Indian Economy: News and Discussion

[Indx TechStyle]

India in dire need of long-term growth strategy

India is in dire need of a long-term growth strategy; one that can't fit into weekly columns.

The 2019 general election is now just months away. This means that the time for any significant change on the ground has passed as the government will soon get into campaign mode.

However, as is often the case just before an Indian election, matters of economic concern are gaining importance in national conversations. The rupee is plummeting, banking and financial institutions are in the news for all the wrong reasons, and domestic investment sentiment is ominously subdued. At the same time, foreign investors are taking money out of the economy and running like rats deserting a sinking ship.

When Prime Minister Narendra Modi came to power in 2014, nothing helped him more than the precarious state of the economy at the time. Today, even though the economy is in much better shape with stronger growth and higher foreign exchange reserves, the same old problems are coming back to threaten the incumbent. The economy is currently under threat from a mix of international and domestic factors, most of which were issues before the previous election as well.

On the global front, three major factors are fuelling India's current economic problems: Rise in US interest rates, the rising oil prices and a growing sense of trade protectionism around the world, resulting in a trade war that is making global investors jittery. Of the three, the first two were pertinent issues in 2013-14 as well.

The first hint of US winding down its tight monetary policy had led to a flight of capital out of emerging economies. Until mid-October, foreign institutional investors had withdrawn a whopping Rs 90,000 crore from India's capital markets. The country has accumulated a huge pool of reserves to deal with the issue since it was caught unawares in 2013, but clearly it was not enough to stem the slide of the rupee, which has fallen by over 14 percent in this calendar year.

Meanwhile, an issue that will have maximum bearing on voters is the rising oil prices. Global crude oil prices have risen by 24 percent since April this year, after the Organisation of Petroleum Exporting Countries (OPEC) decided to cut production. Such an escalation, combined with a sliding rupee, has resulted in a double whammy for India. A rise in the price of a barrel of oil by one dollar raises the country's import bill by Rs 823 crore. This has resulted in the widening of the current account deficit (CAD) to 2.4 percent of the GDP in the first quarter.

Another factor with a strong bearing on the fortunes of the Indian economy is the developing trade war between the two largest economies in the world. As the US and China impose newer and higher tariffs on imports into their countries to get back at each other, India plans to introduce higher tariffs on US imports from November in response to the latter's import tariffs on aluminium and steel. India needs to be careful not to aggravate the situation for itself by getting caught in this cross-fire. In 2017-18, India exported almost double what it imported from the US and it would be an unnecessary burden on the CAD if the equation changed.

On the domestic front, the situation seems to be no better. When Modi came to power, one of the biggest expectations was that the so-called "animal spirits" in the economy would receive a significant push by reviving muted investor sentiments. But in March 2018, investment accounted for merely 30.8 percent of India's nominal GDP. To put matters in perspective, the average investment between June 2004 and March 2018 has averaged at about 35 percent. In fact, CMIE (Centre for Monitoring Indian Economy) data shows that, for the first time, the value of new projects announced by private players in this quarter is lower than those announced by the public sector.

Another domestic problem is one which had developed much before the BJP government came into power. The country's banking sector remains burdened by bad loans. Despite the best efforts with loan resolutions through the National Company Law Tribunal(NCLT), Indian state-owned banks had to write off over Rs 300,000 crores between April 2014 and April 2018 as per RBI data. The private banking sector has had its fair share of troubles as well with the top management at ICICI Bank and Yes Bank finding itself mired in controversies.

To make matters worse, more recently, non-banking financial institutions were added to the list after India's leading infrastructure finance company, Infrastructure Leasing & Finance Services (IL&FS), defaulted on its interest payments, triggering panic in the markets. The collapse of IL&FS is expected to further adversely impact the credit extended to productive sectors.

The only solace for the economy -- that it is growing at an impressive eight per cent -- is also misleading: An economy recovering from the twin shocks of demonetisation and GST is bound to inflate growth as it slides into normalcy. With no green shoots in sight, there are no straightforward solutions to the country's economic situation. India is in dire need of a long-term growth strategy; one that can't fit into weekly columns. But, instead, it is fire-fighting its way out of one crisis after another; or rather, from one election to the next.

 

[mayfair]

Having missed the first three industrial revolutions

This right here is our problem. We can excuse the first one as being a different time, perhaps the second one as well.

But missing out on the most recent industrial revolution build on manufacturing and exports that propelled Japan, Germany, Korea, Taiwan, Singapore and most recently China to unprecedented heights and prosperity, is absolutely criminal and treasonous.

 

[Advaidhya Tiwari]

This right here is our problem. We can excuse the first one as being a different time, perhaps the second one as well.

But missing out on the most recent industrial revolution build on manufacturing and exports that propelled Japan, Germany, Korea, Taiwan, Singapore and most recently China to unprecedented heights and prosperity, is absolutely criminal and treasonous.

Just look at economy of Korea in 1990. Korea grew because of USA assistance and due to electronics manufacturing. Same with Taiwan. Singapore has no manufacturing but is situated in the Malacca straits and is a non Muslim country which behaves reasonably with clients and ships. Germany and Japan are still under USA occupation just like Korea and Taiwan. Hence under USA patronage, these countries grew in manufacturing. China manufacturing revolution was because of its large natural resource base and hence full self sufficiency.

There is no way India can go with 3rd industrial revolution. The first and second industrial revolution has been pretty successful in India and it has already grown obsolete. Only 4th industrial revolution with electronics is suitable to India as this sector does not need much of natural resources.

 

[mayfair]

Now that's patently rubbsih. All these countries benefited from US and Western largesse yes, but then so did Shitistan, Egypt and others.

Japanese and Germans were building themselves into industrial powerhouses even before the World Wars. WWI happened because of German industrial and colonial expansion that threatened entrenched colonial powers.

These countries never fully lost their industrial and technical know how even AFTER the war, though the West and the Soviets stole what they could- rocket technology, data on human experiments, spy networks etc.

Japan and Germany started their resurgence by quickly scaling up their pre-existing industrial technologies infused with US money and know how and in a decades surpassed their "occupiers" in many engineering feats. This template was copied by Korea and Taiwan (largely assisted by Japan and partly by US) and with the infusion of technology and money from Japan and US, they emerged as the next industrial powerhouses. These countries in turn invested their monies and tech into China and helped them turn into the manufacturing giant today.

China still imports a vast amount of natural resources such as coal, oil and mineral ores.

We on the other hand plodded along to the balderdash of Nehruvian socialism, stifling industrialisation, suppressing manufacturing, shunning growth and exporting talented manpower to power the growth of Western economies. We had opportunities in 1950s and 1960s and even in late 1970s and 1980s to take advantage of manufacturing shifting from West to the emerging markets. But what we did instead is there for all to see.

Even after the bankruptcy-induced reforms of 1991, we had to be dragged kicking and screaming every inch of the way to achieve greater synergy and bring our infrastructure upto scratch.

UPAs land acquisition law is not called growth killer for nothing.

We are desperately trying to catch up, but manufacturing has moved on.

Regarding the IT revolution, yes it has provided jobs, but those are not enough, given our vast population with a large number of unskilled and semi-skilled folks. Only mass manufacturing can help them growth and we have missed that.

 

[Advaidhya Tiwari]

China still imports a vast amount of natural resources such as coal, oil and mineral ores.

You are terribly mistaken. China imports very little of minerals and resources. And it does import some amount as these are used for exports and China does not want to deplete its resources too quickly. But till 2010, CHina hardly imported anything except for some oil.

We on the other hand plodded along to the balderdash of Nehruvian socialism, stifling industrialisation, suppressing manufacturing, shunning growth and exporting talented manpower to power the growth of Western economies. We had opportunities in 1950s and 1960s and even in late 1970s and 1980s to take advantage of manufacturing shifting from West to the emerging markets. But what we did instead is there for all to see.

What happened in India was a matter of sabotage as Indians had very poor culture and degenerate behaviour. There was a reason why British with just few tens of thousands soldier could rule India. Indians character was bad and servile, had no self respect and were highly unreasonable. This was in turn taken advantage by the west into spreading misinformation and installing puppet leaders

But that era is an era of the past. India now manufactures a good amount of simple goods on its own with the resource available. What is lacking is electronic manufacturing.

Regarding the IT revolution, yes it has provided jobs, but those are not enough, given our vast population with a large number of unskilled and semi-skilled folks. Only mass manufacturing can help them growth and we have missed that.

I am speaking of electronics manufacturing, not just IT sector. Manufacturing of electronics goods is very important and has no substitute. But manufacturing of goods like automobiles and other 3rd industrial revolution items have very little scope left. Can you tell me what manufacturing India should do other than electronics?

 

[mayfair]

You are terribly mistaken. China imports very little of minerals and resources. And it does import some amount as these are used for exports and China does not want to deplete its resources too quickly. But till 2010, CHina hardly imported anything except for some oil.

Ehh???

Australia alone exports enough coal and iron ore to earn a healthy trade surplus with China

https://tradingeconomics.com/australia/exports-to-china

China's investment in African nations is to hoover up their natural resources for own consumption.

"Not depleting resources too quickly"-> You work for Gobar Times by the way?

What happened in India was a matter of sabotage as Indians had very poor culture and degenerate behaviour. There was a reason why British with just few tens of thousands soldier could rule India. Indians character was bad and servile, had no self respect and were highly unreasonable. This was in turn taken advantage by the west into spreading misinformation and installing puppet leaders.

Japanese ruled over large parts of China (along with entire Korean peninsula and Taiwan) and had it not been for WWII, would have stayed put. A huge number of Chinese (and Koreans and Taiwanese) fought under the banner of Dai Nippon Teikoku (Imperial Japan) in different campaigns.

What's your point?

But that era is an era of the past. India now manufactures a good amount of simple goods on its own with the resource available. What is lacking is electronic manufacturing.

While we are importing under-invoiced Cheeni maal from paper clips to heavy machinery and running an annual $60 billion trade deficit, the talk of India manufacturing "a good amount" is laughable to say the least.

This brings me to the next point.

I am speaking of electronics manufacturing, not just IT sector. Manufacturing of electronics goods is very important and has no substitute. But manufacturing of goods like automobiles and other 3rd industrial revolution items have very little scope left. Can you tell me what manufacturing India should do other than electronics?

GoI has been trying to initiate manufacturing in India, especially electronics ($5 billion trade deficit in this sector alone every month, albeit not just from China, but the bulk surely comes from there), making it easier do business (as evidenced from upward mobility in global ease of doing business rankings) and simplify the taxation system, but we have a long long way to go. It needs time for the ecosystem to be set up, nurtured and mature so that we upgrade from sub-system assembly to sub-system manufacture.

So far we are increasingly importing tooling, importing sub-components and assembling them here. We need to localise as much of that manufacturing as possible.

The trouble we face is not only with the import lobby but also with the "industrialists" themselves- Why bother to innovate when you can import sasta Cheeni maal and sell at a profit? This is the mindset we are fighting against. R&D expenditure in our industry remains pitifully low.

Of course archaic land and labour laws do not help at all, compounded by a near absence of meaningful social security net.

All of these can be squarely laid at the feet of Nehruvian socialism and it's follow up under the DieNasty.

 

[Advaidhya Tiwari]

Ehh???

Australia alone exports enough coal and iron ore to earn a healthy trade surplus with China

https://tradingeconomics.com/australia/exports-to-china

China's investment in African nations is to hoover up their natural resources for own consumption.

"Not depleting resources too quickly"-> You work for Gobar time by the way?

Do you know that China digs out 3.6 billion ton of coal from its own soil every year? What percent does it import? Measly 5%. Is that big enough imports?

Also, as I said, China has been producing about 35-40% of entire minerals like lead, zinc, iron, phosphate, aluminum and 50% of world's coal in the year 2015. This is really huge production. This will also lead to quick depletion of resources. Hence China wants to look at resources of other countries like Africa.

Japanese ruled over large parts of China (along with entire Korean peninsula and Taiwan) and had it not been for WWII, would have stayed put. A huge number of Chinese (and Koreans and Taiwanese) fought under the banner of Dai Nippon Teikoku (Imperial Japan) in different campaigns.

What's your point?

China did not follow useless and hopeless people like Gandhi and had right amount of respect for self defence and violence. Indians deliberately behaved like retards and supported the worst possible people. That is the problem with Indian culture.

China never succumbed to Japan. In fact Japan had tried to invade China several times and they never succeeded. The last Sino Japan war started in 1937 and USA got involved only in 1942. China might have succeeded on their own even if USA had not interfered simply because of Chinese size.

While we are importing under-invoiced Cheeni maal from paper clips to heavy machinery and running an annual $60 billion trade deficit, the talk of India manufacturing "a good amount" is laughable to say the least.

This brings me to the next point.

Most of our Chinese imports are in plastics or electronics, both of which is scarce in India. India has to import oil for making plastics whereas China has anthracite coal to plastics plant which produces lots of cheap plastics. So, I would not say that India has much scope to improve

GoI has been trying to initiate manufacturing in India, especially electronics ($5 billion trade deficit in this sector alone every month, albeit not just from China, but the bulk surely comes from there), making it easier do business (as evidenced from upward mobility in global ease of doing business rankings) and simply taxation system, but we have a long long way to go. It needs time for the ecosystem to be set up, nurtured and mature so that we upgrade from sub-system assembly to sub-system manufacture.

So far we are increasingly importing tooling, importing sub-components and assembling them here. We need to localise as much of that manufacturing as possible

The trouble we face is not only with the import lobby but also with the "industrialists" themselves- Why bother to innovate when you can import sasta Cheeni maal and sell at a profit? This is the mindset we are fighting against. R&D expenditure in our industry remains pitifully low.

Of course archaic land and labour laws do not help at all, compounded by a near absence of meaningful social security net.

All of these can be squarely laid at the feet of Nehruvian socialism and it's follow up under the DieNasty.

About electronics manufacturing, this is the second biggest imports after petroleum to India. This sector requires major R&D as well as time to catch up. India has about 7 years of lag time which can't be compensated in any other way than by starting by assembly, tooling etc. There is simply no way anyone, even private industry can do about it if enough time is not given. Importing Chinese goods is never favoured by anyone but is done due to the UPA imposing inverted customs duty where parts had higher duty than full set imports. This was deliberately done to sabotage Indian manufacturing. But, now it is being undone and it will take at least upto 2025 when India will be able to make decent quality electronics on its own. That much time to catch up technology is needed.

For example, we can't use Iphone 3GS today, which was released in 2008 or 4GB SD card, 4GB pen drives, pentium processors etc. This is because the technology has gone ahead and people will find it difficult to cope up with the old technology if it starts to be used now.

 

[mayfair]

China never succumbed to Japan. In fact Japan had tried to invade China several times and they never succeeded. The last Sino Japan war started in 1937 and USA got involved only in 1942. China might have succeeded on their own even if USA had not interfered simply because of Chinese size.

Ha ha ha Gobar Times at its best. China might have succeeded on its own. The same China whose much of the elite leadership including Chiang Kaishek were educated in imperial Japan.

They were doing a piss-poor job of "succeeding" till US and Soviets intervened. Once the Japanese were overwhelmed and rolled back in Machuria and South East Asia, it became easier for Chiang Kai Shek's Nationalists to reclaim lost territory. Even then, the buggers were unable to hold it and Mao's peasant army threw them out in less than 4 years.

Of course true to their nature, they retreated to Taiwan and massacred unsuspecting islanders there.

Most of our Chinese imports are in plastics or electronics, both of which is scarce in India. India has to import oil for making plastics whereas China has anthracite coal to plastics plant which produces lots of cheap plastics. So, I would not say that India has much scope to improve.

Rubbish again. We import pharmaceutical active compounds, heavy construction machinery and many other things from China. Check out the various Metros and have a look at the signages on the tunnel boring machines.

About electronics manufacturing, this is the second biggest imports after petroleum to India. This sector requires major R&D as well as time to catch up. India has about 7 years of lag time which can't be compensated in any other way than by starting by assembly, tooling etc. There is simply no way anyone, even private industry can do about it if enough time is not given. Importing Chinese goods is never favoured by anyone but is done due to the UPA imposing inverted customs duty where parts had higher duty than full set imports. This was deliberately done to sabotage Indian manufacturing. But, now it is being undone and it will take at least upto 2025 when India will be able to make decent quality electronics on its own. That much time to catch up technology is needed.

For example, we can't use Iphone 3GS today, which was released in 2008 or 4GB SD card, 4GB pen drives, pentium processors etc. This is because the technology has gone ahead and people will find it difficult to cope up with the old technology if it starts to be used now.

No arguments about much of it, but you failed to mention about the pitiful state of our industrial R&D efforts. Without that we will end up making only those technologies that are discarded elsewhere.

 

[Indx TechStyle]

Do you know that China digs out 3.6 billion ton of coal from its own soil every year? What percent does it import? Measly 5%. Is that big enough imports?

Also, as I said, China has been producing about 35-40% of entire minerals like lead, zinc, iron, phosphate, aluminum and 50% of world's coal in the year 2015. This is really huge production. This will also lead to quick depletion of resources. Hence China wants to look at resources of other countries like Africa.


China did not follow useless and hopeless people like Gandhi and had right amount of respect for self defence and violence. Indians deliberately behaved like retards and supported the worst possible people. That is the problem with Indian culture.

China never succumbed to Japan. In fact Japan had tried to invade China several times and they never succeeded. The last Sino Japan war started in 1937 and USA got involved only in 1942. China might have succeeded on their own even if USA had not interfered simply because of Chinese size.


Most of our Chinese imports are in plastics or electronics, both of which is scarce in India. India has to import oil for making plastics whereas China has anthracite coal to plastics plant which produces lots of cheap plastics. So, I would not say that India has much scope to improve


About electronics manufacturing, this is the second biggest imports after petroleum to India. This sector requires major R&D as well as time to catch up. India has about 7 years of lag time which can't be compensated in any other way than by starting by assembly, tooling etc. There is simply no way anyone, even private industry can do about it if enough time is not given. Importing Chinese goods is never favoured by anyone but is done due to the UPA imposing inverted customs duty where parts had higher duty than full set imports. This was deliberately done to sabotage Indian manufacturing. But, now it is being undone and it will take at least upto 2025 when India will be able to make decent quality electronics on its own. That much time to catch up technology is needed.

For example, we can't use Iphone 3GS today, which was released in 2008 or 4GB SD card, 4GB pen drives, pentium processors etc. This is because the technology has gone ahead and people will find it difficult to cope up with the old technology if it starts to be used now.

Ha ha ha Gobar Times at its best. China might have succeeded on its own. The same China whose much of the elite leadership including Chiang Kaishek were educated in imperial Japan.

They were doing a piss-poor job of "succeeding" till US and Soviets intervened. Once the Japanese were overwhelmed and rolled back in Machuria and South East Asia, it became easier for Chiang Kai Shek's Nationalists to reclaim lost territory. Even then, the buggers were unable to hold it and Mao's peasant army threw them out in less than 4 years.

Of course true to their nature, they retreated to Taiwan and massacred unsuspecting islanders there.







No arguments about much of it, but you failed to mention about the pitiful state of our industrial R&D efforts. Without that we will end up making only those technologies that are discarded elsewhere.

Well China produces really a lot. Along with their indutrial production, they're blessed with resources.
But relating the history to achievement is utter generaliazation and irrelevant because whatever kind of attituded were in people of China & India, China could only excel after 80s.
For India, it isn't there but it isn't bad to acknowledge either that India too has significant strides in R&D when compared to other countries of same class. We lag in certain technologies but certain technologies because we hadn't the free plate of Laurel Satellite scam at place.
In fact, if China wasn't there today, we would have been instead because world prefers experience. From critical pressure vessels & boilers to infrastructure. Our companies got capabilities but world prefers experience. As China ages, India will replace it till India ages.

 

[ezsasa]

India moved up ease of doing business ranking, from 100 to 77.

 

[Flame Thrower]

India moved up ease of doing business ranking, from 100 to 77.

Modi promised that he'd move ease of ranking to 50 by 2019.

He failed, Mudi should rejine

 

[Indx TechStyle]

India moved up ease of doing business ranking, from 100 to 77.

Modi promised that he'd move ease of ranking to 50 by 2019.

He failed, Mudi should rejine

Ease of Doing Business 2019: India jumps 23 spots to 77th rank in World Bank's latest report

India leapfrogged to the 77th rank in the World Bank's latest Ease of Doing Business rankings, jumping 23 notches from last year, a news that is likely to bring cheer for the Narendra Modi-government that is caught in an apparent turf battle with the Reserve Bank of India (RBI).

The report also recognises India as one of the top 10 improvers in this year’s assessment, for the second successive time. India is the only large country this year to have achieved such a significant shift.

The jump is significant, as it comes after last year’s 30-rung climb when India moved into the top 100 rankings among 190 countries.

India has improved its rank by 53 positions in the last two years, and 65 positions in the last four years (2014-18).

On the “distance to frontier metric”, a measure to gauge how far an economy’s policies are from global best practices, India’s score improved to 67.23 from 60.76 last year.

This means last year India improved its business regulations in absolute terms – indicating that the country is continuing its steady shift towards global standards.

The annual report, which ranks countries on business-friendliness, procedural ease, regulatory architecture and absence of bureaucratic red tape, could not have come at a more opportune time for the government that is caught in a perception battle with the RBI's autonomy.

India is in the top 10 of Protecting Minority Investors (Rank 7).

“India continued its reform agenda, implementing six reforms in the past year. India is now the region’s top-ranked economy,” the World Bank said, ahead of Bhutan (81) and Sri Lanka (100), Nepal (110), the Maldives (139), Pakistan (136) and Afghanistan (167) and Bangladesh (176).

India has improved its rank in six out of the 10 indicators and has moved closer to international best practices on seven out of 10 indicators.

The most dramatic improvements have been registered in the indicators related to 'Construction Permits' and 'Trading Across Borders'.

In the 'Grant of Construction Permits' indicator, India’s ranking improved from 181 last year to 52 in this year’s report—a jump of 129 ranks in a single year.

In the 'Trading Among Borders' indicator, India’s rank improved by 66 positions, moving from 146 in 2017 to 80 in 2018.

India reduced the time and cost to export and import through various initiatives, including the implementation of electronic sealing of containers, the upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures, the World Bank said.

In the World Bank Group’s annual ease of doing business rankings, the top 10 economies are New Zealand, Singapore and Denmark, which retain their first, second and third spots, respectively, for a second consecutive year, followed by Hong Kong SAR, China; Republic of Korea; Georgia; Norway; United States; United Kingdom and FYR Macedonia.

 

[indiatester]

Modi promised that he'd move ease of ranking to 50 by 2019.

He failed, Mudi should rejine

Make the bugger work till he does it. Don't let this one off that easily.

 

[Tibarn]

Great news on EODB.

With Goyal ji getting involved in the Finance Ministry, things are only looking up. We should be ashamed of ourselves if we let this government lose in 2019. We will be doomed to poverty and our economy will once again become a joke if INC or Khicdi government is formed.

Time for Internet Hindus to get on war footing for the next election

 

[ezsasa]

Great news on EODB.

With Goyal ji getting involved in the Finance Ministry, things are only looking up. We should be ashamed of ourselves if we let this government lose in 2019. We will be doomed to poverty and our economy will once again become a joke if INC or Khicdi government is formed.

Time for Internet Hindus to get on war footing for the next election

Ease of doing business comes under ministry of commerce.

That would be Nirmala Sitaraman and suresh prabhu.

 

[Tibarn]

Ease of doing business comes under ministry of commerce.

That would be Nirmala Sitaraman and suresh prabhu.

IIRC, part of it yes, but the reforms measured span multiple ministries and even outside of the elected government's purview. IE one of the biggest reforms has been in the electricity availability which falls under Coal, Power, and Renewable ministries.
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Guys look at the chart that @Indx TechStylee posted

Enforcing contracts is 164 and improved to 163. If I am not wrong, that category falls totally at the feet of the Judiciary in the country and the Centre can't do much about it. What do these fiends(judges) even do except terrorized Hindus, defend Urban Naxals, and strangle the economy?

 

[AnantS]

Ehh???



The trouble we face is not only with the import lobby but also with the "industrialists" themselves- Why bother to innovate when you can import sasta Cheeni maal and sell at a profit? This is the mindset we are fighting against. R&D expenditure in our industry remains pitifully low

I had discussion with a middle mgmt employee of Tier 1 auto component manuf in NCR. They are still using old tooling and not upgrading to precision /better tolerance machines as the Car OEMs are increasingly squeezing on suppliers for "sasta maal"- hence little incentive for them to improve equipment and thus affecting their margins

 

[Tibarn]

Jaitley speaks

He says that the centre will try to set up commercial courts in every district

 

[mayfair]

Also the others starting a business is also affected by land acquisition and labour laws. Unless these are optimised, the progress will be slow.

Getting credit is also improving slowly because of the banks trying to clean up existing NPAs before lending again. IBC will go a long way in addressing that.

Finally, electricity. Generation is different from distribution, plus with state discoms still being corrupt, inefficient, political playfields, progress will be pitifully slow.

Electricity act 2003 had the right idea of opening the sector to multiple players.

 

[indiatester]

Also the others starting a business is also affected by land acquisition and labour laws. Unless these are optimised, the progress will be slow.

Getting credit is also improving slowly because of the banks trying to clean up existing NPAs before lending again. IBC will go a long way in addressing that.

Finally, electricity. Generation is different from distribution, plus with state discoms still being corrupt, inefficient, political playfields, progress will be pitifully slow.

Electricity act 2003 had the right idea of opening the sector to multiple players.

For getting credit, our rank has now reached 22. Which is pretty good.
As @Tibarn says, we need focus on "Enforcing Contracts" which is at a rank of 163 off 190 countries.
Thats a hard one to fix without setting up commercial courts/tribunals.

Over that we may require police reforms to enforce the orders without trying to take a cut.