Indian Economy stares at a dismal near future.
The index of Industrial Production IIP has shrunk by 1.8% and situation has been further compromised by double digit inflation numbers which is up at 11.24%.
With the announcement of these economic factors, the situation has just became gloomier for the Congress-led government at New Delhi. The results of the recently concluded state polls has clearly shown the Congress party that the people are not in any mood to tolerate any more indecision and inaction.
The Indian Government comprises of some the top economists who are able to talk impressively about the economic scenario, but who have failed to deliver when it comes to controlling the Indian economic outlook.
Showing posts with label Indian Economy. Show all posts
Showing posts with label Indian Economy. Show all posts
Thursday, December 12, 2013
Thursday, June 6, 2013
Gold v/s Current Account Deficit
India economy situation is grim.
Our current account deficit is bloating uncontrolled and the biggest contributor to this is the increasing import of gold. Our citizens are in an increasing rush to buy gold. Statistics show that India has imported an average of 70 tonnes of gold per month during the last fiscal and this import does not seem to stop.
The government is exercising its control to make gold investment difficult, but to no avail
The government has increased in import duty of gold. The finance minister has asked the banks to stop selling gold.
I feel the government is treating the symptom and not the cause. It needs to speculate as to what makes gold so lucrative for the Indian investor. Our policymakers need to create a reliable and safe investment vehicle where people can put their money, instead of gold.
Although, the immediate goal for the government is to somehow stop this inflow of gold, it should to take into consideration the fact that the Indian investors have funds at hand but they do not have venues to invest these funds into.
The financial wizards at the nation's helm also need to evaluate why people do not want to invest in some of the other erstwhile popular investment options like some entrepreneurship venture or shares or real estate or some other business.
Apparently more needs to be done to stop this gold rush.
Our current account deficit is bloating uncontrolled and the biggest contributor to this is the increasing import of gold. Our citizens are in an increasing rush to buy gold. Statistics show that India has imported an average of 70 tonnes of gold per month during the last fiscal and this import does not seem to stop.
The government is exercising its control to make gold investment difficult, but to no avail
The government has increased in import duty of gold. The finance minister has asked the banks to stop selling gold.
I feel the government is treating the symptom and not the cause. It needs to speculate as to what makes gold so lucrative for the Indian investor. Our policymakers need to create a reliable and safe investment vehicle where people can put their money, instead of gold.
Although, the immediate goal for the government is to somehow stop this inflow of gold, it should to take into consideration the fact that the Indian investors have funds at hand but they do not have venues to invest these funds into.
The financial wizards at the nation's helm also need to evaluate why people do not want to invest in some of the other erstwhile popular investment options like some entrepreneurship venture or shares or real estate or some other business.
Apparently more needs to be done to stop this gold rush.
Friday, November 9, 2012
Arvind Kejriwal strikes again - targets Swiss Account holders
Account Holders in Swiss Banks are the target of Arvind Kejriwal's recent expose and on top of the list of then names taken by the anti-graft crusader are Mukesh Ambani, Anil Ambani and some of their companies including the Reliance Industries Ltd.
This time the shares of Reliance Industries (RIL) reacted even as Kejriwal was addressing the media. The stock closed down 1%, while Anil's Reliance Communications (RCom) end down by 2.2%.
The center of Arvind's exposure was HSBC's alleged role in transferring the moneys to-and-from HSBC's Swiss branch.The names taken by Arvind as he made the disclosures today read like the who's who of Indian industry - The Burman's of Dabur, Goyal of Jet Airways.
According to the expose - In July 2011, Indian Government received a list of roughly 700 people having bank accounts in HSBC, Geneva. The list contains bank balances of these people in 2006. Even the name of Kokilaben Ambani - mother of Mukesh and Anil Ambani - is supposed to have been in the list of account holders, although the balance in the account was nil.
Today's expose by Arvind Kejriwal has once again raised questions on the loyalty and honesty of the Indian politicians.
It remains to be seen how long the government can go on without ordering an all out probe into the corrupt practices of the people in high places within the government and outside.
One thing is certain - the Indian Economy is headed for a major shake down.
This time the shares of Reliance Industries (RIL) reacted even as Kejriwal was addressing the media. The stock closed down 1%, while Anil's Reliance Communications (RCom) end down by 2.2%.
The center of Arvind's exposure was HSBC's alleged role in transferring the moneys to-and-from HSBC's Swiss branch.The names taken by Arvind as he made the disclosures today read like the who's who of Indian industry - The Burman's of Dabur, Goyal of Jet Airways.
According to the expose - In July 2011, Indian Government received a list of roughly 700 people having bank accounts in HSBC, Geneva. The list contains bank balances of these people in 2006. Even the name of Kokilaben Ambani - mother of Mukesh and Anil Ambani - is supposed to have been in the list of account holders, although the balance in the account was nil.
Today's expose by Arvind Kejriwal has once again raised questions on the loyalty and honesty of the Indian politicians.
It remains to be seen how long the government can go on without ordering an all out probe into the corrupt practices of the people in high places within the government and outside.
One thing is certain - the Indian Economy is headed for a major shake down.
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