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Auto Sector Crisis: 2.30 Lakh Jobs Lost As Industry Faces Worst Crisis In 20 Years

Discussion in 'General Discussions' started by armummy, Aug 13, 2019.

  1. Afresh

    Afresh Gold IL'ite

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    Assuming acceptance of all your comments, can you explain what really is the problem today?
    Or are you trying to say that a systemic , course correction for the economy is taking place, given the pace of reforms.
    Btw , hope you have read the comments by VC, niti aayog today in respect of the slowdown.

    Can you elaborate on this please.
     
  2. Thyagarajan

    Thyagarajan IL Hall of Fame

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    To cap it all news item govt expect to raise 630 crores by privatising rail sector.Auto manufacturer and auto ancillary industries families worst hit. Consumption steeply down. Purchase power vanishing except essentials.
    When all sectors down and no capital formation there will be less revenue in govt kitty . With job losses and downtrend in economy budget shortfall will get widened. Money will be printed. Currency note press will work overtime thanks to Dovish demonetisation. PE investors disappeared.FII PULLED OUT. Market plunging day by day through a labrinth.
    US $= rs72 today import costly. It is GTH everywhere. Speech is silver silence is golden is the credo sir. You know c is in custody. Direction and focus shifted elsewhere away from economy. No capital formation.
    God bless all.
     
    Last edited: Aug 23, 2019
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  3. nemesis

    nemesis Platinum IL'ite

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    India is a mixed economy; meaning, both accounted and unaccounted(aided by cash only) transactions; say a builder sells you a flat for 70 lakhs; of which he receives 30 in white and 40 in cash.

    The 30 lakhs forms part of regulated economy, for which taxes are paid, the 40 is builders profit with which he buys an expensive car(every 1 or 2 year), splurges on gadgets etc.

    While the latter still generates jobs and gets indirect taxes to government, the black economy leads to an unfair disadvantage to salaried class whose income cannot be hidden in the aforementioned way; they pay a tax on income as well as on their savings, spending and what not.

    In a more regulated economy, the flat buyer would have his flat for 30 lakh and have the 40 lakhs would have been for his own spending - consumerism/consumption. Or if kept in bank, would help for investment for an entrepreneur, which then adds to GDP growth.

    While the former is top heavy- few rich people and suffering middle/working class, the latter is more balanced- a happy middle class- goes a long way for sustained/stable country.

    The present government through demonetisation (melodrama) and limits to cash based transaction (more effective) has kept an eye on cash flow. Banks are now reporting large volume transactions to IT.

    Add to this GST: which also keeps a paper trail- For eg, previously you can get building materials without bill, now most of them are complying and selling only with GST and ask you to claim it later.

    Thus those doing businesses on cash only basis are now facing the heat- people and businesses who earned lakhs and crores yet invisible to tax authorities.

    So the success of this structural reform gotta do with how fast people of this country get used to systemic way of doing things- bill, book keeping, accounting, paying taxes, etc.

    A more organized economy and policies go a long way to attract FDI. More investments to capitalize on the young population of India, more growth, more prosperity/consumption/wealth accumulation - having a chaotic financial sector and flying abroad and appealing to NRIs wouldn't help, otherwise.

    Otherwise fundamentals of this country is still strong It's the rate of growth that's slowing down; it's concerning, considering the US-China trade wars; yet not all doom and 'it's over' like some media sections tend to portray.

    ---

    It's totally different argument whether the taxes collected are put to good use or going for populist schemes or statue building :D
     
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  4. nemesis

    nemesis Platinum IL'ite

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    BSNL, Air - India.. are bleeding us tax payers. They all should go. The problem is again 'jobs'- no private management would keep such hugely populated govt officers and this would be a shock to those who thought their jobs are secure.

    China is constructing high speed railway networks criss-crossing the country and relies on manufacturing- while we are relying on service sector, choking our highways with more vehicles. It's like the crying baby getting milk- a sector blackmails the govt with job loss and is placated. And then next.

    A crisis brings a new beginning; 90s was one. Whether the current leader is strong enough to do that once again - only time can tell.
     
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  5. Thyagarajan

    Thyagarajan IL Hall of Fame

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    :hello:I quite agree with you.
    2. The Nation is in distress.
    3. Silver lining is Ms N announced a semblance of spate of relief to prop up the sagging by a whisker with her announcements yesterday.
    4. It would or might bring FII to enter the market when exchange rate is in their favour. When $ equal to less rupees they get more returns in their kitty in $ terms. This would also improve in anticipation local sentiments.
    5. But the efforts required are Herculean and what is proposed to be done looks bearish trend would prevail looking for newer bottoms in the labyrinth.
    6. Recession seemed to have set in many spheres of economy. Seats in engineering in Tamil Nadu go abegging. Dharnas, strikes, lockout, retrenchment, eta, would remain talk of the day perhaps.
    7. :kissingclosed:Apples are not transported from JK. Against 1200 trucks only a handful visit daily the orchards. Apple rot in trees. Lacklustre or lukewarm performance from Kashmir to Kanyakumari and Dwarka to Odisha across all sectors. Yesterday, A man ex IAS proceeding to fulfill his commitment to Harvard - boarding pass cancelled in New Delhi brought back to Kashmi/Jammu for questioning. God
    God bless citizens of Bharat.
     
  6. armummy

    armummy Platinum IL'ite

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    As you said GST is passed on to customers so the problem for vendors is only complex gst procedure which needs to be simplified ....and high gst is making customers put off buying ....

    So not sure how much hidden wealth was uncovered by gst but genuine buyers have been put off
     
  7. armummy

    armummy Platinum IL'ite

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    God bless citizens

    I guess now country has to turn to prayers ... I started getting prayer requests to pray for safety of soldiers and lo and behold safe landing on moon ... now we are asked to rely on players than have confidence in our scientists and soldiers ....
     
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  8. armummy

    armummy Platinum IL'ite

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    Maruti has reported worst drop in its sales .....

    Diamond business is also reporting job losses
     
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  9. nemesis

    nemesis Platinum IL'ite

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    yeah armummy. I am now genuinely concerned with the way economy is heading. After bank merger, i am doubtful about my FDs, i plan to withdraw all of it and keep in hand. 6% interest rate be damned.
     
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  10. Murano

    Murano Platinum IL'ite

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    IMG-20190901-WA0020.jpg
     
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