Breakingviews

A checklist for India’s new central bank chief

June 20, 2016

The Reserve Bank of India needs a new governor after Raghuram Rajan’s premature departure. The ideal candidate would support reforms underway and have some experience as an international macro-economist. Crucially, though, he or she needs to be able to stand up to the government.

India’s smartphone giant eyes China role reversal

June 3, 2016

Micromax has bested Chinese rivals in its home market. To realise its lofty goal of being one of the world’s top five handset makers by 2020, it must succeed in the People’s Republic. Raising the fresh capital required might be the easiest part for the Indian firm.

Tata’s portfolio power still just about adds up

May 24, 2016

Problems at its British steel unit raise questions about the direction of India’s most respected conglomerate under Chairman Cyrus Mistry. The performance of the group’s other big listed companies has been a mixed bag. But viewed as a collective, Tata’s performance stacks up.

India’s Modi can reclaim his “wow” factor

May 16, 2016

Two years after a landslide election, business executives are losing confidence in Prime Minister Narendra Modi. Passing a bankruptcy code last week was a major achievement but other landmark reforms look harder to achieve unless Modi reins in his party from divisive politicking.

India shows China the way to deal with bad debt

May 6, 2016

State-backed banks in both countries have lent too much to politically connected companies that are now in trouble. While India is pushing lenders to come clean, China is still not admitting the extent of the problem. Future growth depends on a proper cleanup.

China and India reform hopes are on hold

April 15, 2016

New leaders in both countries raised hopes for restructuring banks and state-owned companies. But current plans are not bold enough while the window for action is narrowing. Beijing’s investment habit and New Delhi’s obstructive bureaucracy are proving stubbornly hard to shift.

India can learn from Asian bank turnarounds

April 7, 2016

Privatising $2 bln lender IDBI would send a good sign about India’s resolve to fix wobbly banks. Previous deals in the region offer a template for success: let an investor take a big stake, complete with real control over decision-making, and then go easy on the regulation.

Blackstone bets Indian IT can weather US election

April 5, 2016

The buyout firm’s $1.1 billion bid for Indian outsourcer Mphasis looks brave when U.S. presidential candidates are touting restrictions for skilled foreign workers. The low valuation and a long-term contract with seller Hewlett Packard Enterprise at least offers some protection.

Pensions not steel are Tata’s big UK headache

March 31, 2016

The Indian group’s British plants have issues, but could be rendered profitable. The bigger challenge is funding shortfalls in its pension scheme for 130,000 members. If a new acquirer could find a workaround and new investment, British steelmaking could still work.

The bright side of India’s bad-debt witch hunt

March 16, 2016

Liquor baron Vijay Mallya’s exploits have triggered wider scrutiny of the country’s tycoons and those who enabled their excessive lending. Auditor Grant Thornton is the latest target. Though the sudden frenzy seems arbitrary, the result may be a faster cleanup of balance sheets.