Carmakers show Indian manufacturers can compete
By Jeff Glekin
MUMBAI (Reuters Breakingviews) – So far, economic development in the world’s largest democracy has focused on services more than manufacturing. But India needs balance and carmakers provide an example to follow.
India’s manufacturing sector makes up only 16 percent of its GDP. This needs this to increase if the country is to find jobs for its huge population. Yet on the back of strong domestic demand, global car manufacturers have flocked to India and are helping to make the sector globally competitive — particularly in small cars. Capacity is expected to increase from 4.8 million units in 2010 to 12 million in 2018 according to Rothschild. India is set to become the third-largest auto maker in the world and could become a major exporter.
India imitates the bad Chinese way with Rushdie censorship
By Jeff Glekin
MUMBAI (Reuters Breakingviews) – There are many things about China that India would love to emulate. Attitudes to freedom of expression should not be one of them. India’s slower growth is often defended as a price worth paying for freedom and democracy. But censoring Salman Rushdie and censuring Jay Leno doesn’t say much for India’s tolerance levels. And efforts to filter content on the Internet suggest India may be following China down the wrong path.
Governing the world’s largest, and arguably most diverse, democracy is no easy task. The politics of caste and religion still play a huge role in determining who rules Mother India. Protests, fuelled by any perceived slight, offer politicians an opportunity to show the voters whose side they are on.
Indian economy could gain from Iran sanctions
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Jeff Glekin
MUMBAI (Reuters Breakingviews) – Beggars can’t be choosers. Iran would prefer to sell its oil for dollars, but sanctions mean it might have to take rupees from India, its second largest customer.
Vodafone’s India tax victory may come with a twist
By Jeff Glekin
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Vodafone’s victory over India’s tax authorities may have a sting in the tail. The UK phone giant’s $2.2 billion Supreme Court win is a boost to India’s battered reputation. It also bodes well for firms such as AT&T, which are threatened with similar tax bills. But if the government now changes the law, future offshore M&A deals may not escape so easily.
Unravelling India, Part 3: Demography
By Jeff Glekin and Hugo Dixon
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Source: REUTERS/Pawan Kumar
Newly born babies at a hospital on the occasion of “World Population Day” in the Indian city Lucknow
Sahara’s judgment day beckons for 23 mln savers
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Jeff Glekin
MUMBAI (Reuters Breakingviews) – There’s a lot riding on the $5.5 billion case against Sahara group which reaches the Supreme Court this week. Regardless of who actually comes out top, the amount of cash raised from 23 million mostly rural investors means confidence in India’s financial system is at stake.
Unravelling India, Part 2: Corruption
By Jeff Glekin and Hugo Dixon
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Source: REUTERS/Danish Siddiqui
Anti-corruption activist Anna Hazare drinks as he ends his fast at the Bandra-Kurla Complex Mumbai
Ambani brothers’ mixed fortunes tell same story
(Adds context news)
By Jeff Glekin
MUMBAI, Jan 18 (Reuters Breakingviews) – Both tales tell the
same story of declining opportunities for investment in India.
Mukesh may be cash rich while Anil is in stark need of funding.
Some think that has the making of reconciliation. That’s
unlikely. Mukesh would rather buy his own shares than those of
his brother.
Full view will be published shortly.
CONTEXT NEWS
– Reliance Industries is considering a share
buyback, the company said on Jan. 18, sending its shares up as
much as 4.4 percent. Shares in the energy focused conglomerate
controlled by Mukesh Ambani, India’s richest man, fell 35
percent in 2011.
Unravelling India: Part 1
By Jeff Glekin and Hugo Dixon
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Half way into Manmohan Singh’s second term as prime minister, the so-called India Shining story is unravelling. Having weathered the 2008 financial crisis better than almost anyone predicted, projections that the country would soon be growing faster than China at 10 percent or more a year had become the norm. That confidence has come hurtling back to reality with a thump.
Softly way on Indian governance may pay for T Rowe
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own)
By Jeff Glekin
MUMBAI, Jan 17 (Reuters Breakingviews) – T. Rowe Price
of the United States owns 26 pct of UTI, the Indian
fund manager. But it can’t seem to agree with co-shareholders
about who should run the business. Delhi may well want its say
too. Resolution is required. The best way forward might be to
embrace firm-but-quiet compromise.
-
About Jeff
-
Follow Jeff
