India set to slip below Bangladesh in 2020 per capita GDP, says IMF

[El Generico]

Bangladesh is set to beat India in terms of per capita gross domestic product (GDP) this calendar year, thanks to a sharp contraction in the Indian economy due to Covid-19 and the economic lockdown.

According to International Monetary Fund (IMF)-World Economic Outlook (WEO), Bangladesh’s per capita GDP in dollar terms is expected to grow 4 per cent in 2020 to $1,888. India’s per capita GDP, on the other hand, is expected to decline 10.5 per cent to $1,877 – the lowest in the last four years. The GDP figure for both countries is at current prices. This makes India the third poorest country in South Asia, with only Pakistan and Nepal reporting lower per capita GDP, while Bangladesh, Bhutan, Sri Lanka, and Maldives would be ahead of India.

The WEO database suggests that the Indian economy will be the worst hit from the pandemic in South Asia after Sri Lanka, whose per capita GDP is expected to shrink 4 per cent in the current calendar year.

More on: https://www.business-standard.com/a...0-per-capita-gdp-says-imf-120101400025_1.html

Maybe this is all part of Modi’s plan to reduce the number of Bangladeshi migrants in India. With India falling below BD in GDP per capita, people from BD won’t come there.

 

[El Generico]

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Solid achievement of 6 years of BJP’s hate-filled cultural nationalism:<br><br>Bangladesh set to overtake India.<br><br>&#55357;&#56399;&#55357;&#56399;&#55357;&#56399; <a href="https://t.co/waOdsLNUVg">pic.twitter.com/waOdsLNUVg</a></p>— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1316224292347023360?ref_src=twsrc%5Etfw">October 14, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[sa88]

Our Bengali friends are prospering thanks to their focus on human development and their economy.

Big message for Pakistan. Forget everything else and let’s focus on our people and our economy.

 

[gani999]

This is excellent news. Well done, Bangladesh!

India can only benefit if its neighbourhood gets prosperous.

 

[MP2011]

Maybe this is all part of Modi’s plan to reduce the number of Bangladeshi migrants in India. With India falling below BD in GDP per capita, people from BD won’t come there.

Have been saying it for a while all those Vibrant Gujarat summits were big hoaxes, with hardly any LoIs getting converted into FDI. Incidentally those were the events on the back of which the event manager got the heft he had as a go getter and the one who understood the economic pulse and eventually the power at centre.

If only religious bigotry and organizing big ticket events (and acronyms!) could get you economic prosperity!

 

[CricketCartoons]

This is excellent news. Well done, Bangladesh!

India can only benefit if its neighbourhood gets prosperous.

This is good news, but some bigot indians who believe in beggar my neighbour policy are unhappy that BD has overtaken them.

 

[CricketCartoons]

If only religious bigotry and organizing big ticket events (and acronyms!) could get you economic prosperity!

What brings economic prosperity and when was the last time there was prosperity in india? Hard question, you don't have to answer.

 

[sa88]

What brings economic prosperity and when was the last time there was prosperity in india? Hard question, you don't have to answer.

India is much more prosperous than Pakistan. Especially south India.

Bangalore, Chennai, Pune etc all have big tech industries providing good jobs for locals.

Question remains - Bangladesh has overtaken both Pakistan and India. What are we in Pakistan doing wrong and what can we learn?

 

[CricketCartoons]

India is much more prosperous than Pakistan. Especially south India.

Bangalore, Chennai, Pune etc all have big tech industries providing good jobs for locals.

Question remains - Bangladesh has overtaken both Pakistan and India. What are we in Pakistan doing wrong and what can we learn?

You should not use the word prosperous. it is not a term to be used in comparison between two poors.

Over 50% of indian workforce in agriculture and contributes less than 20% of gdp. such lopsided workforce doesn't bring prosperity.

 

[PakPremi]

Pakistan economy has suffered from terrorism and corruption of its leaders. Thank goodness both are fast disappearing.

 

[sa88]

You’re missing the point.

India and Bangladesh are ahead of Pakistan in almost all economic and human development metrics.

Why is that? What does Pakistan need to do differently. Deflecting attention to poor farmers in India doesn’t answer the question.

And yes - on a relative basis, India is more prosperous. Especially it’s information technology focussed cities.

 

[smkk]

very interesting analysis.

https://www.youtube.com/watch?v=Ki6Awilr3GI

 

[CRIC_FANtastic]

Bangladesh development is a great success story of last 20 years, and both India and Pakistan must take learning from their development model. Obviously, sub $2000 per capita income is nothing to boast of for any country, but they are on the right path.

Rather than taking a dig at Modi and India, OP must see how Pakistan's GDP per capita is less than Bangladesh, and the difference is ever growing. Don't worry about India or Bangladesh, try to focus on your own economy.

 

[Itachi]

I don't know why it is seen as "emabarassment" to stand below another country. If Bangladesh is progressing, it's good for them. It's not as if, there's limited resources available and since Bangladesh is improving, it will have negative effect on other countries. If your neighbor is reaching new heights, be happy for them and try to improve yourself on your own path.

It should be seen as constructive way rather than as an insult.

 

[JaDed]

Congratulations to BD..

 

[Gabbar Singh]

Well done Bangladesh.

 

[Cpt. Rishwat]

Our Bengali friends are prospering thanks to their focus on human development and their economy.

Big message for Pakistan. Forget everything else and let’s focus on our people and our economy.

That would be nice, but having relatively peaceful borders helps a lot. Perhaps there is more Pakistan could do to get to such a position, but that area of the world does seem to attract a lot of international interference.

 

[sa88]

What you’re describing is a case of: “kuch shehr de log wi zalim is, kuch minu maran da shouq wi si”.

The neighbourhood isn’t great and attracts a lot of interference but Pakistan hasn’t helped matters - especially it’s involvement with non-state actors.

But it’s never too late. We should divert our focus back on what really matters: the economy. But that goes hand in hand with investing in human capital.

 

[Kroll]

That's pretty good from BD, congrats!

 

[Napa]

Very good for Bangladesh to grow at 4% during a very difficult year.

Important for India that the fall in GDP is not due to a fall in foreign demand for Indian goods and services. Indian forex reserves have risen sharply to $545 billion during the pandemic, suggesting foreign demand has not fallen.

https://tradingeconomics.com/india/foreign-exchange-reserves

Domestic demand should recover quickly once the pandemic is over.

 

[BreadPakoda]

Interesting. Likely a Modiji-Amit Shah masterstroke. So far Bangladesh was poorer and many Bangladeshis were migrating to India. Now by making India poorer than Bangladesh, Modiji has solved this problem. Soon, we should start seeing reverse migration.

Btw, I am also happy for all Bangladeshis.

 

[smkk]

One more thing, Bangladesh did not beat India in GDP yet this year. This is just contraction of Indian economy due to pandemic. It is the year 2025, when we will really beat Indian GDP in actuallity and pass them with surity.

 

[smkk]

Do you know what a "model" means?

Can you tell me what indian model is in terms of religion?

 

[Mesozoic]

One more thing, Bangladesh did not beat India in GDP yet this year. This is just contraction of Indian economy due to pandemic. It is the year 2025, when we will really beat Indian GDP in actuallity and pass them with surity.

You think BD's economy will grow 10 times in 5 years?

I like your optimism but come on...

 

[smkk]

You think BD's economy will grow 10 times in 5 years?

I like your optimism but come on...

GDP per capita I mean!!

 

[Mesozoic]

GDP per capita I mean!!

I think you mean by per capita PPP (purchasing power parity).

 

[smkk]

I think you mean by per capita PPP (purchasing power parity).

nope it is GDP per capita, per capita PPP will take further years to cross with this growth rate I think.

 

[hamid.s]

This is one-off year due to the pandemic. While it may look good on paper, lots of work still needs to be done. The pace and growth needs to continue for another decade or so to lift millions out of poverty.

We don't get sucked into the same geopolitical and regional wars like Ind/Pak. Thus we can get away with a smaller military in comparison and focus more on human development and education.

Religious harmony also plays a role.

 

[hamid.s]

But as someone said, sub $2,000 is nothing to boast about. The real question should be whether the lives of an average Bangladeshi improving year over year? Wealth disparity is extreme in the subcontinent and tycoons and textile barons filling their coffers will improve the gross GDP but how much of that is trickled down to middle and lower class.

On the other hand, India will obviously struggle to improve their "per capita" GDP just because of their sheer population. Comparing an economy of 170-180 million people with an economy of 1.3-1.4 billion people isn't as straightforward.

 

[Minnowbasher]

Very happy for Bangladesh - very well deserved. In my opinion Bangladeshis are the most hard working people in the subcontinent in general - and they remain quite humble about it as well as compared to Pakistanis and Indians.
Pakistan and India can learn a lot from Bangladesh.

 

[Technics 1210]

All this bravado over a predicted 20 Dollar difference. Tsk tsk. Priorities priorities.

 

[Napa]

The role of Hasina in providing leadership and stability has been the decisive factor.

 

[Varun]

Let's take this opportunity to pat Bangladesh on the back for achieving this. They were a borderline failed state when they were carved out in 1971 and look where they are now.

Not that we should be the benchmark for anybody, mind you. But still.

 

[Greenstorm]

Bangladesh's growth is heart warming. I hope our brothers keep on progressing.

 

[Rajdeep]

India posts record 20% GDP growth in second quarter

India's economy grew at a record pace in the second quarter, even as the country grappled with a devastating wave of Covid-19. But Asia's third largest economy isn't out of the woods yet and remains smaller than at the start of the pandemic.

GDP rose 20.1% in the three months to June 30, compared with the same period a year earlier. The big jump reflects a rebound from the deep slump in activity in 2020, when Prime Minister Narendra Modi imposed one of the world's toughest lockdowns on 1.3 billion people, restricting business and travel for months and plunging the country into its first recession in decades.

"The record year-on-year rise in Indian GDP in Q2 was due entirely to base effects," wrote Shilan Shah, senior India economist at Capital Economics in a research note. This time last year, India posted a 24% fall in GDP.


https://www.cnn.com/2021/08/31/economy/india-gdp-growth-covid-hnk-intl/index.html

No wonder dont see much discussion on Indian economy anymore
[MENTION=142162]Napa[/MENTION] [MENTION=76058]cricketjoshila[/MENTION]

 

[Ahmad-GERMANFC]

India posts record 20% GDP growth in second quarter

India's economy grew at a record pace in the second quarter, even as the country grappled with a devastating wave of Covid-19. But Asia's third largest economy isn't out of the woods yet and remains smaller than at the start of the pandemic.

GDP rose 20.1% in the three months to June 30, compared with the same period a year earlier. The big jump reflects a rebound from the deep slump in activity in 2020, when Prime Minister Narendra Modi imposed one of the world's toughest lockdowns on 1.3 billion people, restricting business and travel for months and plunging the country into its first recession in decades.

"The record year-on-year rise in Indian GDP in Q2 was due entirely to base effects," wrote Shilan Shah, senior India economist at Capital Economics in a research note. This time last year, India posted a 24% fall in GDP.


https://www.cnn.com/2021/08/31/economy/india-gdp-growth-covid-hnk-intl/index.html

No wonder dont see much discussion on Indian economy anymore

[MENTION=142162]Napa[/MENTION] [MENTION=76058]cricketjoshila[/MENTION]

Doesn’t the last quote in the article itself tell that this number doesn’t mean much and it is high due to base effect? It’s just being back to normal levels it would be without a stringent lockdown

 

[Rajdeep]

Doesn’t the last quote in the article itself tell that this number doesn’t mean much and it is high due to base effect? It’s just being back to normal levels it would be without a stringent lockdown

GDP was down last time also due to the same effects of covid. But that didnt stop naysayers from speaking about it and targetting the govt. So when its gone up in record numbers, shouldnt we speak as it does not fit in the agenda?

 

[Technics 1210]

India were caught lying about their GDP numbers, and Covid numbers, no need to believe them now either.

 

[Rajdeep]

India were caught lying about their GDP numbers, and Covid numbers, no need to believe them now either.

But India has been taken out from UK Red list of travel. So you saying India lied about covid numbers and yet British govt moved them into Amber?

Very interesting.

 

[Technics 1210]

But India has been taken out from UK Red list of travel. So you saying India lied about covid numbers and yet British govt moved them into Amber?

Very interesting.

Duh! Of course! British government has a few Hindutva shills in power.

And no, amber is actually the 'orange' list.

 

[cricketjoshila]

Sour grapes for some. If base effect is the only reason for this massive GDP growth, most countries will show this. No? As most countries had a GDP contraction due to covid.

 

[Ahmad-GERMANFC]

Sour grapes for some. If base effect is the only reason for this massive GDP growth, most countries will show this. No? As most countries had a GDP contraction due to covid.

Most countries did already show this

 

[Napa]

India posts record 20% GDP growth in second quarter

India's economy grew at a record pace in the second quarter, even as the country grappled with a devastating wave of Covid-19. But Asia's third largest economy isn't out of the woods yet and remains smaller than at the start of the pandemic.

GDP rose 20.1% in the three months to June 30, compared with the same period a year earlier. The big jump reflects a rebound from the deep slump in activity in 2020, when Prime Minister Narendra Modi imposed one of the world's toughest lockdowns on 1.3 billion people, restricting business and travel for months and plunging the country into its first recession in decades.

"The record year-on-year rise in Indian GDP in Q2 was due entirely to base effects," wrote Shilan Shah, senior India economist at Capital Economics in a research note. This time last year, India posted a 24% fall in GDP.


https://www.cnn.com/2021/08/31/economy/india-gdp-growth-covid-hnk-intl/index.html

No wonder dont see much discussion on Indian economy anymore

[MENTION=142162]Napa[/MENTION] [MENTION=76058]cricketjoshila[/MENTION]

The number of new infections seems to be hovering around 40K a day for the last month. Hopefully it will drop once more people are immunized. Recently India crossed the mark of 50% adults having received at least one vaccine shot.

India's daily vaccinations surpassed 10 million doses on Friday, with national vaccine production more than doubling since April and set to rise again in the coming weeks. New production lines have been set up, a vaccine developed by Cadila Healthcare (CADI.NS) won recent approval, and commercial production of Russia's Sputnik V is starting in India.

The Serum Institute of India (SII), the world's biggest vaccine maker, is now producing about 150 million doses a month of its version of the AstraZeneca (AZN.L) shot, more than twice its April output of about 65 million, a source with knowledge of the matter said.

...

Global vaccine sharing platform COVAX hopes India will restart foreign sales sooner than later.

"With successful national vaccination and the arrival of more products, we are hoping that Indian supply to COVAX will resume as quickly as possible," a spokesperson for the platform's co-lead GAVI told Reuters in an email.

https://www.reuters.com/world/india...supply-jumps-raising-export-hopes-2021-08-30/

 

[topspin]

Where are the Indian shuppa powar crowd?

 

[saeedhk]

Good on Bangladesh and India. They are looking after their people and elevating their living standards and improving their incomes. We can learn a lot from these two resilient countries. With every passing day, Pakistan’s economic situation is worsening and people are becoming more and more miserable. I hope our PM would start caring for its own people like Sheikh Hasina.

 

[cricketjoshila]

Most countries did already show this

So most countries are growing at 20 percent?

 

[Ahmad-GERMANFC]

So most countries are growing at 20 percent?

They had one quarter where this was case (which was set against Q2 2020 as base).

If india maintains a >6-7% growth rate even in upcoming quarters (which I don’t see why not); then yea you can say it’s growing strongly. Right now it’s base case effect.

 

[sensible-indian-fan]

Inflation.

Unemployment.

Anyone who has seen the ground reality will not even bother with these 20% growth (due to base anyway).

Meaningful changes will be noticed and accepted by all.

 

[sensible-indian-fan]

Good on Bangladesh and India. They are looking after their people and elevating their living standards and improving their incomes. We can learn a lot from these two resilient countries. With every passing day, Pakistan’s economic situation is worsening and people are becoming more and more miserable. I hope our PM would start caring for its own people like Sheikh Hasina.

No need to over-rate India just to attack Pakistan and Imran.

There is enough material to attack Imran without hyping up India.

 

[MP2011]

Inflation.

Unemployment.

Anyone who has seen the ground reality will not even bother with these 20% growth (due to base anyway).

Meaningful changes will be noticed and accepted by all.

Our economy has been in decline even before Covid struck. We were growing at 4.2 in FY 2019 which is frankly disastrous for a developing nation like ours. So it's just a canard spread by the event manager and his cahoots that our economy is in the doldrums only due to Covid.

Regarding this so-called 20% growth which has so warmed the cockles of devotees' hearts, well it's relative to that disastrous Q1 of FY 2020 when we had a fall of 23.9%, so basically we are still in red corresponding to that quarter.

As for inflation, just due to never seen before petro products' prices, everything has gone expensive. But don't worry as long as Muslims are being tamed in India, aaallll is wellll!

 

[WhenSultansBowled]

Bad news for Indian GDP:

Ford to stop making cars in India

• Ford accumulated losses of more than $2 bln in 10 years
• Company has 2% market share and struggled to boost sales
• Ford follows GM and Harley in ceasing production in India

Source: https://www.reuters.com/business/au...dia-shut-down-both-plants-sources-2021-09-09/

 

[Napa]

Bad news for Indian GDP:

Ford to stop making cars in India

• Ford accumulated losses of more than $2 bln in 10 years
• Company has 2% market share and struggled to boost sales
• Ford follows GM and Harley in ceasing production in India

Source: https://www.reuters.com/business/au...dia-shut-down-both-plants-sources-2021-09-09/

Read the article before you get too excited. It says "The U.S. carmaker entered India 25 years ago but still has less than 2% of the passenger vehicle market having struggled for years to win over Indian consumers and turn a profit." Ford cannot compete with other car manufacturers in India, so it is leaving. Weaker firms exiting make the economy stronger.

The following article is a better indicator of what is happening in the Indian economy.

"India's got the next big thing in tech, and it could be worth $1 trillion"

https://www.cnn.com/2021/09/09/tech/india-software-saas-intl-hnk/index.html
[MENTION=76058]cricketjoshila[/MENTION] [MENTION=152021]Rajdeep[/MENTION] [MENTION=63414]OMB[/MENTION] [MENTION=151383]Local.Dada[/MENTION]

 

[rhony]

Inflation.

Unemployment.

Anyone who has seen the ground reality will not even bother with these 20% growth (due to base anyway).

Meaningful changes will be noticed and accepted by all.

I think it's not that straight forward SIF. Inclusive growth is for advanced economies. Even then it's very difficult to achieve. For example , look at income inequality in western countries. It's mind boggling. I think China probably has the best chance of it but they have way too huge population. So. India has no chance. There are always going to be hundreds of millions of poor in India as along as agriculture is the chief occupation for many. India lost the opportunity of "cheap labor" but they were smart to go after IT services in the 90s. It was great insight from the congress back then. India's progress will always depend on the strong middle class going to upper middle class status. That will pave for more consumption and income.

Imagine 500 million Indians with a per Capita income of 30K to 50k USD per annum in 20 years and the rest of the billion with per Capita of 5 K to 10 K USD. That's the goal India is aiming for. That would be the largest middle class along with china. That will trickle down to more welfare programs and will help the poor. So meaningful changes will not be noticed by all. They are not aimed at all to begin with.

 

[OldWarHorse]

Bad news for Indian GDP:

Ford to stop making cars in India

• Ford accumulated losses of more than $2 bln in 10 years
• Company has 2% market share and struggled to boost sales
• Ford follows GM and Harley in ceasing production in India

Source: https://www.reuters.com/business/au...dia-shut-down-both-plants-sources-2021-09-09/

Ford like other American Manufacturers is not really competitive enough with their pricing. Its lagging well behind say for example Hyundai, Maruti Suzuki, Honda, Renault etc here in India. Dont think its a big deal at all.

 

[Giannis]

This was expected.

Interestingly from 1947 all the way until as recently as 2008, Pakistan's GDP per capita was higher than India's. Pakistan slump coincided with the global economic recession and the war on terror in Pakistan along with India's astronomical growth in the 2000s. I think things will stabilize and the status quo will be restored as Pakistan has much smaller population than India so its per capita income should surpass India's in the not so distant future.

 

[captain.hansolo]

This is a meaningless metric. Per Capita GDP is not reflective of the business environment, ease of doing business, access to infrastructure or any human development index.

Better metrics are HDI, GINI and some non standard metric such as gender distribution, infant mortality, and literacy.

Everything else is bunk.

 

[Napa]

This is a meaningless metric. Per Capita GDP is not reflective of the business environment, ease of doing business, access to infrastructure or any human development index.

Better metrics are HDI, GINI and some non standard metric such as gender distribution, infant mortality, and literacy.

Everything else is bunk.

Per cap GDP is not the only relevant metric, but it is an important metric. For example, per cap GDP will be strongly correlated with infant mortality (negatively), literacy (positively), percentage of people below the poverty line (negatively) etc.

 

[OMB]

India is a much alrger economy and more diverse but fundamentally Bangladesh has outperformed India over last 4 years.

Probably India can learn from Bangladesh about how to adapt quickly to the changing world. India needs to expedite their infrastructure projects. Wish the various Covid-19 disputes get settled quickly and stalled projects resume again.

 

[Napa]

India is a much alrger economy and more diverse but <b>fundamentally Bangladesh has outperformed India over last 4 years. </b>

Probably India can learn from Bangladesh about how to adapt quickly to the changing world. India needs to expedite their infrastructure projects. Wish the various Covid-19 disputes get settled quickly and stalled projects resume again.

Not really. Bangladesh has done well, but the nature of growth of India and Bangladesh are fundamentally different. Bangladesh has not been able to move up the value chain and is stuck producing low value added items, though it has done a good job increasing their production of these goods.



India's problem on the other hand is of heterogenous development. There are large swathes of the population which remain employed in low value added occupations while a significant portion has developed high value added modern industries.

"India's got the next big thing in tech, and it could be worth $1 trillion"

https://www.cnn.com/2021/09/09/tech/india-software-saas-intl-hnk/index.html

I wouldn't say that Bangladesh has outperformed India till it develops modern industries.

 

[MP2011]

"Wasn't Time To Bring Petrol, Diesel Under GST": Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Friday stated that the Goods and Services Tax (GST) Council discussed the topic of inclusion of petrol and diesel under the tax structure after the Kerala High Court order. "On the direction of court it was brought on to table but members spoke very clearly they do not want it to be included in GST," Ms Sitharaman said.

"This will be reported to the high court as the GST Council felt it was not the time to bring petroleum products under the GST," she added.

In June, the Kerala High Court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the GST ambit.

https://www.ndtv.com/business/counc...-sitharaman-2544618#pfrom=home-ndtv_topscroll

 

[MP2011]

What a buffoon this lady is! Finding new excuses to fleece hapless Indians and filling his master's coffers!

 

[MP2011]

Hope all these dacoits have to fill petrol tanks of their vehicles on their own for rest of their lives. Then probably they'll understand the pain of common people.

 

[captain.hansolo]

Per cap GDP is not the only relevant metric, but it is an important metric. For example, per cap GDP will be strongly correlated with infant mortality (negatively), literacy (positively), percentage of people below the poverty line (negatively) etc.

Not necessarily. GDP is high for countries that have an large mineral extraction industry while the other metric are lower. Take the example of the Arab states that are an oil exporter. Or Nigeria or Venezuela up until it went **** up.

But the point I was making is that those other metric are more important and on the basis of those Bangladesh has been marginally ahead of india for some time. In large part since their budget is heavily focused on human capital development.

 

[Napa]

Not necessarily. GDP is high for countries that have an large mineral extraction industry while the other metric are lower. Take the example of the Arab states that are an oil exporter. Or Nigeria or Venezuela up until it went **** up.

The phrase I used was "strongly correlated", rather than "implies". That allows for exceptions like resource rich countries.

But the point I was making is that those other metric are more important and on the basis of those Bangladesh has been marginally ahead of india for some time. In large part since their budget is heavily focused on human capital development.

Possibly. I think India is also more heterogenous than Bangladesh, with significant sections (like tribals) with really low development.

Bangladesh has also been blessed with a strong leader. Development has really taken off under Hasina. Many people criticize her for being dictatorial but she has delivered results. Also she has successfully kept the Army out of civilian affairs, which has been critical for Bangladesh's success.

 

[hoshiarpurexpress]

Freshworks IPO creates more than 500 crorepatis in India, with 70 of them aged below 30

Business software maker Freshworks made its trading debut on Wednesday at $43.5 per share on Nasdaq, up 21% from the company's listing price of $36 per share, giving the company a market cap of $12.3 billion.

A couple of months ago, this reporter asked Freshworks founder and CEO Girish Mathrubootham if he would also offer BMW bikes to hire engineers, something that fin tech BharatPe had announced, amidst the intense war for tech talent. "No, we will equip them so that they can buy it on their own", he responded, without hesitation.

It seems like he may have pulled it off with Freshworks' Nasdaq listing. Its stellar market debut hasn't only enriched Mathrubootham and early investors such as Accel and Sequoia but also hundreds of Freshworks employees, who are now millionaires.

"Our employees are also our shareholders. This IPO has allowed me an opportunity to fulfil my responsibility as a CEO to early shareholders- both VC investors and employees who have believed in the dream of Freshworks. We needed all the trust and belief that the early employees and investors who joined us and believed in the dream. As CEO, it is immensely fulfilling for me to finish my responsibility as I take on the new responsibility of public investors who have now invested in the future of Freshworks," Mathrubootham said in an interview with Moneycontrol hours after ringing the Nasdaq bell.

"76 percent of our employees hold shares, the number was even higher at 90 percent but because we have been hiring so many people recently it is 76 percent. For our employees in India, we have more than 500 crorepatis and 70 of them are under the age of 30. They passed out of college a few years ago and they fully deserve it," he added.

Business software maker Freshworks made its trading debut on September 22 at $43.5 per share on Nasdaq, up 21 percent from the company's listing price of $36 per share, giving the company a market cap of $12.3 billion.

Freshworks, which is the first Indian software-as-a-service firm to go public on the US stock exchange, was last valued at $3.5 billion when it raised $150 million financing from investors like Sequoia Capital, CapitalG and Accel in November 2019.

"I feel like an Indian athlete who has won a gold medal at the Olympics. We are showing the world what a global product company from India can achieve. The fact that we are doing it first in the US markets is truly amazing. Today is day zero for Freshworks all over again and the beginning of so much more" said Freshworks cofounder Girish Mathrubootham during the bell ringing ceremony.

Freshworks plans to use the proceeds from this offering for general corporate purposes, including working capital, operating expenses, and capital expenditures. It may also use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies.

This public offering comes amid increased digitisation and growing adoption for remote work during the Covid-19 pandemic that has seen SaaS IPOs in the US have performed spectacularly, popping (rising sharply) and creating billionaires overnight. The listings of Snowflake, Zoom, Cloudflare and Palantir has also sparked a new wave of enthusiasm from venture capitalists, private equity funds and hedge funds.

Founded in 2010 by Mathrubootham and Shan Krishnasamy as Freshdesk, the company rebranded as Freshworks in 2017. It counts the likes of Accel, Sequoia Capital, and Tiger Global among its investors. It claims to have over 52,500 customers as of August 31.

https://www.moneycontrol.com/news/b...ia-with-70-of-them-aged-below-30-7496681.html

 

[IndoorCricket]

Amazing achievement. Kudos to the freshworks team!!

 

[hoshiarpurexpress]

UAE, India look to double non-oil trade to at least $100B over five years

The United Arab Emirates is trying to burnish its credentials as a global hub for business and finance in the face of growing regional competition from Saudi Arabia.

The United Arab Emirates and India are seeking to more than double non-oil trade to at least $100 billion over five years as the Gulf Arab state works to deepen ties with fast-growing economies beyond the Middle East.

The two governments are set to start talks on an economic pact aimed at boosting business, investment and jobs, UAE Minister of State for Foreign Trade Thani Al Zeyoudi said on a visit to New Delhi for talks with Indian Commerce Minister Piyush Goyal.

“Both sides have drawn up a very aggressive and ambitious time-frame and aim to conclude negotiations by December 2021,” Goyal said at a press conference on Wednesday. “We hope to sign formal agreements in early 2022.”

The UAE is trying to burnish its credentials as a global hub for business and finance in the face of growing regional competition from Saudi Arabia. Earlier this month, the government said it plans to work on comprehensive economic agreements with countries showing high potential for growth, mainly in Asia and Africa. Last week, it said it plans to invest up to $14 billion in Britain.

India is seeking better trade links to revive its economy after a deadly second wave of the pandemic this year. The country is already the UAE’s second-largest trading partner, with around $40 billion in non-oil trade before the pandemic hit. The UAE says bi-lateral trade could reach up to $100 billion in the five years after the pact is agreed and Goyal said that target may be revised upwards.

Indian nationals make up one of the largest population groups in the oil-rich UAE, a major source of foreign remittances. India is also an important market for UAE airlines Emirates and Etihad. On a political level, UAE royals helped broker talks between India and Pakistan earlier this year.

Wealth Funds
Zeyoudi said representatives from the UAE’s sovereign wealth funds — some of the world’s biggest — will be part of a delegation set to meet with Goyal next week. An executive of Abu Dhabi’s state oil company, Adnoc, is part of the delegation currently in India.

Earlier, Goyal said the countries will focus on sectors including petrochemicals, textiles, jewelery, medical equipment and fintech. Investments between the two countries are already flowing. With an eye on food security, groups from the UAE, a desert country that relies heavily on imports, committed $7 billion in 2019 to set up a “food corridor” and invest in Indian agriculture.

Abu Dhabi wealth fund Mubadala invested $1.2 billion in India’s telecommunications provider Jio Platforms in June 2020, and India’s Reliance recently announced an investment of $2 billion in Abu Dhabi’s TA’ZIZ Industrial Chemical Zone.

“The UAE is moving quickly to establish new strategic agreements to expand our market access and use trade as a key pillar in a new era of economic cooperation,” Al Zeyoudi said. “It will strengthen our position as a global gateway to Africa, Asia and Europe.”

As part of that push, the UAE concluded talks with Indonesia earlier this year, committing to invest as much as $10 billion in sectors ranging from energy, infrastructure and ports to tourism and agriculture.

https://www.aljazeera.com/economy/2...double-trade-to-at-least-100b-over-five-years

 

[hoshiarpurexpress]

‘India to surpass Japan as Asia’s 2nd largest economy by 2030' : IHS Markit

Currently, Indian economy is the sixth-largest in the world, behind the US, China, Japan, Germany and the United Kingdom.

India is likely to overtake Japan as Asia's second-largest economy by 2030 when its GDP is also projected to surpass that of Germany and the UK to rank as world's No 3, IHS Markit said in a report on Friday.

Currently, Indian economy is the sixth-largest in the world, behind the US, China, Japan, Germany and the United Kingdom."India's nominal GDP measured in USD terms is forecast to rise from $2.7 trillion in 2021 to $8.4 trillion by 2030," IHS Markit Ltd said. "This rapid pace of economic expansion would result in the size of Indian GDP exceeding Japanese GDP by 2030, making India the second-largest economy in the Asia-Pacific region."

On the current economic scenario, IHS Markit said, India reported the fastest pace of growth for the fifth month running in December, albeit with growth slowing in both manufacturing and services to the weakest since September, as the Delta wave rebound faded and new virus worries intensified.


"Covid-19 factors also inhibited growth in both Russia and Brazil, the former more or less stalled on the back of a third month of falling service sector activity and the latter seeing growth hold at the six-month low seen in November thanks to an ongoing manufacturing downturn," it added

Earlier, former SBI chief Rajnish Kumar said India needs to accelerate economic growth to achieve its target of becoming a $5-trillion economy by 2025. In order to ramp up economic growth, the country needs huge investment in the economy, SBI former chief said.

Meanwhile, Ratings agency ICRA has recenlty maintained its forecast of a 9% GDP expansion in FY22, with a clear K-shaped divergence amongst the formal and informal sectors of the economy. The ratings agency also expect the economy to maintain a similar 9% growth in FY23, while Wall Street Brokerage Bank of America expects India's GDP to grow at 8.2% in the next financial year, citing greater risks in the new year than the previous two years.

Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.

GDP for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

https://www.livemint.com/economy/in...rgest-economy-by-2030-ihs-11641551773748.html

 

[Ahmad-GERMANFC]

Currently, Indian economy is the sixth-largest in the world, behind the US, China, Japan, Germany and the United Kingdom.

India is likely to overtake Japan as Asia's second-largest economy by 2030 when its GDP is also projected to surpass that of Germany and the UK to rank as world's No 3, IHS Markit said in a report on Friday.

Currently, Indian economy is the sixth-largest in the world, behind the US, China, Japan, Germany and the United Kingdom."India's nominal GDP measured in USD terms is forecast to rise from $2.7 trillion in 2021 to $8.4 trillion by 2030," IHS Markit Ltd said. "This rapid pace of economic expansion would result in the size of Indian GDP exceeding Japanese GDP by 2030, making India the second-largest economy in the Asia-Pacific region."

On the current economic scenario, IHS Markit said, India reported the fastest pace of growth for the fifth month running in December, albeit with growth slowing in both manufacturing and services to the weakest since September, as the Delta wave rebound faded and new virus worries intensified.


"Covid-19 factors also inhibited growth in both Russia and Brazil, the former more or less stalled on the back of a third month of falling service sector activity and the latter seeing growth hold at the six-month low seen in November thanks to an ongoing manufacturing downturn," it added

Earlier, former SBI chief Rajnish Kumar said India needs to accelerate economic growth to achieve its target of becoming a $5-trillion economy by 2025. In order to ramp up economic growth, the country needs huge investment in the economy, SBI former chief said.

Meanwhile, Ratings agency ICRA has recenlty maintained its forecast of a 9% GDP expansion in FY22, with a clear K-shaped divergence amongst the formal and informal sectors of the economy. The ratings agency also expect the economy to maintain a similar 9% growth in FY23, while Wall Street Brokerage Bank of America expects India's GDP to grow at 8.2% in the next financial year, citing greater risks in the new year than the previous two years.

Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.

GDP for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

https://www.livemint.com/economy/in...rgest-economy-by-2030-ihs-11641551773748.html

Japans population is only 1/12th the size of India. I think on relative scale Japan would still be considered well ahead.

Tbh Japans economy is a stuff of legends

 

[JaDed]

Japans population is only 1/12th the size of India. I think on relative scale Japan would still be considered well ahead.

Tbh Japans economy is a stuff of legends

Also their thought process, South Koreans and Japanese are the two only two countries in Asia to have an innovative thought process.

 

[hoshiarpurexpress]

Japans population is only 1/12th the size of India. I think on relative scale Japan would still be considered well ahead.

Tbh Japans economy is a stuff of legends

Step by step, increment by increment, India will reach there as well. The point is to always go forward.

 

[RajBan]

Step by step, increment by increment, India will reach there as well. The point is to always go forward.

It won't happen unless we get more women to join the workforce and create an enabling environment to sustain their participation.

This is were Bangladesh trumps say a Bihar or UP or even West Bengal which is a lot similar to itself socio economically.

In several states specially North, Central and South India there is much scope for women to add to the economic activities.

 

[Varun]

Step by step, increment by increment, India will reach there as well. The point is to always go forward.

There is only 1 step required: build a wall around BIMARU and let them be their own country, mandir and toxic river et al.

 

[Napa]

There is only 1 step required: build a wall around BIMARU and let them be their own country, mandir and toxic river et al.

Fortunately there are very few Indians like you who want the country to break apart.

 

[hoshiarpurexpress]

It won't happen unless we get more women to join the workforce and create an enabling environment to sustain their participation.

This is were Bangladesh trumps say a Bihar or UP or even West Bengal which is a lot similar to itself socio economically.

In several states specially North, Central and South India there is much scope for women to add to the economic activities.

I agree to that. But things are different from 20 years ago. They will improve 20 years after.
That is all i intended so say, the progress, albeit being very slow, is being made.

I will give you one example. I am in my hometown Hoshiarpur, Punjab these days for family visit and i have came here after 2 years because of COVID. My last visit was in 2019.
There is a new E-Rickshaw operated now here for transport now, This was not there in 2019.
Fifty percent of workforce driving those E-Rickshaws is Females. I used them and spoke to the drivers and they are happy, making money and gaining independence even though things are bit slow due to COVID.

I travelled to Chandigarh and saw a Women Conductor for the first time there. It is a usual occurence in Bangalore, My first experience of that was back in 2006 when I went there for job.

So, On the ground there is some progress within 2 years and attitude change. Back in 2000's, when I was growing up here in this Smallest of the Towns of India a Woman Driving a RickShaw in Punjab was impossible to even fathom.

South India is far ahead in these things, but things are improving. Off-course there are societal issues and ills, but on ground some improvement is happening. So I am optimistic.

Even though it is slow, Desh Badal Raha hai..
[MENTION=142162]Napa[/MENTION] [MENTION=76058]cricketjoshila[/MENTION] [MENTION=132715]Varun[/MENTION]

 

[Napa]

I agree to that. But things are different from 20 years ago. They will improve 20 years after.
That is all i intended so say, the progress, albeit being very slow, is being made.

I will give you one example. I am in my hometown Hoshiarpur, Punjab these days for family visit and i have came here after 2 years because of COVID. My last visit was in 2019.
There is a new E-Rickshaw operated now here for transport now, This was not there in 2019.
Fifty percent of workforce driving those E-Rickshaws is Females. I used them and spoke to the drivers and they are happy, making money and gaining independence even though things are bit slow due to COVID.

I travelled to Chandigarh and saw a Women Conductor for the first time there. It is a usual occurence in Bangalore, My first experience of that was back in 2006 when I went there for job.

So, On the ground there is some progress within 2 years and attitude change. Back in 2000's, when I was growing up here in this Smallest of the Towns of India a Woman Driving a RickShaw in Punjab was impossible to even fathom.

South India is far ahead in these things, but things are improving. Off-course there are societal issues and ills, but on ground some improvement is happening. So I am optimistic.

Even though it is slow, Desh Badal Raha hai..
[MENTION=142162]Napa[/MENTION] [MENTION=76058]cricketjoshila[/MENTION] [MENTION=132715]Varun[/MENTION]

Indian women have always had a lot of respect in society, as may also be seen from the numerous female Goddesses. Not surprising that they are increasing their participation in the economy.

 

[Giannis]

Bangladesh, Bhutan and Sri Lanka are all ahead of India, Maldives is far ahead of the pack and are the wealthiest south asian country per capita (~$12,000), I expect Nepal to surpass India. Pakistan can also pass up India and make them the poorest country in south asia if they got their act together.

 

[boomboomcheema]

Bangladesh, Bhutan and Sri Lanka are all ahead of India, Maldives is far ahead of the pack and are the wealthiest south asian country per capita (~$12,000), I expect Nepal to surpass India. Pakistan can also pass up India and make them the poorest country in south asia if they got their act together.

Pakistan cannot pass unless there is a some control on fertility rates. Having 4-5 kids will continue to be burden on the family and economy.

Nepal is very poor and a landlocked mountainous region, don't think it will ever pass India but may become better.

 

[boomboomcheema]

Its so surprising that despite having so many Billionaires, Millionaires and other rich people India is still largely a very poor country that has living standards below the likes of many African Countries. Means for vast majority of people, it's more useful to be born in a better place in Africa than in India.

All these talks about being a Trillion Dollar economy, if all African Nations merge into one Single country called " Greated Africa " even they can turn into a Trillion Dollar Powerhouse, nothing too monumental about that. It's just population and big numbers at play.

 

[Giannis]

Its so surprising that despite having so many Billionaires, Millionaires and other rich people India is still largely a very poor country that has living standards below the likes of many African Countries. Means for vast majority of people, it's more useful to be born in a better place in Africa than in India.

All these talks about being a Trillion Dollar economy, if all African Nations merge into one Single country called " Greated Africa " even they can turn into a Trillion Dollar Powerhouse, nothing too monumental about that. It's just population and big numbers at play.

The only future middle class and poor Indians have is to immigrate to a wealthier country for a better life. The Indian govt knows this and try their best get visa deals so that more Indians can move to Europe, North America and the Arabian gulf.

https://www.ndtv.com/india-news/pm-...isas-with-joe-biden-foreign-secretary-2552994


https://www.reuters.com/world/india...nts-uk-return-visas-young-workers-2021-05-04/

https://www.thehindu.com/news/natio...-at-australia-visa-policy/article18357878.ece