Getting Indian economy back on track
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India's economic growth better than forecast
BBC News - India's economic growth better than forecast
India's economy grew faster than expected in the three months to the end of June, easing some fears about a sharp slowdown in Asia's third-largest economy.
Growth was 5.5% in the April to June period from a year earlier. Most analysts had forecast a rate of 5.2%.
That compares with a 5.3% annual growth rate in the previous quarter.
However, there are concerns that a lack of reforms, slowing factory output and investment may hurt long-term growth.
"Whilst an upside surprise at 5.5%, the pace of growth is undeniably below potential and validates the need for the government to address sluggishness in investment and external sector activity," said Radhika Rao an economist at Forecast Pte.
Push for reforms
Continue reading the main story
"
Start Quote
A sustainable growth in the coming quarters would largely depend up on well defined policy reforms"
Shakti Satapathy
AK Capital
India's economy has been been hurt by a variety of factors in recent months.
Slowing global demand has affected the country's exports and dented industrial production. India's factory output fell 1.8% in June from a year earlier, the third fall in four months.
At the same time, the government has been locked in a political battle with the opposition that has resulted in key reforms hitting a dead end.
To make matters worse, a number of corruption scandals has not only dented India's image but also hurt investor confidence.
Foreign direct investment in India fell by 78% in June, from a year earlier.
Analysts said the government needed to take action to improve the investment climate in India if the country was to maintain a high rate of growth in the future.
"A sustainable growth in the coming quarters would largely depend up on well defined policy reforms," said Shakti Satapathy of AK Capital in Mumbai.
No policy easing?
As India's economy has slowed in recent months, there have been calls for the central bank, the Reserve Bank of India (RBI), to cut interest rates in order to spur growth.
Rising food prices have been a hot political issue in India and have influenced the RBI's policy
The central bank lowered its main interest rate in April this year to 8% from 8.5%, the first cut in three years.
However, despite calls for further cuts, it has kept the rates unchanged since then, in an attempt to keep consumer price growth in check.
The rate of inflation has come down gradually in the past few months. Consumer prices in India rose by 6.87% in July from a year earlier.
That was down from a rate of 7.25% in June and 7.55% in May.
Howvere, analysts said that the better-than-expected growth data may see the central back keep its policy unchanged for the time being.
"I would think RBI would be reasonably happy with this number as it doesn't look as bad as they would have feared in July and most likely will keep rates unchanged next month," said A Prasanna, an economist with ICICI Securities Primary Dealership Limited.
BBC News - India's economic growth better than forecast
India's economy grew faster than expected in the three months to the end of June, easing some fears about a sharp slowdown in Asia's third-largest economy.
Growth was 5.5% in the April to June period from a year earlier. Most analysts had forecast a rate of 5.2%.
That compares with a 5.3% annual growth rate in the previous quarter.
However, there are concerns that a lack of reforms, slowing factory output and investment may hurt long-term growth.
"Whilst an upside surprise at 5.5%, the pace of growth is undeniably below potential and validates the need for the government to address sluggishness in investment and external sector activity," said Radhika Rao an economist at Forecast Pte.
Push for reforms
Continue reading the main story
"
Start Quote
A sustainable growth in the coming quarters would largely depend up on well defined policy reforms"
Shakti Satapathy
AK Capital
India's economy has been been hurt by a variety of factors in recent months.
Slowing global demand has affected the country's exports and dented industrial production. India's factory output fell 1.8% in June from a year earlier, the third fall in four months.
At the same time, the government has been locked in a political battle with the opposition that has resulted in key reforms hitting a dead end.
To make matters worse, a number of corruption scandals has not only dented India's image but also hurt investor confidence.
Foreign direct investment in India fell by 78% in June, from a year earlier.
Analysts said the government needed to take action to improve the investment climate in India if the country was to maintain a high rate of growth in the future.
"A sustainable growth in the coming quarters would largely depend up on well defined policy reforms," said Shakti Satapathy of AK Capital in Mumbai.
No policy easing?
As India's economy has slowed in recent months, there have been calls for the central bank, the Reserve Bank of India (RBI), to cut interest rates in order to spur growth.
Rising food prices have been a hot political issue in India and have influenced the RBI's policy
The central bank lowered its main interest rate in April this year to 8% from 8.5%, the first cut in three years.
However, despite calls for further cuts, it has kept the rates unchanged since then, in an attempt to keep consumer price growth in check.
The rate of inflation has come down gradually in the past few months. Consumer prices in India rose by 6.87% in July from a year earlier.
That was down from a rate of 7.25% in June and 7.55% in May.
Howvere, analysts said that the better-than-expected growth data may see the central back keep its policy unchanged for the time being.
"I would think RBI would be reasonably happy with this number as it doesn't look as bad as they would have feared in July and most likely will keep rates unchanged next month," said A Prasanna, an economist with ICICI Securities Primary Dealership Limited.
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Re: India's economic growth better than forecast
India GDP near three-year low: 10 facts
The GDP data announced on Friday has confirmed the deep rooted slowdown in the economy. Despite higher than expected data, India's GDP growth languished around its lowest in three years, offering no respite for the government which is reeling under a series of political scandals that have paralysed the economic agenda.
India is now growing at the slowest pace since 2009. The difference this time is that the slowdown is largely due to domestic factors, whereas the 2009 slowdown was precipitated by developments abroad.
Here are 10 facts on the GDP data announced today.
1) India's economy grew 5.5 per cent in the April to June quarter, just above the 5.3 per cent posted in the three-month period ending in March and slightly better than estimates of 5.2 per cent.
2) Weak demand in the West has hit exports, but the heaviest toll on the economy is from overspending and a lack of reforms at home. Construction, finance, insurance, community, and personal services sectors were the areas of strength while trade and hotels segment saw weak growth.
3) The industrial sector grew an annual 3.6 per cent against 5.6 per cent in the same quarter last fiscal. The manufacturing sector, which accounts for 76 per cent of total industrial output, grew by a shocking 0.2 per cent.
Glenn Levine, senior economist at Moody's Analytics said, "I think the manufacturing sector is very weak at the moment. This is the big Achilles' heel for the Indian economy right now. "
4) Farm output rose 2.9 in the April-June quarter against 3.7 per cent in the previous year.
5) The services sector was the biggest disappointment growing a feeble 6.9 per cent against 10.2 per cent in the year-ago period.
Sonal Varma, India economist at Nomura India said: "Headline (growth) is better than anticipated but the services sector growth is worrying. Industrial slowdown is now translating to the services segment. Exports also remain weak on investment. I don't see 5.5 per cent as a big positive number."
6) Equity markets saw some recovery before slipping back deep in the red, while India's benchmark 10-year bond yield rose 3 basis points to 8.23 per cent after the GDP data. That's because investors were optimistic that a weak growth number would persuade the RBI to lower interest rates at its September 17 policy meeting
"The RBI still maintains a hawkish bias and rate cuts are still seem some way off. Asian data momentum has not been great in Q3 so it is difficult to see a dramatic improvement in Q3," said Jonathan Cavenagh, a currency strategist at Westpac, Singapore.
7) Shares in public sector banks turned positive after as the farm sector grew more strongly than expected, easing worries of rural non-performing assets. State banks are seen particularly exposed to the farming sector.
8) The rupee also rose against the dollar after better than expected growth. Dealers say the data is 'slightly positive' for the rupee, but large gains are unlikely as euro hovers near this week's low against the dollar, and on month-end dollar demand from oil refiners.
9) C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, expects a pickup in growth in the second half of the year. "I think the Q1 GDP growth of 5.5 per cent is consistent with a growth rate of 6.7 per cent for the year as a whole that we had projected."
10) The absence of a stronger rebound in growth is further bad news for the government, which is embroiled in a row with the main opposition Bharatiya Janata Party (BJP) over sweetheart coal deals. The state auditor has questioned the deals, and the BJP has refused to allow parliament to function until the Prime Minister quits.
India GDP near three-year low: 10 facts
The GDP data announced on Friday has confirmed the deep rooted slowdown in the economy. Despite higher than expected data, India's GDP growth languished around its lowest in three years, offering no respite for the government which is reeling under a series of political scandals that have paralysed the economic agenda.
India is now growing at the slowest pace since 2009. The difference this time is that the slowdown is largely due to domestic factors, whereas the 2009 slowdown was precipitated by developments abroad.
Here are 10 facts on the GDP data announced today.
1) India's economy grew 5.5 per cent in the April to June quarter, just above the 5.3 per cent posted in the three-month period ending in March and slightly better than estimates of 5.2 per cent.
2) Weak demand in the West has hit exports, but the heaviest toll on the economy is from overspending and a lack of reforms at home. Construction, finance, insurance, community, and personal services sectors were the areas of strength while trade and hotels segment saw weak growth.
3) The industrial sector grew an annual 3.6 per cent against 5.6 per cent in the same quarter last fiscal. The manufacturing sector, which accounts for 76 per cent of total industrial output, grew by a shocking 0.2 per cent.
Glenn Levine, senior economist at Moody's Analytics said, "I think the manufacturing sector is very weak at the moment. This is the big Achilles' heel for the Indian economy right now. "
4) Farm output rose 2.9 in the April-June quarter against 3.7 per cent in the previous year.
5) The services sector was the biggest disappointment growing a feeble 6.9 per cent against 10.2 per cent in the year-ago period.
Sonal Varma, India economist at Nomura India said: "Headline (growth) is better than anticipated but the services sector growth is worrying. Industrial slowdown is now translating to the services segment. Exports also remain weak on investment. I don't see 5.5 per cent as a big positive number."
6) Equity markets saw some recovery before slipping back deep in the red, while India's benchmark 10-year bond yield rose 3 basis points to 8.23 per cent after the GDP data. That's because investors were optimistic that a weak growth number would persuade the RBI to lower interest rates at its September 17 policy meeting
"The RBI still maintains a hawkish bias and rate cuts are still seem some way off. Asian data momentum has not been great in Q3 so it is difficult to see a dramatic improvement in Q3," said Jonathan Cavenagh, a currency strategist at Westpac, Singapore.
7) Shares in public sector banks turned positive after as the farm sector grew more strongly than expected, easing worries of rural non-performing assets. State banks are seen particularly exposed to the farming sector.
8) The rupee also rose against the dollar after better than expected growth. Dealers say the data is 'slightly positive' for the rupee, but large gains are unlikely as euro hovers near this week's low against the dollar, and on month-end dollar demand from oil refiners.
9) C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, expects a pickup in growth in the second half of the year. "I think the Q1 GDP growth of 5.5 per cent is consistent with a growth rate of 6.7 per cent for the year as a whole that we had projected."
10) The absence of a stronger rebound in growth is further bad news for the government, which is embroiled in a row with the main opposition Bharatiya Janata Party (BJP) over sweetheart coal deals. The state auditor has questioned the deals, and the BJP has refused to allow parliament to function until the Prime Minister quits.
sob
Mod
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Re: India's economic growth better than forecast
The economy is slowing down.The effects of the deficient monsoon are coming out slowly from rural India. Rural India has started to reduce their spending and this is reflected in the dip in the sales of biscuits. The downward trend in sales of biscuits is indicative of the economy slowing down.
Biscuits losing their bite in rural India - Corporate News - livemint.com
The economy is slowing down.The effects of the deficient monsoon are coming out slowly from rural India. Rural India has started to reduce their spending and this is reflected in the dip in the sales of biscuits. The downward trend in sales of biscuits is indicative of the economy slowing down.
Biscuits losing their bite in rural India - Corporate News - livemint.com
Oracle
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Things worse than 1991, no longer possible to sell India story: Narayana Murthy
Things worse than 1991, no longer possible to sell India story: Narayana Murthy, Chairman Emeritus, Infosys
We have fallen far short of expectations and it's no longer possible to sell the India story," said NR Narayana Murthy, chairman emeritus, Infosys, in an interview to ET NOW, this paper's TV channel.
"The world expected a lot from us. And compared to that expectation, we have fallen very very short. And therefore, I would say, this is worse than 1991," Murthy said. "I meet a lot of CEOs outside India and earlier India was mentioned once every three times China was mentioned. But now, if China is mentioned 30 times, India is not even mentioned once," he added.
Government indifference to the plight of business has brought decision-making to an unnecessary standstill, he believes. "A lot of decisions can be taken within the ambit of current legislation," Murthy said, especially on several issues that impact the IT industry - one issue is that some I-T officials do not recognise a statement of work, and insist on a company negotiating a new master agreement for every project. "Now, this is not done anywhere in the world and we have been arguing with the I-T Department," he said. "If this is my job, tough decisions have to be taken. We have to accept that."
Murthy said he has submitted presentations to the prime minister, and written to (then finance minister) Pranab Mukherjee on such issues: "It has been fourteen months and nothing has been done. "Now, this is not in the realm of legislation. It's not about ideology, politics. All that this requires is one senior bureaucrat to say 'let's adopt global standards'. And it can be done in a few hours." Most of the problems faced by investors are of this nature, he said.
Other issues, which are currently being used to disrupt the functioning of Parliament, are really matters for the courts. "Let's leave it to the court to decide who is right and who is wrong. Let us not pre-judge and let us get on with the business in Parliament," Murthy said. He also puts retrospective changes to tax laws in that category: "When the Supreme Court has ruled on a certain case, to go back and say I will change the law, to me, is very surprising."
Reverse Retro Tax, Says Murthy
"These are not things that an aspiring economy should do. The impact has been sad and confidence of global investors has been shaken very, very badly."
The government should reverse the retrospective changes that impact Vodafone and other foreign companies, he maintains, and go as far as to ensure that no further retrospective changes are allowed. "We must come to a conclusion politically that we will not do things on a retrospective basis unless there is something drastically wrong with the law and even that is for the court to decide," Murthy said. In another interview to a television channel, the Infosys founder offered some advice to the prime minister. "Please encourage your bureaucrats, your ministers, to take quick decisions. That's all what I am requesting him. Nothing else."
Things worse than 1991, no longer possible to sell India story: Narayana Murthy, Chairman Emeritus, Infosys
We have fallen far short of expectations and it's no longer possible to sell the India story," said NR Narayana Murthy, chairman emeritus, Infosys, in an interview to ET NOW, this paper's TV channel.
"The world expected a lot from us. And compared to that expectation, we have fallen very very short. And therefore, I would say, this is worse than 1991," Murthy said. "I meet a lot of CEOs outside India and earlier India was mentioned once every three times China was mentioned. But now, if China is mentioned 30 times, India is not even mentioned once," he added.
Government indifference to the plight of business has brought decision-making to an unnecessary standstill, he believes. "A lot of decisions can be taken within the ambit of current legislation," Murthy said, especially on several issues that impact the IT industry - one issue is that some I-T officials do not recognise a statement of work, and insist on a company negotiating a new master agreement for every project. "Now, this is not done anywhere in the world and we have been arguing with the I-T Department," he said. "If this is my job, tough decisions have to be taken. We have to accept that."
Murthy said he has submitted presentations to the prime minister, and written to (then finance minister) Pranab Mukherjee on such issues: "It has been fourteen months and nothing has been done. "Now, this is not in the realm of legislation. It's not about ideology, politics. All that this requires is one senior bureaucrat to say 'let's adopt global standards'. And it can be done in a few hours." Most of the problems faced by investors are of this nature, he said.
Other issues, which are currently being used to disrupt the functioning of Parliament, are really matters for the courts. "Let's leave it to the court to decide who is right and who is wrong. Let us not pre-judge and let us get on with the business in Parliament," Murthy said. He also puts retrospective changes to tax laws in that category: "When the Supreme Court has ruled on a certain case, to go back and say I will change the law, to me, is very surprising."
Reverse Retro Tax, Says Murthy
"These are not things that an aspiring economy should do. The impact has been sad and confidence of global investors has been shaken very, very badly."
The government should reverse the retrospective changes that impact Vodafone and other foreign companies, he maintains, and go as far as to ensure that no further retrospective changes are allowed. "We must come to a conclusion politically that we will not do things on a retrospective basis unless there is something drastically wrong with the law and even that is for the court to decide," Murthy said. In another interview to a television channel, the Infosys founder offered some advice to the prime minister. "Please encourage your bureaucrats, your ministers, to take quick decisions. That's all what I am requesting him. Nothing else."
blank_quest
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[PDF]https://dl.dropbox.com/u/100671923/08IGW082821FL.pdf[/PDF]
Re: Things worse than 1991, no longer possible to sell India story: Narayana Murthy
Great, now only if Mr.Murthy can tell Armand to wake up from his delusions.
Re: GDP growth may have fallen to 4.9% in Q1
come rain or shine, india always performs better than china. even when it doesn't.
armand is right.
come rain or shine, india always performs better than china. even when it doesn't.
sob
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S&P warns of India Downgrade to Junk
S&P which earlier had downgraded India's sovereign rating to negative from stable has now warned of possibility of the rating being further lowered to Junk status, if the deficit and the economy is not handled properly.
India's downgrade likely if government fails to correct fiscal situation: Standard & Poor's - The Economic Times
S&P which earlier had downgraded India's sovereign rating to negative from stable has now warned of possibility of the rating being further lowered to Junk status, if the deficit and the economy is not handled properly.
India's downgrade likely if government fails to correct fiscal situation: Standard & Poor's - The Economic Times
sob
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Re: S&P warns of India Downgrade to Junk
A few quick ways for the Government to rake in big bucks,
1. Increase the cost of Deisel, LPG and Kerosene. Even Rs.1 increase in diesel prices will have a big impact.
2. Pull up the bureaucrats and ensure that the 2 G auction takes place immediately. GOI expected to rake in Rs. 40,000 crores as per the Budget 2012.
3. Cancel the coal blocks of the companies who have not started operations even after 5 years and immediately auction them.
All this requires political will and administrative muscle, does the Governing party has it in them,is a second issue.
A few quick ways for the Government to rake in big bucks,
1. Increase the cost of Deisel, LPG and Kerosene. Even Rs.1 increase in diesel prices will have a big impact.
2. Pull up the bureaucrats and ensure that the 2 G auction takes place immediately. GOI expected to rake in Rs. 40,000 crores as per the Budget 2012.
3. Cancel the coal blocks of the companies who have not started operations even after 5 years and immediately auction them.
All this requires political will and administrative muscle, does the Governing party has it in them,is a second issue.
average american
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As an outsider,,, being honest and not having a dog in this fight, you all have a mess on your hands. 55 billionairs in India a land of 1.2 billon control India's percent of Indias GDP 55 billionaires command nearly $250 billion in wealth — a staggering sum relative not only to the country's gross domestic product, but to peers in bigger economies. A Mighty Few and India's Richest Rich - Graphic - NYTimes.com
In India, wealth of 36 families amounts to $ 191 billion, which is one-fourth of India's GDP. In other words, 35 elite Hindu families own quarter of India's GDP by leaving 85 % ordinary Hindus as poor!
The dominant group of Hindu nationalists come from the three upper castes ( Brahmins, Kshatriyas, and Vaishyas ) that constitute only 10 per cent of the total Indian population. But, they claim perhaps 80 % of the jobs in the new economy, in sectors such as software, biotechnology, and hotel management.
About 50 families are running India for their own benefit, even at the expense of 1.2 billion Indians. Your not alone its going that way in the USA too. There rich are getting richer, its one thing the US election is about.
1. You are going to have to redistribute the wealth, power and jobs in India. What ever your doing is not enough.
2. Corruption,,, is like cancer it will eat away at the very fabric of indias society.
3. Pride perception, right now too many Indians have given up, want to emigrate to other countries, they see India is as a loser,
4. Education, while literacy is suppose to be about 70 percent by USA standards of useing an 8 grade education as a yardstick illiteracy in India is about
30 percent.
In India, wealth of 36 families amounts to $ 191 billion, which is one-fourth of India's GDP. In other words, 35 elite Hindu families own quarter of India's GDP by leaving 85 % ordinary Hindus as poor!
The dominant group of Hindu nationalists come from the three upper castes ( Brahmins, Kshatriyas, and Vaishyas ) that constitute only 10 per cent of the total Indian population. But, they claim perhaps 80 % of the jobs in the new economy, in sectors such as software, biotechnology, and hotel management.
About 50 families are running India for their own benefit, even at the expense of 1.2 billion Indians. Your not alone its going that way in the USA too. There rich are getting richer, its one thing the US election is about.
1. You are going to have to redistribute the wealth, power and jobs in India. What ever your doing is not enough.
2. Corruption,,, is like cancer it will eat away at the very fabric of indias society.
3. Pride perception, right now too many Indians have given up, want to emigrate to other countries, they see India is as a loser,
4. Education, while literacy is suppose to be about 70 percent by USA standards of useing an 8 grade education as a yardstick illiteracy in India is about
30 percent.
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Re: GDP growth may have fallen to 4.9% in Q1
because indian economy is really like shit...our full potential is suppressed because of crony capitalism ...unless and until india sheds the socialist welfare dream it won't achieve its full growth potential
i just hope you are not joking or you are not being sarcastic
because indian economy is really like shit...our full potential is suppressed because of crony capitalism ...unless and until india sheds the socialist welfare dream it won't achieve its full growth potential
sob
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Most of what you wrote is correct, except one small point.
In the list of Indian billionaires all are not hindu,
You have Muslims ( Wipro, Wockhardt), Parsees ( Tata, Pallonji Mistry, Godrej, Wadia), Sikhs ( Ranbaxy, Apollo Group)
There would quite a few more, which I do not recall off hand.
For other points
Completely agree with you on this point. We need to grow faster to lift people out of poverty.
You have the nail on the right head. Corruption does not discriminate between class and religion and to go forward as a nation we have to tackle it.
We are seeing a reverse drain. Many Indian Professionals are coming back from the US and UK. They perceive India to be a better bet.
We can debate about the figures till the ed of the world, but yes focus has to be on education.
sob
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Re: GDP growth may have fallen to 4.9% in Q1
Government is finally serious about raising the price of diesel and reducing the subsidy burden. This was a long time coming and is most certainly a welcome step.
Diesel rates may rise by Rs 4-5 per litre after Sept 7; petrol price to go up too - The Economic Times
Government is finally serious about raising the price of diesel and reducing the subsidy burden. This was a long time coming and is most certainly a welcome step.
Diesel rates may rise by Rs 4-5 per litre after Sept 7; petrol price to go up too - The Economic Times
blank_quest
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The Concept of Sustainable Development Explored by World Bank!:thumb:
Here is the direct link of DownloadBox
[pdf]https://dl.dropbox.com/u/100671923/Sustainable_Development_Inclusive_Green_Growth_Report_Charts_and_figures_Figures.pdf[/pdf]
don't know why the link is not working!
Here is the direct link of DownloadBox
[pdf]https://dl.dropbox.com/u/100671923/Sustainable_Development_Inclusive_Green_Growth_Report_Charts_and_figures_Figures.pdf[/pdf]
don't know why the link is not working!
Last edited:
Sunder singh
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10 ideas to get economy back on track
What can it do? Here are 10 ideas.
10: Put political might behind the Land Acquisition Bill and convert it into a
law that allows those losing their land to get a more-than-fair and long-term
compensation, companies to create jobs and wealth.
9: Open pipelines to infrastructure development. To prevent allegations of
corruption, establish an independent PPP regulator who's also effective and not merely a sinecure for ageing
bureaucrats.
8: Right to food is important --- no Indian should sleep hungry --- but without agriculture reforms, it would
simply burden a slowing economy. For starters, free the farmer from the tyranny of middlemen, by reforming
the rent-seeking, anti-farmer mandi system, at least in states governed by the UPA alliance, thereby creating a
demonstration effect, where other states would be shamed into following.
7: Pull out the rural people out of agriculture by giving manufacturing a policy push. Create an atmosphere
where entrepreneurs are encouraged to set up units that serve the world and which can absorb the surplus
labour --- agriculture contributes 14% to GDP but 60% of Indians are dependent on it.
6: Aggressively build a regulatory infrastructure to oversee the urbanisation that will follow as the world's largest
migration happens over the next 10 years, when people move to India's cities from its villages.
5: Play diplomatic cards to our advantage --- not any superpower's --- and ensure long-term energy security, an
essential component for a double-digit growth.
4: Create political consensus on three key reforms --- one, Goods and Services Taxes Bill to ensure tax efficiency;
two, Direct Taxes Code Bill, that will end all uncertainty on taxes; and three, allow foreign large retailers to come
in by opening the sector to foreign direct investment.
3: Show global capital a little more respect. Reserve the right to make retrospective tax laws --- as all nations do
--- but don't use it until India achieves a scale where it can afford to, a GDP of say $5 trillion.
2: Bite the bullet on interest rates and cut them drastically, so financial costs don't deter companies from
expanding and households from continuing to drive the GDP growth through India's famed consumption story.
1: Finally, deliver better governance. Let not the greed of the few overshadow the needs of the many. Make
corruption a zero-tolerance zone.
What can it do? Here are 10 ideas.
10: Put political might behind the Land Acquisition Bill and convert it into a
law that allows those losing their land to get a more-than-fair and long-term
compensation, companies to create jobs and wealth.
9: Open pipelines to infrastructure development. To prevent allegations of
corruption, establish an independent PPP regulator who's also effective and not merely a sinecure for ageing
bureaucrats.
8: Right to food is important --- no Indian should sleep hungry --- but without agriculture reforms, it would
simply burden a slowing economy. For starters, free the farmer from the tyranny of middlemen, by reforming
the rent-seeking, anti-farmer mandi system, at least in states governed by the UPA alliance, thereby creating a
demonstration effect, where other states would be shamed into following.
7: Pull out the rural people out of agriculture by giving manufacturing a policy push. Create an atmosphere
where entrepreneurs are encouraged to set up units that serve the world and which can absorb the surplus
labour --- agriculture contributes 14% to GDP but 60% of Indians are dependent on it.
6: Aggressively build a regulatory infrastructure to oversee the urbanisation that will follow as the world's largest
migration happens over the next 10 years, when people move to India's cities from its villages.
5: Play diplomatic cards to our advantage --- not any superpower's --- and ensure long-term energy security, an
essential component for a double-digit growth.
4: Create political consensus on three key reforms --- one, Goods and Services Taxes Bill to ensure tax efficiency;
two, Direct Taxes Code Bill, that will end all uncertainty on taxes; and three, allow foreign large retailers to come
in by opening the sector to foreign direct investment.
3: Show global capital a little more respect. Reserve the right to make retrospective tax laws --- as all nations do
--- but don't use it until India achieves a scale where it can afford to, a GDP of say $5 trillion.
2: Bite the bullet on interest rates and cut them drastically, so financial costs don't deter companies from
expanding and households from continuing to drive the GDP growth through India's famed consumption story.
1: Finally, deliver better governance. Let not the greed of the few overshadow the needs of the many. Make
corruption a zero-tolerance zone.
parijataka
Senior Member
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- Oct 15, 2011
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India's economic situation could be worse than 1991: Kelkar
Are we headed for another 1991 type situation, or worse ?
India's economic situation could be worse than 1991: Kelkar
Are we headed for another 1991 type situation, or worse ?
India's economic situation could be worse than 1991: Kelkar
blank_quest
Senior Member
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- Aug 4, 2012
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Re: India's economic situation could be worse than 1991: Kelkar
be ready for 1200/- LPG from 2015
be ready for 1200/- LPG from 2015
