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India's booming economy





ainieas
India's economy is booming at an amazing rate. The BSE sensex in 2003 was at 5000 points. It touched 10,000 points for the first time in Feb '06. Then 15,000 points in July '07. In in just three months it closed at above 18,000 points in Oct '07. Now my question is isn't every boom followed by a bust or is that not necessary. Or is India's economy moving towards something akin to the Great Depression.
web_harman
hey man i am an indian.................... well i have nver been to any other country ... but there is lot going on in india.......... but yes i never thought it would touch 18000 so fast.......... i myself is going to open up a firm.........so many people like me are opting up entrepreneur ship and even soem how politics is supporting the growth a bit because of media and yes Reliance............... Ambani'sssssssss

we have two indians amongst the first five richest persons on the earth
ainieas
But aren't you a bit apprehensive if it is all going to burst?
k_s_baskar
ainieas wrote:
But aren't you a bit apprehensive if it is all going to burst?


I don't think so. Bcoz PE ratio of 30 companies indexed for sensex are normal. And FII investment are very very high in this month. If govt. is stable i think sensex will reach 20000 points in end of this year. But if Q2 Results is negative sensex may come down from this level by 500 to 700 points. But due to indian economy sensex is moving very fast.
Let us wait n see what's going to happen.
Smile
cybernytrix
So any of you guys have actually put money in the stock exchange? I have family in Bangalore but I am currently in NJ and I really want to invest outside USA - the $$$ going bust so fast.
Please share your investing ideas - either in India or Europe or any general suggestions you have!
k_s_baskar
cybernytrix wrote:
So any of you guys have actually put money in the stock exchange? I have family in Bangalore but I am currently in NJ and I really want to invest outside USA - the $$$ going bust so fast.
Please share your investing ideas - either in India or Europe or any general suggestions you have!


S I am trading in NSE n BSE for the Past eight months. Investing NIFTY INDEX, BANK NIFTY etc., are giving good returns to me.

Smile
akshar
Booming economy? Thats true but for how long? Increasing oil prices will again reconfirm the thinking that US is the only stable economy. Smile
Oil prices will touch Rs 200 /ltr by 2017 and unless some indian company invents a new energy source or somehting its bound to be doomed.

The government is totally useless and has no clue about what future has in store for them
corridor_writers
akshar wrote:
Booming economy? Thats true but for how long? Increasing oil prices will again reconfirm the thinking that US is the only stable economy. Smile
Oil prices will touch Rs 200 /ltr by 2017 and unless some indian company invents a new energy source or somehting its bound to be doomed.

The government is totally useless and has no clue about what future has in store for them


I have to disagree. A little bit of careful research will show that the two world markets that are poised to dominate the world economy are China and India….who are currently neck-and-neck in this race. Granted there are a number of concerns that they are growing too fast, and that an unrestrained growth cannot be maintained. However, both countries governments are working hard to put measures into place that will slow the growth down to a manageable level…while still keep trucking ahead towards taking over the world market.
edzofcit
India is indeed growing. This is because of some Business Process Outsourcing(BPO) that is operating in this place. It gives them much income and good economy. Call Centers, IT outsourcing and many US companies are doing business in there to cut cost. It is mainly the reason why US economy is down, because some US jobs were transfered to other countries with cheap labor.
corridor_writers
edzofcit wrote:
India is indeed growing. This is because of some Business Process Outsourcing(BPO) that is operating in this place. It gives them much income and good economy. Call Centers, IT outsourcing and many US companies are doing business in there to cut cost. It is mainly the reason why US economy is down, because some US jobs were transfered to other countries with cheap labor.


Correct. In addition, the US is seeing more and more jobs un the areas of Science, Engineering and Math going to India as well. The thing that they really have going for them is that they have subsidized education (which to the lay person means that higher education is free to them.) So, if the government is going to pay for your PhD, why not take it? India is one of the few places in the world I know of where you can call a helpdesk person (considered to be an entry level position) and get a person with a PhD answering the phones.
akshar
The booming is is now dooming. The markets have crashed very badly and with elections at corner government has come up with a very stupid budget.
mehulved
But, why are people just comparing economy with stock market. It is an important indicator but doesn't always have to be right.
It's more of people's sentiment than actual state. Though, most of the times general crowd behaviour will tend to be in conformance with the state of the economy but there can well be times when they are not on the same plane.
weblegendz
oooo my god ... so many people have so many different views... well in my case... i think its obvious that percepiton is the key to success....... just kidding... india shall rock...
k_s_baskar
Again a fall in Indian Stock Market Sensex trades below 15,000 yesterday(17-03-2008) due to global fall. Not only Indian market all major markets in the world trades minimum -5% comparining to last year average!?. Oil rates are raising and nearning 115$/b.

Anybody have idea to find the extreme end of this fall?
corridor_writers
I don’t think it is just India who is slowing down. China is also hitting huge growth problems as well. In fact, the entire world economy is fluctuating greatly. I read an article the other day that amazed me. Due to the weak American dollar, companies in Europe (particularly those using the Euro or English pound) actually consider America a low-cost country! In fact, there are some that claim greater savings using American labor over the cheap labor in China (based on quality, technology base, etc.) I was amazed. It’s hard to think of America in the same position as a third world country in terms of work market. I guess the paradigm shift for the economic side is looking beyond the quality of living and technology base and seeing the underlying economy. I also think we will continue to see these markets changing in every country for a long, long time.
LumberJack
Chinese and Indian growth is heavily related to American Consumer Demand... since America is broke, your economies will be under stress for a bit. I do believe you can get through it though Smile
corridor_writers
LumberJack wrote:
Chinese and Indian growth is heavily related to American Consumer Demand... since America is broke, your economies will be under stress for a bit. I do believe you can get through it though Smile


lol - thanks for the vote of confidence. Smile
Cddhesh
Well, problem with India is that there is huge quantity of intelligent people which are very simle and can be fooled easily.Indian Politicians doesent care for intelligent ,most of them are illeterate.
India is booming,Its true but along with that there are many things that are effecting india.Poor people are becoming more poor and richer are becoming more richer.
"Drivers are Intelligent peoples and Owners are Illeterate Politicians".
Most of the people in India are leaving a life like "Dogs".
Because of few intellectuals name of India has come up.
Lets see where India reaches.
corridor_writers
Cddhesh wrote:
Well, problem with India is that there is huge quantity of intelligent people which are very simle and can be fooled easily.Indian Politicians doesent care for intelligent ,most of them are illeterate.
India is booming,Its true but along with that there are many things that are effecting india.Poor people are becoming more poor and richer are becoming more richer.
"Drivers are Intelligent peoples and Owners are Illeterate Politicians".
Most of the people in India are leaving a life like "Dogs".
Because of few intellectuals name of India has come up.
Lets see where India reaches.


While politics can hold a people down, I don’t believe that this model can survive for long. At some point the educated will not allow this trend to continue, and will take steps (non-violent I am sure) to ensure that this trend does not continue. I have some extremely intelligent friends from India, and I too agree that the working class is very intelligent (where else in the world can you pick up a phone, dial a call center, and talk to a tech support person with a PhD!). I guess what I am saying is that the Indian people will fix the political problems at some point, and will keep India in the race against China as the new global dominance in the marketplace.
czc587
While India is certainly growing, there are parts of its economy that are slowing. My company used to have many India programmers but now their costs have gown to apoint that they are competitive with other parts of the world such as latin America. Also some of these IT skills are starting up in mexico, so I think the guys in India better be watchful of the world around them !
corridor_writers
czc587 wrote:
While India is certainly growing, there are parts of its economy that are slowing. My company used to have many India programmers but now their costs have gown to apoint that they are competitive with other parts of the world such as latin America. Also some of these IT skills are starting up in mexico, so I think the guys in India better be watchful of the world around them !


Wow, this is interesting news. I did not know that the economy in India had come so far. I guess both India and China will become more dominant players in the world economy, so I would agree that the new "low cost" countries will be places like Mexico and Indonesia.
fx-trading-education
I think that the low cost manpower will stabilize at a higher level than what it is now but still lower than in the richest country. As soon as a country has a educated and cheap workforce they will get a lot of subcontracting work that will make the cost raise and then converge with the price of similar countries.

I also already heard that the price for Indian people is no very competitive anymore when they work abroad because very often they will request pretty high salary in order to cover all expenses also for their families and to send money back to India.

Eastern Europe and Russia have now competitive rates with some people of very good quality.
gandalfthegrey
Does anyone know which regions &/or cities have the highest growth and which have limited economic growth?
bogger
nice necro of a dead topic >.<

In india or in the world?
webpagist81884
Its all great and all that India's economy is booming, but what about the cities that have tons of pollution and poor people in the masses. Nothing. lol.
nilsmo
China is growing faster than India though. But still it's pretty nice to have a populous democratic country to counterbalance China.
ptfrances
But India's growth is different from China's one. I think India's State is controling better the growth of its economy than the Chinese State.
It could be important if we thin in a long-term plan.

Arrow
justtj
is economy blooming?
well i agree but only upto some extent..

first of all would like to highlight the features of budget 2008
New Revised Tax Rate

The products on which tax reduced are:

• Two and three wheelers reduced from 16 to 12 %
• Water purification items waived off 8%
• Anti-AIDS drugs
• Life Saving drugs
• Pharma goods slashed to 14%
• Vitamin pre-mixes to lower from 30% to 20%
• Buses’ chassis
• Paper and paper products
• Small cars; now new tax rate is 14%
• Hybrid cars cut from 24 pct to 14 pct
• General CENVAT rate on all goods from 16% to 14%
• Few bulk drugs slashed to 5%
• Customs duties on crude Sulphur reduced to 2%
• Convergence products slashed to 5%
• Steel melting scrap, aluminum scrap
• Refigeration components
• Packaged software to be lower from 8% to 12%


here the budget is supporting farmers..
reducing the taxes..
the sixth par commission increased the salary

but in the end it will all lead to inflation..

its simple mathematics..

people will have more money..
will buy more..
increase the demand..
increase salary of business clss..
will increase the demand even more..
increase in the prices..

in the end the same money in economy will be circulating faster but at lower tax rates.
so govt. will get less..
justtj
fx-trading-education wrote:
I think that the low cost manpower will stabilize at a higher level than what it is now but still lower than in the richest country. As soon as a country has a educated and cheap workforce they will get a lot of subcontracting work that will make the cost raise and then converge with the price of similar countries.

I also already heard that the price for Indian people is no very competitive anymore when they work abroad because very often they will request pretty high salary in order to cover all expenses also for their families and to send money back to India.

Eastern Europe and Russia have now competitive rates with some people of very good quality.


Price is now very competitive for indian people.
have you seen hollywood movie called "outsourced"
in that it shows how work is outsourced to india..

and then to further reduce the cost, outsourced to china..
now competition is higher because china is providing cheaper man power..
thadnation
i found this odd because india has a super oppressive government. i think this boom is due to the massive outsourcing. I'm all for supporting global markets and expansion, but i would really prefer to have my tech support provide UN-accented help. Business may be about money, but have people tend t have fatter pockets.
gr8inferno
I want to visit India someday.
akshar
Indian economy is no more booming.
The congress government here has decided to be poor. Nothing wrong in that, but with the Indian logic being pro poor should mean anti rich.

Hence the government has decided to lower the standard of premier education institutions, increase tax on business and force them to accept reservations which will further reduce their strength.

Thus I am sure the government will achieve what it intends to do.
k_s_baskar
Oil price touched $135. So Now almost all Stock markets in the world is bearish. Now NSE Trading below 5000 and BSE trades below 17000. Does anybody tell me what will be the bottom of this down trend?
Smile
corridor_writers
thadnation wrote:
i found this odd because india has a super oppressive government. i think this boom is due to the massive outsourcing. I'm all for supporting global markets and expansion, but i would really prefer to have my tech support provide UN-accented help. Business may be about money, but have people tend t have fatter pockets.


I think that both the Chinese and Indian governments are starting to wake up and realize that if they don't change, the world will leave them behind. We are even now seeing a number of political changes in these countries that will help them continue to move forward in thier technogies, economies, etc.
thadnation
india is still of differing opinions on whether or not democracy should reign. while they have a constitution and all, the still fall back on a caste system. this boom will likely level off, once people realize that they would much rather have a job here and pay a few dollars more than be unemployed and buying cheap lead-laden crap.
fx-trading-education
thadnation wrote:
i found this odd because india has a super oppressive government. i think this boom is due to the massive outsourcing. I'm all for supporting global markets and expansion, but i would really prefer to have my tech support provide UN-accented help. Business may be about money, but have people tend t have fatter pockets.


I am not expert in India politics but from an outside point of view, the government from India doesn't look super oppressive to me.
But maybe you have an insider point of view? In which are is it super oppressive?
Chinmoy
Well, now it is going down like anything. fter the oil failure worldwide we are left nowhere to run!
thadnation
fx-trading-education wrote:
thadnation wrote:
i found this odd because india has a super oppressive government. i think this boom is due to the massive outsourcing. I'm all for supporting global markets and expansion, but i would really prefer to have my tech support provide UN-accented help. Business may be about money, but have people tend t have fatter pockets.


I am not expert in India politics but from an outside point of view, the government from India doesn't look super oppressive to me.
But maybe you have an insider point of view? In which are is it super oppressive?


in social studies, we were told that though their constitution forbids it, caste systems (meaning you are born into your stature) are still often used. those people in higher levels are still treated better and given better jobs/education/resources/etc. electricity is apparently a "commodity" and frequently shut off. it is so hard to get a business permit that KFC spent 3 years getting approved. the tape we watched was most likely biased, as is was called "is america #1?" and produced by abc, which is owned by conglomerate disney. regardless, it's still a developing and volatile nation so whether you agree with me or not, one must admit that our exchanges with countries near and in favor of the middle east must be conducted with care.
fx-trading-education
thadnation wrote:
fx-trading-education wrote:
thadnation wrote:
i found this odd because india has a super oppressive government. i think this boom is due to the massive outsourcing. I'm all for supporting global markets and expansion, but i would really prefer to have my tech support provide UN-accented help. Business may be about money, but have people tend t have fatter pockets.


I am not expert in India politics but from an outside point of view, the government from India doesn't look super oppressive to me.
But maybe you have an insider point of view? In which are is it super oppressive?


in social studies, we were told that though their constitution forbids it, caste systems (meaning you are born into your stature) are still often used. those people in higher levels are still treated better and given better jobs/education/resources/etc. electricity is apparently a "commodity" and frequently shut off. it is so hard to get a business permit that KFC spent 3 years getting approved. the tape we watched was most likely biased, as is was called "is america #1?" and produced by abc, which is owned by conglomerate disney. regardless, it's still a developing and volatile nation so whether you agree with me or not, one must admit that our exchanges with countries near and in favor of the middle east must be conducted with care.


Ok, but what you describe is showing that there is room for improvement and I guess that everybody would agree with that but that is quite different than "super oppressive".
I think people in Tibet know what "super oppressive" means.
thadnation
i suppose you're right. Like I think I said, the videos we were shown were one-sided, so I guess I overreacted. It still doesn't appear to be a place for economic success, but then again, neither does china. i concede.
deanhills
India is indeed booming and along with it self-esteem of Indians. Think they have earned the respect of the world. I do not think it is only outsourcing. What about Bollywood? Wow, the movies that have been created are excellent. And the actresses of the most beautiful in the world. I think everything is booming in India. Take its IT industry in Bangalore and that competes very well with any in the US. People of India need to be congratulated for tremendous progress and HARD WORK. Well done!
k_s_baskar
Now SENSEX and NIFTY is trading in 52weeks low. Due to bottom fishing We can expect rally in this week. Again Crude Oil price may affect the market.
Smile
akshar
as expected inflation has curbed very badly the indian economy
Stock markets are down by 50% from their january figure.
Oil companies made loss of few hundred billion Rupee

And the government is about to collapse
ptfrances
I think the booming of India is different from the one of China and maybe saner than this last one.
This booming is less explosive but maybe stronger on his base than the booming of China.

Wink
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