INDIA CAN STILL PREVAIL, WITH WILL


23rd Aug, 2011;  Source: The Economic Times


In a world economy that is fraught, India requires strong leadership to sustain its growth momentum So we are once again in the thrall of a global economic crisis The double dip recession appears round the corner in the US, while the eurozone continues its struggles to stave off impending Armageddon in the form of... Read More


INDIA’S ENTREPRENEURIAL DEFICIT


23rd May, 2011;  Source: The Economic Times


To broad base its growth, the country needs to address the lack of a thriving entrepreneurship culture One of the drivers of India's growth going forward is how well the professional class adapts to emerging opportunities in the new India Historically, Indians have been reasonably risk averse, preferring salaried... Read More


WAGES OF FISCAL IMPRUDENCE


31st Mar, 2011;  Source: The Economic Times


Growth and Budget targets stand to be undermined by the perceived dither in governance As per the Budget estimate, India’s fiscal deficit will be 46% of GDP and total borrowings will be 3,43,000 crore Both these targets are likely to be exceeded First, the revenue side depends critically on 9% GDP growth and... Read More


QUANTITY, NOT QUALITY, IN OUR GROWTH


27th Jan, 2011;  Source: The Economic Times


Many scandals have surfaced recently, which highlight the immaturity of India’s economic development model India lurched somewhat reluctantly into the economic reform process nearly two decades ago If China has been on the path for the last 33 years, the fact is that we have been at it for 20 years, too This is a... Read More


WHAT 2011 MIGHT HOLD


24th Dec, 2010;  Source: The Economic Times


The year 2010 has been a strange one in many ways — a year that flattered to deceive and that belied the expectations and optimism with which it had started The report card is straightforward The political stock of the UPA fell suddenly after the second half of the year with one scam after another and the results of... Read More


DECODING THE SAVINGS RATE MIRACLE


22nd Oct, 2010;  Source: The Economic Times


One of the real macroeconomic successes of this phase of India’s reform process has been the increase in our savings rate This has also resulted in a higher investment rate, which, indeed, is now leading to a higher level of GDP growth For example, in the three years to FY 2004, the savings rate hovered around 25%... Read More


THE 8% COMPLACENCY TRAP


3rd Sep, 2010;  Source: The Economic Times


Growth in the nineties averaged about 6% but now we are consistently doing better at 8% This has led to a sense of complacency and even triumphalism amongst policymakers and the media The ‘second fastest growing economy’ appears to be waiting comfortably for China to stumble so that we can perhaps even lay claim... Read More


OPEN THE DOORS TO ORGANISED RETAIL


30th Jul, 2010;  Source: The Economic Times


The story of Indian retail is a complicated one To put things in perspective, about 40% of the country’s total GDP of $1 trillion comes from retail sales to Indian consumers The local, one-off corner stores account for more than 94% of this total retail sales of around $400 billion So-called organised retail that... Read More


IT’S ADVANTAGE INDIA INC


8th Jun, 2010;  Source: The Economic Times


Phase-II of the global recession was always going to hit the global economy That Greece took the honours was purely incidental The bigger issue is whether in saving the too-big-to-fail banks of the world, governments have overstretched themselves This is the nagging fear that is disquieting the markets Let's hope... Read More


Irrationality of global capital markets


11th May, 2010;  Source: The Economic Times


Global capital markets are not perfect Nor are they rational, or even oftentimes effective A quick look at the performance of the capital markets over the last 15 years just confirms this In 1993, foreign investors pumped billions of dollars into short term, local currency, fixed income instruments in Mexico,... Read More