Indian Economy : News,Discussions & Updates
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Let them get their 15 minutes of fame in. This is just temporary.
Quite a well balanced take on matters overall.
The full interview is quite good too:
ET just went for some silly headline unfortunately for this written excerpt from interview. They should have just stuck with the headline they used for the interview itself.
Well balanced take or a sobering well rounded critique of the economic policies of the Modi government? He's all but accused the Modi government of creative accounting and being totally clueless of macro economic policy. His support for the RCEP is intriguing though he's outlined his case. I'm beginning to believe Subramanyam Swami when he declared that of Modi doesn't solve the economic conundrum immediately , he's going to face tough times in a year.
It is important to hear this side of it too. The criticisms are the usual kind of thing (and he can highlight it on one administration as much he wants, but its really much more systemic than that)...but he also stresses points of strength and optimism. I would disagree on Modi govt being clueless (if that is your impression from what he said). As far as creative accounting goes (that every govt in the world does), well thats the whole point in keeping track of direct key consumption numbers, especially those that feed into the base like energy.
The Modi govt will simply have to keep the reforms going (esp getting govt out of PSUs as far as possible). The tax break for companies is welcome step, but much more is needed. Govt fiscal imprint should be minimized and focused.
More than my impression, it's his overall outlook of the Modi Government's economic policies that I'm referring to. Consider the GDP growth percentage figures thrown around by this government and compare it to the negative press it's been receiving for inflated numbers by academics, economists, journalists the ex CEA & the CAG. He hammered home the point when he stated that's something's amiss else we wouldn't see the magnitude of the slowdown that we're seeing now given the numbers this government is putting out or the RBI for that matter. I wonder what makes you so sanguine about this government's economic policy.
The tax break is definitely a welcome step, though it may not yield anything productive in the short term.I wonder if this was a pre cursor to our singning the RCEP after intensive negotiations later this year or next year thus aligning ourselves better with the vast supply chains of E Asia & SE Asia apart from being competitive as an investment & manufacturing destination.
Overall I liked the clarity of purpose and focus that he brought to a number of issues too.
I don't see the point of these trillion-dollar marks. I will sound like a commie but what is of real importance is for pvt sector to actually use capex to set up systems in india. Top IT companies are sitting on thousand of crores of cash reserves but have no plans of setting up new firms, no new products to compete in the global markets, barely any representation in the lucarative gaming industry, large infra and auto companies are not even utilizing their existing facilities to 100%, India inc keeps crying about low demand, but will do next to nothing for building themselves as export players. Apart from a few and far select players, Indian manufacturing exports are next to nothing.
India inc needs to put it's big boy pants not, high time that RE/Bajaj/Hero/TVS should look at creating global products and compete with big boys in EU/US/Asia and developing market (RE twins is a start, but nothing stops them and the rest to go after the Japs/brits/italian in all segments). Same goes for CV's TATA/Mahindra/Leyland to make headway into MAN/Hino/Merc/PB territory. KOEL should now stop relying on pielstick and get its own design in order to compete globally with MTU, Cummins etc.
India inc - In the manufacturing sector needs to look outwards, Indian demand sustaining Indian manufacturing has reached it's the tipping point, and this wait and watch game is just going to hurt us more.
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Absolutely. Recall we have discussed this (or was it @Nilgiri ) ... how Indian 'youth potential' is a potential disaster waiting to happen?
I think you had this conversation with Nilgiri. I've no recollection of such an exchange with you.