Is Indian economy is booming as claimed by Govt of India? Then why sensex crashes every time DOW drops?

Question

Our govt claims that Indian economy is booming. If that is so why every single time the DOW Jones index drops just few points our Sensex just crashes drop hundred points. If economy is booming why more than half of the population is still under below poverty line and still we hear people dieing of hunger. According to me our economy is not strong but just bubble solely dependent on the supply of dollors pumped into the country by the NRI's. The day NRI's stop sending dollors back home Indian economy bubble bursts. Will some one throw more light on this.

Answer 1

It is not shining as glitteringly as one would imagine, after all the hype being made by neo-punidits. Indian economy has still its own weaknesses. The primary area of concern being agriculture, inadeuate infrastructure etc. Rural poverty, and the attendant flight to the urban centres which put pressure on the already inadequate infrastructure pose serious problems. For a detailed discussion, please see this revealing article in this site. http://news.indiamart.com/news-analysis/is-it-a-boom-time-in-8563.html

Answer 2

Yes, Indian economy is booming. Because in global market, most of indian companies are dependent partially or totally on the tecnology of us companies or other countries.Especially, when the dow jones drops then sensex also drops automatically. But matter of fact, economy is booming it doesnt mean that india has totally come out from the poverty or india is broken the barriers of the poverty. Poverty is still considered as one of the main drawback of indian growth due to over population. I feel that india is still trying to come out from this drawback and booming in the economy.

Answer 3

hey dont confuse the whole indian economy with the sensex only. Yes the economy does contain sensex but then economy is much wider and a major subject than sensex. sensex is short form of sensitive index and therefore it is very sensitive to most external factors such as political, global,natural calamities etc. and yes as u are true about it, a lot of money comes from NRIs but then much more money comes from FIIs (Foreign Institutional Investors) that drives our sensex up. and when they book profits our sensex falls down. So, when Govt. claims indian economy is booming it also points its fingers at the booming exports, major takeovers of global giants by indian companies, so many companies making india as their major sourcing hub. there's much much much more to it.

Answer 4

Sensex can not indicate our financial wealth. We may be fourth largest economy in the world, but since two decaes the BPL people remain static at 30 per cent. The productivity in agriculture is static and production coming down. First time in the recent years we imported 5.5 million tons wheet. Food minister Sharad Power admitted that he had spent sleepless nights to permit for wheet import. The investment in agriculture is not growing and private investment coming down. The cultivation is not a profitable occupation to the farmers. Unless agriculture made profitable and rural economy grows we can not claim bloom in economy.

Manmohan Singh government claiming huge employment being created in IT and other industrial sectors. When the fact is that 93 per cent employment is in rural sector, a 30 per cent growth in IT and other industrial sectors may contribute a mere 1 per cent improvement in total employment.

Answer 5

This indian investment website helps nri and pios that is non resident indians to invest into indian mutual funds online.

They primarliy enable NRIs to invest in the india's best performing mutual funds with high returns. Basically they help NRIs living abrod to do investments in Indian mutual funds and Indian stock markets online, with lowest commissions and fees.


http://www.nriinvestindia.com/nri_tax_on_investments.htm

http://www.nriinvestindia.com/


Girish

Answer 6

proverty line is a imagination of politition mind and actualy india hade proverty is below 10%. economicaly India is well doveloped against other third nations.

Answer 7

it is always the practise of government of India to claim all things which are not true.