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gopal
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   Posted: 29/Feb/2008 at 4:16pm |
Tiger Bhai,
But there was no mention of payhike / pay commission in budget ........
In budget only salary of aganwadi workers and rural workers were increased by Rs 500 to Rs 250 /--
So that means that apart from budget the government will still make more provisions for expenses kiya .....
thnx
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Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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omshivaya
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Joined: 06/Sep/2006
Location: India
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Posted: 29/Feb/2008 at 5:50pm |
Originally posted by basant
The additional money from savings arising out of the hike in IT exemption limit instead of going to the Govt. will now remain with banks mostly the ones that cater to the up market citizen.
Now if x cuts a check to y the money still remains with the system; if they earn more post tax they can take more consumer loans; credit card spending etc. They will invest money into the markets as well. This will really give all companies in this segment a big trigger.
So on one side the upcountry banks get more money and on the other they can lend more. It also indicates that people who have taken loans can now repay back with more ease. This should help protect bad loans also.
Investor: You are right they could even buy a few bottle openers!!! |
Pantaloon seems to me to be the best beneficiary of this "extra buck" in the consumer pocket. Of course there are others too, but PRIL seems biggest candidate. Capital market related stocks would also be the next beneficiary bcoz Indians are realizing value of long-term investments, but this would take time...as the market mayhem in recent past is still fresh in investor memory (Some investors may not be pukka Mungerilals but they are not real long-term thinkers too but do act like they are).
WHAT will take the larger pie of the 'extra bulGe' in the consumer wallet,it would be very interesting to see: investment or consumtpion
What has been the ratio so far for last 5 years, would also be interesting to know!! Like, if Rs. 10,000 extra is put into the pocket of the average indian, in what ratio does he spend viz. a viz., "consumption:investment".
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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nitin_jagtap
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Joined: 29/Dec/2007
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Posted: 29/Feb/2008 at 5:59pm |
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Saving saving saving ..thats what most of we indians have been taught in our younger days ... so we dont invest wisely neither do we spend wisely ...so its like dead weight and all the money lies in the banks SB account/black money/under the pillow and hence no prodcutive usage of money ..offcourse things are changing slowly but we still have a while to go full steam.
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Warm REgards
Nitin Jagtap
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basant
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Posted: 29/Feb/2008 at 6:01pm |
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What has been the ratio so far for last 5 years, would also be interesting to know!! Like, if Rs. 10,000 extra is put into the pocket of the average indian, in what ratio does he spend viz. a viz., "consumption:investment". |
This is apoint which is very relative. If you are at the bottom of the pyramid you would spend all of that. if you are at the top you would save all of that because most of your needs. The percentage of savings increases as we move up the income scale.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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omshivaya
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Joined: 06/Sep/2006
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Posted: 29/Feb/2008 at 6:21pm |
Basant sir...I should have been more clear-cut. I was talking of the average middle class...! India runs majorly on the intellect of the middle class. However, I dont think I fully agree with "savings % goes higher as one goes up the pyramid".
The US middle class...what is the investment:consumption ratio? Just curious!! The US is a country eating, drinking and sleeping credit cards.
Anyhow...Nitin jee, I am seeing subtle but very strong changes in India. The tolerance level in India is going down and this is always to be expected as a by-product of consumption. Wherever consumption increases, materialism(and not true wealth) increases and with the pros come all the cons, of maya.
So, from the next(or probably the one after that) generation onwards...the things that you feel are also needed in one's life alongwith other things, will become the necessity of the next generation. Consumption is NOT the primary talk in my life..but will become so for the next generations.
And we would enjoy by capitalizing on that. Hell, we would also consume...but we would earn more and consume a fraction of that whereas the consumers do the opposite! Forget that age-old theory of Indians being savers...if things go as I see them, Indians will become more of spenders than savers!
But if Indians can keep a balance between the two, then only will India reach where it was long-time back(India was a truly welfare country, right from bottom to up the pyramid), but it is still hundreds of years away and we wont be able to see whether Indians were wise enuff to keep a balance or were engulfed by maya.
Edited by omshivaya - 29/Feb/2008 at 10:30pm
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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mr.amd
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Joined: 06/Feb/2008
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Posts: 59
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Posted: 29/Feb/2008 at 8:07pm |
Originally posted by gopal
TEDies,
just one question ?? Its just for information .... f any one wishes to answer. Indian farmers get
- subsidy on water
- subsidy on power
- subsidy on fertilizer
- subisy on seeds
- subsidy on farm implements, pumps, machinery
- subsidy on child education
- fixed purchase rate by gov., which increases every year
- once in a decade loan waivers .... I just checked on net farmer loans have been waived before also
Then how come they are in perpetual loss .....
THNX |
Its not that simple. Apart from answer to your quesion, if you read a book called "inspite of the gods - strange rise of modern India" by Edward Luce, you will find lots of other things which can be quite an eye opener.
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mr.amd
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Posted: 29/Feb/2008 at 8:15pm |
Originally posted by nitin_jagtap
Saving saving saving ..thats what most of we indians have been taught in our younger days ... so we dont invest wisely neither do we spend wisely ...so its like dead weight and all the money lies in the banks SB account/black money/under the pillow and hence no prodcutive usage of money ..offcourse things are changing slowly but we still have a while to go full steam. |
Nitinbhai, you have hit the nail on the head with great big hammer. I can't agree with you more. That saving oriented mentality and some dodgy economic policies of earlier governments harmed india's economy for first 45 years of independence.
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tigershark
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Joined: 13/Oct/2006
Location: India
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Posted: 29/Feb/2008 at 8:17pm |
Originally posted by gopal
Tiger Bhai,
But there was no mention of payhike / pay commission in budget ........
In budget only salary of aganwadi workers and rural workers were increased by Rs 500 to Rs 250 /--
So that means that apart from budget the government will still make more provisions for expenses kiya .....
this will come once the pay commission submits its report will take 2-3 months from now
thnx |
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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