As far as my view on the economy is concerned, frankly it does not matter. Here I am with Peter Lynch – if I spend 10 minutes on finding out how the economy is doing, I think I have wasted 7 minutes at least. However there is too much media, student, colleagues, friends pressure to tell me what is happening. At my age if I say ‘I do not know’ they think either I am bluffing or asking money for talking.

Frankly I do not understand all this mumbo jumbo. I cannot see the government reducing expenses or the size of the government….so frankly I also belong to the Ken Fisher school of thought. If there is corruption – that money also flows into the economy, and the guy who gets the bribe / overpayment will use it sensibly.

However is the summary of the Economic Survey…I can assure you it is a cut paste job done with zero application of mind (so it might actually be good!!):

1.Indian economy to grow at  8.75-9.25% in FY12

Need persistent anti-inflation monetary stand (view may be wrong)
Inflation may stay elevated on West Asia crisis
Food price, demand pressure to drive inflation outlook – interest rate scenario is not too good
Savings, investment rates likely to rise further – scams worry people
Govt implementing gradual exit from stimulus – not too good
Probability of 2nd dip recession very low
Centre’s fiscal broadly on consolidation track from April to December – view, not substantiated
DTC proposed to be launched in April 2012
Rapid lowering of fiscal deficit needed – view, will not happen
Two types of banking licenses can be considered – what a joke
Regulators, states mulling new pension system expansion – what a joke
Farm sector expected to grow at 5.4% in FY11
Need 8.5% farm growth in FY12 to meet 11th plan aim of 4%
Growth prospects over medium-term look excellent – what steps are you taking sir?
Growth broad-based with rebound in Agriculture
Continued momentum in manufacturing, private services
Govt mulling ways to revive closed urea units
Industrial output growth at 8.6% in 2010-11

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. i dont understand why they call reducing various taxes as stimulus. does the robber say,i’ve stimulated you by picking your pocket a little less?. the money didnt belong to the robber to ‘stimulate’ in the first place.
    also,the west asia crisis didnt create inflation.that is old keynesian dogma.sarkari money printing is the ONLY cause of inflation.always.if money were constant,the reduction in demand for oil(due to middle east supply trouble) should be offset by reduction in prices of other things for which demand will have now fallen -we see no such idication at all.everything is costlier

  2. correction: increase in prices for oil would be offset by reduction in prices of other things for which demand will have now fallen -we see no such idication at all.everything is costlier

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>