NEW NORMAL

 Latest SBI report on state of economy has some interesting facts and some surprises. The report says we are going to replace both Japan & Germany from their present position of third and fourth  position to become third largest economy of world after US & China.  By 2027, we will be $5T economy  with growth rate of 6.5 to 7% per annum. The nominal growth in Rupees term will be around 10%. The report says we will achieve this fist two years earlier than earlier report. The state of economy is sync with our budget declaration with buoyant revenue growth. The collection of revenue in both direct and indirect taxes are increasing steadily and also the compliance from netizens and corporates. Though the tax evasion is still issue but the compliances are increasing to give a comfort to both government and citizens. We have highest KM of roads in the world with no. of KM is going to increase in coming  years as we still need more roads to connect our length an...

 Foxconn and Vedanta, dissolved their joint venture for Fab manufacturing unit. They were first to apply for Indian Semiconductor Mission in 2022. They announced their plan, now they are finding other partner for same. There plan to bring other partners for same. Other global players are coming to our country due to market and incentives offered by central and state government.  The total quantum of money is around 75% of the plant  investment. Now, this will only delay for sometime but not permanently stall the project. Others who are sitting on fence are coming with proposals and will get requisite permission for same.  The investment is huge and technologies are varied, it is taking time but things are coming as we want.  The prices of tomato and other vegetables are making headlines for some times. A market visit gave some strange picture where merchants are not selling tomato's nor storing, usually they are selling it solely. Even hawkers who only sold toma...

 History was created in our country's corporate world after merger of HDFC Ltd & HDFC Bank. The total asset base of the merged entity is big enough to claim 4th position in global ranking. Going by the history of both entities, huge wealth has been created and distributed to the shareholders . The subsidiaries of HDFC Ltd like HDFC LIFE,HDFC SECURITIES,HDFC ERGO & others have created niche for themselves. The all entities themselves are market leader and having reputation in their respective pear group. Regulators has given them highest ratings for their compliances. Initially, HDFC Bank was not included in strategically important bank which was decided after 2008 financial crisis. The pact then signed by all the government  and central banks of world after financial crisis 2008, to safe guard the banking industry from any crisis. This was discussed in several times by us, now we after not going to discuss it here. The confidence boost by this will give not only to all...

 This time we will be taking a point which has political angle, but it is more relevant to economy. In year 2010 to 2014, we used to heard and read in daily news paper had like we are going to import electronics goods and coal from different parts of worlds. The amount for this imports would have been $500 B. Huge amount were invested to give lectures to government at that time. After regime changed in 2014, things continued for some time. The manufacturing sector was negligible or on the verge of shutting down the sector due to cheap imports from China and neighboring countries. Once the government started to take decision like reducing duties on semi knockdown  units of mobile handset, followed by charging unit. The duty difference made companies from China to invest in country to assemble mobile set. The result of this came slowly but in positive direction and with firm ground. Pandemic proved very beneficial for our economy with prudent management of economy. With lowest i...

 RBI's policy for inflation containment had been announced, rate pause is continued this time too. Rate hike is not going to move northward in near future. Though the rate will not decrease in near future. But rate hike stopped is also equal to rate decrease. The US Fed has paused the rate hike and it is expected that other central banks will follow same path. The reason for the inflation in each country is different with different weightage of basket like in our country the food basket  have weightage of around  40%  but 40% weightage in US is for housing sector. The conditions after pandemic is different for every country as each one took different steps to help or ease living of citizen. But reverse migration around the world at that time created problems which are not faced earlier. The war created situation which added problems than solving earlier one. The prices of commodities increased after unlocking of world, the rate hike in food with labor shortages in de...

 Second PLI for IT Hardware announced with new application for ISM have been called. The base year for investment in IT Hardware has to be fixed by investor which is 2024/2025/2026. So the planning and execution is in hand of investor so to get manufacturing and other activities as per their planning. The lacunae of earlier plan has been addressed and incentive increased to make it more attractive. Same is for Indian Semiconductor Mission has been renotified with rider to give chance to those who applied earlier. The total outgo for the same is around $10B, which means fifty percent of project cost will be given to investor in period of time. The total exercise is to make our country self dependent in electronics manufacturing with complete ecosystem. The ecosystem with design, tool and raw material. Both schemes are announced after extensive consultation with stakeholders. The thought process is clear to give the industry a very much needed platform to achieve the scale to capture...

 9 years have been passed, the present regime in center is working in right direction. The analysis is and will go on, which is not topic of our samwad. These  nine years we have used to clean the system along with collecting real data of our citizens, the collected data is collated for future planning. The impact of the exercise is huge as real time data is authentic and given by end user himself. For example, if someone want to take insurance for two wheeler either comprehensive or third party, one has to complete KYC so to get insurance. It is retail side which is giving data and it is used to check plans for citizens by authority and financial institutions. The corporate has to give complete data of all its activity to get benefits and avoid unnecessary harassments by authority and financial institutions. Corporates used to give different data to authority and financial institutions to get undue favors. Now, data is being shared amongst authority and financial institutions...