India Economy Thread

[Thinking]

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Random investment announcement in UP, for example, in last few days.

 

[CallSignMaverick]

Thank you MAGA

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[Vikramaditya1]

Thank you MAGA

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The seething in the comments are glorious

 

[vasanthm]

The seething in the comments are glorious

MAGA can seethe all they want. America will keep doing what it does best, letting capitalism run circles around ideology.

 

[Thinking]

Not an economic news but there is lot of movement in social infra..

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[Thinking]

Adani Group to invest over $75 billion in energy transition space over 5 years

Adani Group Chairman Gautam Adani announced that the group will invest $75 billion over five years in the energy transition sector, highlighting opportunities in green steel, hydrogen, and renewables. He showcased the worlds largest renewable energy park under construction at Khavda, Gujarat...

economictimes.indiatimes.com

Uncle Adani..

 

[Thinking]

Amazon ups India investment to over $35 billion by 2030 - The Economic Times

The fresh capital deployment plans come at a time when Amazon is doubling down on 10-minute deliveries, from which it was among the most impacted in the online commerce space. In this segment, it competes with the likes of Eternal-owned Blinkit, Swiggy’s Instamart, Nexus Venture Partners-backed...

economictimes.indiatimes.com

Article needs sub for full access.

India, EU to intensify efforts for early conclusion of FTA talks

India and the European Union are set to speed up talks for a free trade deal. Commerce Minister Piyush Goyal and EU Commissioner Maros Sefcovic met to push for an early agreement. Both sides noted good progress in technical discussions. They are committed to resolving pending issues...

economictimes.indiatimes.com

 

[onlinpunit]

Amazon has already invested close to 35 Billion dollars since 2010.

 

[SoulSpokesman]

@onlinpunit

Amazon has already invested close to 35 Billion dollars since 2010.

This is part of the USD 3.5 Tn we have stolen from the West for fighting the Chinese?

Regards

 

[Species]

With so many investments from US, why is INR still depreciating and hitting new low everyday?

 

[Paitoo]

With so many investments from US, why is INR still depreciating and hitting new low everyday?

A certain secular downward trend in Rupee is to be expected, as long as we rely on imports for oil and electronics.

The current scene is as much about Dollar appreciating as Rupee depreciating. Uncertainty makes investors grab USDs and ditch weaker currencies. On top of it, some investors feel that Indian capital markets are overheated and it is time to book profits. I suspect even RBI is allowing Re to fall so that our exports which got hit after tariffs can get some support.

 

[SoulSpokesman]

@Species

With so many investments from US, why is INR still depreciating and hitting new low everyday?

In the long run, the INR steadily depreciates 4% against the USD. What is compounding the problem is:

Uncertainty arising out of the non finalisation of the trade deal.
CAD partly because of large gold imports.
Flight of portfolio investors. The Equity market has given modest returns.
The low yields in the domestic debt market. The 10-year GSec is trading at 6.5%, which is barely 2.5% above the 10 year US T bills.

The REER has fallen to 95 or so which is one of the lowest in the last 10 years. So, I wouldn't be surprised if the INR pulls back after the trade deals.

Regards

 

[harpy1]

The Top 25 Economies in the World

Learn which countries are among the top 25 economies in the world. The United States has had the largest GDP for over a century, but China's has grown rapidly.

www.investopedia.com

What sticks out is shear speed at which Indian gdp is growing the fastest big economy in the world and forecasted to be 7.6% next year

India with it's massive investment and young population will grow at the rates for three decades eventually overtaking USA too by 2050/2060

 

[CallSignMaverick]

With so many investments from US, why is INR still depreciating and hitting new low everyday?

Not difficult to guess that India doesn't maintain current account surplus. And much of the "investment" is done in INR. So if they say they'll invest xyz amount, it would be largely done by it's local subsidiary like Amazon India or Microsoft India with FDI being a smaller component.

 

[Sam6536]

With so many investments from US, why is INR still depreciating and hitting new low everyday?

The rupee is dipping even with US money coming in because our dollar outflow is way bigger than the inflow. The FDI that comes is long term. We import a ton of oil and electronics almost daily, so the demand for dollars never really goes down. On top of that, whenever US interest rates stay high, FPIs pull money out and the dollar gets even stronger worldwide, which naturally pushes INR down. RBI also doesn't try to fix the rate as it lets the rupee move gradually so exports don't get hurt (managed floating currency). So the inflows help, but they can't fully balance our import bill + global dollar strength.