"Birds sing after
a storm; why shouldn't people feel as free to delight in whatever sunlight
remains to them?."
—Rose
Kennedy (American, 1890-1995)
Word
for the day
Arrears (Plural noun)
The state of being behind or late, especially in the fulfillment of a
duty, promise, obligation, or the like, e.g., Many homeowners have fallen into
arrears.
Malice
towards none
16years and two bypass
surgeries later Bill Clinton may again get a chance to enter the White House.
But this time nothing else to do!
First random thought this morning
Yesterday evening got an opportunity to attend a meeting of
traders' body as special invitee. The topic of discussion was the evolving
policy framework under the incumbent government. Everyone appeared perturbed.
Everyone appeared antagonized. No one is liking the change.
The participants wondered why the government is prejudicial to the
interests of - Businessmen, Government
Employees, Muslims, Dalits, and Real Estate Developers & Agents!
I guess PM needs to urgently rework the rules of engagement and
communication with people.
"EASE" vs. "ease" of doing business
The reaction of many global corporations (MNCs) to the attempts by
Indian authorities to implement good business practices, global compliance
standards, and globally accepted sustainability framework raises doubt over
feasibility and desirability of programs and policies like Make in India,
liberal FDI regime, fiscal incentives etc.
From the reactions of auto majors towards the ban on diesel
vehicles; reaction of foreign investors and businesses to implementation of
GAAR and revision of DTAA with tax havens like Mauritius; conditions of local
sourcing and employment generation; etc., prima facie it appears that the real
pull factor for investing in India may be the "EASE" of doing
business in India rather than the "ease of doing business".
There can be no denying the fact that an overwhelming majority of
Indian companies have been direct or indirect beneficiary of (a) the
inefficiencies of the administration; (b) lack of transparency; (c) incongruent
policy framework; (d) unduly supportive politicians; (e) government largesse in
form of misdirected subsidies; and (f) protection from fair competition at the
expense of consumers, etc. This "EASE" of doing business in India is
diminishing under the current regime.
There could be little argument on the fact that the changing
structure of India’s socio-economic milieu require tremendous amount of capital
investment.
The demand for civil and industrial amenities like power,
transportation infrastructure (e.g., roads, airports, railways, ports,
waterways etc.), sanitation, water, education and health etc. is rising with
conspicuous rise in affordability. The demand for food, especially protein rich
food, is also rising in non-linear trend since past decade or so.
However, the supply has not matched the demand in most of these
areas leading to serious productivity constraints and persistently high
inflation. This trend highlights the urgent need to invest huge amount of
capital in building basic infrastructure and improving agro productivity.
Unfortunately, all the required capital is not available within the country and
we have to rely on the foreign capital for this.
This is as simple as it sounds and we need not complicate the
matter. If we need foreign capital, which we do desperately, we need to be
consistent in our approach towards investors.
In my view, in the interest of transparency and predictability,
the government needs to issue a conceptual framework for the global investors
and businesses investing or willing to invest in India.
It would be a good idea to clarify in the preamble of the said
framework itself that "India is a well regulated market and it has
earnestly embraced the generally accepted global practices & standards for
compliance & disclosures. India whole heartedly supports the global
sustainability framework and committed to the Paris Agreement on Climate signed
in December 2015. India is committed to prevent money laundering and tax
evasion." ....to continue
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