India Economy Thread

[Vikramaditya1]

Also to give context, our central bank (RBI) simply transferred some $32 billion to the government as profit from dividend basically free money from the investments the bank made like currency assets. Indian economy is not faltering by any stretch.

 

[hydrabadi_arab]

It won't be a puzzle when you understand why. India is having a double digit growth in inward FDI. Foreign firms are taking profitability back for example Hyundai IPO raised $3.3 billion by listing in Indian stock market. Or Indian firms like Infosys acquiring German companies. These contribute to the outflow. And hence net FDI being lower. This is not the win you're looking for. Lol

Net FDI is down from $42b in 2020 to $300m in 2024 but no problem saar.

 

[SoulSpokesman]

@hydrabadi_arab

Hydra bro,

Net FDI is down from $42b in 2020 to $300m in 2024 but no problem saar.

True. India has inward FDI of USD 80 billion plus. At the same, many companies which have been invested in India for decades are now taking back the profits they have earned, which they are very much entitled to. In addition, many Indian companies have now become MNCs ( I will not embarass you by asking how many Pakistani companies have become MNCs) and are heavily investing abroad. Our forex position is reasonable comfortable at almost 10 months of imports and this year with oil prices plunging CAD should also be fine.

All in all, as you wisely observe no problem saar.

Regards

 

[Indos]

Also to give context, our central bank (RBI) simply transferred some $32 billion to the government as profit from dividend basically free money from the investments the bank made like currency assets. Indian economy is not faltering by any stretch.

Source where

 

[Indos]

It won't be a puzzle when you understand why. India is having a double digit growth in inward FDI. Foreign firms are taking profitability back for example Hyundai IPO raised $3.3 billion by listing in Indian stock market. Or Indian firms like Infosys acquiring German companies. These contribute to the outflow. And hence net FDI being lower. This is not the win you're looking for. Lol

It means India FDI figures also take number from financial sector, so the Indian number is not the same for real FDI (Foreign Direct Investment). Indonesia gov investment calculation for example exclude financial sector and oil and gas investment. This is done in order to get data valuable for economic strategy, and not to add figures for the sake of getting good figure

Revenue collection into foreign MNC HQ is not considered as FDI outflow

 

[hydrabadi_arab]

@hydrabadi_arab

Hydra bro,

Net FDI is down from $42b in 2020 to $300m in 2024 but no problem saar.

True. India has inward FDI of USD 80 billion plus. At the same, many companies which have been invested in India for decades are now taking back the profits they have earned, which they are very much entitled to. In addition, many Indian companies have now become MNCs ( I will not embarass you by asking how many Pakistani companies have become MNCs) and are heavily investing abroad. Our forex position is reasonable comfortable at almost 10 months of imports and this year with oil prices plunging CAD should also be fine.

All in all, as you wisely observe no problem saar.

Regards

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

Its not just gora that is pulling out, but even Indian companies.

Net FDI down to $300m. Same as 25-30 years ago. Net FDI will now turn negative this year.

Sab changa si

 

[Vikramaditya1]

Net FDI is down from $42b in 2020 to $300m in 2024 but no problem saar.

Covid stock fall made a lot of investments to move to safer locations like India (which has a future). Hence the spike in investments. Indian investments went down at the time. You can cope and seethe from a frontier market, whose entire market cap is less than one years revenue of State Bank of India lol!

 

[Vikramaditya1]

Source where

It was all over the news.

It means India FDI figures also take number from financial sector, so the Indian number is not the same for real FDI (Foreign Direct Investment). Indonesia gov investment calculation for example exclude financial sector and oil and gas investment. This is done in order to get data valuable for economic strategy, and not to add figures for the sake of getting good figure

Revenue collection into foreign MNC HQ is not considered as FDI outflow

Unless you indonesians invented a new standard, the OECD and IMF define FDI as investments in enterprises across borders, including financial services, as long as they involve a lasting interest.
But interesting how you do it. You exclude these probably because regulatory constraints and yur reliance on resource exports. We have a more diverse economy with a service sector focus, unlike you driven by natural resources. Also the relatively high FDI outflow for India is because we have a largely stable currency that allows easy repatriation.

Revenue collctions into Foreign companies are considered as outflow in India though. Like the Hyundai IPO.

 

[c14-Isotope]

India's Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%​

Indias Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%

Indias Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%

www.ndtvprofit.com

 

[Vikramaditya1]

I guess sometimes a war can actually increase the growth.

 

[Thinking]

India's Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%​

Indias Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%

Indias Q4 GDP Growth At Four-Quarter High Of 7.4%; GVA Grows 6.8%

www.ndtvprofit.com

Boosted overall growth but annual growth is too low. India needs a massive structural reform (GST, land acquisition, baudom, judiciary, labor etc..). We need to sustain 7% growth for 30 more years to reach upper middle income.

 

[hydrabadi_arab]

"2024-25 GDP numbers confirmed that India missed its $5 trillion target with GDP of $3.91 trillion ($2.80 trillion in 18-19). India is likely to miss $10 trillion target by 2035 also. India becoming the 4th largest economy in 2024-25 is also a fake news."

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

Hopefully sanghis will now stop screaming they are above Japan. Wait few more years. India GDP is $3.9 trillion.

 

[hydrabadi_arab]

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

Now one understand the mass exodus of Indians to west in last 5-10 years.

 

[Thinking]

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

Now one understand the mass exodus of Indians to west in last 5-10 years.

My city has lost 600000 in last 2 years due to this mass exodus. Figure all over India is in 100s of millions.

 

[onlinpunit]

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

Its not just gora that is pulling out, but even Indian companies.

Net FDI down to $300m. Same as 25-30 years ago. Net FDI will now turn negative this year.

Sab changa si

Who gave you this figure of 300 millions..?

India FDI Equity Inflows Grow By 47.8% YoY In Q1FY25

On the back of the strong performance of the services sector, computer hardware and software, trading and telecommunications, India’s foreign direct investment (FDI) equity inflows in the first quarter of the current financial year reported a year-on-year (YoY) increase of 47.8 per cent. As per...

www.businessworld.in