India''s overall growth ''very strong'' by world economy standards: IMF

[Android_Halwa]

It is so unfortunate that we used to measure inflation at whole sale price index few years back...yet we managed to clock in 6% growth..!!!

[soodhilodaaram]

economists are the most overrated piece of junkies

see about how failed Milton Friedman's ideas have destroyed

 

[prasadr]

4 hours ago, Android_Halwa said:

Growth is projected above 6% and I don’t know in which part part of the world it is called as slow down. 
 

 

 

True,

And adding to it minimal inflation, means the actual growth is a lot higher.

 

Anyway, the fact is that there is a slowdown in India.

below are the reasons.

1. Biggest part is the global slowdown.

2. GST, not because it is bad but because medium and small scale entrepreneurs who NEVER paid taxes are now being forced to pay. i.e before businessmen would include "tax" as their income. After GST, they are being forced to tweak their businesses.

3. Transport sector is affected by multiple issues. GST which has been hugely positive for transport sector had unintended consequence. With times for transport being reduced by 40% - 60% meant that it is not taking as many vehicles as before to transport the same goods.

3a. The new generation is loathing to invest in a dead end investment like Car. For a youngster ten years back, car was a must thing to have. He had loads of money and could afford it. Now with alternates available and big cities being horrible to drive on, the mindset has changed.

3b. Technology, companies like Maruti are still offering same old in different bottle. The time of cheap products is over. People want quality cars with good features and safety. Reason why Chinese and Japanese cars are slowly but surely capturing Maruti's market share.

4. Farming sector. Despite the hue and cry, this is the biggest road block for any govt. Increase prices means poor and middle class will kick the out of govt and vote it out of power. Farming will always be a low income business in India with significant support being provided by govt. The only saving grace at this point is govt looking to reduce number of people dependent on farming.

5. Labor and land laws : Enough said and self explanatory. Unless these 2 are addressed, it would hard to entice companies out of China and now Vietnam.

[panipoori]

LTT

[Android_Halwa]

4 hours ago, prasadr said:

 

True,

And adding to it minimal inflation, means the actual growth is a lot higher.

 

Anyway, the fact is that there is a slowdown in India.

below are the reasons.

1. Biggest part is the global slowdown.

2. GST, not because it is bad but because medium and small scale entrepreneurs who NEVER paid taxes are now being forced to pay. i.e before businessmen would include "tax" as their income. After GST, they are being forced to tweak their businesses.

3. Transport sector is affected by multiple issues. GST which has been hugely positive for transport sector had unintended consequence. With times for transport being reduced by 40% - 60% meant that it is not taking as many vehicles as before to transport the same goods.

3a. The new generation is loathing to invest in a dead end investment like Car. For a youngster ten years back, car was a must thing to have. He had loads of money and could afford it. Now with alternates available and big cities being horrible to drive on, the mindset has changed.

3b. Technology, companies like Maruti are still offering same old in different bottle. The time of cheap products is over. People want quality cars with good features and safety. Reason why Chinese and Japanese cars are slowly but surely capturing Maruti's market share.

4. Farming sector. Despite the hue and cry, this is the biggest road block for any govt. Increase prices means poor and middle class will kick the out of govt and vote it out of power. Farming will always be a low income business in India with significant support being provided by govt. The only saving grace at this point is govt looking to reduce number of people dependent on farming.

5. Labor and land laws : Enough said and self explanatory. Unless these 2 are addressed, it would hard to entice companies out of China and now Vietnam.

For 3A and 3B, The simple answer is that India is a different market for car ownership and we have produced enough cars already. 
 

Indian infrastructure is made to suit public transport better, not individual car ownership. Indian automobile market although one of the largest, its because of the exports that has fueled the robust growth in this sector but not domestic sales. Domestic sales have only helped the auto makers to stay afloat but not profits. 
 

India will adapt to electric bikes and electric mechanism much faster than any other county and people who have questions on availability of electric charging infrastructure and facilities will also get a proper picture soon. 
 

Auto sector will keep on registering dwindling sales for few more months till we cut down capacity to match the actual demand.