• Welcome to Tamil Brahmins forums.

    You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our Free Brahmin Community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

    If you have any problems with the registration process or your account login, please contact contact us.

Modi’s reforms are starting to pay off

Status
Not open for further replies.

GANESH65

Active member
After Moody’s upgrade, the bureaucracy must unequivocally back the PM’s push for reforms

Int er national commentators have asked the government of India to make major economic reforms for years. We said it would be like The Field of Dreams: If you make major reforms, international money will pour in. But the problem for politicians is that reform in the short term can be political suicide — and that’s precisely why very little gets done in any country absent a crisis. You implement a controversial regulation or take a difficult vote, but you lose the next election because of it.
This political truth hamstrings politicians from all factions around the globe. Prime Minister Narendra Modi appears to be the exception. He has had the courage to take major risks — such as demonetisation to reduce corruption and digitise payments, along with the Good and Services Tax (GST), which will streamline India’s patchwork tax system and make it easier to do business between states.
And he’s now being rewarded: Moody’s has upgraded India’ s government bond rating for the first time in 14 years, citing demonetization and the Good and Services Tax as significant contributors to the ratings change.
At first glance, the benefits of an improved rating are obvious. The upgrade will reduce borrowing costs for the government and Indian corporations, freeing up additional capital for investment. The Indian stock market is already experiencing an increase in anticipation of higher earnings.
More important, the Moody’s upgrade raises the confidence level of US business leaders who are looking to invest globally and shows that Modi possesses a genuine intention to enact additional reforms.
The other gem in the Moody’s upgrade is its forecast of a bounce in India’ s GDP growth from 6.7% in FY 2017 to 7.5% in FY 2018 “… with similarly robust levels of growth from FY 2019 onward,” noting that in the longerterm India’s “growth potential is significantly higher than most other [similarly rated] sovereigns.” This is what gets the attention of international investors: A big market that is growing faster than its competitors with a reform-minded prime minister in control.
Moody’s spells out the key to additional upgrades. You guessed it, more reform: “The rating could face upward pressure if there were to be a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms.”
Modi has proved that he can think big and act on it. His headline-grabbing initiatives point to India’s future: Make in India is a nod to the need to employ India’s burgeoning youth; Skill India recognises that its youth will do much better if they have the education and training to fill manufacturing jobs; and Digital India recognises that connectivity is paramount in a country that has already taken the Internet by storm with its $150 billion IT services industry.

The next step is to get the bureaucracy on board with the prime minister’s push for reforms. In March, the US trade representative published its 2017 National Trade Estimate Report on Foreign Trade Barriers for US exports. The report spends roughly as much ink on India as it does on Russia and China, outlining over 30 issues that US companies face in India. Some of these issues arise out of the desire to protect local stakeholders.
The report finds that “India maintains very high tariff peaks on a number of other goods… India has also raised tariff son specified telecommunication equipment( from nil to 7.5 or 10%) and on electronic-readers (from nil to 7.5%).… India also increased its duties on medical equipment and devices to a 7.5% basic customs duty, 12.5% additional duty, and a 4% special additional duty.” Increasing tariffs might protect local manufacturers, but Indian consumers pay the price. Of course, the revenue-generating barriers are harder to eliminate than non-revenue ones. But plenty of tweaks can be made. One example is duplicative in-country safety testing requirements for electronic and I CT products that have already been certified by internationally accredited labs.
This is the type of low hanging fruit that can be solved overnight by th eND A government. If the prime minister can tackle enormous obstacles like the G ST, he can certainly solve minor policy roadblocks.

And when he does, he’ll be rewarded once again with higher ratings, more investment, and additional economic growth. After all, the Moody’s report drives home a point that our chairman John Chambers has made for years: If you’re not investing in India right now, you may“miss the bus .” The prime minister is in the driver’ s seat, safety-belt fastened, with the keys in the ignition. We look forward to the ride.
http://paper.hindustantimes.com/epaper/viewer.aspx
 
With due respects to statistical results I wish to submit my opinion as below.
All reforms should reach the common man, otherwise they have no value. Today the value of money is slipping fast resulting in price rise on all commodities. Only people who are benefited are those who play in speculative market.

Demonitisation is a bold step for curbing corruption and black money.We welcomed it. Though common man faced all the inconvenience, the expected results are yet to reach them.

GST which was introduced with a lot of hope to simplify the system in reduction of tax, it has proved to be a cumbersome system, and not given any benefit to people due to fixing up of high percentage of tax on essentials.

Above all Aadhaar linking has proved to become a great nuisance to honest citizens .

As a senior citizen, I am yet to see benefits due to the reforms initiated by the Government. I still live on hope.....

Brahmanyan
Bangalore.
 
Last edited:
Namaskarams,

Modi's ideas are very good. The implementaiton part he is very much lacking. Everything he wants immediately. The over enthusiastic officers without any planning implemented all the schemes and it resulted in bringing a bad name to Modi. He should have weighed the pros and cons of any scheme and the implementation should be in a phased manner. The demonetization is a blunder.

Anbuden
Adiyen.
 
Namaskarams,

Modi's ideas are very good. The implementaiton part he is very much lacking. Everything he wants immediately. The over enthusiastic officers without any planning implemented all the schemes and it resulted in bringing a bad name to Modi. He should have weighed the pros and cons of any scheme and the implementation should be in a phased manner. The demonetization is a blunder.

Anbuden
Adiyen.
hi sir


i agreed.....for some....its success story...
 
Namaskarams,

Modi's ideas are very good. The implementaiton part he is very much lacking. Everything he wants immediately. The over enthusiastic officers without any planning implemented all the schemes and it resulted in bringing a bad name to Modi. He should have weighed the pros and cons of any scheme and the implementation should be in a phased manner. The demonetization is a blunder.

Anbuden
Adiyen.


Good post.

Yes great photo moments, a great orator, great salesman, best brand ambassador and all that.
He is not an administrator, he has no able administrator in his inner circle. People who could provide advice from outside like Rajen were kicked out.

But in a democracy, the shining object wins the election. You can fool the majority for relatively long time (or short depending on your perspective).
 
[FONT=lucida_granderegular]India's embattled Prime Minister Narendra Modi faced a double whammy of abuse this week as his nation's economic growth collapsed to its weakest since Q1 2014 and India's Central Bank released a report on Modi's extraordinary "demonitization" plan last year showing that 99 per cent of the high denomination banknotes cancelled last year were deposited or exchanged for new currency, crushing Modi's lie that his contentious 'war on cash' would wipe out huge amounts of so-called 'black money'.[/FONT]
[FONT=lucida_granderegular][/FONT]
[FONT=lucida_granderegular]When Modi announced in November that Rs1,000 ($16) and Rs500 notes would no longer be legal tender, he suggested that corrupt officials, businessmen and criminals — popularly believed to hoard large amounts of illicit cash — would be stuck with “worthless pieces of paper”. At the time, government officials had suggested that as much as one-third of India’s outstanding currency would be purged from the economy - as the wealthy abandoned or destroyed it, rather than admit to their hoardings - reducing central bank liabilities and creating a government windfall.[/FONT]
[FONT=lucida_granderegular]Since he unleashed his cunning plan, India's GDP growth has slowed dramatically.[/FONT]
[FONT=lucida_granderegular]After India's Composite PMI collapsed, India's Q2 GDP growth slowed to 5.7% - its weakest since Q2 2014...[/FONT]
[FONT=lucida_granderegular][/FONT]
[FONT=lucida_granderegular] [/FONT]
[FONT=lucida_granderegular]And now, as The FT reports, the Reserve Bank of India’s annual report on Wednesday suggested that most holders of the old currency managed to dispose of it, estimating that banned notes worth Rs15.28tn ($239bn) were returned to the bank. That amounts to 99 per cent of the Rs15.44tn of the old high-value notes that were in circulation when Mr Modi made his announcement, according to the finance ministry.[/FONT]
[FONT=lucida_granderegular]The government’s critics were quick to seize on the RBI’s announcement as evidence of the policy’s failure.[/FONT]




“99 per cent notes legally exchanged! Was demonetisation a scheme designed to convert black money into white?” former finance minister P Chidambaram tweeted.

Rahul Gandhi, de facto leader of the opposition Congress party, tweeted: “A colossal failure which cost innocent lives and ruined the economy. Will the PM own up?”
[FONT=lucida_granderegular]The bank’s figures are a political embarrassment to Mr Modi, who had appealed to the nation to endure the disruption and hardship to punish the rich and corrupt, and deprive them of their ill-gotten gains.[/FONT]
[FONT=lucida_granderegular]Many lower income Indians hard hit hard by cash shortages supported the demonetisation policy because they believed the rich were suffering more.[/FONT]
[FONT=lucida_granderegular]It appears they were suckered!

http://www.zerohedge.com/news/2017-...ilure-ruined-economy-india-gdp-growth-slumps-[/FONT]
 
Status
Not open for further replies.

Latest ads

Back
Top