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Indian Economy & Stupid Fancy Talks

FII’re like rats in mines, if mines are running well they enjoy everything from workers lunch boxes to peanuts but if mines trembles they’re first to run away in their holes.


Indian Economy is slugged, world is asking why? Even those who have nothing to do with falling rupee are talking about it. Crash in share market is like defeated in cricket match with Pakistan. Even if we doubt that it is fix, we enjoy the thrill. Those on betting are sweating, those who are watchers are dumb struck to know what next. We’re concerned… especially those who are in college for some professional degrees… their placements is on stake. While some are in nail biting trauma others are simply talking about it because it’s fascinating to talk about it. News channels are running experts panel discussion about what will happen? Even housewives are okhay if husbands are tuned to some business news channels. Why? Rupee is falling with everything falling in India?
Over the 66 years, Indian economy changed many faces. From being a strong agriculture based to manufacturing based to now a service based economy. This third face is strangely different from other two. Agro products and Industry products are something tangible; it has weight, shape and size but services are basically a business of selling ‘feel good’ factor! Everything from mobile talk time to haircut to dining to travel or watching movie and listening to music is a service. Tourism is one of the finest example services in which all you take away back home is ‘the feel good’ experience. 56% Indian revenue comes from service industry. I.e. 56% economic transactions are directly based upon the ‘feel good’ psychology of consumers found in Indian Territory.
‘Feeling good’ pays money to bankers, industrialists and entrepreneurs. A natural transit relationship applies here that if consumers are not feeling happy, businessmen are not feeling happy and if businessmen are not happy than economy will naturally not be happy! A sad economy is falling economy. It is basically a sad service based economy is falling. Why are we sad? Well enough reasons but my question is from the consumer in you not about your personal affairs. Why consumers in India are sad? Or why money lenders are sad?
Service economy is a volatile business. In Agriculture or Manufacturing the investor has to infuse money into physical assets like land, machine, human resource, power and raw material etc. but in service segment all you need is an idea to keep buyers satisfied. In Agro & Manufacturing you can’t shutter down all that easily but in service industry you can pack your bag and leave in just few hours. Investors are happy in service economy in both ways. If market is flourishing they are making money if market is crashing, they pack bag and pull out without any pinching loss… In very high amount of international private money is invested in Indian service Industry. Some private parties study Indian market and invest via share market or other NBFC instruments they’re called FIIs (Foreign Indirect Investment). They’re like rats in mines, if mines are running well they enjoy everything from workers lunch boxes to peanuts but if mines trembles they’re first to run away in their holes.

Comments

RK Dubey said…
It's an uncommonly nice post. Genuinely refreshing to examine it till the end thanks divide such a wonderful post.
R K Dubey

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