Indian Economy
Articles on the Indian economy
September 17, 2010
Rise of American Protectionism – Two cases against China in WTO and "Buy American" Bills by Congress
USA is increasing its protectionist actions recently filing 2 cases in World Trade Organisation against China over Electrical Steel and Credit Card payment providers.Only last week a US Union had filed a complaint with the US government about the Predatory Practices of Chinese Green Companies.USA thinks that China has unfairly put duties on US made Steel and it is locking out Mastercard and Visa from the credit card processing market in China.There is little doubt that China indulges in favoritism and implicit and explicit support of domestic companies.However it the scale that is the only difference .Like all other things China also implements its policies king size.MNCs in recent times like GE,Google,Siemens have all criticized Chinse discrimination against foreign companies.However WTO remains an ineffective body to resolve complex Trades Disputes.The US Congress is also getting into the China-Bashing Act by passing 2 bills that mandate "Buy American" clauses.The US has already antagonized the Indian IT Industry by specifically targeting the Indian companies like Infosys and Wipro.These new bills target China making it mandatory for government departments to buy American made goods.With November Elections fast approaching,politicians are outdoing each other in protectionist rhetoric.
September 10, 2010
Inflation continues to rule in the double digits as price of essential food commodities touches new highs.The Federal Government has stopped doing anything promising lower inflation figures in the next months thanks to lower base effect.However absolute prices as compared to 2 years are up almost 30-50%.The High Inflation has not affected the elite Indian classes as Stock Market make new highs and Industry maintains high growth rates.Naxalism is the direct outcome of this huge income inequality which is increasing every day.With no corrective measures being taken except some photo-ops by India's oppurtunistic politicians except internal strife to Increase in India.
September 8, 2010
Increasing College Education in Developing Countries has led to Unemployement and Low Wages for White Collar Workers.The increasing number of people armed with College Degrees has […]
September 8, 2010
India’s Powerful Central Planning Commission has decided to give $500 million from next year to Indian States making the most Progress in Going Green.The Agency has […]
September 7, 2010
India has recently seen 2 Nationwide Strikes in the past month on the issue of Inflation and Food Insecurity.These Strikes have been called by Opposition Parties […]
September 5, 2010
.Europe and UK remain in equally difficult conditions suffering to some extent from the debt induced overhang.Hong Kong and the rest of Asia in comparison have escaped relatively unscathed and countries in the region have resumed their strong growth trajectory.Its not a wonder then that global talent is looking at Asia for newer growth opportunities.Non-Resident Indians are migrating back to their homeland in record numbers to take advantage of the booming economy.Its the same in case of other Asian centres like Singapore,Hong Kong and Shanghai.Asian companies are now raising money from capital markets in HK rather than NY.
September 5, 2010
India and Russia have jointly developed the Brahmos Cruise Missile which is said to be one of the most advanced Cruise Missiles in the World.This Cruise Missile is also the Fastest in the world with a speed of 3000 km/hr or around 2.6 times the speed of sound and can be launched from multiple air,sea and land platforms.India's Traditional Adversaries Pakistan and China are one generation behind in the Cruise Missile Technology Race.While Pakistan's lone Cruise Missile Babur is based on the outdated Tomahawk Missiles,China's Cruise Missiles also don't match upto Brahmos in speed and sophitication.
September 1, 2010
China regards India warily and think it a threat to Chinese domination over Asia.India has responded meekly in the past but recent provocations have made India retaliate back.Chinese Navy presence in the Indian Ocean by building ports in Pakistan and Burma have further queered the pitch.China is also deploying advanced missiles at the Tibet Border while border violations are also rising.India's Cabinet is regarding this with increasing concern with a meeting called to assess the situation arising from Chinese troops in POK.An investment in India's Defense Industry makes good sense in such an environment
August 27, 2010
The Indian Government Cabinet today gave approval to a new Direct Tax Code which is supposed to fundamentally change the Tax Structure in the country.This Code […]
August 23, 2010
Bollywood as India's massive Film Industry is commonly known as,has not been known to bring forth serious issues.While early movies used to dwell on Rural India,the 21st century Indian cinema has decoupled itself from the Indian masses.Most of the movies these days with inane story lines are shot in foreign locales depicting lives of an extreme minority on Indians.Peepli Live is a refreshing exception to this trend.With no famous stars and no "song and dance' routines around trees,the movie has humourously covered the issues of farmer problems in India.
August 17, 2010
There have been diplomatic skirmishes with China trying to block a ADB loan to the state and giving different visas to persons in that region.India has so far remained muted despite some border incursions by Chinese troops as well.India and Chinese political and trade relations have improved quite a lot in the recent years,however the trust quotient remains low between the world's two most populous countries.China has used Pakistan as a proxy against India and has also been blamed over cyberattacks on Indian defense networks.India has responded by banning Chinese telecom equipment firms over security concerns.The rise of these 2 great powers and the dynamics between them will be the most important event shaping the 21st century.
August 17, 2010
.Now a Central Government Panel has indicted both the state government and Vedanta of environmental abuses in its earlier projects.The N.C. Saxena panel has found the state government officials guilty of violating Forest Rights Act in order to help Vedanta.While rejected Vedanta's Bauxite Mining Rights,the Panel has found the company guilty of mining on government land,violating environmental laws and tribal rights
August 4, 2010
India looks unlikely to impose capital or currency controls like Asian countries to stem the increasing capital inflows from developed nations.The Indian government and the Central […]
August 3, 2010
Huawei faces blacklisting from India on Security Concerns Huawei has been blacklisted by the Indian government from supplying telecom equipment due to security concerns.Despite strong lobbying […]
July 19, 2010
India’s Nuclear Energy Growth plans has been facing obstacles from China which is using Pakistan as a proxy.Note Pakistan is the recepient of huge aid from […]
July 18, 2010
Food Prices have become one of the most important topics in India over the last 2 years.A Deficient Monsoon season in 2009 was the primary cause […]
July 17, 2010
India’s Mahatma Gandhi National Rural Employment Guarantee Scheme or MGNREGA as it is popularly known is leading to labor shortages around the country.The NREGA scheme which […]
July 3, 2010
India’s Rising Inflation crosses into Double Digit territory India has seen inflation increase at a rapid pace in the recent months with the Wholesale Price Infalation […]
June 20, 2010
Indian exporters are overwhelmingly in favor of a fixed currency exchange rate as recent currency gyrations due to the Greek Contagion has made their lives very […]
June 20, 2010
Satyam scam tainted Indian infrastructure company Maytas has agreed to sell a 20% stake to Saudi BinLaden Group.Note Maytas Infrastructure was an integral part of the […]
June 17, 2010
Introduction India’s Central Bank RBI is proposing to free up the Savings Deposit Rate which is currently fixed at 3.5% . All banks whether they be […]
June 16, 2010
Asian countries are being forced to impose capital and currency controls as zero interest rates in Developed countries moves speculative money towards Asia.The Lehman Crisis in […]
May 9, 2010
India’s chief economic advisor thinks that India could benefit from increased capital flows if the Greek crisis is contained at the present level. How he thinks […]