Expert Zone
Straight from the Specialists
Not so easy for India to come out of the dark
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Many words have been used to describe the power outages that put half of India in the dark this week: embarrassing, catastrophic, the worst the world has seen. While all of these may be true, the blackout also embodied the dire situation the country could be headed to without the necessary reforms to modernise its economic infrastructure. To be sure, it is not a lack of vision that would lead India to similar potential disasters in the future, but a lack of political will.
The victory of Pranab Mukherjee in the presidential election changes nothing in the reform landscape: the question remains whether the government is willing and able to accomplish reforms to revive growth. Given the politics that lie ahead with 10 state elections in 2013, it is more likely that only the low-hanging fruits will be tackled over the coming months. The big-ticket items will likely have to wait until after the 2014 general elections. The bad news is that these smaller reforms will not be enough to pull the economy from the doldrums. The good news is that from the bottom, there is nowhere to go but up.
LET’S ACKNOWLEDGE THE TRUTH
The fact is that India is not fulfilling its potential due to the absence of reforms. In my view, delays in some of the major items are the reason GDP growth has fallen below the 2008-2009 crisis levels. The lack of progress has also caused drastic mood swings among financial investors.
Great potential in India long-term growth story
(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)
Reforms seem to be the flavour of the season after we relished and put aside the corruption issue.
How do we explain India’s economic woes?
(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)
Our GDP growth rates have slid consistently quarter on quarter from 8.5 to 5.3 pct. Surely this is in keeping with a glaring trend. Therefore, this sudden surge of emotions and panic after wallowing in so such mass self-deception is surprising to say the least.
Market reform in China: Should we believe it?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The first step in solving a problem is admitting it. For years, the Chinese government and their defenders overseas insisted first that China was still reforming, then that state-led economic development was superior to market-led development. Evidence to the contrary came as news to many.
India after 20 years of reforms
(The views expressed in this column are the author’s own and do not represent those of Reuters)
On July 24, 1991 India became a different place for business. The economy was opened though not as much from conviction as necessity. But once started, reforms had to be followed through whichever the party in power.
