We are what we are !!

 Q3 FY23 GDP growth estimates released on 28th Feb 2023 mentions 4.4% growth as against 5.4% GDP growth estimated during Q3 of FY 22.With estimate of about 4 to 4.5% growth in Q4, the full year FY 23 GDP growth will be around RBI's GDP growth estimate of 6.8%.The nominal GDP growth for the full year FY23 will be around 15.9% Q2 FY 22 GDP growth is now estimated at 6.3%. The most important datapoint in these estimates is the revision of GDP growth of Pandemic years. The cumulative average real GDP growth during FY19-20 to FY 22-23 is now estimated better at 3.2% as against the potential real GDP growth of 7% of Indian economy. Since the GDP estimates of the previous years have been revised upwards, the base effect has impacted the current year GDP growth estimates. The most worrying aspect of Q3 of FY 23 is the contraction of manufacturing output at -1.1%. Private consumption which contributes about 60% of Indian GDP has also languished at 2.1% in Q3 FY23. Again Statistics reg. IIP ...

  Only unbridled Govt borrowings can crowd out Private investment.FS Somanathan clearly articulated in the post budget press conference that Nominal GDP growth will b 10.5% and incremental Govt Borrowings will grow only 8% or less & therefore, not a problem. As rightly said, Govt Capex will have multiplier effects and will crowd in Private investments. Capex is 3.2% of GDP which  means about 55% of Fiscal Deficit of 5.9% will be used for Capex.That will have huge impact on job creation and other multiplier ripples across the Economy. Capital expenditure is estimated to be Rs 10,00,961 crore (37.4% increase over FY22-23).  The increase in capital expenditure is due to an increase in capital outlay on transport (including railways, roads and bridges, and inland water transport) by Rs 1,28,863 crore (36.1% increase) Revenue deficit in 2023-24 is targeted at 2.9% of GDP, which is lower than the revised estimate of 4.1% in 2022-23(original BE for FY 22-23 was 3.8%).  ...

IMHO,before adversely or favorably commenting on any business group on SocialMedia, all shd make disclaimers that they have not profited from their exposure directly or indirectly thro MFs etc w.r.t that Group of Cos.!!! How do you say crony capitalism in India, when the biggest loss making Public Sector enterprise Air India was sold to Tatas?or becoz Marxist Communist party ruling Kerala wants Adani to complete the port project in Kerala?or becoz Mamata has givena project to Adani in west Bengal? Even though I agree that alleged stock manipulation &violations accusations  are against Adani and not on India, but why #Hindenberg report says India's capital markets r in broken state and that journalists r murdered or imprisoned for writing against country's businessmen. Is it not attack on India? See below H report saying this with a judgmental tone and spreading fake info as if India has slid on civilized capitalist culture has not gone down well with many neutral observers ...

 Indian think-tank at the top in GOI has brought out the PLI Production Linked Incentive Schemes to attract investments into India which can push up our Exports and also provide jobs to the locals.This twin objectives of Value add and Job add have remained Work-in-Progress and the full benefits would start flowing into the economy in about 3-5 years time. Nevertheless the Capex appetitie beyond this ambitious scheme has remained largely muted mainly because of reasons like lack of demand momentum going forward.higher interest rates and large Govt borrowings programme as this is penultimate year before General elections. In this scenario, one of the important avenues open to the Govt is looking at Investment allowance and Depreciation rates.Earlier it has been demonstrated that whenever the IA and Depreciation rates are increased for a limited period, there has been a pickup in Capex investments inorder to save on Corporate Taxes. But now the Tax rates have already been lowered and ...

 India's nominal GDP growth for Q2 FY 22-23 is estimated by National Statistical Office (NSO) of MOSPI  at16.2% and the real GDP Growth rate at 6.3%. From the Govt side we notice that Fiscal deficits are still lose compared to what it was before the pandemic hit us. The combined fiscal deficits of Centre and States is more than 10% in FY 21-22 (RBI report Appendix-Table 1) link  ; PIB release on Fiscal Deficit(  link ) For the current FY 22-23 it will be slightly less than 10% as per BE. The RBI repo rate has gone up so far by 2.25%p.a so far since May 22 in five tranches ,pushing up all the lending rates of the Banks. Combined with the rate hikes RBI has also sucked up excess liquidity in the system through CRR and other monetary policy instruments like VRRR, and other Open Market Operations like Operation Twist etc. With a slightly higher than FRBM mandated Fiscal Deficit at the Centre and a high FD combined with States crowd out private investments due to excessiv...

  All State govt should have Pot and Man holes maintenance minister. Economic costs and loss of human lives due to road accidents especially that of Breadwinners of the family are humongous. Govts should take-up modern tech of repairing potholes in a jiffy as National Priority. Maintenance &repair of our roads, often ignored ,lead to huge loss of priceless lives ,&deprive the nation of productivity of youth who fall victim to potholes and otherwise bad roads. "Road accident victims largely constitute young people in the productive age underscoring major implication on economic cost of road accidents, apart from their emotional and psychological impact.(Page 62 of Report on Road Accidents in India-2021 by Ministry of Road Transport and Highways Table 4.2: Age profile of Fatal Road Accident victims during 2019 to 2021     Age- group Number of Persons killed %-age change in 2020 over 2019 %-age change in ...