Indian Business going global

statesman · Posted: Thu Mar 27, 2008 11:50 pm Post subject:

Mr.Ved,

could u please give details of sharp down fall of growth of core sector industry like petroleum, refinery, power, cement, steel and port activities of india, please refer The economic times of last week, it clearly indicates how core sector growth suffered a big set back this year.
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STATESMAN

ved · Telugu Veera Joined: 26 Feb 2006 Posts: 2003

It is all related to oil prices and the financial crisis brought upon by sub-prime mortgages woes of US, and to some extent that of Europe. With 2.2 million barrels/day consumption India may not be in the big league of countries consuming oil, but it accounts for 30% of our energy needs. Sustained high crude prices, where India imports 70% of its oil, is taking sheen out of the much touted export growth.

The declining dollar is another reason why our economy is slowing down. The classic argument that declining dollar may reduce the value of our exports but it will also reduce the import costs going into the products is not coming true.

On short term, until US economy stabilizes, their interest rates go up and dollar strengthens, we will see continuous weakness in the global economy and that of India. In the long term, our consumption has to increase to the levels of developed countries, giving enough cushion for the economy from external jolts. But energy consumption costs will continue to be Achilles’ heel for our economy until we find alternate sources.

statesman · Posted: Fri Apr 04, 2008 6:41 pm Post subject:

what ever be the argument and analysis, indian economy as said is not rosy and core sector failure will lead to total failure of economy of the country.
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STATESMAN

Stalinist · Posted: Sun Jun 01, 2008 7:23 pm Post subject:

LN asked me question "Didn't Indians get so many jobs in IT sector?". Who do majority of the Indians still live in villages even after growth of IT sector?. Most of the villagers are not in the financial position that makes them to study software engineering. Few urban rich and middle class are benefited by global capitalist market economy. There is antagony between town and country in thrid world countries. Urban middle class lives are made luxurious @ cost of negligence of rural proletarian and peasant class lives. Raise of global capitalist market won't make even single penny benefit for village proletariat.
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