We need lower energy prices and lot of tax cuts but every government may it be bjp or congress are socialist because that's what wins them election and you need tax money for it lot of taxes to begin with. We need hard core capitalism to attract heavy manufacturing industry.
@@xxyz2023 Where did you get this hot air claim from ? It's much cheaper than rest of the world(that matters) and about same as that of China. Where did that 'triple' come from ?
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
This is definitely considerable! Do you think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Most important is to speed up the civil/criminal justice system. Because of this even though nationally we consider ourselves to be a democracy, in reality we are an anarchy because rule of law simply doesn't function. Business cannot flourish in anarchy. However this anarchy and the absence of rule of law benefits the political and bureaucratic class and other elites. So who will bell the cat?
@uc8972 Great I am happy to hear that. People should get, and do get what they deserve, what they want, what they like, and what they are comfortable with.
Better regulations are required to create good environment for blue collar workers, most of the industries are using child labor and exploit migrant workers.
@@heenadave4206they should also ensure that the workers get 2 days off, work from home and work life balance. This way we can sell stuff for 75-80 rupees while China and Viets sell at 25-30 rupees. 💪
Disagree on both shares and credit card. 1. I invest in share market because they give me higher returns not because i feel like its gambling. Me and most people i know do F&O with small spare money but thats not out of desperation. 2. I use credit card because its convenient, gives cashback and i get 30 days to pay not for the reasons you mentioned.
Country will prosper if it's citizens work hard... Those who become lazy , or try to earn easy money, earn money by damaging other people can't prosper on long term...❤
Maybe the economic advisor is a better bet for some meaningful answers. The Finance Minister finds it hard to think about questions that are not related to PM or opposition.
@SIDDHARTHN haha yeah, all ministers do a lot of Modi-PR work. But based on the FM's interactions with non-political business audiences, I find her quite articulate (at least, articulate enough to help me understand) in matters concerning her ministry.
Recently a report was published informing how only 13 districts across India's almost 800 districts contribute 50% of GDP. Can you please analyse and offer suggestions as to what needs to be done to bring these (800-13) districts into contributing to GDP??
Yes, the recent trends in the Indian stock market suggest that investing in mutual funds, whether through SIPs or lump sums, carries increased risk. Retail investors are driving up stock prices beyond what companies are actually worth. Additionally, the use of unsecured loans to invest is also inflating prices further, potentially leading to non-performing assets for financial institutions in the long run
I invest in index funds : Nifty 50 & next 50. Canara ELSS fund( mostly large cap stocks), SBI liquid fund for emergency. So far I have got double digit growth and I plan to be long time investor. I don't hold any stocks and don't plan on doing so until the market corrects. I don't have any credit cards or personal loans except home loan EMI for 25 Lakhs. I am doing it right ?
In US, day traders need to have a minimum balance limit, to be eligible. Like $2k for non-pattern day trade, and $25k for pattern day trade. India should have a similar limit, like say ₹50,000, to discourage poor people from short-term trading and instead do SIP.
I think the biggest alarm bell is unemployment and underemployment, especially in the rural sector. Compared to FDI which may depend on outside factors, addressing unemployment is more critical.
FDI is needed to be made to boost manufacturing and government expenditure which in turns results in higher employment, without FDI and domestic investment in construction there will be no jobs.
Govt after govt ignored the manufacturing sector. That’s why we are heavily dependent on Chinese imports for everything. Atleast the current govt is trying.
@@xxyz2023 what is the proof that manufacturing did not go down to 5% by 2014 and then nda revived it. This is why you need to provide since 2014 not 2010
why do we require investment by big companies which give employment less growth ; loans through mudra scheme provides employment at grass root level and that will be good for the country
Capacity. Efficiency. Profitability. Competitiveness. Economics of scale. All of these come from larger private enterprises. Small companies aren’t innovative generally due to smaller scale and capacity.
Very true. Sadly most schemes giving loans are not implemented. My nephew has tried but banks flat out refuse to give loans under the schemes. They don't want to take the risk.
As a famous economist said India grows when government sleeps. It's true. A government doing anything is most expensive way of doing anything. Even welfare can be handled much better by charities , without creating entitlement. Insurance companies can govern much better than any politicians. Transfer power to consortium of competing Insurance companies. Insurance companies can't get rich with people becoming poor. This also ends bribing by voters. People will have to buy shares of Insurance companies to vote. Insurance companies can govern much better because insurance companies business is earning trust. It's an improved version of East India Company
First, the days of free dollar which was the norm before post covid 2022 are truly over. With US, EU, Japan in recession, FDI will not be so easy. Even in China, there is a decrease in FDI. Secondly, comparing monthly figures is not going to help as it may have fluctuations.
In the most advanced country USA, people have to invest in the share market because interest rates offered by banks is so low. This trend is just beginning in India, with the growing middle class. Now our wise man is discouraging this practice!! As regards the pitfalls, both SEBI and RBI have been taking steps in advance to tighten the rules and caution the investors.
Our wise men is not discouraging stock investment. He suggested that the rich/financially literate keep their corpus in bonds when interest rates are high & largely invest in stocks through mutual funds instead of risky avenues like stock trading ( options & futures, intraday etc).
Every path has risks. If you do nothing then there is risk. If you do something for growth there would be some very serious challenges. I think the numbers speak and they say - Indians are upbeat about their future. Important to keep the momentum and keep working hard.
There is a lot of personal opinion mixed into his analysis. 'People do this when this happens..". It would be good if he can support his assertions with some examples or historical markers.
Rural economy is struggling in India because of dwindling agricultural returns,lack of infrastructure and industrialisation. Skilling workers by investing in skill development, curriculum change and public-private partnership is the way forward.
Don't worry, 1. 80% indians are unaware of stock markets 2. As far as centre Vs state relations are concerned, its the state regional parties shld come out of vote bank politics and family oriented politics. 3. Ur analysis is of vague and silently promotes the leftist agenda. Communists are the big barriers for any development in India. So left mukt bharat is mandatory as well as urgency!!!👍
Communists are basically gone now. Country is run by political families who are spread across all parties. Even a person like Modi, who was given complete mandate, has failed to curb their power.
Currently the property prices are sky rocketing. Can't really call it a gamble. Why would a person put money in Savings account at petty intrest rates when there are other avenues for a better return.
hope this wise men reads about the closure of banks in usa ; on an average 4 to 5 gets closed and they get alarmed if it is more ; free market economies have to have their own learning and correction. they want india to run like china but with democracy ; crazy guys
@@mg.f.9023india divide on religion line , and may laws are in favour of minority ,how a discriminatory nature constitution will be lifted by majority.
@@mg.f.9023 UCC prioritized development of all section and brought civil law equality to all section of society, Removed caste based reservation that is itself discriminatory in nature, every individual must allowed to purchased land and property in tribal or schedule area , this all lead to inclusiveness of society.
Nice listicle. Btw at 9:02, how many foreign investments are stuck in courts due to labor issues ? I personally think the primary reason for falling FDI is the same as falling private investments that is the stagnant demand. Smart investors look at FIIs which rather than falling for froths in the stock market & on the contrary FDI investors look at the trend of domestic private investment before investing in a particular country. What do you think about that ?
and why should new government reevaluate land and labor ... there must have been something which changed in this facet during these years... would have been great if it was discussed. Indian private sector has invested heavily on the incumbent, why should the new government negotiate, but be more people centrist. The politics of business is the business of politics. policies would be based on data than opinions.
I like the apolitical manner in which you present your views. In someone else's hands, this particular episode would have deteriorated into Modi-bashing or BJP bashing. Governments often manage the headlines and this government is no exception. But that amounts to hiding the problems, or sweeping the problems under the carpet. I fondly hope that next government will be NDA government and it will address the economic issues with the gravity it deserves.
Sharath, a pointer. You are drawing drastic conclusions without diving deep. For eg. FDI globally affected due to the economic mess in the west. Moreover earlier FDI include massive lump sum equity subscription in Reliance by US FAANG corporates like Google, FB etc. Rural consumption is hit to a major extent by the ElNino affected Monsoon last year which hit Agriculture esp in states like Karnataka. I agree with you more targeted spending on employment generation will spur economy to greater levels.
It's not a drastic conclusion. It's no secret that we failed to attract investment in India when an opportunity like China+1 was presented. ASEAN countries like Vietnam or even Mexico is able to attract much better investment than us. We would be the most stupidest country for not questioning the govt.
@@kumar.193 Substantial part of investment in Vietnam is from Chinese promoters. China is using Vietnam as a front to escape higher tariff, restrictions from US & West. Bangladesh one product ( garments) wonder which will face headwinds soon as the “ favoured nation” privilege comes to an end.
Seroius fact is that economists ignore climate change as.part of their analysis. And we all experiencing effects of climate change which are expected to worsen.
What are you telling ? The land acquisition by the large companies should be made simple ? Labour should be on hire and fire and labour protection should be minimalistic. Have you forgotten that 700 farmers' death in the recent past on land acquisition issue? The issues that you have flagged are not the real issue. The issues are as follows : 1. The share market is on fire based on concocted numbers, which may see a sharp fall, 2. The biggies are busy in taking money to foreign shores rather than making investment in India and law has to catch up on them, 3. The village economy is in shamble after Covid and the rural buying power has declined permanently, except for those who are getting money from the party, be it Congress, TMC, AIDMK,DMK, Shiv Sena, BJD or BJP.
I think desperation to earn income is bad in short term but Good in long term as it will help them to learn from mistakes! It is a good news that Indians are taking risks and it is good for Indian Capitalism
@@dayanand649 the way it's happening in india, it's gambling. People without skills, capital or work jumping in and everyone thinks that's productive. It's not.
@@siddharthgoyal4008Investing in stocks is fine as long as you are doing it through mutual funds in large cap stocks. Intraday or options trading is a risky business. The only trading that make sense to me is position trading.
One of the so called hopefuls for PM post has the magical solition. Just put a hundred thousand rupees in every bank accounts. So demand will pick up and automatically investment in manufacturing and services. Stay relaxed.
Please bring BunnySetti....sorry Kani-Setti to talk about how the Indian economy during the Harrappan civilization and the Chola era got decimated due to Brahminical Patriarchy.
I do not agree that people tend to GAMBLE when they invest in the stock market. Dream of a quick profit may be there but people do not take chances with their hard earned money by investing in stocks. Some unscrupulous people calling themselves EXPERTs might give wrong guidance for a section of the population but the major investments happen only through personal choice or through mutual funds, in my view. However, it IS a priority for the new government, no doubt.
Its been nearly a month since this came out. As always a well-researched and nicely elucidated piece from Sharad Anna and the Print. Fwiiw....apart from your educated and informed suggestions....I was thinking why not that the Govt incentivices buying of Gold by the common man. Very conservatively, atm Indian households have at peast 30K tons of Gold, which is by a long way more than the total that the Asian or European or North American or Oceanian countries each have. Gold is a far better investment than small /medium cap companies in the market for the investors who are not saving enough. Also the stock markets could be supervised by the GoI in terms of trying to prevent investments by people with less money so as to get them somehow to put them in the banks instead. This way the GoI too has more options with more cash in hand. Though my second point may kot make all that much sense. These are of course over and above what you suggest at the end of your piece.
No, people investing in future amd options or taking consumer personal is NOT desperate move. Its changing consumer behavior and greed. What really is dangerous is this 1. Inflating realstate prices (put a cap on maximum number of housing units a person can hold) 2. Falling quality of education (government should come up with wide rating / accreditation) problems 3. High Healthcare cost coupled with worsening health of Indians (governments to ensure food safeguards, reduce pollution, ban fastfood from schools and near schools)
is land not a tradable commodity governed by market forces? why does companies need compulsory acquisition of land instead of buying it at market rate?
Valuable analysis, another problem incresing corporate loans from banks. Maximum psu companies and many private companies have taken huge loans but they haven't paid the interest. Actually companies earning not such enough to repay the loan amount. So banks will be face major problems in near future.
FDI is largely a startup investment story. The growth was driven by startup investment in 2021-22 and it is low around the world this year. India never had a surge in traditional FDI
I am not sure if the investment in small and medium sized budinesses is caused by poverty and desperation. The changes have made credit available to small and medium sized and micro businesses, and it makes sense that more of these businesses would take up credit to expand their businesses. One big problem in the past was that the small scale sector could not grow or take on more business even if the market was crying out for their products because they could not get loans (which are required because stock is purchased with cash and sales are made in credit). Lack of cash means that stock could not be purchased even if it was possible to seal sales orders without credit being available to them. The use of high interest loans, credit card loans and payday loans which desperate people might turn to must be monitored however, and in such cases, the lender beware principle should be enforced where the lender should write off loans with unfair terms or if the lender failed to check the borrowers credentials properly or if the lender had insufficient or unfair lien/coleratal on the loan. The bankruptcy laws should also be updated to allow debts to be written off quickly, and allow bankrupt individuals to make a new start, rather than to see debtor suicides like we have seen for farmers.
Thanks for the great coverage which was rational and not cynical.I agree that Unregulated loans/credit cards and too much gambling in futures/options should be regulated or it will eventually burst.
You have given the right situation of the economy of our country and it should be addressed in 100 days by the new government or else it will go out of hand
Derivatives are used to keep stock market up, while pocketing entire money of common man and then sekling ohysical stocks at high orices dumping again to common man buying stocks or equity nutual funds through DIIs. Market will crash exit asap...
Solution no. 1 not likely to be workable. The political scenario ensures this. The states will not co-operate with the centre for political reasons. As solution 2 and 3 are related, the viability remains the same
Feel this analysis is superficial and wanted to pin it in a perticular direction... No data in % Vs last 10 yrs. The sentiments value is under valued. Consumption in FMCG sector is not analysed. This, over and above global uncertainties dark cloud is also convinenttly overlooked
While finances of central government are analysed in depth by various pink papers and even regular newspapers, similar attention is just not given to analysing financial performances of different state governments. While central government budget is a big day, budget announcements by state governments do not much attention. Chief Ministers seem to get away scot free with ill conceived free-bee schemes. Revenue expenditure by states is so mindless, hardly any capital assets are built by state governments, keeping long term future in mind. While everyone seems to understand importance of land reforms and labor reforms, it does not translate into on the ground support, when it comes to actually implement much needed changes. It means continuation of status quo. It will be interesting to see how the new governments at centre and states (both ruling party and opposition parties) behave in coming years to address these much needed issues. Will more and more double-engine sarkars, in majority of states, make this job easier? Only time will tell.
With 5G/4G, snooping has become a reality, snooping is such that entire mobile screen can be cloned, thus giving any private entity to check onto your mobile phones, also digitization of transaction gives the third party access of your banking data. Data is used by Third Party to create Liquidity in the market. This in term of IT is termed as "Social Engineering" also similar to "Hacking your finances".
