India

Gloats about India’s Icarus miss the point

16 Nov 2011

For many, Vijay Mallya embodies the unsavory flamboyance of India’s newly rich. Some see the problems at the Kingfisher airline he founded as comeuppance. But though grave dangers stalk the entrepreneur, the turbulence in Mallya’s flight path is not all of his own making.

India is still rising, but it is not shining

15 Nov 2011

The World Economic Forum - best known for its Davos shindig – is holding a summit in Mumbai for the first time. The rhetoric from participants suggests the “India Shining” story is still burning brightly. But the refrain is failing to resonate. The numbers tell a different story.

Indian privatisations need time, and hard work

10 Nov 2011

Practical problems often come with moves that are sound in principle. Indian authorities are mulling the part privatisation of four general insurers. As with many other state-owned assets, there’s a tonne of preparatory work to be done before the firms can contemplate a float.

Fortis India’s $665 mln u-turn hard to justify

8 Nov 2011

The family-controlled Indian group is buying an unlisted, Singapore-based healthcare operator from its own founders. Yet a year ago Fortis claimed its focus was purely domestic. Minority shareholders would probably have got a better deal if the cash had been spent in India.

India’s quest for foreign coal looks here to stay

3 Nov 2011

The country has the world’s fourth largest coal reserves, but environmental restrictions result in a struggle to keep up with demand. Indian firms have already spent $10 bln this year on mines overseas. Though imports are pricier, the domestic alternatives don’t look much better.

India ratchets up currency pressure on China

2 Nov 2011

Tired of a ballooning trade deficit, Indian trade negotiators are threatening duties on Chinese goods, starting with power equipment. Tit-for-tat tariffs are fruitless, but as a fellow emerging giant, Indian calls for China to revalue its currency would add weight to the debate.

New Delhi’s fiscal profligacy starts to bite

1 Nov 2011

India is set to bust its fiscal deficit/GDP target. Half way through the year, it has used two-thirds of the sums set aside. With inflation close to 10 percent and growth sluggish, there is an urgent need for the government to get a grip of public spending.

India’s anti-graft movement has life after Anna

28 Oct 2011

Anna Hazare’s anti-corruption campaign is imploding. There are differences between the group’s leaders, and allegations of financial irregularities. But whatever happens to Team Anna, there are signs that the movement he has come to embody will have a life of its own.

Sahara’s $5 bln savings spat is India’s loss

28 Oct 2011

The Indian savings house has been ordered to return a whopping $4.9 bln raised from nearly 30 million mostly rural investors. The episode is unlikely to help confidence among small savers. Yet accessing their capital is vital to help India’s development.

India’s inflation fight lacks credibility

25 Oct 2011

The central bank’s latest rate hike won’t tame stubborn inflation of over 9 percent. The urgent task now is to reduce expectations of more price increases with a more explicit inflation target. It might mean GDP slows a bit, but that’s an acceptable price to pay.

Delhi has home-grown options to tackle slowdown

20 Oct 2011

India’s finance minister says that economic growth will fall below 8 percent this year. He blamed global turbulence. External factors do hurt, but India can reinvigorate itself with domestic structural reform. The key is to spur business investment.

India-Pakistan trade deal just a first step

18 Oct 2011

Likely trade liberalisation between the two traditionally hostile nations has been rightly called historic. It’s part of India’s attempt at more economic engagement with its neighbours. The whole region will benefit, but current trade is so meagre that progress will take years.

Myanmar unprepared for life without sanctions

18 Oct 2011

The military is lifting its boot to get curbs removed, but flinging the doors open to foreign trade and finance would be a disaster. Institutions have atrophied during nearly 50 years of isolation. A gradual phase-out of sanctions seems the best way to foster sustainable growth.

No easy fix for Telenor’s India joint-venture spat

17 Oct 2011

Uninor, a joint venture between Telenor and Unitech, needs cash. Telenor wants to raise $1.8 billion of equity but its partner has resisted, instead taking the case to court. Whether Unitech wins or not, it’s hard to see how Uninor can avoid having to bring down its heavy debts.

India telecoms policy mixed bag for operators

10 Oct 2011

The scandal-ridden sector is crying out for consolidation. Delhi’s new policy will allow spectrum trading and, theoretically, free up M&A too. But costs will rise and takeovers are unlikely until the corruption investigations are complete.

Essar’s better prepared for a second UK IPO

6 Oct 2011

India’s Essar is considering a UK listing for its infrastructure assets. With one London IPO under its belt, and lessons on governance from that experience still fresh, it should be better prepared this time around. Now there’s the small issue of timing.

Ambani’s challenges don’t end with 2G saga

4 Oct 2011

Anil Ambani will be relieved that investigators haven’t uncovered any evidence implicating him in one aspect of the 2G telecoms scandal. But he shouldn’t be complacent. His telecoms firm is struggling to keep pace with its rivals. It would be better if it was taken over.

India should step up privatisation

29 Sep 2011

New Delhi’s surprise rise in its borrowing target provides the perfect excuse to push harder on selling stakes in state companies. Market conditions aren’t great but, given the benefits to the economy of less state ownership, India should sell at almost any price.

Tata’s Jaguar Land Rover journey needs direction

29 Sep 2011

Tata Motors is in no rush to replace its CEO, who stepped down on Sept. 9. It is not the only gap at India’s largest auto maker. Shares in the firm, which also owns Jaguar and Land Rover, trade at a big discount to peers. A new CEO might find value with more business integration.

Bring back Manmohan Singh

22 Sep 2011

Anna Hazare’s anti-corruption campaign should be a wake-up call to Prime Minister Singh who has lost touch with India’s growing middle classes. One way to reconnect is to revive the vigour for economic reform which characterised Singh’s tenure as finance minister in the 1990s.