India Economy Thread

[Species]

India has huge oil refinery industry where huge are exported beside meeting 1.4 billion nation consumption of both refined oil

1.4 billion people also needs big electricity consumption

This kind of industry consume huge electricity, you also can see Iranian high electricity consumption despite relatively small GDP

In fact, refined oil is India's largest export product. Yet, employment opportunities in this capital intensive industry is the lowest. This explains how India shows high GDP growth on paper but has low household spending or purchasing power. While billionaires like Ambanis are getting even wealthier.

 

[Indos]

In fact, refined oil is India's largest export product. Yet, employment opportunities in this capital intensive industry is the lowest. This explains how India shows high GDP growth on paper but has low household spending or purchasing power.

Yup this is highly capital-intensive industry.

About gov pushing the growth, we can see through state budget deficit. India gov naturally has high state budget deficit to its GDP, around 6-7% of GDP per year

It is common to push growth through gov spending, Malaysia is also one of the state with high state budget policy, normally state with this policy has high debt to GDP, more than 60 % of GDP (India is already 90 % of GDP as far as I remember)

This kind of policy is good for short term but usually not good for long term.

Ya, focusing one sector to boost growth can happen, just like previously China real estate sector high growth

 

[CallSignMaverick]

This feels like a cruel time to start exposing a fake Indian GDP calculation.

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IMF's concern is about our old base year, i.e. they say we're under-estimating our GDP and rightly so.

 

[Species]

Yup this is highly capital-intensive industry.

About gov pushing the growth, we can see through state budget deficit. India gov naturally has high state budget deficit to its GDP, around 6-7% of GDP per year

It is common to push growth through gov spending, Malaysia is also one of the state with high state budget policy, normally state with this policy has high debt to GDP, more than 60 % of GDP (India is already 90 % of GDP as far as I remember)

This kind of policy is good for short term but usually not good for long term.

Ya, focusing one sector to boost growth can happen, just like previously China real estate sector high growth

Precisely!

Government spending is good when it is productive. Large part of India's government spending goes into delivering freebies. 2/3rd of their population lives on India's version of SNAP benefits with subsidized foods. That pushes people into voluntary unemployment and results in unproductive labor force.

 

[Indos]

Precisely!

Government spending is good when it is productive. Large part of India's government spending goes into delivering freebies. 2/3rd of their population lives on India's version of SNAP benefits with subsidized foods. That pushes people into voluntary unemployment and results in unproductive labor force.

Yup, best gov spending I think is into infrastructure that can provide works, particularly to developing countries (that still lack of good infrastructure compared to develop countries).

Good salary for civil servants, judiciary, teacher, lecturer etc is I also think necessary since it is related to improving institution that is important for any economy, particularly for market economy that needs to run efficiently

I am agree on you that subsidy should not be exessive despite for developing countries it is some thing unavoidable

 

[Vkdindian1]

India has huge oil refinery industry where huge are exported beside meeting 1.4 billion nation consumption of both refined oil

1.4 billion people also needs big electricity consumption

This kind of industry consume huge electricity, you also can see Iranian high electricity consumption despite relatively small GDP

Energy consumption also depends on how developed an economy is. What is the penetration of appliances and life style related stuff that shows how well off people are. Basically, HDI of a nation is directly linked to energy consumption.

Iran is pretty high on these matrix and it can meet that demand through cheap oil. Many states in India have very low living standards and most people can’t afford high electricity bills.

Many BD/Indian members are trying to gloat over who is better but, the fact is that both are s##t in this regard. It is like 2 paupers comparing who is better off.

Since India has bigger industrial base, overall consumption of energy is likely to be much higher on per capita basis. Few Indian states are quite good due to higher HDI.

It would be better to compare with nations that have better HDI and living standards. And both must be close to bottom of that list.

 

[CallSignMaverick]

If you want to cherrypick, might as well as ask, "how much gas does BD consume in a year? And Ind?"

You can also cherrypick how many Pran biscuits do both consume in a year

 

[nahtanbob]

India's is higher, but what's your point? China has a higher per capita energy consumption than Belgium. This is because of the differences in the nature of industrial activities (China has more heavy industries).

Comparison makes sense where there is a level playing field.

What was the point of the original post? India has always had inflation over the long run. If India could keep inflation low over an extended period of time, it would be a bonus for the Indian consumers.

 

[Species]

You can also cherrypick how many Pran biscuits do both consume in a year

I thought you wouldn't be responding here. Given the number of time I have showed you the consumption rates of household appliances for Bangladesh and India, you should have memorised them by now.

 

[Species]

What was the point of the original post? India has always had inflation over the long run. If India could keep inflation low over an extended period of time, it would be a bonus for the Indian consumers.

If inflation remains such low for an extended period it would only mean Indians have stopped spending due to lower demand and low purchasing power.

 

[Indos]

If inflation remains such low for an extended period it would only mean Indians have stopped spending due to lower demand and low purchasing power.

If the drop is sudden, then it is something worrying because it usually is related to low consumption side

High inflation beside related to money supply and currency depreciation, is also related to the real sector supply side (not enough entrepreneurs in the country or too many monopolistic market that make price is easily risen). The price drops due to improvement in this matter logically happens gradually, not suddent

India as far as I see naturally have high inflation rate

 

[Species]

If the drop is sudden, then it is something worrying because it usually is related to low consumption side

High inflation beside related to money supply and currency depreciation, is also related to the real sector supply side (not enough entrepreneurs in the country or too many monopolistic market that make price is easily risen). The price drops due to improvement in this matter logically happens gradually, not suddent

India as far as I see naturally have high inflation rate

An inflation rate of less than 1% is abnormal and will alarm any economist. Of course their central bank will now lower the policy rate and if the inflation rate still remains this low then clearly the economy is in a deep sh!t.

 

[CallSignMaverick]

I thought you wouldn't be responding here. Given the number of time I have showed you the consumption rates of household appliances for Bangladesh and India, you should have memorised them by now.

I know, Bangladesh is richer than India. It's a known fact.

An inflation rate of less than 1% is abnormal and will alarm any economist. Of course their central bank will now lower the policy rate and if the inflation rate still remains this low then clearly the economy is in a deep sh!t.

The base year itself is old, only in February 2026 the new base year will come into effect.

 

[Species]

The base year itself is old, only in February 2026 the new base year will come into effect.

Older base year is supposed to show even a higher inflation rate than it actually is.

 

[r3alist]

Ah this is what happens when you don't read what's under there. The GDP numbers are not fake, the IMF wants India to rebase the year from 2012-13 and include more sectors in the calculation. So they gave a C rating to GDP calculation. India is a large economy so 15-20% undocumented economy should eventually come to white. Another issue was not using double deflation indicator for inflation data. But all these will be solved next year when we rebase our year to 2026.

This is what happens when you listen into leftist crap like Wire they listen to their own and those desperate for a negative news give a few clicks.

10 bucks says when we rebase It Next year they are going to come back with the same argument but this time GDP growth was due to rebasement lol!

What about the changes in methodology, the use of benchmarks and the choice of benchmarks, and the lack of refreshing data

It's not just the base year, that sounds like an easy thing to do for a big win, so strange not to do it