/url]

Updated: Tuesday, May 06, 2008 at 1454 hrs IST

New Delhi, May 6: : India's total debt was estimated at 19.57 trillion rupees or 41.7 percent of gross domestic product (GDP) in the fiscal year ended March, a junior finance minister said on Tuesday.

[Guest]

[url="http://www.finfacts.ie/irishfinancenews/article_1016894.shtml"]IMF says debt-to-GDP ratio of advanced countries to rise by 20 percentage points in 2009 - - biggest upturn in decades[/url]

[HareKrishna]

I dont get it.If all the states borrow ,the who borrow from who?

[rhytha]

This is a killer, so poverty increased by 10% under Manmohan Singhs rule.

100 million more Indians now living in poverty



NEW DELHI: India now has 100 million more people living below the poverty line than in 2004, according to official estimates released on Sunday.



The poverty rate has risen to 37.2 percent of the population from 27.5 percent in 2004, a change that will require the Congress-ruled government to spend more money on the poor.



The new estimate comes weeks after Sonia Gandhi, head of the Congress party, asked the government to revise a Food Security Bill to include more women, children and destitutes.



"The Planning Commission has accepted the report on poverty figures," Abhijit Sen, a member of the Planning Commission told Reuters, referring to the new poverty estimate report submitted by a government panel last December.



India now has 410 million people living below the U.N. estimated poverty line of $1.25 a day, 100 million more than was estimated earlier, officials said.



India calculates how much of its population is living below the poverty line by checking whether families can afford one square meal a day that meets minimum nutrition needs.



It was not immediately clear how much more the federal government would have to spend on the poor, as that would depend on the Food Security Bill when it is presented to the government after the necessary changes, officials say.



India's Planning Commission will meet the food and expenditure secretaries next week to estimate the cost aspects of the bill, government officials said.



A third of the world's poor are believed to be in India, living on less than $2 per day, worse than in many parts of sub-Saharan Africa, experts say.



The government spends only 1 percent of its Gross Domestic Product (GDP) on healthcare facilities, forcing millions to struggle to get medicines, Oxfam and 62 other agencies said in a report called: "Your Money or Your Life" last year.



While India's economy is slowly recovering from a global recession with a GDP growth of 7.2 percent, millions of poor in rural India are finding it difficult to cope with around 17 percent food price inflation.

[rhytha]

This is a killer, so poverty increased by 10% under Manmohan Singhs rule.

100 million more Indians now living in poverty



NEW DELHI: India now has 100 million more people living below the poverty line than in 2004, according to official estimates released on Sunday.



The poverty rate has risen to 37.2 percent of the population from 27.5 percent in 2004, a change that will require the Congress-ruled government to spend more money on the poor.



The new estimate comes weeks after Sonia Gandhi, head of the Congress party, asked the government to revise a Food Security Bill to include more women, children and destitutes.



"The Planning Commission has accepted the report on poverty figures," Abhijit Sen, a member of the Planning Commission told Reuters, referring to the new poverty estimate report submitted by a government panel last December.



India now has 410 million people living below the U.N. estimated poverty line of $1.25 a day, 100 million more than was estimated earlier, officials said.



India calculates how much of its population is living below the poverty line by checking whether families can afford one square meal a day that meets minimum nutrition needs.



It was not immediately clear how much more the federal government would have to spend on the poor, as that would depend on the Food Security Bill when it is presented to the government after the necessary changes, officials say.



India's Planning Commission will meet the food and expenditure secretaries next week to estimate the cost aspects of the bill, government officials said.



A third of the world's poor are believed to be in India, living on less than $2 per day, worse than in many parts of sub-Saharan Africa, experts say.



The government spends only 1 percent of its Gross Domestic Product (GDP) on healthcare facilities, forcing millions to struggle to get medicines, Oxfam and 62 other agencies said in a report called: "Your Money or Your Life" last year.



While India's economy is slowly recovering from a global recession with a GDP growth of 7.2 percent, millions of poor in rural India are finding it difficult to cope with around 17 percent food price inflation.

http://economictimes.indiatimes.com/news...829267.cms

[Capt M Kumar]

He said his World Vision 2030, envisages "a world where core competencies of each nation are identified, missions synergizing the core competence of different nations lead to economic advantage and faster development for all the societies."



"A world of nations where all the students of all the societies are imparted education with value systems," he said, and noted to peals of laughter, "Every nation has a value system and that value system starts before age 17. Afterwards nothing can be done." http://news.rediff.com/slide-show/2010/a...contentTop

[Anouchka]

India is definitely taking very bold steps towards new directions and innovations. In fact Azim Premji's foundation too has been recognized for the innovatie directions they are taking. For example, a couple of years ago, Azim Premji's Foundation won an Innovation for India award due to their social innovation of scaling up to cover education for 50,000 schools across 5 states in India. Marico Innovation Foundation recognized this and brought it to the fore. You can catch pictures of the event at http://www.flickr.com/photos/innovationindia/page3/ Truly, zim Premji is doing some very good stuff out there!!

[Anouchka]

Guys, I found an article by Rajiv Narang of Erehwon online. It's about the new directions and innovations that India is undertaking.. checck it out.



India The Innovator…….Gathers Momentum - By Rajiv Narang, Chairman & Managing Director, Erehwon Innovation Consulting



These last few years have seen Innovation in India reach a tipping point. The emergence of Innovative Indian companies, the large-scale social Innovations and now the big impact innovations in public service.



The biggest paradigm shift gathering momentum is the one from India the follower to India the Innovator. In Corporate India, this was pioneered Companies like Nirma, it is now growing into a movement with entrepreneurial firms like CavinKare, Sukum Inventers & Subex and established groups & organisations like TATAs and Reliance. This is showing up as a growing confidence in Indian organisations, the confidence that they can take on and ‘Out - innovate global competition’. It has even lead to an association like INSSAN the Indian National Suggestions Schemes Association to dare to think beyond the Japanese TQM Model and initiate a Quantum Innovation Model in place of incremental innovation - Challenging a Japanese manufacturing model would have been unthinkable a few years ago.



This shift is also increasingly evident in the backend service providers. Especially in the Software services Sector, where more and more companies are getting restless at being ‘merely low cost service providers’. As a Manager put it ‘we service R&D clients, forget doing Research, we are now stuck to delivering at the last end of the Development cycle, we want to change this. We not only want to be in Research, but want to lead it.’

This need to leapfrog is not limited to Indian companies but very visible in Indian arms of MNC’s too. Bosch India moved from maintaining the old Diesel Technology platform to transforming it, to reach the new Euro Emission norms at much lower costs. Honeywell, Bangalore Centre lead the drive to move from being just a low software service provider to becoming a Product Innovator. They lead the creation of a Breakthrough security product that the Global organisation has now launched in all its markets. The India Centre is now being seen an emerging ‘Product Innovation Hub’.



‘Innovating to leapfrog the value chain’ is also increasingly evident in the operational services divisions of International Banks in India and Auto component suppliers.



The Innovation pinnacle is the emergence of ‘New to the World’ Innovations; - Business Models, products and technologies. A decade ago, an Indian firm would be happy with the claim ‘New to India’ but now there are a number of firms claiming breakthroughs that are ‘New to the World’. This includes established organisations like Bharti , Reliance & Tata Steel and emerging firms like Tutor Vista, Perfinct Healthcare – PIGA-CT, Seclore Technology and Centre for Cellular and Molecular Biology.



For Business Model Innovation, India is fast emerging as the new Global Hub. Bharti’s Business Model Innovation that has lead to it becoming the lowest cost producer of minutes with the biggest market share in India is the new role model.

Tutor Vista is the latest Business Model Innovation, they have pioneered an internet based Business Model and made ‘Personalized Tutoring’ globally economical and flexible. Today, 3 years after inception, Tutor Vista has nearly 2000 teachers spread over 98 cities working from home, teaching over 20,000 students, over the internet, in 48 different countries. One school in the US has no maths teacher, 30 teachers from India go online everyday in the second period to teach math. This is Business Model Innovation at its best. They have channelized the unleveraged teaching talent in India-educated women who have chosen to be home makers - and make personal tutoring available at 15% of the normal international tutoring price. One process breakthrough is that ‘in case of a connection failure the student needs to wait only for a maximum 1 minute before another teacher takes over seamlessly’.



Multinationals who had largely followed the traditional and even imperialistic approach of ‘create an offering for the Developed markets and then adopt it to the India Market are also now beginning to change’. A number of them are now into ‘Create the new in India and take it to the world’. Philips was an early starter, GE’s Mac 400 (WIPRO, GE) – a new product has emerged from this new approach. Multinationals like Unilever, Max New York Life are rapidly adopting this approach.



India, as a country is surrounded with challenges that demand. Innovative non-linear solutions, challenges like poverty, education, healthcare and environment. Here too the Innovation is beginning to happen.

A visible change has come about in how Corporates approach rural markets. Earlier the focus was merely penetration ‘find ways to get into uncovered markets’. There is now a visible shift to Inclusive Growth. From ‘get a share of the rural wallet’ to ‘first increase the size of the wallet and the take a share of it’. A number of groups & organisations like Tata Chemicals, Rallis, Mahindra Farm Equipment & DCM are experimenting with Innovative models for this true form of inclusive Growth. Innovation for Inclusive Growth was pioneered by ITC ABD; E-Chaupal has innovated further and transformed from its first Version to Version 2 and is now going into Version 3.



There is an equally strong wave of Innovation for Inclusive Growth that is focussing on environment conservation. Companies like Tata Chemicals & Unilever are leading the way.



Social enterprises too beginning to leverage Innovation. SKS Microfinance has successfully Innovated on the Grameen Bank Microfinance Model. This Business Model Innovation has figured out a unique way to ‘scale up’ the penetration and impact of a Microfinance organisation. SKS has acquired a membership of 5.7 million, across 16 States in 11 years. Akshay Patra is the world’s largest NGO run school meal program – it reaches 10 million children across 5 State of India, six days a week. And they serve freshly cooked meals at Rs.1.50 per meal. This was achieved through a ‘Technological Innovation: to prepare meals on large scale in a short time’ and a ‘logistics innovation - to reach the meals to the schools’. A number of other large scale Innovations like Goonj – creating rural value from urban waste in a manner that is mutually dignified and MV Foundation – a new way to take kids out of child labour and into schools are bringing through Non-linear solutions for the Country’s huge Developmental challenges.



What’s even more promising is that Government agencies are also leveraging Innovation for Inclusive Growth. The Defence Institute for High Altitude Research – DIHAR in Ladakh has played an Innovative and transformational role in accelerating the socio-economic development of Ladakh. Many Innovative initiatives like solar energy based -low cost- Green Houses, zero energy based storage have transformed the vegetable and animal productivity and output, and even raised the tree line above 13000ft. Further no incident of terrorism has been reported from the region due to improved relations between government and the army and the local community.



Jyotigram, the Innovative Power and Irrigation Reform initiative from Gujarat shows how Innovation can be used to tackle the highest and most sensitive issues in a inclusive manner. This Innovation has reduced electricity distribution losses from 30.64 % to 21.8%. It revived a bankrupt electricity board, 9% of rural households have noted an increase in electricity bills. Gujarat has become the only State whose ground water balance has turned positive in recent years.



Karnataka partnered with the Azim Premji Foundation to Innovate primary education in Government schools. They have instituted an innovative process to assess the schools capability to build student competencies rather than mere marks. This will lead to many more students passing out of primary school having acquired the basic competencies.



The Government of Andhra Pradesh played a catalyst role in the emergence of a most powerful and innovative healthcare initiative – EMRI. This is the world’s largest and the only free emerging response service. Through ambulances, an emergency response centre and pre-hospital care this initiative is helping save almost 3 lakh lives per month.



The growing Innovation momentum in Corporates, Social Enterprises, NGO’s and Government agencies is beginning to have a significant impact. More and more organisations have embedded Innovation cells into their organisation structure.



Recognising this, Government of India, through the Planning Commission is integrating an Innovation acceleration thrust into the next Five Year Plan. State Governments are also exploring ways to institutionalize and accelerate innovation.







This gathering momentum reinforces my belief that ‘Innovation must be for India, what quality was for Japan a transforming agent’. Let’s build this momentum to the point it makes India’s Innovative Development a Global role model.

[Guest]

[url="http://finance.yahoo.com/news/Indias-economy-grows-at-apf-1347952416.html?x=0&sec=topStories&pos=9&asset=&ccode="]India's economy grows at fastest pace in 2 years[/url]

India economy grew 8.6 percent in Jan-Mar quarter, best in 2 years as manufacturing rebounds

Investment as a share of gross domestic product rose to 34.6 percent during the March quarter, government data showed. That's far higher than it was in the 1990s, when it hovered near 22 percent of GDP, and close to its peak of 37 percent not long before the global recession, Joshi said.



Europe, India's most important export market, could drag on India, especially if its debt crisis undermines global growth.



Joshi calculates that only about 7 percent of investment comes from abroad. Still, if foreign funding -- which Indian companies have used to feed their growing appetite for overseas acquisitions -- dries up, domestic sources will be stretched, he said.



"We are more connected to Europe than ever, but we have our own strengths," he said.



From 2003-2008, economic growth averaged 8.8 percent a year, before slumping to 6.7 percent last fiscal year as the Great Recession roiled India's economy.



India's prime minister Manmohan Singh says the billion-plus nation needs to grow at 10 percent a year to eradicate chronic poverty.

Good news.

[Guest]

[url="http://www.hindustantimes.com/China-s-rising-costs-are-India-s-big-chance/H1-Article1-556892.aspx"]China’s rising costs are India’s big chance[/url]

“Foreign firms across all sectors in China are actively looking at India and the frequency of investment inquiries from China has increased more than ever before,’’ a diplomatic source told Hindustan Times in Beijing.



Taiwan companies will consider moving factories to India, Indonesia and Vietnam in the next three to five years as costs in China rise, the Economic Daily News reported this week from Taiwan, citing Arthur Chiao, chairman of Taiwan Electrical and Electronic Manufacturers’ Association. This month, Taiwanese Foxconn, maker of Apple products, hiked wages by nearly 66 per cent after 10 workers suicides and labour unrest in its Shenzhen plant.



The company reportedly began plans to relocate some factories back to Taiwan. Honda factory workers in China are negotiating pay hikes and the right to form unions. Minimum wages are being hiked by governments nationwide from northern Beijing to southern Shenzhen.



Earlier this year, a Taiwanese shoemaker producing millions of Adidas shoes in south China’s Guangzhou — the world’s shoe factory — began expanding operations to Guntur and Kadapa in Andhra Pradesh where 3,000 workers will make three lakh shoes a month.

The tilt in mood towards India by China’s foreign investors is not a rush to relocate because investors worry that erratic power supply and poor roads escalate manufacturing costs.

In May, Microsoft CEO Steve Ballmer said in Vietnam: “Intellectual property protection in India is far, far better than it would be in China.”



“A year ago, such a comment (from Microsoft) would have been inconceivable,’’ Forbes columnist Gordon Chang told HT from New York.



On Saturday, Beijing’s commerce ministry tried to turnaround the debate by releasing impressive figures. China’s economy, which grew 11.9 per cent in the first quarter, attracted $ 38.92 billion dollars (Rs 1.82 lakh crore) in foreign direct investment from January-May, up 14.31 per cent from a year ago.



Apache, which started its first India factory over a year ago in Nellore, Andhra Pradesh, and is expanding to Guntur, Kadapa and Uttarkhand this year, did not respond to requests for an interview.



As Chinese labour is getting costlier, the Adidas shoemaker in India plans to increase its workforce.

[sai_k]

http://finance.yahoo.com/news/Kneale-Are...7.html?x=0 One big and often overlooked factor driving that infrastructure boom is India, long the forgotten sibling at the dinner table at a time when everyone wants to talk more about China. Yet India has a real chance of eclipsing China, building a bigger middle class and a far more entrepreneurial culture. Investors may be overlooking this long-term prospect.India expects to spent $1 trillion on buildings, roads and housing in the next five years. Cell phone service is down to a penny a minute, and Bharti Airtel, with 135 million wireless customers in India, is signing up 20 million newcomers every month, says the carrier's CEO, Rajan Bharti Mittal, who attended the Yale confab.India has an estimated 50 million entrepreneurs, and all of them own their own companies. That compares with a few million in China, where multinationals dominate and the government seems to own a stake in almost everything, says Amit Mitra, secretary general of FICCI (the Federation of Indian Chambers of Commerce and Industry).Almost 90% of all tech exported by China, and 56% of all exported products (not just tech), is made by multinational corporations, Mitra says. By contrast, only 2% or 3% of India's exported products is made by corporate titans; tiny companies provide the vast majority of the nation's output.

The question is, do we want to continue on this model or go for a 50-50 approach.. in the sense, have more participation from our villages and towns following the china model? Of course, if we can beat the chinese with our current mode, then nothing like it.

[Guest]

[url="http://www.hindustantimes.com/With-over-9-bn-India-tops-WB-s-loan-list/H1-Article1-562124.aspx"]With over $9 bn, India tops WB's loan list[/url]

The country has become the largest recipient of the World Bank loans with over USD 9 billion worth assistance this fiscal ending June 2010, up fourfold over the previous fiscal.



The Washington-based multilateral lender had extended only USD 2.2 billion loan to the country for the year ended June 2009.



India's share among the various recipients of the Bank is 15 per cent in terms of loans, followed by Mexico with 11 per cent and South Africa with 7 per cent as of June 20, 2010.

As of June 20, the Bank has lent USD 9.26 billion to India and is expected to provide another USD 0.04 billion in the remaining period of June. The Bank follows a fiscal year from July to June.

[Capt M Kumar]

In what could make the Centre squirm, they cited BJP-ruled Chhattisgarh as an example of what an inclusive public distribution system (PDS) could do.



An indication that the NAC’s radicals were in a mood to push the envelope on Sonia’s food security bill — despite the reservations expressed by agriculture minister Sharad Pawar and a section of the UPA government — was evident in an article written by Jean Dreze, a member of the council, in The Hindu today.



An NAC source hoped Sonia could break her silence on the grey zones in the bill when they meet on July 14. “She is basically supportive of our (the radicals) premises. We will have to see how far she takes them,” the source claimed. http://www.telegraphindia.com/1100709/js...663503.jsp

[Capt M Kumar]

The Indian rupee’s new symbol, an elegant, simple and brilliant combination of Sanskrit Ra and the English R without the stem, deserved a more dignified debut. A minister holding up an A4-size sheet of paper for cameras sitting at her desk? No fancy unveiling, no fireworks or music, no celebrations at all? How unfortunate. How inelegant. How crass.



The Indian rupee, which is the original rupee, dates back centuries. Historians believe the name derives from the Sanskrit Rupyakam and date the use of silver rupee coins to 6th century BC. <img src='http://www.india-forum.com/forums/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' /> http://www.business-standard.com/india/n...rn/401752/

[Capt M Kumar]

New Delhi: India now has households with high income outnumbering those in the low category for the first time at the end of 2009-10. As per estimates done by the National Council of Applied Economic Research (NCAER), India has 46.7 million high income households as compared to 41 million in the low income category. http://www.siliconindia.com/shownews/Ind...Subscriber



The NCAER also added that while this trend continued, the income of the middle class also grew.

[HareKrishna]

naxalite ideology is the politic of the hungry ones.

whit a food aid program for the poor ,also the naxalite problem will be solved.

[HareKrishna]

[quote name='Bharatvarsh2' date='01 April 2010 - 10:04 AM' timestamp='1270095986' post='105575']

On a sidenote the idiot who wrote that is precisely why India has so much poverty and Indians do ok everywhere except in India itself.



Wealth redistribution ya that's exactly what we need, a model that failed so spectacularly everywhere it was tried.



And the West has decades ago abandoned many of the policies that made it successful.



The US is a giant welfare state (not as bad as Sweden but still pretty bad) today & veering towards socialism with a future that looks like Brazil.



The current crisis was predicted years ago by those nasty capitalists (the real one's i.e) in the US, go on youtube and look up Peter Schiff's predictions about the housing bubble back in 2006 and 2007.

[/quote]

wealth distribution is a good thing but it must have a limit in the budget ,lets say 20% ,and this line is never to be crossed.

in capitalism,to much welfare is a bad thing as its compromise growth.

but food aid ,minimal housing and basic medical stuff make only a small percent from the budget.

the biggest burden its not the welfare but the pension system which affect all aged countries,like Japan.



only in a resource based economy(the only good alternative to capitalism) ,the free salary doesn't count because production and services are assured by machines.

[Guest]

[quote name='HareKrishna' date='03 August 2010 - 01:08 PM' timestamp='1280820605' post='107735']

naxalite ideology is the politic of the hungry ones.

whit a food aid program for the poor ,also the naxalite problem will be solved.

[/quote]

In India, politicians, IAS (Babus) etc, eat up every aid. Rarely, needy gets help.

Hunger can help people to elevate their living by educating and better utilizing resources.

Naxalite leaders are only looking for power, majority of them are from well off families, it is just a glamor/love affair for them.