India’s Singh needs cunning to boost economy 28 Jun 2012 The technocrat-turned-politician has said he wants to revive the economy’s “animal spirits”. A wily fox is the species that’s needed. There are ways the prime minister, now also finance chief, can get India moving again without tackling the political opponents of reform head-on.
Coke, IKEA show India story hasn’t gone flat 27 Jun 2012 There’s plenty of pessimism around Delhi’s policy dithering. But growth continues, and the long-term prospects remain robust. Two flagship bets on India’s consumers will help steady nerves, and could serve as a catalyst for foreign direct investment from other sources, too.
India’s finance minister goes out with a flop 25 Jun 2012 Talk about over promising and under-delivering. Pranab Mukherjee inflated the market’s hopes that he’d take bold measures to boost investor confidence, but came up with a few small tweaks - on his last day as finance minister. Hopefully his successor will talk less and act more.
Cement ruling mixes India’s business reputation 21 Jun 2012 New Delhi has done itself a big favour imposing a record $1.1 bln price-fixing fine against 11 cement firms. For all the criticisms recently levelled, it suggests there is an appetite for competition and a willingness to take on vested interests.
Corporate India needs a nobler cause than Gupta 18 Jun 2012 India Inc should start defending its own reputation rather than that of Rajat Gupta. Instead of sending an open letter praising the ex-boss of McKinsey, the conviction should be used as a turning point. How about a second draft making the case for stronger business ethics?
India’s Congress wins mock fight; now for real one 18 Jun 2012 The government outfoxed its tricky coalition partners to get Pranab Mukherjee, now finance minister, nominated for the ceremonial role of president. But Sonia Gandhi’s party needs to do more to fire up the economy. A strong replacement for Mukherjee would show the way.
India doesn’t yet face balance of payments crisis 15 Jun 2012 It took the loudest of wake up calls in the 1990s to arouse India from four decades of failed economic policies. Some hope that the current sharp falls in the rupee and the growth rate will provide a similar jolt. The numbers show that a similar crisis isn’t likely - yet.
Delhi’s game of thrones stifles progress 12 Jun 2012 As the Indian growth story has ground to halt so has decisive action and decision making. Machinations over who is to become president and finance minister are pre-occupying New Delhi. As a result nothing is getting done. Sonia Gandhi needs to break the deadlock urgently.
India makes small cut in capital market red tape 8 Jun 2012 The decision to open India’s capital markets to new individual investors is welcome. But the government is dreaming to think the modest change will bring in $45 billion a year. Only substantial moves to make the economy more welcoming can attract that much money.
Investors in India’s Reliance need more to rely on 6 Jun 2012 The Indian conglomerate is underperforming. Reliance also has $14 billion in cash but doesn’t seem to know what to do with it – though it has a half-hearted share buyback programme. Investors gathering for their annual meeting are in need of commercial and financial refreshment.
India needs an adult conversation 31 May 2012 As GDP growth slumps to 5.3 pct, the county goes on strike. The people are up in arms over a sensible cut in petrol subsidies. The government’s instinct is to pander and roll back, but it might get more respect by telling the truth about what’s needed to get the economy moving.
India’s welcome market reform comes with a bonus 29 May 2012 In removing the option to settle serious cases by paying a fine, SEBI has created some confusion. What happens to active cases such as the one against Reliance Industries? The regulator could allow those under investigation one last chance to make a juicy offer it can’t refuse.
Indian oil producers may be due a windfall 28 May 2012 Delhi presently subsidises refiners, and forces state-owned oil companies to bear part of the cost. Growing deficits mean that can’t continue. A logical move is for the government to let the price of diesel rise, which could mean a boost for the likes of Oil and Natural Gas Corp.
India’s market regulator needs to get tougher 25 May 2012 SEBI is considering removing the option to settle serious cases like insider dealing without admitting guilt. That could lead to even less enforcement than at present. But if it hardens SEBI’s resolve to land a high-profile conviction, such self-denying ordnance may be worth it.
Petrol hike pumps hope for deflated India 24 May 2012 It’s a small start, which will be meaningless unless followed with bolder action to cut subsidies and reform the economy. But the direction of travel is right and, if it proves more than a false dawn, it will help India rediscover its credentials as a high growth economy.
Anil Ambani mystery reflects poorly on India 22 May 2012 How did two Ambani firms invest $250 mln in another Reliance company without anyone in the group realising? The UK regulator raised a red flag, but its Indian counterpart and Reliance itself are saying little. Such cases do little for India’s attractiveness to investors.
India no longer deserves a credit upgrade 22 May 2012 New Delhi is lobbying Fitch to say it’s more creditworthy, arguing that foreign inflows protect it from a persistent current account gap. The tumbling rupee says otherwise. With slowing growth likely to keep government debt high, the risk is that those inflows go the other way.
India’s slipping on oil as well as Greece 17 May 2012 It’s easy to blame the EU for India’s woes. But politicians shouldn’t fall into the Greek trap of knowing what’s good for them but failing to act. The currency’s decline should be a trigger for government action. Popular but expensive fuel subsidies are the place to start.
India has chance to get a good finance minister 16 May 2012 The current minister, Pranab Mukherjee, has been an abject failure: the rupee’s record low is just the latest example of the economy’s problems. Now Mukherjee wants to move to the ceremonial role of president. Sonia Gandhi should bite his hand off.
India’s draconian FX grab won’t help weak rupee 10 May 2012 Forcing exporters to convert half their foreign currency will net less than $3 billion - not enough to make much difference to the weak rupee. Heavy-handed intervention may also scare away the foreign investors India needs to fund its ballooning trade deficit.