Policy | Govt must treat Indian Tech as partners
New Delhi should shed its paternalistic way of looking at Bengaluru and Gurugram. After all India’s IT sector has led the biggest wealth creation in the history of our country.
Politics | Collective failure of states has led to Delhi’s air apocalypse
All the hype about India being a path-finder for the world comes to nought when seen against this unpalatable truth of its capital city facing an air pollution emergency.
The government should set an example to the private sector on corporate governance
PSUs believe that they too enjoy immunity in much the same way as the government does
Chart of the Day | Contraction in October GST collections puts further pressure on the fiscal deficit
This is the right time for aggressive privatisation
Macro Matters | Real rural wage growth contracts in August
Contracting real wages an obvious reason for lack of rural demand
Markets | We could be on the cusp of a huge bubble in asset prices
Economists may warn that it’s going to be a long, slow slog of a recovery for the Indian economy, but as long as liquidity is going to flow in, the markets will party.
SC telecom verdict sends signal to companies that they cannot avoid paying government dues
The Committee of Secretaries set up to investigate the reported stress in the telecom sector should first look into why these companies have high debt
Bharti, Vodafone should be hauled up for wilful legal disobedience, dues collected
Not only did the incumbents use dues owed to the government in funding this expansion, they also risked the financial health of PSU banks and their investors by not providing for liabilities on their balance sheets
Adverse ruling in WTO? India needs to find ways to improve export competitiveness
For exports to increase, competitiveness has to improve and Indian companies need to find out ways to be part of global value chains. Obviously, subsidies won’t do that as they will be subject to challenges at WTO
Politics | Baghdadi is dead, but fight against terror is far from over
While it is clear that this is the beginning of the end of the Syrian Civil War, with an Assad victory on the horizon, the threat and impact of relict AQ/ISIS will continue far into the future.
Macro Matters | PMI manufacturing data fail to show any green shoots from festive demand
Stock market running well ahead of the economic fundamentals
Merkel Visit: Sustainability and mobility need to be focussed
Both India and Germany have been looking for enhanced roles and new responsibilities in an emerging international order. Despite these broader objectives and trade issues, Merkel is likely to focus more on sustainable development, renewable energy, as well as skills and mobility.
Politics | Govt must focus on boosting Kashmir’s local economy, now
The stick has been used to good effect, it’s now time to use the carrot .
Chart of the Day | Bank non-food credit contracts in first half of fiscal year
Advances to both industry and services slump
Macro Matters | Tax revenue growth in the first half has been pathetic
The government has however stepped up expenditure, thanks to the bonanza from the RBI
IndiGo’s huge aircraft order can help change its long term trend
The message the order gives out is clear---the airline is not being affected by differences between the promoters.
Policy | Testing independent directors may address the symptoms but will not cure the illness
The cardinal reality is that independent directors in India are not truly independent. More than a test of the job knowledge, boards should have independent directors who are socially responsible.
Do Bharti and Vodafone Idea think they are too big to fail?
The very talk of failure seems to be some kind of negotiating tactic. After all, incumbents can raise tariffs to improve their profitability. There are also the possibilities of equity infusions and asset monetisation to raise the necessary money for the government’s dues.
Mountain of NPAs? Blame it on inter-corporate loans
Along with restricting inter-corporate loans, the government should also put an end to the practice of omnibus objects clauses
Fewer women staff? Central banks are serious about it
RBI’s own track record has been poor with no woman Governor and 3 women Deputy Governors in 2000s
Telecom Policy | The moral hazard in waiving dues for incumbents
Relief to Bharti and Vodafone will also open up the government to charges of favouritism. In the Darwinian world of telecom services in India, many companies have fallen by the wayside, including biggies such as Telenor and Etisalat. They faced the same problems and failed, but the government didn’t step up to bail them out at that time
NRC in Assam | Citizenship and death in detention camps
The deaths in Assam’s detention camps raise questions of living conditions in these centres and bring the focus back on the humanitarian crisis under way in the state.
Indian companies remain heavily taxed despite the corporate tax cut
The effective tax rates in several Asian countries are much lower
Macro Matters | How South Asia can contribute a third of global growth in 20 years
If the Modi government seizes the opportunity for reform, the rewards will be substantial
