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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: JPR who wrote (3273)	11/22/1998 10:45:00 PM
From: Mohan Marette	Respond to of 12475

A Tribute to the Spirit of United India. JPR: Here is an interesting story about couple of young aviators from India and their attempt to fly around the world in a single engine aircraft in 20 days as a tribute to the 50th anniversary of India's independence. takeoffindia.com

To: JPR who wrote (3273)	11/23/1998 2:32:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

India's Future? It not a question of if but when he will be PM. JPR and all In case y'all haven't seen these two articles on Naidu (1)Christian Science Monitor and (2) Time Magazine csmonitor.com cgi.pathfinder.com

To: JPR who wrote (3273)	11/24/1998 9:49:00 PM
From: Mohan Marette	Respond to of 12475

<Indian Economy>Which is it,growth,recession,stagflation or bloody nonsense? JPR: Here is an interesting look at the current state of affairs of the Indian economy,in case you are interested in that sort of thing. ============================================================== Source:Outlook India Magazine. ....Economist Surjeet Bhalla feels that the spate of policy announcements has at least given a sense of direction. An optimistic Amit Mitra of FICCI pins his hopes on the proposed spending on infrastructure to stimulate the economy.... ...But most have overlooked another culprit: the broad money supply that economists call M3, which rose to an unprecedented 20 per cent. The net result: even after all the market intervention given the political sensitivity of issue, the wholesale price index today hovers at 8.5 per cent, more than double the level it was at the start of the financial year. Second, declining industrial production. In April-July 1998, the industrial growth rate slipped to a worrying 4 per cent, down 1.6 percentage points from the same period of 1997. The growth rate in manufacturing plunged to 3.7 per cent, against 5.6 per cent a year earlier. The biggest slowdown was in consumer durables, which inched ahead at 0.8 per cent, compared to 6.2 per cent. Growth in basic goods dipped from 7.7 per cent to 2.6 per cent, and in intermediate goods from 8.4 per cent to 5.3 per cent. This has been reflected in the corporate results declared for the first half of the financial year. The aggregate turnover for 563 companies has grown at a niggardly 8.3 per cent. And while a modest 10.7 per cent increase in the interest burden helped gross profit rise 1.3 per cent, cumulative profit declined by 3.7 per cent.... ....What are the prescriptions? Technically, two. One is to increase money supply so that interest rates fall and consumers are tempted to spend and producers to invest. On the flip side, this strategy could well fuel inflation further, which would be a politically and economically suicidal outcome in the current situation. The second is the Keynesian idea of the government pumping money into infrastructure projects—roads, bridges, power and the like—so that people find jobs and producer have buyers for their inventories. Most experts plump for the latter prescription. "Tackling stagflation requires the minimising of supply shocks. The current inflationary spiral could have easily been tackled had the government intervened to import onions at the right time. This would not have fuelled inflationary expectations and put a rein on prices. That's the supply-side remedy. On the monetary side, public expenditure must go up and stimulate the core infrastructure sector of the economy," says Wadhwa. ficci's Mitra is of the same opinion. "The only sensible way is to get all the power and road projects and the like off the ground," he says. The government seems to agree, going by statements of intent. Last month, prime minister Atal Behari Vajpayee declared that two expressways—one north-south and another east-west—with total length of 7,000 km would be built. Also announced: five proposed world-class international airports, a new telecom policy and an innovative Internet policy. Finance minister Yashwant Sinha was also in the act, talking of automatic approval for all industries, freeing inter-corporate investments and indicating that foreign investors could invest up to 26 per cent in the insurance sector...... outlookindia.com