Indian Economy

[Gamma78]

Yes all your assets above a $2 million threshold are deemed to have been sold, hence you pay capital gains as an exit tax. 

Which is crazy. I haven't seen any other country do that (though the UK is trying to do that now with inheritance tax liability for people who decide to leave the UK). 

[Hektor]

Thanks @Alekbaylee @gamma78

[Munger_Disciple]

Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

[rohitc99]

34 minutes ago, Munger_Disciple said:

Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

+1

I have lived in Japan, Malaysia, UK before we immigrated to the US. I am on Indian origin. We chose the US (canada was next choice)

 

I have seen other countries and each place will have its plus or minus, but US/Canada for all the negatives we can think of are far better - definitely for immigrants. I am happy to pay the taxes and grateful for the opportunities this country has given me and my kids.

 

I have friends in india, who are doing very well even by western standards. However they are going to spend a fortune to send their kids to do an under-grad in the US and then stay back. These are very smart kids and would do well anywhere in the world. 

 

Actions speak louder than words

[jbwent63]

On 6/9/2024 at 3:35 AM, gamma78 said:

Yes all your assets above a $2 million threshold are deemed to have been sold, hence you pay capital gains as an exit tax. 

Which is crazy. I haven't seen any other country do that (though the UK is trying to do that now with inheritance tax liability for people who decide to leave the UK). 

If you are a Canadian resident for tax purposes and cease to be so, you are deemed to have sold all your assets with the capital gains being taxed. Similar rules at death. If you believe you will return eventually, you can make an agreement with the MOF and post a bond to cover the estimated taxes just in case you don't return to Canada.

[Haryana]

 

[Crip1]

On 6/9/2024 at 1:44 PM, rohitc99 said:

 

 

I have seen other countries and each place will have its plus or minus, but US/Canada for all the negatives we can think of are far better - definitely for immigrants. I am happy to pay the taxes and grateful for the opportunities this country has given me and my kids.

 

I

First and foremost, as a US citizen I appreciate you saying that. Regrettably, IMHO, there are far too many US citizens who use the right of free speech to do far more bi***ing and far less appreciating (this may prevalent in other countries, but my frame of reference is too limited to speak on this). Don't get me wrong, criticizing in order to try to make a positive change is admirable, but along with criticizing, one should be grateful for the opportunities afforded. 

 

-Crip

[whatstheofficerproblem]

18 minutes ago, Crip1 said:

I appreciate you saying that. Regrettably, IMHO, there are far too many US citizens who use the right of free speech to do far more bi***ing and far less appreciating

 

You ever exchange lunchboxes at school? You and your friend both brought Gumbo but you find your friend's 10x more tasty than what you brought? And your friend finds your Gumbo 10x more tasty than what he eats and you're both arguing that the other's Gumbo is better.

 

This is what happens, you get accustomed to something for most of your life, and in case of US citizens most have them have never been outside the country. They haven't seen the outside world, way too coddled which is why you see this phenomenon. It's the same with the generational gap, the boomers for example have seen so much in their lives that they are desensitized to a lot of stuff, the newer coddled generation on the other hand, everything is gonna end the world for them.

Edited June 11, 2024 by whatstheofficerproblem

[Hektor]

48 minutes ago, whatstheofficerproblem said:

in case of US citizens most have them have never been outside the country. They haven't seen the outside world

Well said @whatstheofficerproblem

[Hektor]

I would say that this phenomenon is seen in many places over the world for the same reasons.

[Haryana]

25 testimonial interviews from immigrants to India:

 

[Thrifty3000]

On 6/10/2024 at 8:53 PM, whatstheofficerproblem said:

 

You ever exchange lunchboxes at school? You and your friend both brought Gumbo but you find your friend's 10x more tasty than what you brought? And your friend finds your Gumbo 10x more tasty than what he eats and you're both arguing that the other's Gumbo is better.

 

This is what happens, you get accustomed to something for most of your life, and in case of US citizens most have them have never been outside the country. They haven't seen the outside world, way too coddled which is why you see this phenomenon. It's the same with the generational gap, the boomers for example have seen so much in their lives that they are desensitized to a lot of stuff, the newer coddled generation on the other hand, everything is gonna end the world for them.

 

RULE OF LAW + freedom of press/speech + democratic elections + term limits + mostly free trade + excellent geographic advantages + entrepreneurship + upward mobility + good military/patriotism + decent infrastructure + decent education + decent healthcare + decent demographics + decent people = I ain’t complainin’ (much)

 

#’merica

[nwoodman]

MS released their Indian Macro Indicators Chartbook

 

Key points:

1. GDP growth remains resilient, with GDP growth of 7.8% year-over-year in Q1 FY2025 (April-June 2024). The report forecasts GDP growth of 6.8% for FY2025 and 6.5% for FY2026.

2. Inflation has moderated, with headline CPI inflation at 3.5% year-over-year in July 2024, a 5-year low. Core inflation edged up slightly to 3.4%.

3. The trade deficit widened to $23.5 billion in July 2024. The current account deficit is expected to remain benign at around 1% of GDP in FY2025.

4. Domestic demand indicators show some softening but remain generally positive. Manufacturing and services PMIs remain in expansion territory.

5. The fiscal deficit has narrowed to 4.4% of GDP on a 12-month trailing basis as of June 2024. 

6. Monetary policy remains steady, with the repo rate unchanged at 6.5%. The report expects rates to remain on hold through FY2025-26.

7. Key risks stem from external factors, but the overall outlook remains constructive on India's economic growth prospects.

 

INDIA_20240821_2300.pdf

[ICUMD]

Rise of the New Indian Elite

 

 

[Saluki]

On 6/9/2024 at 2:04 PM, Munger_Disciple said:

Why would anyone want to renounce US citizenship? You can live practically anywhere in the world while still being a US citizen and perhaps acquire permanent residency status where you live. Many countries like Portugal offer incentives for digital nomads these days.

 

The US is one of the only countries in the world that taxes people on worldwide income.  That's why a lot of wealthy Chinese chose Canada instead of the US.  Let's say that you are a dual citizen of the UK and US and you live in the UK and earn US$500k a year.  You are taxed at both the UK and US, but the UK rate is higher and you get to deduct those UK taxes from your US taxes, so you pay nothing in the US. What if you are offered a job at a bank in Dubai for $500k.  If you were only a UK citizen, that would all be tax free money because Dubai doesn't have an income tax and you aren't taxed while living abroad.  The US would tax you though.  In the US you wouldn't pay tax on the first $120k, but the rest is all taxed as US income tax even though you don't live there.  

 

If you got to live in Portugal and eventually got citizenship, an EU passport is probably as good as a US one, and better if you want to live in another european country. 

 

 

[Munger_Disciple]

On 8/30/2024 at 6:22 AM, Saluki said:

 

The US is one of the only countries in the world that taxes people on worldwide income.  That's why a lot of wealthy Chinese chose Canada instead of the US.  Let's say that you are a dual citizen of the UK and US and you live in the UK and earn US$500k a year.  You are taxed at both the UK and US, but the UK rate is higher and you get to deduct those UK taxes from your US taxes, so you pay nothing in the US. What if you are offered a job at a bank in Dubai for $500k.  If you were only a UK citizen, that would all be tax free money because Dubai doesn't have an income tax and you aren't taxed while living abroad.  The US would tax you though.  In the US you wouldn't pay tax on the first $120k, but the rest is all taxed as US income tax even though you don't live there.  

 

If you got to live in Portugal and eventually got citizenship, an EU passport is probably as good as a US one, and better if you want to live in another european country. 

 

 

 

You misunderstand the point I was trying to make. If you are already a US citizen, it doesn't make much sense to renounce your citizenship unless you have very little net worth because there is an exit tax which is levied on all the assets you own (so it is more like a wealth tax on all you wealth including unrealized capital gains) when you renounce your US citizenship. So you are better off biting the bullet, keep your US citizenship and pay taxes on worldwide income even if you work and live abroad.

Edited August 31, 2024 by Munger_Disciple

[Saluki]

1 hour ago, Munger_Disciple said:

 

You misunderstand the point I was trying to make. If you are already a US citizen, it doesn't make much sense to renounce your citizenship unless you have very little net worth because there is an exit tax which is levied on all the assets you own (so it is more like a wealth tax on all you wealth including unrealized capital gains) when you renounce your US citizenship. So you are better off biting the bullet, keep your US citizenship and pay taxes on worldwide income even if you work and live abroad.

 

Yes, I misunderstood.  I agree, for people in the middle it makes no sense, but might be worth it for the people on the low end, as you mentioned, or even the high end.  One of the Facebook co-founders, Eduardo Saverin, renounced his citizenship because it was a one time hit and he knew his future earnings would dwarf that hit. 

 

Also, baby boomers are now dying off and leaving large inheritances to their heirs.  If you renounce before your parent dies, those assets are not included in your net worth because your entitlement to them doesn't vest until the parent dies, since they can change their minds and disinherit you. An irrevocable trust is a different story though.  

[dartmonkey]

2 hours ago, TB said:

India stock market is sizzling - more than 150 IPOs in 2024 by end of July compared to 129 in the US

I’ve gotta ask, how is it that FIH’s investments have managed to avoid all this sizzling?

[Haryana]

On 9/1/2024 at 10:21 AM, TB said:

A bike dealership ended up becoming a billionaire overnight 

 

https://theprint.in/economy/how-bike-dealerships-rs-12-cr-ipo-raised-whopping-rs-4800-cr-why-this-isnt-cause-to-celebrate/2240608/

 

 

Worth quoting from your link -

 

“Out of the 16 crore demat accounts now, about 75 percent are newbies that entered the market post the Covid-19 crash,” V.K. Vijayakumar, chief investment strategist at Kochi-based investment services firm Geojit Financial Services, explained to ThePrint.

“They have only seen the market going up, and so the recency effect plays a factor here, making them believe the market will only go up.” 

He further said that the vast majority of retail investors are not doing their due diligence which, he claimed, was “a growing problem”.

“They don’t have any idea of valuations. Far from doing due diligence, they are not even doing commonsensical monitoring,” he said. 

 

[Haryana]

While there is "irrational exuberance" in the Indian stock markets, the financial sector is appearing as a value play.

 

The regulators are going tough on the financial entities to apply the brake without hampering the economic growth.

 

This has caused the FIH valuation to remain subdued as it has muted financial heavyweights of IIFL and CSB bank.

 

Bangalore airport would have participated in the market sizzle if it was public as the travel segment is booming hot.

 

[Dipesh Patel]

[UK]

24 minutes ago, Dipesh Patel said:

 

So maybe this idea to put big chunk of capital into IDBI is not that bad after all:)?

[nwoodman]

Global Money Is Chasing Indian Stocks Again as Bull Run Extends

- Foreign investors have poured about $20 billion into Indian stocks this year, the largest inflow since 2020.

- The MSCI India index has risen nearly 11% this year, outperforming other emerging market indices.

 

[nwoodman]

Just scrap booking, probably needs inflation adjustments, currency devaluation etc. but even a 75% haircut would still tell the story
 

Edited September 21, 2024 by nwoodman

[nwoodman]

Gautam Adani Charged by US Over Alleged $250 Million Bribe Plot

 

US prosecutors charged Gautam Adani, one of the world’s richest people, with participating in a scheme that involved promising to pay more than $250 million in bribes to Indian government officials to secure solar energy contracts.

 

https://www.bloomberg.com/news/articles/2024-11-20/us-prosecutors-indict-gautam-adani-on-bribery-charges?embedded-checkout=true

 

“Gautam Adani can be indicted in the USA because the alleged fraud and bribery scheme involved misleading American investors and financial institutions. U.S. prosecutors claim that Adani and his associates provided false information to secure investments from U.S. and international sources while engaging in bribery to obtain contracts in India. The U.S. legal system has jurisdiction over cases involving fraud that affects American investors, even if the primary activities occurred outside the country.”

 

 

The Guardian article has a bit more color

 

https://www.theguardian.com/business/2024/nov/20/gautam-adani-charged-alleged-bribes

 

Prosecutors charged the chair of Indian conglomerate Adani Group and two other executives of a renewable energy company with securities fraud and conspiring to commit securities and wire fraud.

The US attorney’s office in Brooklyn accused the executives of agreeing to pay hundreds of millions of dollars’ worth of bribes to Indian government officials between 2020 and 2024, in a bid to obtain solar energy supply contracts expected to yield $2bn in profits over 20 years.

Separately, the Securities and Exchange Commission (SEC), the US’s top markets watchdog, charged Adani, 62, and two other executives over conduct it said had arisen out of a “massive bribery scheme”……

 

Prosecutors alleged that, on several occasions, Adani personally met with an Indian government official to advance the bribery scheme.

The executives are accused of having frequently discussed efforts to further the scheme, including via a messaging app. One of the defendants, Sagar R Adani, tracked “specific details of the bribes offered and promised to government officials” on his phone, according to prosecutors.

 

DOJ

https://www.justice.gov/usao-edny/pr/billionaire-chairman-conglomerate-and-seven-other-senior-business-executives-indicted

 

By way of reference to the Canadian institutional investor:

“Also named in the indictment were Ranjit Gupta and Rupesh Agarwal, former executives of Azure Power, and Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra, former employees of Canadian institutional investor Caisse de Depot et Placement du Quebec.”

 

1. Indian Renewable Energy Company:

• Adani Green Energy Limited (AGEL): A subsidiary of the Adani Group, AGEL is a prominent player in India’s renewable energy sector, focusing on solar and wind power projects. The company has been involved in large-scale solar energy initiatives and has raised substantial capital through international loans and bond offerings.

 

2. NYSE-Listed Renewable Energy Company:

• Azure Power Global Limited: An independent solar power producer that was listed on the New York Stock Exchange (NYSE). Azure Power has developed and operated solar projects across India and has engaged in capital-raising activities through U.S. financial markets.

 

3. Canadian Institutional Investor:

• Caisse de dépôt et placement du Québec (CDPQ): A Canadian institutional investor managing funds primarily for public and parapublic pension and insurance plans. CDPQ has invested in various infrastructure projects globally, including renewable energy ventures in India.

 

Key Individuals and Their Affiliations:

• Gautam S. Adani: Chairman of the Adani Group, which includes AGEL. He is a central figure in the conglomerate’s expansion into renewable energy.

• Sagar R. Adani: An executive within the Adani Group, closely associated with AGEL’s operations.

• Vneet S. Jaain: CEO of AGEL, overseeing the company’s renewable energy projects and strategic initiatives.

• Ranjit Gupta: Former CEO of Azure Power Global Limited, responsible for leading the company’s solar power projects and expansion efforts.

• Rupesh Agarwal: Former CFO of Azure Power Global Limited, involved in the company’s financial operations and capital-raising activities.

• Cyril Cabanes: Former Managing Director of Infrastructure, Asia-Pacific at CDPQ, overseeing infrastructure investments, including renewable energy projects in the region.

• Saurabh Agarwal: Former Managing Director of CDPQ India and Managing Director, Infrastructure for South Asia, involved in CDPQ’s investment strategies in the Indian market.

• Deepak Malhotra: Former Director, Infrastructure for South Asia at CDPQ, contributing to the firm’s infrastructure investment decisions in the region.

Edited November 21, 2024 by nwoodman