Daily Excelsior The Reserve Bank of India once again opted not to reduce the interest rate while declaring monetary policy on 30th October, 2012. By this act, the Bank has once again disappointed all those who were expecting a cut in the interest rates. Though the Reserve Bank of India has half-heartedly tried to increase the liquidity in the economy by reducing Cash Reserve Ratio, but this may not bring any reduction in the lending rates. The industrial growth rate has been falling continuously for one and a half years and is nearing zero now. This has resulted in slowdown … Continue reading Courage needed in nonetary policy
Daily Excelsior The two fastest growing economies- India and China are gradually coming under the grip of economic slowdown. It is important to note that China after achieving the economic growth rate of 10 to 14 per cent in the last two decades has set a record of being the fastest growing economy. Though India could not achieve economic growth as fast as China could, yet it achieved the average economic growth rate of around 8 per cent during the ten years of the Tenth and Eleventh Five Year Plan. Economic slowdown gripped the entire world after the recession period … Continue reading Lest disillusionment turns into hopelessness!
Daily Excelsior The Government of India has taken some decisions in the name of ‘economic reforms’, according to which FDI has been allowed into multi brand retail and pension funds for the first time and FDI cap for insurance sector has been raised from 26 percent now to 49 percent. Normally it is believed that we need to bring in foreign investment to make up for shortage of foreign exchange and raise capital for development. This would also give strength to rupee, it is claimed. But strange is the fact the all types of facilities are rolled out for foreign … Continue reading NRI remittances beat FDI
Daily Excelsior In the recent past, Government of India has taken some decisions, on which there is lack of political consensus. Decision to open FDI in retail has created an atmosphere of political uncertainty. A major ally partner of the UPA government has not only withdrawn its support but has also started agitation against the government. Though other political parties, supporting the government from outside, are escaping to pull down the government, but are raising voice against the decision of the government. Now on October 5, 2012, Union Cabinet decided to allow 49% FDI in pension funds and raise the … Continue reading Pension, insurance reforms Not in people’s interest
Daily Excelsior After washing out of the monsoon session of Parliament on the issue of Coal scam, the Government on September 14, 2012 has now launched a fresh move on the implementation of ‘congress brand’ economic reforms and opened up FDI in multi-brand retail. Samajwadi Party chief Mulayam Singh and others who matter in number game will now tried to be lured and even threatened to agree to these reforms. It is no secret that both Trinmool Congress supremo Mamata Banerjee and and Mulayam have been vehement critiques of FDI in retail, Pension Bill and Insurance Bill. The game has … Continue reading FDI retail: No solution for slowdown
Daily Excelsior Twelfth Five Year Plan has already started from April 2012. Despite much higher amount being allocated in the plan as compared to previous plan, essential services like health and education are being handed over to the market. Plan documents, especially Chapters on Health and Education clearly speak of government’s intention to run health and education on the path of market. Commercialisation of health and education services has been on rise during liberalization and globalisation. Though even before 1990, there did exist private ownership of education and health services, in the past two decades, the process of commercialisation of … Continue reading Corporatisation of Public Health
Daily Excelsior Markets around the world today are shadowed by Chinese goods. Electronic goods, from laptops, televisions, cell phone to pen drives, toys, clocks, etc., most of the items are `Made in China’. Chinese companies are securing contracts around the globe on a large scale for bridge construction, telephone exchanges, electricity generation and other types of infrastructure. In the last two decades, the Chinese economy is moving ahead on fast track. Sometimes China’s growth rate has been reportedly exceeded 14 percent, however on an average China’s GDP has grown at the rate more than 10 percent in the last one … Continue reading Has China begun to recede