What is the the slack season in Indian economy?
January to June is the slack season in India's economy.
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Largely positive. Globalization has brought many jobs and large sums of investment to India. India's economy has been growing at exceptional rates for the past several years and many new opportunities have opened up for India. Yet, India does remain quite poor. It's GDP per capita is less than $2,00…0, a fraction of the GDP per capita found in some Latin American and Eastern European nations. Most of those who profit from globalization in India are the upper classes, with many in the lower classes being displaced and suffering from miserable labor conditions. Nonetheless, globalization has created a large economic boom for India with largely positive effects Globalisation Globalisation is the trend in large businesses to consider themselves world businesses not US or English or German businesses. So if something can be done in India or Malaysia or wherever cheaper than in Wisconsin or Slough or Dusseldorf then off to India or Malaysia or wherever it goes. Similarly raw materials or components will be bought from wherever in the world they are cheapest. Such a worldwide network of interests also allows large companies to do a great deal of money shuffling to avoid taxes. (MORE)
Keynesian (John Keynes) economics is all about using monetary and fiscal (Government) policies to help direct the market towards equilibrium. Keynes didn't believe that the market was self-correcting, and thus required government involvement. Keynesian economics also uses the view that prices are co…nstant in the short term and only adjust in the long term (sticky price theorem). This delay in price adjustment pulls the market away from equilibrium. Classical Economics (Adam Smith) is based on the idea that an "invisible hand" controls the market place and government involvement just creates an inefficient market place. Adam Smith believed that basic supply and demand is capable of maintaining a marketplace equilibrium. Prices are self adjusting and the market reacts immediately to changes thus maintaining equilibrium in the long run and short run. Government policies such as taxes lead to price distortion that can skew consumer rationality, thus leading to disequilibrium (is that even a word?!...unequilibrium??). Both these views have faults: Classical failed during the Great Depression - this wouldn't happen if there really was an 'invisible hand' to smooth out the economy. Keynesian was ineffective during the stagflation (high inflation and low employment) of the 1970s, there isn't a policy that can effectively combat both these variables. Answer Keynesian (John Keynes) economics is all about using monetary and fiscal (Government) policies to help direct the market towards equilibrium. Keynes didn't believe that the market was self-correcting, and thus required government involvement. Keynesian economics also uses the view that prices are constant in the short term and only adjust in the long term (sticky price theorem). This delay in price adjustment pulls the market away from equilibrium. Classical Economics (Adam Smith) is based on the idea that an "invisible hand" controls the market place and government involvement just creates an inefficient market place. Adam Smith believed that basic supply and demand is capable of maintaining a marketplace equilibrium. Prices are self adjusting and the market reacts immediately to changes thus maintaining equilibrium in the long run and short run. Government policies such as taxes lead to price distortion that can skew consumer rationality, thus leading to disequilibrium (is that even a word?!...unequilibrium??). Both these views have faults: Classical failed during the Great Depression - this wouldn't happen if there really was an 'invisible hand' to smooth out the economy. Keynesian was ineffective during the stagflation (high inflation and low employment) of the 1970s, there isn't a policy that can effectively combat both these variables. (MORE)
Fair globalisation would create opportunities for ALL &also ensure that the benefits of globalisation would be shared better.
Answer . FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in finance sector of the economy.. Answer . FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in fin…ance sector of the economy. (MORE)
Indian reservations encompassed millions of miles back in the 1800's. The government signed documents giving them soverienty. Meaning that our laws wouldn't apply there. But we have taken their land and now there is only a small piece which is theirs. They started to grow hemp only to be busted by t…he DEA. They are fighting this but the government is re-nigging on their contract. Therefore Indians are starving and sick without income and the gov. is devising a plan to help them or destroy them indefinitly. (MORE)
Was communal and hunter-gatherer with little need for commerce until the Europeans showed up with goods they wanted.
Ans: In India to compare with the total population, around 2.5 crores are the internet users. The most of the study found that, most of the shoppers access the internet from office, followed by those who access it from home. Some also go to cyber cafes. The business module is cost effective, ea…sily accessible and profitable in many functional areas. Consumers and retailers both desire a safe, simple and complete online shopping. From this we can findout what is the actual and real power of internet now a days.. According to the Preti Desai, President, Internet and Online Association of India "E-commerce is coming of age in India. Chaining lifestyles and shopping habits" Now a days most of the metro and non metro corporation cities are basing completely on the media and internet and multiple internet access points.. As per the survey reports, of Internet and online association of India, the total value of e-commerce activities within India crossed Rs.570 crore during 2004-05. On the basis of that, the present and the next couple of years it may be crossed to Rs.2,300 crore worth of e-business in India. In India most of internet users are purchasing their commodities and services through online shopping through internet and e-business.. As per the reports, out of 3099 online shoppers, the average of 55% i.e., 1,716 shoppers are benefiting for online services, that are getting services through online and use of internet by way of e-commerce. The rapid development of E-commerce in India is forcing companies to adopt business strategies revolving around the internet. As per the Chairman of IOAL "The report reflects the chaning face of business trends in India. Today, the internet population is 25+ million and is expected to grow at 100 million by end of 2008" So on the basis of reports, we can imagine how the India is growing with online shopping and e-commerce.. India is the second most populous country and the largest democracy in the world. Now India has improved its position to the 43 rd rank in the World of E-Commerce activities. The rapid development of e-commerce is forcing companies today to adopt business strategies rotating around the internet.. Finance Minister of India Mr.P.Chidambaram announced recently that expected growth rate of Indian economy is 9 % for the year 2008 and that is excellent by any means.Though impact of Indian economy growth may not be considerable on world scale but atleast all Indians will be very very happy.. Written by: Mr. G. Lakshman Rao, M.Com, E.Com, M.Phil, LL.B . email: mailto:email@example.com (MORE)
The Cherokee did not have an economy before being introduced to European settlers and the concept of money. There was a barter system in place and 'money' was never an essential of life (food, clothing, housing, etc were never a commodity - this is in stark difference to European value systems. In t…he Cherokee moral concept system you could not withhold food, clothing or housing from anyone). Barter were personal items and gift items - feathers, handmade crafts, etc.. Mid development the Cherokee's tried to adapt to a system of "economy" where the very things that they could never pay or charge for (by ancient standards) were now a "commodity" thereby causing a rift in tribal values and moral codes with imposed standards.. In modern times most Cherokee have forgotten these codes and live just like you do; there are however a small sect that do remember these values and work on a barter system that does not involve money (at least any form of money that most would understand). (MORE)
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You can go to any vendor that sells books and find many books onthis topic. You can go to your physical bookstore and they willhelp you with this as well.
Inflation is caused due to several economic factors: . When the government of a country print money in excess, prices increase to keep up with the increase in currency, leading to inflation. . Increase in production and labor costs, have a direct impact on the price of the final product, resultin…g in inflation. . When countries borrow money, they have to cope with the interest burden. This interest burden results in inflation. . High taxes on consumer products, can also lead to inflation. . Demands pull inflation, wherein the economy demands more goods and services than what is produced. . Cost push inflation or supply shock inflation, wherein non availability of a commodity would lead to increase in prices. Problems The problems due to inflation would be: . When the balance between supply and demand goes out of control, consumers could change their buying habits, forcing manufacturers to cut down production. . The mortgage crisis of 2007 in USA could best illustrate the ill effects of inflation. Housing prices increases substantially from 2002 onwards, resulting in a dramatic decrease in demand. . Inflation can create major problems in the economy. Price increase can worsen the poverty affecting low income household, . Inflation creates economic uncertainty and is a dampener to the investment climate slowing growth and finally it reduce savings and thereby consumption. . The producers would not be able to control the cost of raw material and labor and hence the price of the final product. This could result in less profit or in some extreme case no profit, forcing them out of business. . Manufacturers would not have an incentive to invest in new equipment and new technology. . Uncertainty would force people to withdraw money from the bank and convert it into product with long lasting value like gold, artifacts. Inflation in India Economy India after independence has had a more stable record with respect to inflation than most other developing countries. Since 1950, the inflation in Indian economy has been in single digits for most of the years Between 1950-1960 The inflation on an average was at 2.00% Between 1960-1970 The inflation on an average was at 7.2% Between 1970-1980 The inflation on an average was at 8.5%. Inflation At Present Inflation in India a menace a few years ago is at a 30 year low. The inflation ended at a low of 0.61% in the week ended May 9, 2009 this after reaching a 16 year high of 12.91 % in August 2008, bringing in a sigh of relief to policymakers. (MORE)
Inflation affects both the economy of a country and its social conditions, as well as the political and moral lives of its inhabitants. However, the economic effects of Inflation are stated and described below: . Price inflation has immense effect on the Time Value of Money (TVM). This acts as a p…rincipal component of the rates of interest, which forms the basis of all TVM calculations. The real or estimated changes occurring in the rates of inflation lead to changes in the rates of interest as well. . Inflation exerts impact on the treasury of a nation as well. In United States of America, Treasury Inflation-protected Securities (TIPS) ensures safety to the American government, assuring the public that they will get back their money. However, the rates of interest charged by TIPS are less compared to the standard Treasury notes. . The most immediate effect of inflation is the decrease in the purchasing power of dollar and its depreciation. Inflation influences the investments of a country. The Inflation-protected Securities (IPSs) may act as a guard against the loss in the purchasing power of the fixed-income investments (like fixed allowances and bonds), which may occur during inflation. . Inflation changes the allocation of income. This exerts maximum effect on the lenders than the borrowers at the time of persisting inflation, because the loans sanctioned previously are paid back later in the form of inflated dollars. . Inflation leads to a handful of the consumers in making extensive speculation, to derive advantage of the high price levels. Since some of the purchases are high-risk investments, they result in diversion of the expenditures from regular channels, giving birth to a few structural unemployments. (MORE)
The role of rivers in the Indian economy is very huge. The riversform the main backbone for agriculture which is a main source ofincome for most families.
The main role of rivers in the Indian economy was being a basicnatural resource. The are also essential in diluting andtransporting waste from settlements.
The basic features of the Indian economy are the things that definethe economy of India. They include low per capita income, heavypopulation pressure, pre-dominance of agriculture, unemployment,and low rate of capital formation.
PLICATIONS OF GROWING POPULATION IN INDIA Population growth and its relation to economic growth has been a matter of debate for over a century. The early Malthusian view was that population growth is likely to impede economic growth because it will put pressure on the available resources, result in… reduction in per capita income and resources; this, in turn, will result in deterioration in quality of life. Contrary to the Malthusian predictions, several of the East Asian countries have been able to achieve economic prosperity and improvement in quality of life in spite of population growth. This has been attributed to the increase in productivity due to development and utilization of innovative technologies by the young educated population who formed the majority of the growing population. These countries have been able to exploit the dynamics of demographic transition to achieve economic growth by using the human resources as the engine driving the economic development; improved employment with adequate emoluments has promoted saving and investment which in turn stimulated economic growth. Following are the adverse effects of population growth on the Indian Economy: 1.adverse effects on savings 2. unproductive investment 3.slow growth of Per Capita Income 4.underutilization of labour 5.growing pressure on land 6.adverse effect on quality of population and 7.adverse social impact (MORE)
Rivers are very important in the Indian economy. They are commonlyused for agricultural activities which is a major part of theeconomy.
I don't think that there is any difference on how inflation effects the Indian economy as it effects any other economy in the world. Same thing happens to everyone. The government prints to much money which causes the prices to be raised and after a certain period of time it will all become next to …worthless (MORE)
the sectors which are going to see an upsurge in the coming decade are the energy sector, real estate sector, services sector, and the boifuel sector.
There have been fundamental and irreversible changes in the economy, government policies, outlook of business and industry, and in the mindset of the Indians in general. 1. From a shortage economy of food and foreign exchange, India has now become a surplus one. 2. From an agro based economy it… has emerged as a service oriented one. 3. From the low-growth of the past, the economy has become a high-growth one in the long-term. 4. After having been an aid recipient, India has now joined the aid givers club. India has become a net creditor to IMF, since July 2003. 5. Although India was late and slow in modernization of industry in general in the past, it is now a front-runner in the emerging Knowledge based New Economy. 6. The Government is pursuing reforms and liberalization not out of compulsion but out of conviction and consensus. 7. Indian companies are no longer afraid of Multinational Companies. They are becoming competitive and some of them are going global. 8. Fatalism and contentment of the Indian mindset have given way to optimism and ambition. Introspective and defensive approach has been replaced by outward-looking and confident attitude. 9. The Indian culture, which looked down upon wealth as a sin and believed in simple living and high thinking, has started recognizing prosperity and success as acceptable and necessary goals. 10. Graduates no longer queue up for safe government jobs. They prefer and enjoy the challenges and risks of becoming entrepreneurs and global players. Stable democracy and institutions 11. Largest democracy with stable, mature, vibrant and exemplary democratic governance and institutions. 12. Strong and transparent legal and accounting system. 13. Primacy of rule of law and independent judiciary. 14. Numerous watchful and proactive NGOs. 15. Free, vocal, alert and quality media. 5600... (MORE)
Advertisement Affect Economy Advertisement affects to the economy not only adversely but also favorably, that is better understood by following: Ã If company advertises their product then, it affects economically to company as it is expensive. It incurs so many expenses. Thought advertisement …is expensive, but it gives long term benefit to the company. Ã We can see that because of advertisement, the cost of the product is going high, so customers are stressed ; they feel strained by rising food prices, rising fuel prices. Advertiser's switch from traditional media to new media has also affected the economic slowdown. Ã The trend of reduction in newspaper advertising, revenue will continue. Ã Advertising during a slow economy clearly creates a competitive advantage, with a majority of executives agreeing that seeing a company advertise during slower times makes them feel more positive about the company's commitment to its products and services. Ã So, in this ways advertisement affect adversely & favorably to the economy. (MORE)
MNC's plays an important role in boosting up Indian Economy. In support of this we can say, MNC's bring foreign investors to India and hence helps in globalization of Indian Market. - - kammam - -
This would be the Keynesian range. This will only happen if theeconomy is reaching a type of slack.
Role of RBI in Indian economy . Issuer of currency - Except for issuing one rupee notes and coins, RBI is the sole authority for the issue of currency in India. The Indian government issues one rupee notes and coins. Major currency is in the form of RBI notes, such as notes in the denominations… of two, five, ten, twenty, fifty, one hundred, five hundred, and one thousand. Earlier, notes of higher denominations were also issued. But, these notes were demonetized to discourage users from indulging in black-market operations. RBI has two departments - the Issue department and Banking department. The issue department is dedicated to issuing currency. All the currency issued is the monetary liability of RBI that is backed by assets of equal value held by this department. Assets consist of gold, coin, bullion, foreign securities, rupee coins, and the governmentï¿½s rupee securities. The department acquires these assets whenever required by issuing currency. The conditions governing the composition of these assets determine the nature of the currency standard that prevails in India. The Banking department of RBI looks after the banking operations. It takes care of the currency in circulation and its withdrawal from circulation. Issuing new currency is known as expansion of currency and withdrawal of currency is known as contraction of currency. . Banker to the Government - RBI acts as banker, both to the central government and state governments. It manages all the banking transactions of the government involving the receipt and payment of money. In addition, RBI remits exchange and performs other banking operations. RBI provides short-term credit to the central government. Such credit helps the government to meet any shortfalls in its receipts over its disbursements. RBI also provides short term credit to state governments as advances. RBI also manages all new issues of government loans, servicing the government debt outstanding, and nurturing the market for governmentï¿½s securities. RBI advises the government on banking and financial subjects, international finance, financing of five-year plans, mobilizing resources, and banking legislation. . Managing Government Securities - Various financial institutions such as commercial banks are required by law to invest specified minimum proportions of their total assets/liabilities in government securities. RBI administers these investments of institutions. The other responsibilities of RBI regarding these securities are to ensure - . Smooth functioning of the market . Readily available to potential buyers . Easily available in large numbers . Undisturbed maturity-structure of interest rates because of excess or deficit supply . Not subject to quick and huge fluctuations . Reasonable liquidity of investments . Good reception of the new issues of government loans . Banker to Other Banks - The role of RBI as a banker to other banks is as follows: . Holds some of the cash reserves of banks . Lends funds for short period . Provides centralized clearing and quick remittance facilities RBI has the authority to statutorily ensure that the scheduled commercial banks deposit a stipulated ratio of their total net liabilities. This ratio is known as cash reserve ratio [CRR]. However, banks can use these deposits to meet their temporary requirements for interbank clearing as the maintenance of CRR is calculated based on the average balance over a period. . Controller of Money Supply and Credit - In a planned economy, the central bank plays an important role in controlling the paper currency system and inflationary tendency. RBI has to regulate the claims of competing banks on money supply and credit. RBI also needs to meet the credit requirements of the rest of the banking system. RBI needs to ensure promotion of maximum output, and maintain price stability and a high rate of economic growth. To perform these functions effectively, RBI uses several control instruments such as - . Open Market Operations . Changes in statutory reserve requirements for banks . Lending policies towards banks . Control over interest rate structure . Statutory liquidity ration of banks . Exchange Manager and Controller - RBI manages exchange control, and represents India as a member of the international Monetary Fund [IMF]. Exchange control was first imposed on India in September 1939 when World War II started and continues till date. Exchange control was imposed on both receipts and payments of foreign exchange. According to foreign exchange regulations, all foreign exchange receipts, whether on account of export earnings, investment earnings, or capital receipts, whether of private or government accounts, must be sold to RBI either directly or through authorized dealers. Most commercial banks are authorized dealers of RBI. . Publisher of Monetary Data and Other Data - RBI maintains and provides all essential banking and other economic data, formulating and critically evaluating the economic policies in India. In order to perform this function, RBI collects, collates and publishes data regularly. Users can avail this data in the weekly statements, the RBI monthly bulletin, annual report on currency and finance, and other periodic publications. . Promotional Role of RBI - Promotion of commercial banking Promotion of cooperative banking Promotion of industrial finance Promotion of export finance Promotion of credit to weaker sections Promotion of credit guarantees Promotion of differential rate of interest scheme Promotion of credit to priority sections including rural & agricultural sector..... (MORE)
An underdeveloped economy is defined as an economy which has got unexploited natural resources and unutilized human resources. In other words, it is an economy, having a potentiality to grow. An underdeveloped economy shows the following features: (a) In the underdeveloped countries, natural resourc…es remain unexploited and underexploited due to various reasons. Systematic utilisation of natural resources alone can lead to -economic development. (b) An underdeveloped country is basically a primary producing country, engaging its factors of production to produce only raw materials and foodstuffs. The percentage of population engaged in. agricultural sector is very high (70% in Indian context) and a major part of total national income comes from agriculture and activities allied to agriculture (around 30% in India). (c) In case of UDCs, the scarcity of capital is both the cause and effect of low productivity and underdevelopment. Due to scarcity of capital, a better technique of production cannot be adopted in India due to undeveloped technology total volume of production and productivity is low. Due to low production and productivity, level of income is less, and consequently, less amount of capital is available to adopt better technique of production. Thus, poverty is both the cause and the consequence. (d) A chief feature of an UDC like India is its high population pressure. The high birth-rate and low death-rate are responsible for a break-neck rise in Indian population. At present, the annual growth rate of population according to 2001 census stands at 2.13%. This rapid growth of population stands as an obstacle in the smooth development of the economy. (e) UDCs are characterized by low per capita income and grinding poverty scenario. In India, the per capita income is less than 1/3 of the per capita income of the developed western countries, and, according to the revised estimate of the Planning Commission about 50% of the total populations in India live below the poverty line. (f) The underdeveloped countries are also characterized by widespread unemployment, underemployment and disguised unemployment. In India large numbers of people engaged in the agricultural sector are underemployed or disguisedly unemployed, apart from the large number of white- coloured unemployed, existing in the register of Employment Exchanges. (g) The underdeveloped economies are also backward in the field of human resources. In these countries, the quality of people as productive agent is very low. There is low labour efficiency, lack of entrepreneurship and economic ignorance. People being illiterate are guided by blind beliefs, customs and traditions. People become fatalists and believe that man's fortune is decided by fate and not by one's own efforts. (h) In these economies, there is a lack of infrastructural facilities like transport, banking, health, power, education and information technology. People also adopt an outdated technique of production which results in low productivity. To sum up India as ah underdeveloped economy is characterized by abundant, but unexploited natural resources, a high population growth rate, a slow rate of capital formation, an outdated technique of production, and a low standard of living, accompanied by continuous and sustained efforts to raise it through a proper utilisation of available natural, human, financial and entrepreneurial resources. In this context, the term 'economic development has to be defined as launching a measure against the triple enemies of Indian economy, namely, hunger, ignorance and epidemics. The planners of the country have tried to solve these problems and to accelerate the pace of economic development under various Five Year Plans. (MORE)
Like most countries, Indian economy also works on the basis of its agricultural, industrial and service sector performances. On an average India has been showing a 8-9% GDP for the past decade or so. It is much better than the Hindu growth rate of 4% GDP in the late 80's and early 90's. Taxes are i…mplemented, depending on the 'salary slabs' determined by the Ministry of Finance each year during the annual budget session. (MORE)
growth rate of national income , Inflation Interest rates Budgets Infrastructure facilities Monsoon and agriculture Economic and political stability Savings and investment The tax structure Demographic factors like education , occupation , income level of people
2/3rds of the people are still employed in that sector. 4% contribution to the GDP. Basic means of employment of majority of the people living in rural areas.
Terrorism can have various effects 1) Tourism of an economy slides to the negative scale due to intimidation. 2) Agricultural Production of an economy is greatly affected 3) There is a Direct Human and Military loss 4) Share Markets and GDP gradually are shown the way down 5) Loss of Po…pulation or manpower will decrease the working population of the nation which is a great loss. (MORE)
Kind of like the birds. They migrate from a colder placer to a warmer place.
The economy of India is growing pretty fast. It has one of the fastest growing GDPs in the world. But at the same time it is only a minority of India which contributes towards the same. That is why the social gap between the rich and the poor keeps on increasing day by day.
Marketing's Role In Indian Economy "Marketing's role is to ensure the continuance in growth of economies and the individual's standard of living" ( M.J.Baker, 1985). According to the statement given by M.J.Baker, Marketing plays a vital role in the economic growth of the country periodically …and sustain individuals standard of living. Marketing Definition "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others" (Philip Kotler). Basically human need is state of deprivation or neediness where the people require food, shelter, clothing, belonging, esteem to live up their life. These needs are not created by the society or either the marketers, it is the existing nature of human biology and human condition. Even though the human needs of the people are few, their wants are many, this is because they are continuously shaped or reshaped by the social forces and their environment which include institutions, families, and business corporations. "Wants of the specific product" is the demand of the people and their willingness to buy them. Companies should not only measure how many people want to buy their product but also the people who are willing and able to buy it. This willingness should be created by the company. Here comes the Marketing principle how well the company sell their product and satisfy the needs of the customer (Narayana Rao K.V.S.S) Market- "Consists of potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want"(Philip Kotler). Marketer- "A Marketer is some one seeking one or more customers who might engage in an exchange of values". Marketers are the one who influence demands on the product by making the product attractive, appropriate, affordable, and easily available to target consumers. People living in different societies or... (MORE)
Role of market in India :India's growth story has important implications for the capital market, which has grownsharply with respect to several parameters - amounts raised number of stock exchangesand other intermediaries, listed stocks, market capitalization, trading volumes andturnover, market i…nstruments, investor population, issuer and intermediary profiles.The capital market consists primarily of the debt and equity markets. Historically, itcontributed significantly to mobilizing funds to meet public and private companies'financing requirements. The introduction of exchange-traded derivative instruments suchas options and futures has enabled investors to better hedge their positions and reducerisks.India's debt and equity markets rose from 75 per cent in 1995 to 130 per cent of GDP in2005. But the growth relative to the US, Malaysia and South Korea remains low andlargely skewed, indicating immense latent potential. India's debt markets comprisegovernment bonds and the corporate bond market (comprising PSUs, corporates,financial institutions and banks).India compares well with other emerging economies in terms of sophisticated marketdesign of equity spot and derivatives market, widespread retail participation and resilientliquidity.SEBI's measures such as submission of quarterly compliance reports, and companyvaluation on the lines of the Sarbanes-Oxley Act have enhanced corporate governance.But enforcement continues to be a problem because of limited trained staff andcompanies not being subjected to substantial fines or legal sanctions.Given the booming economy, large skilled labour force, reliable business community,continued reforms and greater global integration vindicated by the investment-graderatings of Moody's and Fitch, the net cumulative portfolio flows from 2003-06 (bondsand equities) amounted to $35 billion.The number of foreign institutional investors registered with SEBI rose from none in1992-93 to 528 in 2000-01, to about 1,000 in 2006-07.India's stock market rose five-fold since mid-2003 and outperformed world indices withreturns far outstripping other emerging markets, such as Mexico (52 per cent), Brazil (43 per cent) or GCC economies such as Kuwait (26 per cent) in FY-06 In 2006, Indian companies raised more than $6 billion on the BSE, NSE and other regional stock exchanges. Buoyed by internal economic factors and foreign capital flows,Indian markets are globally competitive, even in terms of pricing, efficiency andliquidity. US sub prime crisis :The financial crisis facing the Wall Street is the worst since the Great Depression andwill have a major impact on the US and global economy. The ongoing global financialcrisis will have a 'domino' effect and spill over all aspects of the economy. Due to theWestern world's messianic faith in the market forces and deregulation, the marketfriendly governments have no choice but to step in.The top five investment banks in the US have ceased to exist in their previous forms.Bears Stearns was taken over some time ago. Fannie Mae and Freddie Mac arenationalised to prevent their collapse. Fannie and Freddie together underwrite half of thehome loans in the United States, and the sum involved is of $ 3 trillion-about double theentire annual output of the British economy. This is the biggest rescue operation since thecredit crunch began. Lehman Brothers, an investment bank with a 158 year-old history,was declared bankrupt; Merrill Lynch, another Wall Street icon, chose to pre-empt asimilar fate by deciding to sell to the Bank of America; and Goldman Sachs and MorganStanley have decided to transform themselves into ordinary deposit banks. AIG, theworld's largest insurance company, has survived through the injection of funds worth $85 billion from the US Government. The question arises: why has this happened? Besides the cyclical crisis of capitalism, there are some recent factors which havecontributed towards this crisis. Under the so-called "innovative" approach, financialinstitutions systematically underestimated risks during the boom in property prices,which makes such boom more prolonged. This relates to the shortsightedness of speculators and their unrestrained greed, and they, during the asset price boom, believedthat it would stay forever. This resulted in keeping the risk aspects at a minimum and thusresorting to more and more risk taking financial activities. Loans were made on the basis of collateral whose value was inflated by a bubble. And the collateral is now worth lessthan the loan. Credit was available up to full value of the property which was assessed atinflated market prices. Credits were given in anticipation that rising property prices willcontinue. Under looming recession and uncertainty, to pay back their mortgage many of those who engaged in such an exercise are forced to sell their houses, at a time when the banks are reluctant to lend and buyers would like to wait in the hope that property priceswill further come down. All these factors would lead to a further decline in property prices. Effect of the subprime crisis on India: Globalisation has ensured that the Indian economy and financial markets cannot stayinsulated from the present financial crisis in the developed economies.In the light of the fact that the Indian economy is linked to global markets through a fullfloat in current account ( trade and services) and partial float in capital account (debt andequity), we need to analyze the impact based on three critical factors: Availability of global liquidity; demand for India investment and cost thereof and decreased consumer demand affecting Indian exports.The concerted intervention by central banks of developed countries in injecting liquidityis expected to reduce the unwinding of India investments held by foreign entities, butfresh investment flows into India are in doubt.The impact of this will be three-fold: The element of GDP growth driven by off-shoreflows (along with skills and technology) will be diluted; correction in the asset priceswhich were hitherto pushed by foreign investors and demand for domestic liquidity putting pressure on interest rates .While the global financial system takes time to "nurse its wounds" leading to lowdemand for investments in emerging markets, the impact will be on the cost and relatedrisk premium. The impact will be felt both in the trade and capital account. Indian companies which had access to cheap foreign currency funds for financing their import and export will be the worst hit. Also, foreign funds (through debt and equity) will be available at huge premium and would be limited to blue-chip companies.The impact of which, again, will be three-fold: Reduced capacity expansion leading tosupply side pressure; increased interest expenses to affect corporate profitability andincreased demand for domestic liquidity putting pressure on the interest rates.Consumer demand in developed economies is certain to be hurt by the present crisis,leading to lower demand for Indian goods and services, thus affecting the Indian exports.The impact of which, once again, will be three-fold: Export-oriented units will be theworst hit impacting employment; reduced exports will further widen the trade gap to put pressure on rupee exchange rate and intervention leading to sucking out liquidity and pressure on interest rates. The impact on the financial markets will be the following : Equity market willcontinue to remain in bearish mood with reduced off-shore flows, limited domesticappetite due to liquidity pressure and pressure on corporate earnings; while the inflationwould stay under control, increased demand for domestic liquidity will push interest rateshigher and we are likely to witness gradual rupee depreciation and depleted currencyreserves. Overall, while RBI would inject liquidity through CRR/SLR cuts, maintaininggrowth beyond 7% will be a struggle.The banking sector will have the least impact as high interest rates, increased demand for rupee loans and reduced statutory reserves will lead to improved NIM while, on the other hand, other income from cross-border business flows and distribution of investment products will take a hit.Banks with capabilities to generate low cost CASA and zero cost float funds will gain themost as revenues from financial intermediation will drive the banks' profitability. Given the dependence on foreign funds and off-shore consumer demand for the Indiagrowth story, India cannot wish away from the negative impact of the present globalfinancial crisis but should quickly focus on alternative remedial measures to limit damageand look in-wards to sustain growth! Role of capital market during the present crisis: In addition to resource allocation, capital markets also provided a medium forrisk management by allowing the diversification of risk in the economy. Thewell-functioning capital market improved information quality as it played amajor role in encouraging the adoption of stronger corporate governanceprinciples, thus supporting a trading environment, which is founded onintegrity.liquid markets make it possible to obtain financing for capital-intensiveprojects with long gestation periods..For a long time, the Indian market was considered too small to warrant muchattention. However, this view has changed rapidly as vast amounts of international investment have poured into our markets over the last decade.The Indian market is no longer viewed as a static universe but as aconstantly evolving market providing attractive opportunities to the globalinvesting community.Now during the present financial crisis, we saw how capital market stood stillas the symbol of better risk management practices adopted by the Indians.Though we observed a huge fall in the sensex and other stock marketindicators but that was all due to low confidence among the investors.Because balance sheet of most of the Indian companies listed in the sensexwere reflecting profit even then people kept on withdrawing money.While there was a panic in the capital market due to withdrawal by the FIIs,we saw Indian institutional investors like insurance and mutual funds coming for the rescue under SEBI guidelines so that the confidence of the investorsdoesn't go low.SEBI also came up with various norms including more liberal policiesregarding participatory notes, restricting the exit from close ended mutualfunds etc. to boost the investment.While talking about currency crisis, the rupee kept on depreciating againstthe dollar mainly due to the withdrawals by FIIs. So , the capital market triedto attract FIIs once again. SEBI came up with many revolutionary reforms toattract the foreign investors so that the depreciation of rupee could be put tohault (MORE)
India has the twelfth largest economy in the world. Among the third world countries, India has proved itself to be one the best players in the world economy. The economic condition of India has improved immensely over the last few decades. Recently many policies have been reformed and some implement…ed in order to help the progress and development of the Indian economy scene. At the moment, the economy of India has been progressing at the massive pace. Every Economy in the world stands on four basic pillars. Indian being one of the largest Economies of the world, too stands on these pillars. These are GDP, Inflation, Forex Reserves and Current Account Deficit. Topping all these comes the External Debt which is often used to stabilize the down going markets. Indian economy is the fourth largest in the world, with a GDP of $3.63 trillion at PPP, and tenth largest in the world with a $691.9 billion at 2004 USD exchange rates and has a real GDP growth rate of 6.2% at PPP. . Suggested Tour Packages. . While the Gross Domestic Production tells about the total development in terms of total production in various sectors in a year, the inflation in co relation with the deflation tells about the market indices. The Forex Reserves counts on the Foreign trade and the currency earned in it while the Current Account Deficit makes for the total amount which is lacking to meet the requirements. All these are so adjusted that they make for the total profit or the growth of the economy. When all these four work in perfect synchronization, the net result is the growth of Economy or GDP. India too works on these to make a better Economy. Some of the Key factors in the growth of the Indian Economy are the broad spectrum industries, stable parliamentary democracy, independent judiciary, global mindset of corporate sector and lobbying for globalization. With the changing perspective, today the Indian Economy is more strong, it has new players both local and forgien, the buyers market has increased with more competition, there is liberalized trade facilitating integration with WTO. All these have put the Indian Economy on a global perspective. With liberalized financial markets and emphasis on prudential norms the dynamic nature of Indian Economy is seeing new heights. But despite of all this growth the Indian Economy is curtailed by creaking infrastructure, cumbersome judiciary system, dilapidated roads, severe shortage of electricity, lesser number of schools, lower education, caste system and reservation system. These are some of the common factors which inhibit the growth of the Indian Economy. Whatever is being written on papers is not materializing and even if it is being done in some sectors, the growth is slow that the work being done is equal to no work. Indian Economy beginning from the Indus Valley Civilization to the Mayura age has a reached a point where Oligarchy has become more prominent. The democracy is losing its point somewhere and the growth of Indian Economy is showing its good results only in some sectors. There is a lot which needs to be done, especially from the growth perspective.... (MORE)
Strengths Huge pool of labour force High percentage of cultivable land Diversified nature of the economy Huge English speaking population, availability of skilled manpower Stable economy, does not get affected by external changes Extensive higher education system, third largest reservoi…r of engineers High growth rate of economy Rapid growth of IT and BPO sector bringing valuable foreign exchange Abundance of natural resources Weakness Very high percentage of workforce involved in agriculture which contributes only 23% of GDP Arround a quarter of a population below the poverty line High unemployment rate Stark inequality in prevailing socio economic conditions Poor infrastructural facilities Low productivity Huge population leading to scarcity of resources Low level of mechanization Red tapism, bureaucracy Low literacy rates Unequal distribution of wealth Rural-urban divide, leading to inequality in living standards Opportunities Scope for entry of private firms in various sectors for business Inflow of Foreign Direct Investment is likely to increase in many sectors Huge foreign exchange earning prospect in IT and ITES sector Investment in R&D, engineering design Area of biotechnology Huge population of Indian Diaspora in foreign countries (NRIs) Area of Infrastructure Huge domestic market: Opportunity for MNCs for sales Huge matural gas deposits found in India, natural gas as a fuel has tremendous opportunities Vast forest area and diverse wildlife Huge agricultural resources, fishing, plantation crops, livestock Threats Global economy recession/slowdown High fiscal deficit Threat of government intervention in some states Volatility in crude oil prices across the world Growing Import bill Population explosion, rate of growth of pobulation still high Agriculture excessively dependent on monsoons (MORE)
1. India is mainly an agricultural country. the net sown area in India is about 51%. nearly two - third of India's population in engaged in agriculture. 2. Agriculture is the mainstay of the Indian economy. 3. Agriculture provides food to the teeming millions in India. It sustains 2/3 of our p…opulation. 4. It provides raw materials to the agro - based industries. 5. Agriculture along with forests and fisheries forms 45% of our total national income. (MORE)
The role of Multi National Companies, otherwise known as MNC's, inIndia include the empowerment of its labor force. These MNC's alsocontribute to the government's finances by means of taxes that areused to build more bridges, roads, public schools, and hospitals.
SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI. The SEBI Governs the following 1. New Issues (Initial Public Offering or IPO) 2. Listing agreement of companies with Stock Ex…changes 3. Trading Mechanisms 4. Investor Protection 5. Corporate disclosure by listed companies etc. (MORE)
for this see wikipedia article on"indian economy" and you can also take help of "economist"magazine and other such publications
If company advertises their product then, it affects economically to company as it is expensive. It incurs so many expenses. Thought advertisement is expensive, but it gives long term benefit to the company.
It was a traditional economy based on customs and traditions. They had no form of currency, but instead used a system of trading and bartering.
Yes , Indian economy is on higher side. The economy of India is the eleventh largest economy in the world by nominal GDP. and the fourth largest by purchasing power party.. In the 21st century, India is an emerging economic power with vast human and natural resources, and a huge knowledge bas…e. Economists predict that by 2020, India will be among the leading economies of the world. Courtesy:- wikipedia http://en.wikipedia.org/wiki/Economy_of_India (MORE)
It has a considerable contribution in the growth of the Economy.It has been patronizing people who are almost good for nothing.Besides it obviously fosters the Per capita Income.
central problems of an economy are ralated with the issues ragarding the decision about "what to produce","hoe to produce","for whom to produce"
SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI.
Dualism is economic and social divisions of an economy. The socialdualism in India is the coexistence of advanced science,superstitions and the cost system. Technical dualism in India isthe Green Revolution in the top 10% of their rural population.Geographical dualism is the labor migration, capital… movements andtrade. (MORE)
The current slow down is mainly political, India started to grow too fast, more and more people are moving above the poverty line, so she's not able to cope with the demand, so to deal with the supply problem the government increased interests very steeply, which is by far the main reason for the sl…owdown. (MORE)
SAARC countries share same cultural history since centuries. Because India is somewhat peaceful and had a stable political establishment since independence. No two SAARC countries share a boundary and all of them share a boundary with India. India is strong in economic perspective than other SAARC c…ountries so they were not of much help to India. (MORE)
India remains a poor country but a fast growing developing country. In the world there is great expectation that India will within a few decades become a developed country, an economic super power by growing rapid and consistently from now. So, foerigners are keenly investing in India to the extent …they are allowed by the Govt. of India.. But at present India's position of the Indian economy is one of poor country with large population, low per capita income, high corruption, low quality of life, low productivity but with lot of potential that has just entered the path of high growth. India ranks 3rd in tems of Gross Domestic Product (size of the economy) on purchasing power parity basis, after USA and China ( recent estimates are likely to show that the GDP figures for China and India have been overestimated whikle using the purchasing power parity method to the extent of 40%. This may imply that India's rank may go down to 4th or 5th, though China may still be 2nd. However overall GDP size does nor rank India or China among developed countries because lot of poor people togther can have high total income but individually they are poor. India has a per capita income (per capita GDP) on puchasing power parity basis of abou $4,000 against about $ 8,000 against $ 42,000 for USA. In per capita terms India ranks 118th against China's rank of 86th and USA's 4th after Luxemberg, Ireland and Norway. India ranks poorly interms of Economic Freedom Index, Competituievenes, Corruption, and Human Development Index. I had compiled some figures a year or 2 back which will show India's relative position vis-a-vis China and USA: India USA China Other Remittances 2005 % GDP 3.1 - 1.3 Bank Density 03-04 Branches/100sqkm 22 10 2 Branches/100k heads 6 31 1 Wage Manf Worker $/hour 2004 1 23 1 Child labour1999-2004 %5-14 year working 15 - - MacDonald Purchasing Power Parity rate Big Mac Price $ - 3.15 1.3 Executive Pay 2005 Total Rem $ mln. 0.25 2.1 0.23 FDI Inflows 2005 $Bln 7 - 60 Travel with no visa No. of countries 25 130 20 Passport Cost 2005 $ 24 - 36 ICT Index Score Max 10 4.7 9 6.2 Rank 86 4 56 IT Network Readiness 40 1 50 Rank 2005 Business Environment 2005-2010 EIU Score out of 10 6.1 8.8 6.2 Rank 2005 58 8 50 Quality of Living New Delhi NewYork Beijing Rank 2006 of city 150 46 122 Impact of Scientific Journals 0.59 4.74 0.4 Knowledge Index 1995 2.76 3.03 2005 2.51 4.21 Innovation Index 1995 3.51 3.94 2005 3.72 4.74 (Business Standard July 17, 2006) Further comparisions are: 1. India has the second largest population, 28% less than China's population, but three and half times the population of US, the third largest. 2. India has three out of the 17 most populated cities in the world, each with the population in excess of one crore. US, Japan, China, Brazil and Argentina has two such cities each. 3.None of the Indian cities have a quality of life index higher than New York, the 12th city in the world in terms of quality of life. 4.China is the highest user of modern contraceptives, India is not in the list of 16 top users. 5.India has the 17th largest refugee population. Pakistan ranks 2nd, US 5th and China 9th. Number of Refugees in US is 2.6 times the number of Refugees in India. 6.U.K, USA and Germany lead in terms of asylum applications received from other nationalities. Among the nationalities seeking asylum in Industrialised countries, China ranks 4th and India 7th. 7.India is the 11th largest economy in terms of nominal GDP with the US, Japan, Germany, U.K. France and China ranked 1st to 6th. In terms of GDP based on Purchasing Power Parity (PPP), India is the 4th largest after US, China and Japan. US nominal GDP is 20 times that of India. 8.US PPP - GDP is 4 times that of India. In terms of per capita GDP, US ranks 3rd/4th, but neither China nor India appear in the list of top 70 countries in terms of GDP per head, while countries like Poland, Chile, Croatia, Malta, Mauritius, Argentina, Taiwan do. 9.In terms of quality of life (as measured by Human Development Index), India and China do not appear in the list of top 60. US ranks 8th and United Kingdom 15th. 10. India and China do not appear in the list of top 40 countries in terms of economic freedom index and in terms of gender-related developlment index. US ranks 10th and 15th in terms of these two indices. 11. In terms of average annual economic growth rates, China ranked 1st during 1982-92 and 3rd during 1992-2002, India's rank being 22nd and 16th respectively. 12. In the list of largest exporters, US tops the list (13.59% of world exports) while China (4.13%) ranks 7th and India (0.88%) ranks 29th. 14. India ranks 9th in terms of foreign debt, China 2nd. 15. US is the largest donor of foreign aid, while China and India are the 5th and 6th largest recipients of foreign aid. 16. Value of Industrial output in India is the 12th largest (and China 3rd largest). US value of Industrial output is 17.5 times that of India and more than 3 times that of China. 17. US has the largest service sector output. China ranks 8th and India 15th. US service sector output is more than 25 times that of India and 14 times that of China. Production 18. India is the third largest producer of cereals after China and US. 19. Meat -- India is 6th, China 1st, US 2nd. 20. Fruit -- China 1st then India, US. 21. Vegetables - China 1st, then India and US 22. Wheat - China, India, Russia, US. 23. Rice - China, India 24. Sugar -- Brazil, India, China, US 25. Coarse grains - US, China 26. Tea - India, China 27. Coffee - India is 5th 28. Copper - US 3rd, China 8th 29. Lead -- China 2nd, Us 4rd. 30. Zinc -- China 1st, Us 5th 31. Aluminium - China 1st, US 4th, India 9th 32. Gold -- US 2nd, China 4th 33. Rubber -- US 2nd, China 4th, India 8th 34. Cotton -- China 1st, US 2nd, India 3rd 35. Oilseeds - US 1st, India 5th 36. Petroleum Oil - US 2nd, China 5th, India not in top 15 37. Natural Gas -- US 2nd , China & India not in top 15 38. Coal -- China 1st, US 2nd, India 4th 39. Energy Production -- US 1st, China 2nd, India 5th , Energy Consumption : US 1st, China 2nd, India 4th US consumes 4 times energy that India consumes. 40. Percentage of population in labour force -- 1st China (57.8%), 25th USA (49%), India is not in the list of top 40 41.Global competitiveness -- US (1), China 22nd, India 30th 42.Business Environment : 2004 -- 2008 US (4), China (38), India (40) 43.Innovation Index US (1) - China and India does not occur in the list of top 44. 44.Information and Communication Technology Index -- US (5), India & China does not occur in the list of top 44. 45.Business Software Piracy -- Vietnam 1, China 2, Pakistan 6, India 15th. 46.Most corrupt - Bangladesh (1), Pakistan (39) Least corrupt - US 19th, India and China not among least 47.Largest Business Corporations -- Top 3 in USA, 18 US in top 44, China and India not in top 48.Largest Banks : Top 2 in US, 9 US in top 45, China 25th & 37th - India does not occur in the list. 49.Largest Road Network - 1st US, 2nd India (half of US), China 4th 50. Highest car ownership - US 12th, UK 23rd, India & China does not figure in top 50. 51.Air travel (pass. Km. p.a.) - US (1st), China (4th), India 23rd, < 2% of US. 52. Longest Rail Network : US 1st, India 3rd, China 5th , US 4 times longer than India 53.Most Rail Freight : US (1st), China 3rd, India 4th, US = 7 times Indian (tons -- km. p.a.) 54.Largest Merchant Shipping Fleet : US 3rd, China 5th, India 22nd 55.Tourist Arrivals : US 3rd, China 5th, India not in top 40. 56.Biggest Tourist Spenders : US (1st), China (9th), India not in top 20. 57.Least Literate : India among the 20 at the bottom. 58.Life Expectancy : US 37th (77.1 years), China and India not in the Top 50. 59.Hospital beds : US 47th, China 51st, India not inop 38. 60.Colour TV Ownership (per "000) : US 2nd, China and India not in top 50. 61.Telephone Lines : US 11th, China, India not in top 44 62.CD Player : US 16th, China, India not in top 29 63.Computer : US 2nd, China & India not in top 37. 64.Book Sales : US (1), China (6), India (13), US value nearly 40 times of India's or 10 times of China's. 65. Daily newspapers (copies/ 000) :US 15th, China and India not in top 30 66. Music Sales ($m) :US 1st, China 19th, India not in top 22. 67. Internet : US 1st, China & India not in top 23. 68. Nobel Peace Prize (nos.) : US tops, China & India not in top 13. 69. Economics Nobel1st, China and India not in top 4 with two or more prizes 70. Literature : US 2nd, China and India not in top 10 71. Physics : US 1st, China and India not in top 14. 72. Olympic Medal winners ( 1896 -- 2000) : US 1st, China 12th, India not in top 20. 73. Armed Forces : 1st China, 2nd US, 3rd India 74. China among the lowest Environment sustainability Index. 75.Most water polluting centers : China 1st, US 2nd, India 3rd 76.Largest Forest Area : US 4th, China 5th, India 11th., 77.Largest Forest harvest (c.m.m) : US 1st, India 2nd and China 3rd. 78.Number of under threat : China 1st, India 6th, US 10th Largest Consumers : 79. Wheat : China (1), India (2), US10th 80. Rice : China (1), India (2), US 10th 81. Sugar : India (1), China (3), US (4) 82. Coarse Grains : US(1), China (2), India (5) 83. Tea : India (1), China (2), US (8) 84. Coffee : US (1), China and India not in top 10 85. Copper : China (1), US (2), India not in top 10 86. Lead : US (1), China (2), India not in top 10 87. Zinc : China (1), US (2), India (8) 88. Aluminium : China (1), US(4), India (9) 89. Rubber : China (1), US (2), India (4) 90. Cotton : China (1), India (2), US (4) 91. Oil : US (1), China (2), India (7) 92. Natural Gas : US (1), China and India not in top 10 93. Coal : China (1), US (2), India (3) 94. Energy : US (1), China (2), India (4) (MORE)
In the modern world, proper adversing helps to accelerate product turnover and India is no exception. Of late, advertising has helped a lot and has become part and parcel of Indian business life. It is only through advertising that even a mediocore commodity can be judiciously marketed. Sales fluctu…ate when business houses do not bother to spend on advertising. . (MORE)