By Kavaljit Singh, Madhyam
On 28th August, an ambitious programme on financial inclusion – Jan Dhan Yojana (People’s Wealth Scheme) – was rolled out across India amid much fanfare. The government claims that on the inaugural day, a record 15m zero-balance bank accounts were opened across the country under the program. Nowhere else in the world has such a large number of bank accounts been opened on a single day. This is undoubtedly a big achievement for the new government. Continue reading »
Xi Jinping, the Chinese president, arrived in India on Wednesday for a visit expected to showcase significant investment deals and make progress toward resolving a decades-old border dispute.
But beyond the official bonhomie, the shallow foundations of an uneasy bilateral relationship are readily evident. Nowhere are they more obvious than with tourism. China’s outbound tourism boom appears to have largely bypassed India, which took only 2.5 per cent of its tourist arrivals from its northern neighbour in 2013.
This put Chinese arrivals behind those both from Malaysia – at 3.5 per cent of the total – and Russia – at 3.7 per cent. Continue reading »
Remember that story back in June, when the Indian government blocked a couple of foreign sources of funding for Greenpeace India?
It looks like the courts may not let New Delhi withhold the international transfers. On Wednesday, the Delhi High Court ordered that the blocked funds should be shifted from accounts with the central bank to Greenpeace’s accounts and placed in a fixed deposit until October 10, when a final verdict will be announced. Continue reading »
By Jonathan Fenby, Trusted Sources
There’s nothing like an acronym or a catchy label when it comes to emerging markets. The master alchemist, Jim O’Neill, set the pace with the formulation 13 years ago of the four-nation BRICs (with or without a final capital S for South Africa). Fidelity followed that with the MINT collection of Mexico, Indonesia Nigeria and Turkey constituting MINT.
Then Morgan Stanley chipped in with Fragile Five, which – such are the vagaries of nomenclature – includes five members of the previous two aggregations.
Now, a new and potentially more durable grouping is emerging – even if it does not lead itself to an acronym that trips off the tongue. The best I can come up with is CIMI – or, if you twist it to give Mexico rather than China first place, the marginally more memorable MICI, though that would invite too many columnists to compare them to Disney’s mouse. Continue reading »
Since the early days of its software industry in the 1980s, nearly all of India’s large IT companies have earned their crust selling software to companies in America, who have tended to be more open to outsourcing than competitors in Europe and Asia.
But for how much longer? Not that long in the case of Tata Consultancy Services at least, the country’s largest IT group by sales, which soon looks set to earn more than half of its revenues outside the US for the first time, according to chief executive Natarajan Chandrasekaran. Continue reading »
India is the world’s largest democracy, known for lively debate and an active press. As the country has developed, however, the public has grown skeptical of both the media and politicians.
To promote greater transparency and accountability, Govindraj Ethiraj, a well-known business journalist, set up IndiaSpend, a non-profit that aims to generate data-driven journalism. Continue reading »
As the pro-business Narendra Modi comes to power in New Delhi with a powerful popular mandate, investors are hoping for an economic turnaround and some hard-hitting policy reforms.
So there was plenty of interest when the Reserve Bank of India (RBI), the central bank, released its half-yearly financial stability report late on Thursday. Its conclusions are not all rosy for Asia’s third largest economy. Continue reading »
Even before the Bharatiya Janata Party (BJP) published its election manifesto and before India’s new prime minister, Narendra Modi, set out his plans for the country, there was something different about the winning campaign.
The 63 year-old candidate revolutionised electioneering in India which, until then, had relied on billboards, handouts and door-to-door appeals. Suddenly, a leading politician was active on social media, reaching out to the diaspora through Google Hangout sessions and reaching the far corners of the country with video links and holograms (pictured). Now, Modi plans to change his administration in much the same way. Continue reading »
It seems everyone is optimistic about India as Narendra Modi, the new prime minister, takes charge.
His track recored as chief minister of Gujarat suggested the Bharatiya Janata Party (BJP) leader will usher in a new era of economic growth in India – but also sparked fears that he would be reluctant to share power with high-profile senior ministers. His choice of cabinet sheds some light on his leadership style.
Continue reading »
By Ajay Chhibber, Director General, Independent Evaluation, Government of India
The world’s largest exercise in electoral democracy has delivered a clear mandate for development. The aspiring voters want decent jobs and a growing India. They have pinned their hopes on a Modi-led government to deliver them the kind of India where real jobs are created and services are delivered cleanly and efficiently. They want better governance not bigger government. They want a hand up, not a handout. They want India to become a US$10tn global powerhouse.
The UPA government was given such a mandate in 2009, but misread the message and blew away five years into more handouts, large fiscal deficits, raging inflation and eventually a slumping economy. Instead of creating real jobs, it focused on make work through badly run schemes like MGNREGA (The Mahatma Gandhi National Rural Employment Guarantee Act) which have cost the country over Rs 1tn so far. It saw expanded subsidy programs costing almost 4 per cent of GDP – but with not much of it going to the poor. Continue reading »
Who do India’s social media masses want to see in Narendra Modi’s new cabinet?
Simplify360º, a media monitoring organisation, analysed several thousands Tweets with the hashtag #DreamCabinet, posted from results day on May 16 through to May 19, to give a straw poll of internet users’ preferred cabinet line-up.
Modi, prime minister-elect following the landslide election victory of the Bharatiya Janata Party (BJP), is set to be sworn in with his cabinet in at an oath-taking ceremony on May 26 – putting considerable time pressure on Modi. Continue reading »
By Srivatsa Krishna
There is enormous speculation about the complexion of the economic regime of Narendra Modi now that he has been elected prime minister of India. His policies are an unknown-unknown. Separating signal from noise, one can change this, if not to a known-known at least to a known-unknown.
The clues can be found in two broad streams of evidence, namely Modi’s own record of 12 years in Gujarat and the Bharatiya Janata Party (BJP) when it was in power nationally.
Modi’s biggest strength is that he is an economic pragmatist who has excelled in “getting things done”. He is known to bang heads together and de-bottleneck issues quickly, rather than wait for sequential decision-making, which is what most governments do. Continue reading »
By Derek Scissors, American Enterprise Institute
The Indian election is over. Does this mean Indian economic reform will restart?
There is no point expecting India to adopt an ideal economic reform program. The country is still full of quasi-socialists and has not made up its mind what it wants, much less how to achieve it. Nonetheless, the election offers a genuine opportunity to initiate high and sustained income growth. Continue reading »
By Amitabh Dubey, Director of India Research, Trusted Sources
Equity and currency markets seem to have priced in a strong Bharatiya Janata Party (BJP)-led coalition government, and could no doubt rally further if the BJP alliance crosses the majority mark of 272 when votes are counted on 16 May. The logic is clear: a stable coalition would be much better able to coordinate disparate ministries, slash red tape and reduce the fiscal deficit than one reliant on regional satraps with minds of their own.
Let us assume that a strong Narendra Modi-led government does emerge. This would raise already high expectations of a solid reform agenda that accelerates investment while inhibiting crony capitalism. Recall that the Congress Party (CP)-led United Progressive Alliance (UPA) was reelected with much fanfare in 2009, but was derailed by revelations of crony capitalism and state capture. Continue reading »