India’s economy

Despite slowing from highs of 8% to 9% growth, India’s economy will grow close to 6% in 2009. Amid domestic and global liquidity crunch, large domestic savings and corporate retained earnings are financing investment. Sluggish labor market and wealth effects have hit urban consumption. But low export dependence, a large consumption base and the high share of employment (two-thirds) and income (one-half) coming from rural areas has helped sustain consumption. Pre-election spending, especially in rural areas, and high government expenditure, are also pluses. Timely monetary andSalman Khan, a portfolio manager in California has created hundreds of free educational videos, available on his web site, the Khan and on YouTube. These videos cover the basics of banking, finance and the current credit crisis — I saw a couple and they’re quite good. Even more importantly, there are hundreds of videos on mathematics (algebra, calculus, trignometry, probability and more) and physics. Salman has three degrees from MIT and one from Harvard, so he knows what he’s talking about. Anyone, anywhere in the world can benefit — all you need is access to the Internet. A good idea, fantastically implemented. Thank you, Salman for investing all this time and energ
Kudos to Amit Varma and Reuben Abraham
Amit Varma, India’s foremost blogger and award-winning columnist, has been busy recently.His first novel, My Friend Sancho releases this week in fine bookstores all across India. Click here for launch details — so far, it’s Mumbai, Delhi, Kolkata, Bangalore and Chennai. If you’re in any of these towns, this is bound to be a fun event. Amit is a delightfully witty and amiable chap, if we say so ourselves credit measures have played a key role in improving private demand, liquidity and short-term rates and reducing the risk of loan losses. Credit is largely channeled by domestic banks, especially state-controlled ones, which have low loan-to-deposit ratios and little exposure to toxic assetsGiven Roubini’s track record over the last three years, he’s certainly built some cred. Do you agree with his assessment on India, though?“For what it’s worth, a key conclusion from the IMF’s new World Economic Outlook is that recessions caused by financial crisis typically end with export booms, with the trade balance improving,on average, by more than 3 percent of GDP. I find this a disturbing result: we’re now suffering from a global financial crisis, which means that the usual driver of recovery will only be available if we can find another planet to export to.”Paul Krugman With results still coming in, projections show the United Progressive Alliance is likely to win about 250 seats, making it a shoo-in to form the next government and provide continuity, a stable administration and progress on key economic and corporate reforms.Wall Street Journal, Prime Minister Manmohan Singh’s electoral victory, the biggest any Indian politician has scored in two decades, may loosen political shackles that have restrained the country’s economic growth as it struggles to free half a billion people from poverty…..Political stability will make India a more attractive investment destination as Singh, 76, seeks the funds to stimulate Asia’s third largest economy.Bloomberg, May 18 2009.Many are called, but few are chosen, as the saying goes. But could it just be that this time around, and on a one-off, never to be repeated basis, India might find itself right there in the midst of things, with a 50-50 opportunity to add its name to that select and noble band, the chosen few. After all, someone has to lead the next global charge? The majority of the developed economies are either bogged down in the substantial quantities of debt that they desperately need to pay off, or weighted down by those elderly populations who are weakening consumption growth and leading to export dependence (Germany, Japan…). And as Krugman humorously points out, someone will have to add the extra demand which will allow global trade to start to grow again, so why should India not supply a significant part of this new demand, after all we are more likely to find consumers in India than we are on MarsSalman Khan, a portfolio manager in California has created hundreds of free educational videos, available on his web site, the KhanAcademy and on YouTube. These videos cover the basics of banking, finance and the current credit crisis — I saw a couple and they’re quite good. Even more importantly, there are hundreds of videos on mathematics (algebra, calculus, trignometry, probability and more) and physics. Salman has three degrees from MIT and one from Harvard, so he knows what he’s talking about. Anyone, anywhere in the world can benefit all you need is access to the Internet. A good idea, fantastically implemented. Thank you, Salman for investing all this time and energy. Kudos to Amit Varma and Reuben AbrahamAmit Varma, India’s foremost and award-winning columnist, has been busy recently. His first novel, My Friend Sancho releases this week in fine bookstores all across India. Click here for launch details so far, it’s Mumbai, Delhi, Kolkata, Bangalore and Chennai. If you’re in any of these towns, this is bound to be a fun event. Amit is a delightfully witty and amiable chap, if we say so ourselves.