blr_p
Oracle
Why ? what will happen if someone brings a laptop over
Nothing.
things will at most be 10% more than earlier over there.
Import of finished electronics will be curbed
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Nothing.
things will at most be 10% more than earlier over there.
nRiTeCh
Oracle
Yeah very much. Those are just normal toys. Just make sure you aren't ordering those 1:12 big sized fancy model assembly lines costing over $30+ which weight more than normal and do look costly for which the customers wont fall for the fake price decl. by the seller.
blr_p
Oracle
Precautionary for now. Will be relaxed later if things improve. When that will be is anyone's guess
https://economictimes.indiatimes.co...-and-modi-government/articleshow/65804879.cms
He is referring to the the hardware prices in US are increasing, so buying in US and carrying to India like I do every time for GPU's won't be as meaningful as before. Also, since many manufacturers use the US prices as baseline for selling elsewhere too and there is also dependency on US dollar, the prices everywhere will increase with increase in US prices.
Also trade wars are stupid. What is putting tariffs on stuff from US going to do apart from making them even more expensive for the consumers. Don't forget that all taxes are passed on to the final consumers only.[DOUBLEPOST=1538199683][/DOUBLEPOST]
Stuff being held by customs more frequently these days. A colleague ordered a blue tooth head set worth ~Rs 2000 from AliExpress and it got held up at customs for more than a month and released with a a duty of Rs 700.
Why is the Indian govt adding import duty? They should have taken it as a good time to actually decrease duty and decrease the trade imbalance. Saying everything is a luxury and putting duty on it is like begging for free money from people. On one hand they are making it difficult for local companies to outperform Chinese goods by increasing taxes on raw and finished goods and other hand they are saying the country is importing too much. Country is run by bunch of failed economists and ministers who can't see beyond 1 foot.
Failed economists? They were never economists to begin with for them to be failed economists. This govt motto is impose more and more taxes on the common people and thinks that it will make everything work.
Just look at the havoc on stock market this year due to govt policies, rupee depreciation and trade war. Same for equity mutual funds. Now its being said that there could be impact on debt funds too. Lending is becoming costlier and soon there could be impact on home loans and other loans.
The "Make in India" program is a total sham. Most of its beneficiaries apart from a few Chinese manufacturers are shell companies belonging to politicians. Recently, raids in Hyderabad caught 114 companies operating form a single room in a mall. Who knows how many such setups exist.
Just look at the havoc on stock market this year due to govt policies, rupee depreciation and trade war. Same for equity mutual funds. Now its being said that there could be impact on debt funds too. Lending is becoming costlier and soon there could be impact on home loans and other loans.
The "Make in India" program is a total sham. Most of its beneficiaries apart from a few Chinese manufacturers are shell companies belonging to politicians. Recently, raids in Hyderabad caught 114 companies operating form a single room in a mall. Who knows how many such setups exist.
tashreef301
Beginner
Isn't this a stupid move? I mean how can Indian OEMs start producing computer chip and GPUs, it will take decades and why will Intel and AMD start a Manufacturing plan in India which will be nothing but disaster for them? Ban on Gold is fine, electronics is just stupid.
blr_p
Oracle
because they want to curb non-essential imports. Decreasing duty will not decrease the trade imbalance it will increase it. This in a nutshell is what Trump is pushing for. Getting other countries to lower existing tariffs by raising US tariffs otherwise.
Where are taxes on raw goods going up ? title of this thread says finished
They are increasing taxes on finished goods to curb imports. But they've always done this anyway to benefit local companies. They're raising them further now
1) 49,000 crores got pulled out since Jan by FII, they've gone back to the US because interest rates are rising there
2) Oil prices have risen
3) We have the beginning of what looks like a trade war.
These are all external factors with which we have to deal with.
What's helping us is the govts economic handling. Only opposition whines about this. They have to find anything to slam the govt on.
- growth rate over 7% reaching 8 in the next quarter
- external debt is 15% of GDP compared to other emerging markets
- slew of measures taken of which curbing non-essential imports is just one to deal with global volatility
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We can't expect anything better from these illiterates.
Oil import makes up the majority of the cost of trade imbalance. Maybe curb it first. Its non essential like fridge, electronics etc.
Let me give you an example that shows reducing duty will lower trade imbalance.
If USA puts 10% duty on Indian imports into USA, does not mean that India should put 10% duty on USA imports. Lets say total trade is 100%. USA imports more from India whereas India imports less than USA. Lets make that ratio 80% USA, 20% India. USA's main gripe is India is not buying enough stuff from USA hence they increased duty on Indian goods to reduce Indian imports. Now India does the same and puts import duty on products. Assuming there is no decrease in the 80-20 ratio, one problem is India's decreasing rupee value. If you didin't notice till now, India being a currency manipulator has depreciated the rupee by 5-6 rupees in around 8 months. Why did they decrease the value? To make exports which make up just a fraction of our imports have some value. That means more widening gap between the trade imbalance. What was 80-20 will look like 85-15 now in coming months.
All those 7-8% GDP numbers make no sense when in UPA's time it was around 11% and growing and your dear leader got a fit one day and removed all currency from the market to boost his ego.
where did you copy paste that from? what does it even mean? what does curbing imports have to do with global volatility? you said in the last sentence that FII pulled money off from India because rates are increasing there. That is not global volatility. That's just normal for stock markets. More than a few lakh crores of FII money left India during the UPA regime and they came back after few months. UPA did not increase duty any where saying non essential. If 49000 crores makes the BJP lose their cool, they should resign and give the reigns to UPA or Congress who will do a better job of managing the finances of the country inspite of all their scams.
Edit: Seems China thinks the same regarding cutting duty on imports.
China to cut import tariffs on wide range of products
Notice how they reduced duty on raw materials important for production of finished goods? Now their exports will rise even more. Increase in exports = reducing import-export gap further. Also notice that they have maintained the dollar-yuan rate high at 6.85 RMB even though they have a trillion dollar imbalance.
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blr_p
Oracle
Are you saying we should curb oil imports ? that first sentence isn't clear to me.
Cannot curb oil imports, as we export as well as indicated by that commerce dept website i linked you to earlier. Curbing will further increase fuel costs here more than necessary.
As for the bolded bit, if India were to respond in the manner you suggest then Trump's strategy is working. Problem is our guys are thinking why should we reduce tariffs on american goods. What are the americans giving us for that. The answer is simple, we've had tariffs since forever and Trump has decided to do something about it. I would very much like to see us reducing duty in imported US goods. Trump's idea to reduce his trade imbalance is by getting others to run up trade deficits with the Americans. At least in the short term.
Listen from 3:00 onwards from this vid for the govt's five pronged policy action. We're dealing with a moving target here so these steps might be seen as pre-emptive due to uncertainty and there could be more to follow in the months ahead. Meaning they appear more stringent than necessary, this is because of uncertainty. It's better to tighten belts earlier when there is time then to be forced into it later when elections will be closer.
This govt benefited from the coincidence of oil price drops as they entered office but are certainly facing the opposite now at the end of their term.
ok, so what you really mean to say is India should ALSO reduce tariffs on raw materials like China has. That could still happen or do you not think it will ? China's economy is heavily export dependent. They feel the pressure much sooner than we do.
yup, its clear as daylight. Most of India's money goes into importing crude oil. If we ban cars for alternate days all through out India we can reduce consumption on oil.
this is what i don't understand. the govt is trying to plug tiny holes in a dam gushing water from a huge hole at the top. You are okay with curbs on refrigerators which will probably be 5 star level and reduce electricity consumption than curb wasteful oil imports that go into polluting the environment?
Trump is an effing idiot who does not have any strategy other than keep changing words and sentences. India has always had import duties on goods claiming they are a developing country. This was done so that foreign countries mainly from Europe and USA could not dump goods in our markets and kill our fledgling companies. That was what Indian govt was thinking when putting those duties. What actually happened was that Indian companies don't have that fire in them to do R&D here and make good products which other companies want. They just end up copying stuff or licensing stuff from the same companies they are closing the market from. Ambassador, Maruti, etc all of these cars are copies of hit foreign cars. Maruti was hyped as Indian, but most of their cars are like Japanese Kei cars.Even the engine CC matches to KEI car CC of 610 CC. Probably even the engines are just copies of the Kei car engines. No doubt Suzuki /Maruti do the same even today and just bring in Japanese imported engines in parts here and assemble them. This can be seen in almost other sectors like pharma etc where all we do is sell knock off or generic type goods.
So since those duties were for growth of Indian industries and helped our Govt gain extra money in the process, they were never removed completely. Looking at the failure of our Indian companies today, there is no hope that they will even compete with other companies in future. They were given 60+ years and look what they are now. Still spewing out crap quality goods in Indian market.
Regarding the Govt thinking why we should reduce tariff's on American goods - one it won't make a difference whether we reduce tariffs on American goods or not. America is not the country it used to be 60 years back when it was a manufacturing base for most of the goods. Now its like India where most of the stuff is just imported from other countries and sold there. Another thing is America does not have what India wants. Most of the stuff they export would be electronics or other items at ridiculous prices that Indians cannot afford. Even they don't bother with R&D now like they used to before. Example - In Japan and China, American car companies are trying to sell their huge cars (called trucks for some reason) there. Do you see their folly? China and Japan have small roads and high petrol/ diesel prices and even higher road taxes than USA. On top of that the cars are huge and hog the road width, like they were made for elephants, with huge turning radius. You must have seen such imported cars here in India which looked ridiculous on roads.
What are Americans giving us? Aren't they importing more from us till now than we have been importing from them? They hardly have duty on our items and actually helped support our stupid companies all these years. What did we give them back? More duties? Imagine if Trump puts curbs on Indian IT sector? What will happen is Indian IT sector will leave India in the blink of an eye and shift to Brazil, Philippines, Vietnam etc where their own IT sector is coming up. Then all the call center bragging will be gone and Indian govt will be left wringing their hands again.
Regarding video: Lets look at their 5 pronged strategy for increasing rupee value.
Everything below is in relation to the video.
1 - removal of withholding tax on masala bonds. Masala bonds
So govt was taxing people interested in lending money to Indian companies for building infrastructure and now they are thinking of removing that tax? hmmm.
How much were they taxed? 0.5%, 1% 2%? I doubt it would be more than 0.5%. No idea, so cannot say anything more on this.
2 - relaxation for foreign portfolio investors. (no more details given) What relaxation? how much? I doub't anything much will happen if the govt is still stuck in middle ages.
3 - curb non essential imports ( thread topic) non essential for whom? old man Jaitley? That old guy probably has all imported goods in his house and imported cars etc. Probably has an ac in his toilet too. These guys have that "we got what we wanted, **** others" mentality. No use talking about their list of "non essential goods". How much difference would it make? In the starting of the thread if I remember it was somewhere around 58000 crores for every "non essential goods" combined. Oil imports in 2017-18 was 5.65 lakh crore. Its growing every year by 25% or something. What do you feel is higher? 5.65 lakh crores or 58000 crores?
4 - widening of current account deficit. Probably because of increase in oil imports.
5 - And check the rupee fall. What? wasn't the 5 (4 now) pronged thing to reduce rupee fall?
They are comparing us with Turkey and Argentina now. What happened with comparing with China, Singapore, etc? What next? Venezuela and Zimbabwe? Anything to make India look better I see. Better to compare us with the lowest country in the world in every index like Somalia or such African nations. We'll look like first world nation then compared to those nations. :rolls eyes:
All the talk of global imbalance is just shifting goal posts here and there. Some one tell me how China-USA trade war affects India? Will India-USA trade war affect other countries like China, Japan etc?
Yes, reduce to zero (remove) duties on all imports.
Do I think it will? No it won't happen because our Govt thinks like Trump thinks in regards to import export deficit. Why is the govt putting duty on oil imports which is killing the economy? Why are the states also increasing the duty while saying oil price is increasing? Oil is a money maker for them. Those duties aren't going anywhere in coming future.
I know USA is at a very good spot to not put import duties because of the strength of their dollar. But they are in trillions of debt. There is no way they can pay off that huge amount of money in coming decades. If they go down, no country in the world will be left standing no matter whether they have zero import export deficit or very low deficit. USA importing stuff is like the pillar of world trade now unfortunately. I say, do what they do and reduce import duties on everything imported to zero. This will naturally widen import export deficit but it will nowhere be as large as USA's.
Hell, I think sometime in future there will be a huge economic war due to all this free trade nonsense and it may level out the import export deficit nonsense too. All countries need to think not in terms of deficit but something else. Deficit is not necessarily bad. What's wrong in importing something that local companies cannot make properly even if they were give the blueprints to it?
China's market is export reliant compared to India's which is import reliant. India will feel the pinch faster than China because the govt has to pay money in dollars first. Decreasing value of rupee only adds to the burn. Most of India's money goes in paying oil companies in dollars for oil imports. Jaitley should have done all these steps when the rupee was still at 58 level in 2014. That 5/4 pronged strategy wont work now. It's like pissing on the fire when the entire room is fire.
N
NotMyRealName
I haven't personally verified this but still: https://www.washingtonpost.com/poli...has-made-more-than-false-or-misleading-claims
blr_p
Oracle
I don't care what the american opposition says. Trump's in charge and all indicators there are looking good. That's it, now figure out what his policies mean. See, that part you have to search for even pay.
Bashing comes for free.
adventureguy
Innovator
what indicators? Because of impending trade wars, companies are prepping up their inventories. Once trade wars set in fully and prices rise, people are gonna pay more or stop spending. If economy is doing that good, why is there $12 billion aid for farmers announced by trump?
US and china are worlds' largest economy and trade war between them can be felt in coming months once companies adjust to higher prices and manage their inventories better, it won't be abrupt.
Side effect of falling rupee. FII's pulling out crores from stock market because rupee is falling drastically in months. 10 rupees fall in less than a year = failing economy in eyes of investors. No wonder no one wants to invest in India any more since we have dumb people running the country. Also the idiot sitting at helm post in RBI said RBI isn't there to stop rupee fall. Then what is he doing sitting there? Eating pakoras? 
FPIs pull out Rs 9,300 crore in just 4 sessions
Bad decisions after bad decisions. Any govt which comes after this will have a huge headache.
FPIs pull out Rs 9,300 crore in just 4 sessions
Bad decisions after bad decisions. Any govt which comes after this will have a huge headache.
Well, they will just push the blame on to congress like they always do there will always be a lot of stupid people to believe it.
In any case, this country is completely screwed. Market Analysts are already saying the present stock market correction that resulted in evoparation of 16-17 lac crore is just the tip of the ice berg. The worst part is yet to come in November once the Iran sanctions come into force. Fuel rates will get jacked up by 40-50%. Rupee will depreciate further. Nifty index is expected to go down another 1000 points if not more.
In any case, this country is completely screwed. Market Analysts are already saying the present stock market correction that resulted in evoparation of 16-17 lac crore is just the tip of the ice berg. The worst part is yet to come in November once the Iran sanctions come into force. Fuel rates will get jacked up by 40-50%. Rupee will depreciate further. Nifty index is expected to go down another 1000 points if not more.
blr_p
Oracle
unemployment is down, growth rates are up. What more do you want.
See, this whole thing about trade war remains to be seen. Trump managed to strong arm Mexico & Canada into a new FTA. They will be using the same tactics with others. China imports only 150 bn, US imports over 600bn from them. Who do you think is going to be hurting more
So its the 'threat' of trade war without needing to have one that is the idea. because trade wars are bad and nobody needs them. Who blinks first in this game of chicken.
Same with sanctions. You want to trade with the US then do it on their terms or stay out.
Check his ratings
Unlike other polling companies those guys actually predicted he would win back in Nov '16.
Total approve into the 50's now thanks to USMCA. It needs to stay there until Nov and he's good at the midterms.
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blr_p
Oracle
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