Tagged: Indian economy to grow

Vehicle sales prove a depressing point about the Indian economy


Please see the data below .  If you carefully examine the data ,  a few things are apparent ;

1. Sales drop in tractors indicate poor state of affairs in agri- rural India ( decline in agricultural sector )

2. Sales drop in Medium and heavy ( M&H) segment indicate actual decline in industrial output

3. Sales drop in light commercial vehicles (LCV ) indicate that the ‘Public sentiment’ is negative .

In the tractor segment 3,44,911 units were produced as against 3,72,282 units in the same period of last FY, registering  7% decline according to the data of Tractor Manufacturers Association [TMA].

As per the  data of the Society of Indian Automobile Manufacturers [SIAM], total production in M& H segment was 2,11,530 vehicles against 2,72,400 in the same period of last financial year.

Source : http://www.business-standard.com/article/companies/steep-fall-in-commercial-vehicle-production-in-apr-dec-113012500139_1.html

VE Commercial Vehicle sales down 20% in December

By PTI Jan 01 2013 , New Delhi

Tags: News
Automaker VE Commercial Vehicles (VECV) today reported a 20.17 per cent fall in its total sales at 4,032 units in December, 2012.The company, which is a joint venture between the Volvo Group and Eicher Motors, had sold 5,051 units in the same month in 2011.Domestic sales decreased to 3,598 units in December 2012 from 4,512 units in the year-ago period, a decline of 20.26 per cent, VECV said in a statement.
Heavy commercial vehicle sales slipped by 27.80 per cent to 678 units from 939 units in December
Rajendra Pratap Gupta
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Statements of Dr.Man Mohan Singh in the past one week


Some people have called it an aggressive speech , some have been taken aback . I rate Man Mohan Singh as politician under the ‘Learned Handicapped category’ , who can speak well , but cannot deliver physically  .

Has the country’s central bank ( Reserve Bank of India – RBI ) collapsed ?


On 22nd March 2012, i had written that we have ‘Oversold the India story’ https://commonmansblog.com/2012/03/ ) , and what i had predicted for the economy in the April , May and June quarter,  happened ! 

Again , on 11th October 2012, i wrote on my blog ‘How India was fast turning from a ‘Emerging economy’ to a ‘Submerging Economy’ ( web link  :  https://commonmansblog.com/2012/10/11/india-from-emerging-to-a-submerging-economy/ . Now , read the fact about our Central Bank . As i said earlier , i am not worried on the 2014 for elections , but for the economic scene that will unfold in 2013 for the average Indian middle class , we are building a disaster  & fooling ourselves ! It is a call to action !

On November 5th ,2012 ,  The Economic Times carried the report that , the country’s central bank , Reserve Bank of India ( RBI ) would run into losses if asked to pay interest on mandatory percentage of deposits banks have to park with the centre bank , called the Cash Reserve Ratio ( CRR).  The RBI has stopped paying interest on such mandatory reserves since 2007.  Finance ministry had suggested the bank to pay 7 % interest on these deposits . 

 Does it mean that the country’s central bank has collapsed ?  If yes , why have we not discussed this in parliament, and are looking at FDI and other ways like stake sales in PSU’s and auctions of the sovereign assets to hide this news and infuse money in the system . 

 
Prime Minister and Finance Minister owe and explanation to this nation on this issue .
 
 

NEW DELHI: The finance ministry has decided to review the expenditure and reserves position of the Reserve Bank of India (RBI) after the central bank indicated that it is not in position to pay interest on the reserves banks maintain with it.

A government official downplayed it as a routine review of the reporting structure and disclosure requirements of the RBI, but it comes at a time when there is already obvious tension between the finance ministry and the central bank over the conduct of monetary policy.

“It is the government which tables the annual report of RBI in Parliament, so there is nothing wrong if it (government) wants to know how RBI prepares its balance sheet. We are not questioning them or raising objections,” a ministry official said.

However, another finance ministry official admitted that the review started after the RBI had indicated that it would run into losses if asked to pay interest on mandatory percentage of deposits banks have to park with the central bank, called the cash reserve ratio (CRR). The RBI had stopped paying interest on such mandatory reserves since 2007.

The finance ministry had suggested that the RBI should pay 7% interest on these deposits, pitching it as a measure that will help lower rates even if the central bank does not ease monetary policy. It had argued that all major central banks either do not mandate a reserve ratio or pay an interest on the mandatory reserves they ask banks to set aside.

“RBI had made certain arguments. Now, we want to understand their expenditure sub heads, format of disclosures so that we both are on the same page,” the official said.

The government is studying RBI’s expenditure, revenue, contingency reserves and investments, he added. On Tuesday, the RBI dashed hopes of a rate cut, but lowered the cash reserve ratio (CRR) by 25 basis points to 4.25%.

Please check more eye-opening statistics on Indian Economy on my blog .

From January , 2013, i will be working full-time to figure out the economic model for India , that will take the country out of the current crisis

Rajendra Pratap Gupta 
Healthcare I Retail I Rural Economy I Public Policy