| Topic : Lessons Learnt from the Financial Crisis |
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Banking & Insurance Professionals |
Business and Law |
Investment Hub |
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Activity:
405 views;
last activity : 09 12 2010 17:58:16 +0000
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Cutting down prices in real estate sector improves Indian economy
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Investment by global economies in Indian market
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Disipline and confidence will improve
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AVOIDING BUBBLES EFFECT FROM THE ECONOMY
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As it was , we need to have liquidity in the market which will help keeping a support under drastic fall of global economy.
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opportunity to strengthen its ecomomy
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Bring more consumers, big and small to act as shock-absorbers
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Disinvestment and privatisation of public sectors
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crisis
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Foreign outsourcing oppoptunities in Indian market
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aliitle shift from service sector to manufacturing sector
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its a golden opportunity for the over heated economy to cool down.
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Maximum utilisation of resources
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cutting down the prices of commodiates will improve purchase power then the cycle will start
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Improve the consumption Pattern of Middle & lower class population for rasing demand
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In my opinion the cutting down prices in real estate sector due to financial crisis would attract buyers and restore confidence in them. This development will enable middle-class families to think of having their own homes which were not possible earlier because of the high prices. By developing middle-class families it is for sure that Indian economy will be affected positively in long run. Here Indian economy is getting a good opportunities to improve its economy by exploiting the effects of financial crisis. |
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We have millions of people migrating from villages where they have their homes, but the expanding faimilies in cities need more houses and a respectable living.the salary structures in India are such that one can not pay back the loans in five or six years. The rents are high and the installments along with intrest are app. the same. So whereis the exelrator to promoting housing for middle class people
BUT INSPITE OF REDUCTION IN REAL ESTATE PRICES WHHERE IS THE QUESTION OF LOWER INCOME AND LOWER MIDDLE CLASS PEOPLE ABLE TO OWN HOMES . WHERE ARE BANKS AGRESSIVELY DISTRIBURIONG HOME LOANS TO THESE PEOPLE
THANKS TO TATA HOUSING AND MHADA LOTTERY AND TANAGI CITY WHO ARE HELPING LOWER INCOME GROUPS BUT 3000-15000 FLATS ARE INSUFFICIENT
SECONDLY SLUM REDEVELOPMENT HAS NOT BEING PROPERLY GOVERNED
THERE ARE OTHER BASIC ISSUES RELATED TO DISPOSABLE INCOME VERSES RISING INFLATION AND CORRUPTION AND INEFFETIVENESS OF PUBLIC DISTRIBUTION SYSTEM
Real estate sector has a tremendous potential for earning and employment and would help the national economy besides raising te living standard of the masses. A care full analysis of cost and benefits as done by the large scale traders and manufacturers and reducing the margin of profit and increasing turnover in terms of unit of houses would be as profitable as making limited nos of units. The Govt. can also heelp in providing land at very low rates at specified locations as per thwe master plans.
The new construction materials and bulk purchases can further help reduce the cost price.
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In the recession, India and China are the least effected countries. We didn't face so many job losses as the western world did. That is the reason, they invested a lot of money in the Indian markets which added strength to Indian economy... |
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Being the second largest populus country of the world, India along with China together consists of more than 2.5 billion population of the world. More over the two Population giants are in their developing stage and provides the global communities the biggest market for investments in the multisectoral indian business environment. Ofcourse due to the global slowdown the world community have shown greater inclination towards indian market because this developing country has enormous opportunity to grow. So Investment by the global community in the indian market is not only due to the global recession as indian forex was quite good prior to the recession also. But definitely the global recession has enhanced the global interest in the indian market tremendously.
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The financial crisis in American and European economies led to the opening of certain opportunities: 1. Financial expertise in our economy can be beneficially lend to other countries 2.Conservatism in our outlook,though not always good, found its value especially in financial matters. 3.A certain quantum of brain drain could be prevented and used well for our development. 4.Stability visible in Indian markets imparted confidence to foreign investors and hence attracted more investment and avenues for growth. 5. The domestic manufacturing sector is likely to see big growth in government oriented areas and private investor permitted areas. More liberalization policies will follow from the Govt., which survived and managed an international crisis. 6. Confidence of the average citizen has been boosted and this will pave way for the development of the nation. 7.More emphasis will be laid on development of agriculture sector, which is the nerve of the country.
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Adding to this argument, I can say that through this crisis many Indian companies had opportunity to correct their course of action, reduce exorbitant costs.... this was well utilized by many big Indian companies.
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What we produce is consumed and some times there must be some surplus.But when we go in producing and just accumulate to rot as in the case of food grains, which is because of negligence and indifference then thereis an another burden called waistages. The cost can be subdivided as follows to seek the bubble effect that deflate the baloon of economy. MATERIAL COST OWN MANUFACTURE BOUGHT OUT ITEMS LABOUR COST DIRECT INDIRECT EXCISE , CUSTOMS AND TAXES STATE INDULGENCE DEPRICIATION GENERALLY INFLATED PROMOTIONAL EXPENSES TOO MUCH AS COMPARED TO COST OF PRODUCTION COMMISSION AND AND OTHER SELLING EXPENSES INCLUDING RANGE ARROUND 40 PERCENT OF mrp cost COMMISION TO DEALERS Depending on the demand and supply the investors and the share market unnecessary float the prices to a level which has no relevence to the cost of production and create bubbles at different stages of cost stucture. We are not coonsidering the efficiencies of various manufacturing tools and var iable.But the effect of effeciency increase up to the point of manufacturing is very negligent ascompared to the profits sought by the investors or finaacial input makers
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As it was , we need to have liquidity in the market which will help keeping a support under drastic fall of global economy.
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As it was , we need to have liquidity in the market which will help keeping a support under drastic fall of global economy.Whenever economy crashes , it needs a support at lower levels so we need to maintain the balance between assets which can provide liquidity when needed. |
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Liqidity sounds good but what is the cost of it. Loans and debts or grants are not good in the long range,but one can fixed assets but durable consumable fetch no value. Even the Houses in Usa could not fetch enogh liqidity. Perhaps we should redifine it
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Its good time for India to strengthen its economy on basis of its own resources and to be self dependent in every sectors. |
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Enlarge the economy - its scope and spread. Bring cconsumers, small and big to act as shock absorbers. We have learnt from the Global crisis that only a few Banks, few sectors, few consumers, narrow geographical spread, hand-ful of Big billings may not save is case of a crisis. c Spread and spread. Bring more consumers to your fold. Widen the varaities and reach - reduce the price of your products where possible. Dont rush and crowd to the sector which is lucrative ( Housing / Sub-prime in USA ? ) at a point of time. Uplift the citizens living standrad keeping in view that they are your future customers. Serve your company and society at the same time. Your company may not survive when people are suffering.
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Disinvestment and privatization of public sectors would ensure liquidity into the economy and hence this money could be utilized in creating self employment opportunities and reduce regional differences . This is a multiplier effect and would help raise economy Secondly cut into expenditure or cost of unnecessary nature would reduce prices and would help save income in hands of many thirdly public private partnerships into distribution of various essential commodities would help economy to grow turnaround strategies and focus into core business by corporates |
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due to the financial crisis india is less effected and thanks to the conservatism of the country. No advancement in F&O market in introducing new derivative instruments has saved us. In crisis one country economy is effecting means it is not an opporutinity for another country to develop. the oppurtunities that are open will be less. the best award for india in crisis is attracting FDI. Since india is least effected because of crisis and economy is strong to appear for FFIs the investment floated into our country gain much better as compared to others. It is the question that how best this investment is utilised by us and how long these cash flows were held up in the country is really important to best utilise the opportunity. but the fluctuations in the stock market frequently signals that the time to utilise the opportunity is evauporating before u touch it. |
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I think after the financial crisis many foreign companies are finding hard to perform in their native country because of the high operating cost. But at the same time as Indian market was not much effected and is doing well compared to other countries so many foreign companies are coming to India for outsourcing purpose which is good for the growth of Indian market. |
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Manufacturing should be supported by service sector. To elaborate and explain in my opinion, it is a crime against the EARTH to produce use and just discard without repairing . Take the case of automobile sector in western countries
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Prices of most of the items and services have un necessaryily shooted up. There has been no logic for the inflation except for the fact that suddenly there is a certain section which is in the position to spend more. Moreover extraordinary high salaries and rat race has lead to escalation of costs and great divide among the salaried class. Hope it comes down to the realistic levels
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Effective utilisation of available resources will occur because of present scarcity.It has somehow been neglected/ overlooked earlier. |
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cutting down the prices of commodiates will improve purchase power then the cycle will start
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We can overcome of problems of financial crisis thru raising the demand of consumer goods as well as essential commodities in indian economy. This demand can be increase thru improving the purchasing power of middle & lower class population. Becasue these class of people inncurred thier large scale of incomes at essential and consumer goods. As well as demand of goods will increase in market , same time we have to increase the supply of goods to full filll this increased demand. When supply of goods will increase the demand of factor of production will also increase semulteniously in market . The factor of production such as Land, labour and capital situation will improve in the market and it will generate new employment opportunity in market . New employment improve the financial postion of middle & lower class population . As soon as Financial position of these class will improved the saving and investment of funds also increase in market As well as saving improve the liqudity of funds increase in market and this liquidty will imoprove the pruchasing power of these class population automaticaly . In this way we can came out from vecious cicle of poverty soon. The end of financial crisis in market can possible thru central and reserve bank of our country. Because thru RBI and central bank agency's instructions will be passed to other fianancial institution and this will become mandatory guide lines for othe financial institutes after that these F.Is. will boost the funds in market for consumers. When these credit faciltiy will availed by population for improve the consumption pattern . then this increase demand of consumers goods and other goods in open market . This alos improve the demand and supply of finance in local as well as in international market. Then stock and share market ramain stable for propective economics planning of developmnet and growth of the our country. |
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A set of people believe that dreams change and hence buying a dream home just increases the maintenance cost whereas renting one is relatively better option. In today's world where the property rates are increasing like nothing else. Which... |
JV needs more dedication and yes sir back stabbing approach kills it all. The end result of a well set JV with values gives more value. |
No we are not.. not right now. We are still in recovery stage and this time I do not think the same mistake will be repeated. Having tough time is one thing and going back to recession is totally different, we cannot mix them. |

