Reflections

The enclosed article {Biblio. 1} by Mihir S Sharma, one of the few straight talking Economists on Indian Media, does raise some excellent questions. It is a superb analysis of the shoddy economic management – and also raises the fact that something is indeed broken. The economy requires deep seated reforms at core levels-  not vacant sloganeering grandiose plans. Quite correctly, the need of the hour is attending to the real issues that confront on the Business, Trade and Economic Front; as well as a straightforward analysis of what is wrong, devoid of Jumlaas and vacuous statements.     MACROECONOMIC BACKGROUND - OVERALL All Macro-Economic Parameters are in the doldrums, as should be evident to all but the most devoted Bhakt; the time is now ripe for us to rise above narrow parochial statements, and try and get to the root of what ails our nation on an economic front. High NPAs, Low Credit Offtake, Slowing growth for 6 straight quarters, slow export growth a...

In the midst of these seemingly hopeless times with nearly every economic parameter going down, it is heartening to see a small, tiny uptick in credit offtake from banks {Business Standard ,”All Eyes On RBI Today”,  2 nd August Credit Chart – See Chart below}. I haven’t seen many people note this : but the chart is clear. There is a small uptick – this may of course be irrelevant, and unsustainable; but it is present. It is now for the Government to ensure this uptick is sustained; increasing Credit Offtake is a prerequisite for a sustained Economic Recovery.  However, it is with regret that I admit my article isn’t about recovery prospects; as most of my readers will no doubt be aware – I don’t indulge in speculation; that requires detailed data trends which are not available to me, as well as tools. This present writeup is more about the risks that are facing us in the current situation, which taken individually or together can derail this small beacon of hope...

THE GST : CELEBRATION, EUPHORIA AND THE  PRACTICAL  REALITY The GST bill – the single biggest economic, and, dare I say – the single biggest reform across the spectrum – enacted since 1991 at least, and perhaps since Independence, is now a reality. But wait – is it really a reality? What has happened to justify the euphoria that I can see in tweets and media? Is there any reason for celebration, or is there just more reason to introspect, contemplate and look forward with increased hope towards the future? First, nothing has changed as on 4 th August 08:52AM; absolutely nothing; not for us, not for business, not for trade, and not for daily life. Forget the big debate of last evening and night – and move on; get to your office / classroom and try and perform exactly as you have been doing for the past umpty-ump years. There is a lot more than meets the eye, and a lot more that needs to be done; a lot that needs to be understood. Let us forget the promises and the ...