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from Global Investing:

More development = fewer violent deaths in India

A recent report highlights the importance of economic development for India and indeed for all developing countries. It also shows why we should worry about the slow pace of reform in India and how that has hit growth rates.

Bank of America/Merrill Lynch analysts have picked up a report from the Institute for Conflict Management, a New Delhi-based think tank, showing that terrorism-linked deaths in India last year were 6 times lower than in 2001, a development they ascribe to the rapid growth the country enjoyed in this period. The graphic below shows the link:

ICM data showed 885 people died last year in various conflicts around India - from cross-border skirmishes, North Eastern insurgency, Kashmir violence and Maoist attacks - compared with 5,839 back in 2001. And U.S. state department data shows the average number of people killed per attack in India at BofA/ML at 0.4 compared to a 1.6 global average in 2012.

While geo-political risks in India remain pretty high, higher growth and living standards are resolving many internal disputes and making violence a less attractive option, BofA say:

from Expert Zone:

India Markets Weekahead: Markets back on track for pre-election rally

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

The week started on a sombre note but with institutional activity picking up, the Nifty closed with gains of 1.97 percent at 6276 despite a mid-week trading holiday. Political activity also gained momentum with 11 parties coming together to form a Third Front to oppose both national parties.

 

The Election Commission may announce election dates in the coming week -- the code of conduct coming in will halt any policy decisions.

from Expert Zone:

Is gold a good investment once again?

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

The increase in gold prices in the last two months has rekindled interest in the yellow metal as a vehicle for investment. It was after the 2008 global financial crisis that gold became the most preferred asset, with prices doubling in four years.

Why was gold preferred? It was not so much as a hedge against inflation but as an insurance against uncertainty. When the economy is faltering and the future looks bleak, gold becomes a preferred asset.

from India Insight:

Book Talk: Rana Dasgupta on a ‘vastly under-imagined Delhi’

Rana Dasgupta’s first non-fiction book is an investigation into what makes Delhi a city of unequal transformation, salted with ambition, aggression and misogyny. "Capital: A Portrait of Twenty-First Century Delhi" takes its shape from an "outsider’s" anxiety about not being able to understand a city that is primarily the by-product of refugees from India’s partition in 1947.

Dasgupta, 42, was born and raised in England, and belongs to a family of migrants whose roots are in the Lahore of British India, now Pakistan. In 2000, he flew to Delhi after quitting a marketing job in New York and fell "into one of the great churns of the age".

from India Insight:

Car wraps lend colour to India’s drab auto business

Rohit Gulati always wanted to buy a car that would have enough space for all eight members of his family. But with his limited savings, he didn’t see that happening for some years.

In August, the 34-year-old Café Coffee Day supply chain executive, spotted a newspaper advertisement about a new car financing program. Four months later, Gulati was ferrying his family across New Delhi in a new Maruti Eeco.

from Expert Zone:

India’s disrupted democracy

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

India's 15th Lok Sabha (the lower house of Parliament) passed into history ignominiously this month, following the least productive five years of any Indian parliament in six decades of functioning democracy. With entire sessions lost to opposition disruptions, and with frequent adjournments depriving legislators of time for deliberation, the MPs elected in May 2009 passed fewer bills and spent fewer hours in debate than any of their predecessors.

from The Human Impact:

Ending the beatings, rapes, murders: Where are India’s men?

Violence against women is widespread across the world. Globally, 35 percent of women have been beaten by an ‘intimate partner’ or suffered sexual violence at the hands of a non-partner in their lifetime, the World Health Organisation says.

The same research suggests that almost one third of women who have been in a relationship have experienced physical or sexual violence at the hands of their partner, and that some 38 percent of all murders of women are committed by their husband or boyfriend.

from The Human Impact:

Using rape as an excuse for moral policing in India

The conversation has changed in India since that horrific night in December 2012 when a young woman returning home after watching a movie at the cinema was gang raped on a moving bus and left to die on the streets of the Indian capital.

The crime - which triggered outrage amongst urban Indians who took to the streets to protest - acted as a turning point, forcing many in India to face up to the widespread violence inflicted on women and girls in this largely patriarchal nation.

from India Insight:

Markets this week: BHEL, TCS top Sensex losers

By Sankalp Phartiyal and Ankush Arora

The BSE Sensex ended down 0.7 percent in what was a slow week for Indian shares. The week began with the benchmark index sliding 1.5 percent on Monday as foreign institutional investors (FIIs) continued to sell as part of a slump in emerging markets.

Investor sentiment remained subdued despite a survey on Monday showing that Indian factories started 2014 on a high note, with manufacturing activity growing at its fastest pace in nearly a year as domestic and overseas orders increased.

from Expert Zone:

Interest rates likely to remain high

(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)

The Reserve Bank of India (RBI) raised its benchmark repo rate by 25 basis points to 8 percent at its policy review meet in January. The reverse repo rate rose to 7 percent while the bank rate and marginal standing facility rate climbed to 9 percent. This is the third hike in repo rate since RBI Governor Raghuram Rajan assumed office in early September.

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