http://valuestocks.wordpress.com/2006/08/24/run-down-on-capex-led-growth-2/ Just another Wordpress.com weblog Sat, 20 Jun 2009 13:10:59 +0000 http://wordpress.com/ hourly 1 http://valuestocks.wordpress.com/2006/08/24/run-down-on-capex-led-growth-2/#comment-423 toughiee Thu, 24 Aug 2006 10:10:00 +0000 http://valuestocks.wordpress.com/2006/08/24/run-down-on-capex-led-growth-2/#comment-423 Andy's view are way too myopic on economies of Asia as a whole does not relate much for a growing economy like India. Generalization of India with other Asain economies is incorrect in my view. Andy’s view are way too myopic on economies of Asia as a whole does not relate much for a growing economy like India. Generalization of India with other Asain economies is incorrect in my view.

]]> http://valuestocks.wordpress.com/2006/08/24/run-down-on-capex-led-growth-2/#comment-422 GreyFool Thu, 24 Aug 2006 09:50:00 +0000 http://valuestocks.wordpress.com/2006/08/24/run-down-on-capex-led-growth-2/#comment-422 I agree with the gist of what Andy Xie says. But I'm not sure India can be equated with the rest of ex-Japan asian economies. Our exports account for 10% of GDP of which contributation by US is around 35-40%. So roughly only 3-4% of GDP is directly influenced by US economy.<br/>Even in the last US recession in 200-2002 we only slowed down moderately from 5.8-6% to 4%. And most of that was acounted by our own internal domestic business cycles. The industrial sector was bogged by huge overcapacities since 1997-98 when the capex cycle ended . Things are very different right now with industry utilization rates @84% and very nominal & judicious capex planned for yrs ahead. I agree with the gist of what Andy Xie says. But I’m not sure India can be equated with the rest of ex-Japan asian economies. Our exports account for 10% of GDP of which contributation by US is around 35-40%. So roughly only 3-4% of GDP is directly influenced by US economy.
Even in the last US recession in 200-2002 we only slowed down moderately from 5.8-6% to 4%. And most of that was acounted by our own internal domestic business cycles. The industrial sector was bogged by huge overcapacities since 1997-98 when the capex cycle ended . Things are very different right now with industry utilization rates @84% and very nominal & judicious capex planned for yrs ahead.

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