We are what we are !!

  The RBI Bulletin (December 2024) states that high-frequency indicators (HFIs) for October and November 2024 show a mixed picture regarding India's economic activity: A. October 2024: GDP Growth :  The economic activity index shows a pick-up in momentum during October, suggesting that the slowdown in Q2 was bottoming out. Consumer Confidence :  Consumer confidence indicators registered a sequential moderation. Amazon Supply Chain Pressures :  Supply chain pressures remained below historical averages, showing some further easing. Inflation :  Headline CPI inflation increased to 6.2 percent, exceeding the upper tolerance band, primarily driven by a sharp rise in food prices, although core inflation also increased. B. November 2024: GDP Growth :  Headline CPI inflation moderated to 5.5 percent, driven by easing food prices, suggesting continued economic recovery. Strong festival activity and a sustained upswing in rural demand fueled this recovery. Consumer C...

  India's Q2 FY25 GDP figures reveal a significant economic slowdown, falling to 5.4% year-on-year growth—a substantial drop from the projected 6.6%. This underperformance stems from a broad weakening across investment and consumption sectors. Private investment significantly lagged expectations, growing at only 5.4% compared to 7.5% in Q1, despite increased government spending. Consumer spending also weakened, declining to 6% year-on-year growth from 7.4% in Q1, primarily due to sluggish urban demand hampered by wage stagnation and elevated food prices. Export growth decelerated sharply (2.8% YoY from 8.7% in Q1), while imports contracted. The Gross Value Added (GVA) mirrored this trend, slowing to 5.6% year-on-year. Industrial activity suffered a particularly sharp decline, with mining and manufacturing sectors experiencing contractions. However, the agricultural sector showed some positive growth. While the services sector maintained its growth momentum, high-frequency indic...

 Maharashtra elections have come and gone.I am not going to slice and dice the election results but only look at larger picture it offers for some one looking at India's politics from a third state-Tamilnadu. My views are personal and I do subscribe to right-wing ideology. Ek hai tho Safe hai" is such a powerful message which I was taught in Schools by my Teachers.But if PM of the country says it becomes divisive agenda in the eyes of opposition. Batenge to Katenge " is another slogan emphasizing that Divide and Rule policy of British Imperialism almost destroyed us and let us not repeat the history knowingly now.Those who dont learn from history are not only condemned to repeat but condemn their progeny and future generations also. If the above two slogans mean dividing us on religious basis so be it. When Gandhi ji said that British imposition of separate Muslim constituency would divide India was he not echoing the same sentiment of "Ek hai tho Safe hai". Whe...

 Adani is known for building a mega business empire in India and abroad but his adventures are far more enthralling than many fiction stories - it can rival "The Adventures of Tom Sawyer"!! The latest salvo from US is the indictment of DOJ,New York based on FBI investigation into bribery conspiracy alleged to have been done within India involving Indian officials of the State Governments. There are too many coincidences and red-herrings. The indictment comes a day after Maha and Jharkhand elections happen but well before the winter session of the Parliament. Adani has been close to Israel by taking control of its Haifa port and has warned Bangladesh about cutting off power supply if his overdue power bills are not paid. He has made enemies with China in African & Australian projects and last but not the least, has sent a friendly X message to Trump on his win promising more investments and jobs in US. All the above point towards conspiracy theories and plots hatched again...

 When it comes to Inflation targeting by RBI, r educing the weight of food inflation(46% as per RBI) in the headline inflation in India, rather than removing it entirely, could be a more balanced and effective approach for several reasons: 1.GOI increased the import duties on edible oils in Sep/Oct 2024 inorder to raise the remunerative prices for domestic oilseeds production and thereby incentivise more Oilseeds production. This import duty increase has pushed up the Edible oil prices by design. 2.Acknowledgment of Food Price Impact : Food prices significantly influence the cost of living for households, especially those with lower incomes who spend a larger proportion of their earnings on food. By reducing rather than eliminating the weight, policymakers acknowledge the importance of food prices while recognizing their volatility. 3.Mitigating Volatility : Food prices can be subject to significant fluctuations due to seasonal changes, supply chain issues, and other factors. By de...

  அஞ்சிலே ஒன்று பெற்றான் அஞ்சனை மைந்தன் அவன் ; அஞ்சிலே ஒன்றை மேலே வைத்தாலும் அஞ்சா நெஞ்சம் கைகூட , அஞ்சாமை ஏற்றம் பெற்றிட நெஞ்சமே என்றுமே அஞ்சுமுக ஆஞ்சநேயனை வேண்டுகவே !! அஞ்சு கரத்தனையும் சேர்த்து வேண்டுகவே !!

  Based on the October 2024 Auto Retail Report, the forecast for India's growth in the near term is positive, driven primarily by the auto sector's strong performance. Several factors contribute to this optimism: Robust Auto Sales : October saw significant year-on-year (YoY) and month-on-month (MoM) growth across all vehicle segments (two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles). This indicates a healthy consumer demand and positive economic sentiment. October 2024 retail sales witnessed a significant growth of 32% YoY and 64% MoM . All categories reported healthy growth: 2W: +36%, 3W: +11%, PV: +32%, Trac: +3%, CV: +6% on YoY basis Rural Market Strength : The rural market played a crucial role in boosting sales, particularly for two-wheelers and passenger vehicles, thanks to increased Minimum Support Prices (MSP) for Rabi crops. This suggests a positive agricultural outlook and increased rural purchasing power. Upcoming Wedding Seas...