Sajjid’s Postmortem of Indian Economy No Sickness Found

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September19, 2018 (C) Ravinder Singh ravindersinvent@gmail.com

JP Morgan Chief Economist Dr. Sajjid Z Chinoy gave a brilliant lecture on performance of Indian economy in the past two years which is likePostmortem of Economy but it didn’t report any ‘Sickness’ or ‘Malnutrition’ or ‘HIGH CHOLESTEROL PROJECTS MAKING ECONOMY UNHEALTHY’. He also didn’t tell what the Healthy Economy Must Have.

APPLE and AMAZON are first $Trillion Corporations in the World Economic History. APPLE invest in R&D outsource Manufacturing, AMAZON providing Computerized Efficient Marketing of mainly Foreign Goods.

‘US Fortune 500 marks the 64th running of the list. In total, Fortune 500 companies represent two-thirds of the U.S. GDP with $12.8 trillion in revenues, $1.0 trillion in profits, $21.6 trillion in market value, and employ 28.2 million people worldwide.’

Indian Fortune 500 reported $1.1trillion Revenue, $80b in Profits and Employee Cost of $110b and Net Worth of $650b Approx.

Indian companies like BPL making TV in 1995 had 20% Value Addition in India, 10% in 2005 and 0% in 2015 and TRADE MARK has survived.

What’s wrong with Raghuram Rajan and Dr. Sajjid Z Chinoy reporting’s is that GDP may be Going Up & Down but Load Factor of Power Plants, Railway Assets etc were AT PEAK OVER 75% and over 100% of Capacity 2005-08 – Sharp Decline in last 4-5 Years.

What both didn’t tell us ‘Secret of 10% Plus GDP Growth Rate Was Peak Interest Rate On Deposits in 2005-08’ that ATTRACTED MAX CAPITAL INFLOWS and SURGING BANK LOANS for Industry. It was Industry which MISMANAGED BANK LOANS, Didn’t Go for IPR, Didn’t Share Wealth Created With Public & Employees Like in US, Didn’t Invest in R&D and Knowledge & Skilling India.

USA employee cost of Fortune 500 could be 20% of US GDP, India just 4%.

Top 10 Families in India had taken 25% or more BANK LOANS. They are not FOCUSSED and Not CREATING Products for the World Market.

At an event in 1990 I observed ‘India accounts for 2% of World GDP – 98% of World Economy is Outside India and India should focus on This 98%’ progress in Three Decades is 3% but India’s population has gone up from 846m to around 1350m or 60%.

Relative to the World India had not made any progress – India GDP growth is due to SWELLING of Population than INVENTING & EXPORTS.

India in 4-5 Years Had Invested Heavily in Unviable & Unproductive Projects, Invested in Outdated INFRA – Ponds & Septic Tanks need Huge Annual Cost than Dams and Underground Sewers.

Ravinder Singh, Inventor & Consultant, INNOVATIVE TECHNOLOGIES AND PROJECTS

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