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from Expert Zone:

National agenda to bring $100 billion of domestic household savings in capital markets in next five years

(Rajiv Deep Bajaj is the Vice Chairman and Managing Director of Bajaj Capital Ltd. The views expressed in this column are his own and do not represent those of Thomson Reuters)

Currency of different denominations are seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/FilesIndia is an attractive investment destination for foreign institutional investors, due to its vibrant economy, favourable demographics, high growth potential and well diversified capital markets. In fact, the benchmark Nifty has representation from 10 broad sectors, four with weightage in double digits.

One will find very few markets in the world with such diversity. Still, the irony is that our domestic retail investors don’t consider capital markets as an avenue for long-term wealth creation. The statistics speak for themselves. Household savings flowing in domestic equity markets is practically negligible.

In the last five years ending 2012/13, only 742 billion rupees of household savings has flown into capital markets, constituting only 1.5 percent of total household financial savings, 0.6 percent of gross domestic saving and a meagre 0.19 percent of GDP in this period.

from Expert Zone:

India’s Iraq problem

(This piece comes from Project Syndicate. The opinions expressed are the author's own)

Iraq seems to be falling apart, with the rapid advance of the militant Islamic State in Iraq and Syria (ISIS) threatening to lead to the country’s division into Shia, Sunni, and Kurdish entities, while blurring its border with its turbulent western neighbor. Moreover, the tumult is now threatening to spread to two more nearby countries, Afghanistan and Pakistan, which already are facing myriad internal challenges. For India, the message is clear: its national security interests are at risk.

from India Insight:

Short skirts, bad stars, chow mein: Why men in India rape women

Demonstrators from All India Democratic Women's Association (AIDWA) hold placards and shout slogans during a protest against the recent killings of two teenage girls, in New Delhi May 31, 2014. REUTERS/Adnan Abidi

The 2012 Delhi bus rape case and an ever-longer list of rapes and murders in India have prompted politicians and public figures in India to cite plenty of implausible reasons why rape happens and why men brutalise women or portray women in ways that suggest they had it coming. Many people, when speaking out, tend to minimise the crime or rationalise it in ways that sound ludicrous to many. We created this list of such comments more than a year ago, but it seems like it's time to add some new entries.

(Updated July 15, 2014) Binay Bihari, minister for art, culture and youth affairs in the state of Bihar: The minister said that mobile phones and non-vegetarian food are reasons for a surge in rape cases, NDTV reports. "Many students misuse mobile phones by watching blue films and hearing obscene songs which pollute their mind," he said. On food, he reportedly said that non-vegetarian food "contributed to hot temper... and cited sermons of sants that pure vegetarian food kept the body and mind pure and healthy." (NDTV)

from Expert Zone:

Higher tax revenue from higher growth

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The 2013-14 budget got completely out of hand because of a whopping shortfall in tax revenue. Development outlays had to be drastically cut to manage the fiscal deficit.

The key to the budget is revenue. The ratio of gross tax revenue to GDP reached a high of 11.9 percent when GDP growth was at its peak of more than 9 percent in 2007-08. Since then, both declined and the ratio has been in the narrow range of 10-10.7 percent. GDP growth is a painless way of raising revenue.

from Expert Zone:

Nehru’s last stand?

(This piece comes from Project Syndicate. The opinions expressed are the author's own)

The victory of the Bharatiya Janata Party and its leader, Narendra Modi, in India’s general election last month has raised a crucial question about the country’s future. With the BJP sweeping to power on a platform of aggressive nationalism and business-friendly corporatism, has the socioeconomic consensus dating to India’s first prime minister, the democratic socialist Jawaharlal Nehru, come to an end?

from Expert Zone:

Election 2014: Imbalanced participation of women

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The marginalization of women in electoral politics is deeply embedded in the party system and the imbalanced gender power relations in the main political dispensations in India. They continue to be discriminated against not only in terms of seat allotments to contest elections but also within the rank and file of major political parties.

The reasons for women being on the fringes are varied but the focal factor that excludes them from the process is the patriarchal and male-dominant party competition structure that continues to exist in the Indian subcontinent. This not only dissuades females from electoral politics but also acts as a barrier in their quest to share political power.

from Expert Zone:

How to get India on the highway to high growth

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The president's address to parliament this week lays out the new government’s roadmap to get India’s economy back to high growth. That will take time and is not easy either.

True, the BJP government led by Narendra Modi inherited a weak economy - growth was a mere 4.7 percent; industry was static; there was no employment generation; and inflation was at over 8 percent. The only comfort was that foreign exchange reserves exceeded $312 billion.

from India Insight:

Brokerages bullish on Sensex, revise targets after Modi win

By Sankalp Phartiyal and Aditya Kalra

Indian stock markets rallied to record highs in May with the benchmark BSE Sensex breaching the 25,000 mark for the first time after Narendra Modi won a clear mandate to govern Asia's third-largest economy.

Markets surged as Modi's Bharatiya Janata Party (BJP) and its allies stormed to power on promises to revive India's struggling economy, which is growing below 5 percent, and create more jobs for its 1.25 billion people.

from India Insight:

India equity funds ride Modi rally in May, post best month in five years

India's diversified equity funds outperformed the broader markets in May and recorded their best monthly performance in five years, as stocks rallied on hopes of an economic revival after the Narendra Modi-led Bharatiya Janata Party (BJP) won a decisive election mandate.

Equity funds clocked an average return of 11.57 percent in the month, the highest since May 2009 when funds rose 30.2 percent, data from fund tracker Lipper, a Thomson Reuters company, showed. In comparison, the BSE Sensex rose 8 percent.

from MacroScope:

India share bulls running mainly on hope, well ahead of peers

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Indian stocks have rallied sharply over the last two months, soaring to record highs, although the bull run that began with expectations that Narendra Modi will become the country's next Prime Minister may soon run out of road.

India's top equity index, the BSE Sensex, was trading over 24,850 on Tuesday, having shot up over 10 percent since mid-April alone, when polling began, despite economic growth languishing below 5 percent, along with high inflation and interest rates.

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