Hi,
We are seeing that rupee is falling down ruthlessly. Does it indicate fall in Indian economy?
I feel rupee is loosing its value globally. It reminds me the situation of Korea and other Asian countries where they had to forcibly deface their currency which resulted into worst situation in their economy.
Currently we can see that all prices are going up in India. Cost of living is exponentially high in last 10 yrs.
Common man's affordability of goods and services in market is changing drastically.
So all this concludes in some worst situation including real estate?
Regards,
Mahan
Falling rupee indicates falling Indian economy?
Re: Falling rupee indicates falling Indian economy?
Thanks to UPA I and UPA II policies.
When NDA was in power at Centre,
1) Inflation was at an average Rate of around 2.5.
2) Forex rate of around Rs.36 - 40
3) We used to Get the LPG connections and refill Cylinders easily
4) Petroleum product prices were revised at regular intervals(On either side) without any hesitation.
5) Gold prices were around Rs. 6000 to Rs. 7000/10gm. Silver was around Rs. 6000/kg
6) Rice was around Rs. 15 for a descent quality and Max Rs. 22 for a Premium grade.
7) Cement was around Rs. 180 - 200 and Steel was around Rs. 20000/ton
8) Real estate was not at this corrupt level and very less involvement of Politicians in this black money adda.
9) Govt was in much better condition in taking any economic reforms like Telecom sector was liberalised by removing barrier between CDMA and GSM, Entry of private Players allowed in Marketing of Petroleum products, thats where Essar, Reliance and Shell started Their service Stations across the Country. Civil aviation field was shared with private cost effective airlines like Indigo, Air Deccan, spice jet
10) Many reforms were brought with private players entering the Insurance and Banking sector which made lazy PSU Banks and monopolysed lazy LIC Insurance sector turned competitive and efficiency improved.
11) Inspite of US and Western Countries Economic and Technological Sanctions agains india due to Indias "Buddha Smiled Again" attempt(Pokhran II Nuclear Test), India was able to sustain the growth and had good control over economy.
12) Golden Quadrilateral national Road Project connecting all 4 metros of the country was in full swing. You can remember the progress happened from Bangalore till Sira within a short span. The moment UPA came to power, halted/slowed down the project and even after 8 years no significant progress happened in completing this project.
Its pity to see the Great Economist MMS leading the country in mute condition.
When NDA was in power at Centre,
1) Inflation was at an average Rate of around 2.5.
2) Forex rate of around Rs.36 - 40
3) We used to Get the LPG connections and refill Cylinders easily
4) Petroleum product prices were revised at regular intervals(On either side) without any hesitation.
5) Gold prices were around Rs. 6000 to Rs. 7000/10gm. Silver was around Rs. 6000/kg
6) Rice was around Rs. 15 for a descent quality and Max Rs. 22 for a Premium grade.
7) Cement was around Rs. 180 - 200 and Steel was around Rs. 20000/ton
8) Real estate was not at this corrupt level and very less involvement of Politicians in this black money adda.
9) Govt was in much better condition in taking any economic reforms like Telecom sector was liberalised by removing barrier between CDMA and GSM, Entry of private Players allowed in Marketing of Petroleum products, thats where Essar, Reliance and Shell started Their service Stations across the Country. Civil aviation field was shared with private cost effective airlines like Indigo, Air Deccan, spice jet
10) Many reforms were brought with private players entering the Insurance and Banking sector which made lazy PSU Banks and monopolysed lazy LIC Insurance sector turned competitive and efficiency improved.
11) Inspite of US and Western Countries Economic and Technological Sanctions agains india due to Indias "Buddha Smiled Again" attempt(Pokhran II Nuclear Test), India was able to sustain the growth and had good control over economy.
12) Golden Quadrilateral national Road Project connecting all 4 metros of the country was in full swing. You can remember the progress happened from Bangalore till Sira within a short span. The moment UPA came to power, halted/slowed down the project and even after 8 years no significant progress happened in completing this project.
Its pity to see the Great Economist MMS leading the country in mute condition.
-
BengaluruBoy
- Posts: 210
- Joined: June 18th, 2009, 1:27 pm
Re: Falling rupee indicates falling Indian economy?
MSN1270, good points. most of mess are created by UPA even though some of the commodties like steel and cement are partially due to global economic situation.
Re: Falling rupee indicates falling Indian economy?
You forget to add one more point.
Panacea for all the issues aforementioned.
13) “Make Modi PM of India”
Panacea for all the issues aforementioned.
13) “Make Modi PM of India”
Re: Falling rupee indicates falling Indian economy?
In my opinion, Even Steel and Cement prices are artificially controlled by the Corporates and the Governement in India. Earlier Scenario was entirely different. There was a huge demand for Steel and Cement from the China as they're gearing up for the biggest event 2008 Olympics. At the same time Real estate peak in Dubai and other Gulf countries. The whole Global Real estate firms were engaged in those activities and supply was shortage to meet the demand.
But the current scenario is totaly different. After Olympics, China's Iron Ore import has drastically reduced. They even started Rejecting the Ore shipment from Bellary/Sandur Miniers. Gulf's Real Estate market crashed in 2008-09 itself. Europe is under severe economic crisis. World Automobile market is crawling. Inspite of 2012 Olympics preparations with huge spendings on infrastructure, England's Economic growth is in negative growth and going for economic depression.
On the other side, Currently India has surplus Cement production Capacity vs the actual demand. In next two years another 15-25% extra capacity is getting added where demand is sluggish. But all the Cement Factories are running at under capacity between 50-70%, mainly to create artificial shortage and commanding the premium price.
India is having the cheapest coal price + Transporation Cost + Power Tariff compared to any parts of the world. Tata is having their own Captive Iron Ore mining area from the Pre-Independence British time and they're not buying from outside. Hence their Raw material Cost is very next to NIL. But they're the one who raise the Steel Prices First. Also they're successful in lobbying to put in place the Anti-Dumping duty and customs duty for Steel from China to make it costlier in India.
The whole real estate market is fraud.
Whether its Modi or MMS, Leaders should think about the need of the country and work towards the people of the country. India is borrowing Loans from all parts of the world without having the adequate revenue generation. One fine day, India will also reach the state of bankrupt Country like Greece, Ireland, Spain....etc. Unless India moves in the Right direction. Be prepared to face the dark face soon.
Wherever Subsidy is there, corruption is there. In the name of Aam Aadmi, the pseudo secular parties are destroying the country. Look at the Simple examples,
1) West Bengal state Government is not able generate revenue even to pay the interest part for the borrowing it has done so far. She is blackmailing the Central Government to take over those Debts and all she want is to continue with the pro-common man policies.
2) Railway department doesn't have money to pay their staff the 6th pay commission salary, and doesn't have adquate funds to modernise the security measures for the railway lines. But Didi doesn't want hike in the passenger fares for the next 100 years.
.
3) Tamil nadu is no different. Who is paying for the popular freebies like Grinder, Gold Chain, Laptops, Rice, wheat....etc. Tamilnadu State electricity Board and their State transport departments doesn't even have money to pay the salaries and for purchasing the raw materials, as the fares are not raised since last decade. Both are blacklisted by all the nationalised banks and they're no more eligible to borrow anymore financian assistance.
4) Look at our bangalore BBMP which is collecting mere 40% of the property tax. Recently They Pledged K.R Market Complex to borrow Money. Now they're planning to Pledge "Utility Building & Jayanagar Complex" to borrow another Rs.1000 crores..
do we need anymore examples of financial mismanagement ???
But the current scenario is totaly different. After Olympics, China's Iron Ore import has drastically reduced. They even started Rejecting the Ore shipment from Bellary/Sandur Miniers. Gulf's Real Estate market crashed in 2008-09 itself. Europe is under severe economic crisis. World Automobile market is crawling. Inspite of 2012 Olympics preparations with huge spendings on infrastructure, England's Economic growth is in negative growth and going for economic depression.
On the other side, Currently India has surplus Cement production Capacity vs the actual demand. In next two years another 15-25% extra capacity is getting added where demand is sluggish. But all the Cement Factories are running at under capacity between 50-70%, mainly to create artificial shortage and commanding the premium price.
India is having the cheapest coal price + Transporation Cost + Power Tariff compared to any parts of the world. Tata is having their own Captive Iron Ore mining area from the Pre-Independence British time and they're not buying from outside. Hence their Raw material Cost is very next to NIL. But they're the one who raise the Steel Prices First. Also they're successful in lobbying to put in place the Anti-Dumping duty and customs duty for Steel from China to make it costlier in India.
The whole real estate market is fraud.
Whether its Modi or MMS, Leaders should think about the need of the country and work towards the people of the country. India is borrowing Loans from all parts of the world without having the adequate revenue generation. One fine day, India will also reach the state of bankrupt Country like Greece, Ireland, Spain....etc. Unless India moves in the Right direction. Be prepared to face the dark face soon.
Wherever Subsidy is there, corruption is there. In the name of Aam Aadmi, the pseudo secular parties are destroying the country. Look at the Simple examples,
1) West Bengal state Government is not able generate revenue even to pay the interest part for the borrowing it has done so far. She is blackmailing the Central Government to take over those Debts and all she want is to continue with the pro-common man policies.
2) Railway department doesn't have money to pay their staff the 6th pay commission salary, and doesn't have adquate funds to modernise the security measures for the railway lines. But Didi doesn't want hike in the passenger fares for the next 100 years.
.3) Tamil nadu is no different. Who is paying for the popular freebies like Grinder, Gold Chain, Laptops, Rice, wheat....etc. Tamilnadu State electricity Board and their State transport departments doesn't even have money to pay the salaries and for purchasing the raw materials, as the fares are not raised since last decade. Both are blacklisted by all the nationalised banks and they're no more eligible to borrow anymore financian assistance.
4) Look at our bangalore BBMP which is collecting mere 40% of the property tax. Recently They Pledged K.R Market Complex to borrow Money. Now they're planning to Pledge "Utility Building & Jayanagar Complex" to borrow another Rs.1000 crores..
do we need anymore examples of financial mismanagement ???
Last edited by msn1270 on May 24th, 2012, 9:40 am, edited 3 times in total.
Re: Falling rupee indicates falling Indian economy?
Policy paralysis in the UPA Govt. Macroeconomics picture is bleak. Unless until MMS & Sonia does something on this and take political risk, this rapid downfall cant be averted. Unfortunately the opposition parties are also weak & because of the TINA factor ( their is no alternative ) a weak UPA 3 might come back to power.
Moreover the destiny of this great nation lies in our hand & not the politicians.
Moreover the destiny of this great nation lies in our hand & not the politicians.
Re: Falling rupee indicates falling Indian economy?
msn1270, your views are balanced and I totally agree with you. Adding to that, given that corruption on average in infrastructure projects (like road etc) is 45%, defense being outside of RTI act as well, congress has been the biggest beneficiary of defense corruption. Remember buying time will help destroy evidence.
In the name of capitalism UPA has failed to tame the corporates with law (e.g. MRTP) enforcement. I feel it some top decision makers have hidden interest in not enforcing such things. Though personally I don't believe there is no think tank in congress. However, corruption and saving corrupt is the order of the day and hence policy paralyzed country has to see what will shape up.
In the name of capitalism UPA has failed to tame the corporates with law (e.g. MRTP) enforcement. I feel it some top decision makers have hidden interest in not enforcing such things. Though personally I don't believe there is no think tank in congress. However, corruption and saving corrupt is the order of the day and hence policy paralyzed country has to see what will shape up.
-
BengaluruBoy
- Posts: 210
- Joined: June 18th, 2009, 1:27 pm
Re: Falling rupee indicates falling Indian economy?
msn1270, I agree with your point on the commodities. The greatest achievement of UPA is taking the corruption to the peak. MMS is closing his eyes and protecting his cabinet colleagues and his bosses.
Mathew73, Is your 13th point a sarcastic or real one? If not real, can you please explain how modi is inferior to MMS in terms of development and good governance. I was a big fan of MMS when he took over as PM and I'll be interested to know how MMS fares better than modi in the current scenario.
Mathew73, Is your 13th point a sarcastic or real one? If not real, can you please explain how modi is inferior to MMS in terms of development and good governance. I was a big fan of MMS when he took over as PM and I'll be interested to know how MMS fares better than modi in the current scenario.
Re: Falling rupee indicates falling Indian economy?
Personally MMS is a genius in economics having so many degrees and Phd's and with so much of experience from teaching background, has written so many books and economic journals. But unfit(Proxy) leader in managing the party or country.
Modi Scores far better over MMS in terms of Good governance and development. Both Bihar & Gujarat have growth rate of 11 to 12%, consistently over the years, whereas overall India's adulterated Growth Rate itself is around 6.5%(In reality it is negative in the last two years).
Earlier our Planning commission chief "Montek Singh ahluwalia" was assuring in all his media interactions from last 3 years that Inflation will come down below 5% by august, december, next march....etc. Even Agricultural Minister Sharad Pawar was assuring food inflation and supply will succed once the rainy season comes. Already 3 years over. All the prices which were rose did not turned back. Now both stopped commenting on it. Politicians feel that things will automatically gets corrected by itself and people forget it.
Modi Scores far better over MMS in terms of Good governance and development. Both Bihar & Gujarat have growth rate of 11 to 12%, consistently over the years, whereas overall India's adulterated Growth Rate itself is around 6.5%(In reality it is negative in the last two years).
Earlier our Planning commission chief "Montek Singh ahluwalia" was assuring in all his media interactions from last 3 years that Inflation will come down below 5% by august, december, next march....etc. Even Agricultural Minister Sharad Pawar was assuring food inflation and supply will succed once the rainy season comes. Already 3 years over. All the prices which were rose did not turned back. Now both stopped commenting on it. Politicians feel that things will automatically gets corrected by itself and people forget it.
Last edited by msn1270 on May 24th, 2012, 9:40 am, edited 1 time in total.
Re: Falling rupee indicates falling Indian economy?
Today we can see the one more gift. Petrol is hiked by Rs. 7.50!!! In last 3 yrs Petrol is hiked by Rs 44!!!