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Started by : Esha Johar, Risk Analyst, Irevna   11 05 2009 13:18:45 +0000
Industry : Asset ManagementFunctional Area : Growth(Strategy & Execution)
Activity:  405 views;  last activity : 09 12 2010 17:58:16 +0000

Everyone is talking about financial crisis that effected most of the countries in the world. But there is less talk on financial crisis in India as it didn't effect the Indian economy much. Now the Indian economy is performing well compared to other economies. What are the Opportunities for the Indian Economy because of financial Crisis?

pls share your views.........

 
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1 Cutting down prices in real estate sector improves Indian economy
2 Investment by global economies in Indian market
3 Disipline and confidence will improve
4 AVOIDING BUBBLES EFFECT FROM THE ECONOMY
5 As it was , we need to have liquidity in the market which will help keeping a support under drastic fall of global economy.
6 opportunity to strengthen its ecomomy
7 Bring more consumers, big and small to act as shock-absorbers
8 Disinvestment and privatisation of public sectors
9 crisis
10 Foreign outsourcing oppoptunities in Indian market
11 aliitle shift from service sector to manufacturing sector
12 its a golden opportunity for the over heated economy to cool down.
13 Maximum utilisation of resources
14 cutting down the prices of commodiates will improve purchase power then the cycle will start
15 Improve the consumption Pattern of Middle & lower class population for rasing demand

Cutting down prices in real estate sector improves Indian economy

idea posted by Rashmi Patil Financial services

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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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 12 2009 11:45:39 +0000

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

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by Ravi Vazirani, Business head, Solutions Unlimited  | 11 12 2009 05:14:23 +0000

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

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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 11 2009 05:53:17 +0000

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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Investment by global economies in Indian market

idea posted by Esha Johar Risk Analyst, Irevna

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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It is not only because of slow down in economy, foreign investors  are investing because of stable govt, present economic policy and potential of the untapped market.

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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 11 2009 15:15:35 +0000

Sir, would you please explain the rising cost of living. Potatoes at Rs 25 per kg and pulses around rs. 80 per kg, is not the sign of developing eccnomy.Will it not cause a social unrest,?

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Disipline and confidence will improve

idea posted by paul wilson Regional Head, NBFC

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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AVOIDING BUBBLES EFFECT FROM THE ECONOMY

idea posted by ROMESH CHANDER propreitor, ECS NEW DELHI

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.

idea posted by yogesh gupta Application Developer, ibm

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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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 11 2009 15:20:41 +0000

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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opportunity to strengthen its ecomomy

idea posted by sushil kumar singh legal advisor, citi financial

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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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 11 2009 15:23:53 +0000

Mahtama Gandhi proposed to make every village self dependent for basic daily needs. That would save the population from evils of naxals and maoist.

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Bring more consumers, big and small to act as shock-absorbers

idea posted by ASOKE KUSARI Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India

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 privatisation of public sectors

idea posted by Ravi Vazirani Business head, Solutions Unlimited

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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idea posted by manikanta raj Deputy Manager Finance, project financing, leading Financing company

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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Foreign outsourcing oppoptunities in Indian market

idea posted by Esha Johar Risk Analyst, Irevna

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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aliitle shift from service sector to manufacturing sector

idea posted by Patnana Bhaskara Rao Head/VP/GM-Finance/Audit, Prajay Engineers Syndicate Limited
give proper importance to manufacturing sector also
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by ROMESH CHANDER, propreitor, ECS NEW DELHI  | 11 12 2009 11:52:32 +0000

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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its a golden opportunity for the over heated economy to cool down.

idea posted by Sanjay Saraswat Executive, Government
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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Maximum utilisation of resources

idea posted by Partha Ghosh Manager- Operations, The Peerless General Finance & Investment Co Ltd

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

idea posted by s.kannan Manager - MKTG/CSW/Hr, citilightss properties pvt.ltd
s.kannan, hr head - citilights properties pvt.ltd
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Improve the consumption Pattern of Middle & lower class population for rasing demand

idea posted by Kuldeep Kumar Mehndiratta Accounts Manager, Spirit Global Constructions Ltd.

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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