The USA’s estranged love China:
China is behaving like a petrified paramour who was promised marriage and that lovely life thereafter which has been interrupted by a monster in law called Trump. China is hoping that on November 6 or whatever date election results would be announced, that wicked monster in law will go away and China will be reunited with USA for ever in a lovely honeymoon. USA will research new products and China will copy those and sell to the world. It will be all honkey dori thereafter forever till the world is explained to submit before the emperor of China err world. Unfortunately the world too is behaving like a jilted lover taking no hints from sweet gestures of conquest by China. Least of all being grateful to China for it’s great gift called “Covid-19”. Is it working on Covid-20 & 21 etc.?
So where does India fits in this equation?
China Non Grata:
Governments may have constraints in reacting promptly but people have no such constrains in reacting.
The Delhi Hotel and Guest House Owners Association (Dhurva) has taken a major decision today on the demand for boycott of Chinese goods by the Confederation of All India Traders (CAT). In view of the nefarious antics of China, it has been decided that henceforth no Chinese person will be entertained in Delhi’s hotel and guest houses. Delhi has about 3000 budget hotels and guest houses with about 75 thousand rooms.
While giving this information today, the General Secretary of Delhi Hotel and Guest House Owners Association said that due to the way China is dealing with India and the manner in which it has brutally massacred soldiers, all over Delhi there is an anger among hoteliers. At a time when CAT has campaigned for boycott of Chinese goods across the country, Delhi’s hotel and guest house businessmen will participate enthusiastically. In view of this, we have decided that henceforth no Chinese person will be entertained in any budget hotel or guest house in Delhi.
It may be noted that this association does not represent five star hotels in Delhi. Presently this move is symbolic as international travelling has not yet resumed but it tells the way forward for China in India.
Growth slumps to 4.5%:
At 4.5% growth rate in last quarter was slowest in last 6 years. The bigger question is whether it is the bottom or will it fall further. Debates are going on Television but the two debates I listened missed a few points. All the talk about fiscal stimulus and monetary policy is fine but human behaviour is even more important. The fundamental aspect is that the structure of economy of India is fundamentally different. 80% of economy is enterpreneurship and almost informal. The companies listed in share market, limited companies, registered LLP etc are just balance 20%. No country has this structure. Now that fact is established, let me list my three points:Flood:The last quarter saw flooding in low lying areas of nearly all big states. It was the worst flood in 25 years. Flood do affect economy. It lowers consumption. It slows down manufacturing. Mining activities are worst affected by floods and accordingly mining saw negative growth.
What drove growth:
Patience with different types of people and their habits. Not that all people can do it but those who can, do it better.
Maths. While some need calculators but generally people do it on fingers.
Technology is handled quickly. An illiterate can handle mobile. A bare literate can handle smart phone.
Savings. With asceticism as higher standard, extravagance is exception. People save more than anywhere in the world. India and China consume half of world’s gold every where.