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


PROMOTING FAMILY BUSINESSES


7th Apr, 2010;  Source: The Economic Times


India has an almost unique system of promoters who own and manage much of the corporate sector There are the eponymous promoter groups that have been around for decades such as the Tatas, Birlas, Mahindras, Bajajs, Goenkas and Godrejs Then there are the relative newcomers such as the Ambanis of Reliance , the Mittals... Read More


INDIA: A COUNTRY OF PARADOX


8th Feb, 2010;  Source: The Economic Times


India is such a land of contrasts that sometimes one wonders how the different pieces form part of the same whole How does the 8%-plus GDP growth economy coexist with one where little, unclothed children sleep in the freezing streets of our Capital How do we have a world-beating IT sector living side by side with huge... Read More


MANAGING THE COUNTRY


7th Dec, 2009;  Source: The Economic Times


Imagine, as John Lennon said, if the country was managed like a company There would be a chairman/CEO — the prime minister, a board of directors — the Cabinet perhaps — a set of shareholders — the people, regulators — the Parliament, employees — the bureaucrats, and so on The key difference is that for a... Read More