The Indian Economy Blog

Archive for August, 2005

On Armchair Arguments

Saturday, August 20th, 2005

Sumeet Kulkarni writes: Whenever I speak of free markets, empowerment and liberalization to be the best solution to India’s poverty problems, I am almost always told that it is easy for me make armchair arguments. Have I ever experienced life in a village, the hunger, the desperation? How can someone who has been an urbanite [...]

Baby, You Can Drive My Car..

Friday, August 19th, 2005

As long as you’re not Indian, that is URGENTLY REQUIRED A leading company in the automotive business requires the following personnel to be located in Abu Dhabi and Beda Zayed city branch DIESEL MECHANICS ELECTRICIANS MECHANICS PAINTERS DENTERS LIGHT & HEAVY DRIVERS Applicants should have a relative Diploma with minimum 3 years experience in Automobiles [...]

Different Approaches To Fish

Thursday, August 18th, 2005

Pratap Bhanu Mehta writes in the Telegraph: The Left thinks that throwing state money with good intentions is the solution to most problems. The Right on the other hand, seems to move from the plausible assumption that throwing money is not always a solution to the more dubious proposition that it is not a necessary [...]

A Communist Plot?

Wednesday, August 17th, 2005

SL Rao, a former director-general of the National Council for Applied Economic Research, senses a method to the madness of the Indian Left. He writes in the Telegraph: Many suspect a much more ominous plan behind communist obduracy. Their well-thought out strategy for India might replicate their successful strategies in gaining West Bengal. It begins [...]

Foreign Capital In The Stock Market

Wednesday, August 17th, 2005

Ila Patnaik, writing in the Indian Express sheds some light on why foreign capital is rushing into the country: We must see the issue in the context of the yuan revaluation. The 12 days prior to the Chinese announcement had average net daily equity flows into India of Rs 330 crore. The 12 days after [...]

Hindi-Chini Bhai Bhai

Wednesday, August 17th, 2005

Reuters reports: Indian and Chinese oil firms will sign agreements aimed at bidding jointly for foreign oil and gas projects and reducing cut-throat competition, a top Indian official told Reuters on Tuesday. The energy-hungry Asian giants, which have stretched global supplies and contributed to the record rise in oil prices, are competing for stakes in [...]

Turning Left And Going Backwards

Wednesday, August 17th, 2005

Bad news for supporters of privatisation. The Indian Express reports: After a month-long tussle with Left that saw the suspension of the UPA-Left coordination meetings, the Government today formally called off its plans to privatise 13 profit-making public sector undertakings (PSUs) through strategic sale of equity. Minister of State for Finance, S S Palanimanickam, in [...]

The Patent Glut in Pharma

Tuesday, August 16th, 2005

If you’re looking for the state of Intellectual property development in a country, a good place to look is the patent office and the number of patent applications being filed. The newest reports from the drug/pharma industry holds very good news for India. Of course, we all know that the Indian pharma industry is very [...]

That Old Bogeyman: Market Forces

Tuesday, August 16th, 2005

NDTV reports: Tamil Nadu MPs from the ruling UPA alliance have come together to put pressure on the government against the Supreme Court order on government quota in private professional colleges. The apex court had on Friday abolished all government quota in private, unaided professional colleges, giving these institutes complete freedom in the admission process. [...]

Making Up For The Public Sector

Tuesday, August 16th, 2005

Subir Gokarn writes in Business Standard: I’ve often been asked for my opinion on what the country’s sunrise sectors are. My response, at first tongue-in-cheek, but becoming more and more serious over the years, is that anybody who decides to compete against the government has a great chance of succeeding. Four activities come easily to [...]

HAPPY INDEPENDENCE DAY

Monday, August 15th, 2005

To all our readers, in India and elsewhere, Happy Independence Day. Here is the full text of PM Manmohan Singh’s address to the nation.

Manufacturing Powers Industrial Growth

Sunday, August 14th, 2005

The industrial sector registered a 11.7% growth in June 2005, the highest ever recorded since 1996 (the growth rate for the same period in 2004 was 7.3%). Industrial growth is being driven by a spurt in manufacturing, helped in large part by the 38% growth in the textile sector, which has been able to take [...]

Businessweek Cover Story on India/China

Saturday, August 13th, 2005

The cover story of the latest issue of Businessweek (U.S. edition) is about what you need to know about India and China, as the balance of economic power shifts east and the possibility of an Asian century becomes real. Too many stories in there to link to individually (it’s a double issue), so follow the [...]

The Big Mac Index and the Indian Rupee

Thursday, August 11th, 2005

This is a post that has been blogged on Zoo Station earlier, but I figured it was relevant and interesting enough for IE readers as well. The Economist’s Big Mac Index is an easy (even if overly simplistic) way to find out which currencies are under-valued and which are over-valued, depending on the cost of [...]

The Conundrum of Low Indian Interest Rates

Wednesday, August 10th, 2005

Why are Indian interest rates so low? And whom does it benefit? Over the last two years, the average difference between the US and India 10-year treasury yields is about 2%. This does not even cover the 3% point difference in official inflation rates –the true difference in inflation is even larger since the goods [...]

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