India: Is The Private Sector Being A Drag?

Share of financial sector in gross domestic pr...
Share of financial sector in gross domestic product 1860 to 2006 (Photo credit: Wikipedia)
मोदी तो अपना काम कर रहे हैं। ढेर सारा FDI देश में ला रहे हैं। Infrastructure का काम तेजी से हो रहा है। प्राइवेट सेक्टर को क्या चाहिए?
  • Simplified Land Acquisition बहुत जरुरी है। 
  • Hiring and Firing should be a simple process. Entrepreneurship is not a government job scheme. 
  • FDI चाहिए और बहुत चाहिए। 
  • भारत के financial markets में तो कोइ त्रुटि नहीं? मेरेको उतना knowledge नहीं। मैं सिर्फ पुछ रहा हुँ। 
  • You need a well educated and healthy population. वो प्राइवेट सेक्टर की जिम्मेवारी नहीं। 
तो लैंड acquisition के बात पर तो विपक्ष वाले टांग अड़ाए हुवे हैं। उसी तरह labor mobility पर भी तो। उसके अलावे मेरी instincts कह रही है कुछ fundamental financial sector reforms की जरुरत हो सकती है। Bad loans are a bad idea. Corrupt governments tend to accumulate a lot of them. Big banks with lots and lots of bad loans accumulated through crony capitalism tend to be a major drag on the economy overall. The policy framework should encourage the create of small, agile, numerous financial institutions. Maybe there are banks that are too big and should be broken up into smaller pieces through policy initiatives. Market competitiveness has to be maintained in the financial sector, and that is the government's responsibility. 

But I have been impressed with people like Adani and Ambani being able to tap into the global financial markets for some pretty large scale cheap loans. Bond markets में आप को ५% पर बिलियन के बिलियन डॉलर मिल जाते हैं। वो तो सस्ता हुवा। And unless you have a healthy company you can't get those loans. So they must be maintaining strong fundamentals inside their corporate environments. 

और कुछ फैक्टर्स हैं जो काबु के बाहर होते हैं ------ जैसे कि oil prices या फिर मॉनसून।

Bankruptcy laws भी कैसे हैं? It should be easy to launch companies, it should be easy to run companies, and it should be easy to bury companies. कि मैंने प्रयास किया लेकिन नहीं हुवा। When your company goes bankrupt, after that you don't owe anyone anything. And that is fundamental to capitalism. The number one aspect of the Silicon Valley culture is that there failure is celebrated.

Private sector को किस किस्मका policy reforms चाहिए ओ तो private sector को आगे आ के कहना होगा। किस किस्मका policy framework चाहिए। Entrepreneurs create jobs, they should be part of the policy making conversation. They should have a seat at the table. They should not have the only seat at the table. But their not having a seat at the table also is a problem.

Why Economists See PM Modi's Second Year as More Challenging
Domestic companies have posted disappointing earnings for the March quarter that does not match the upbeat headline GDP figure. Industrial production is at five-month low, exports are declining for five months in a row and bank credit offtake remains at two-decade lows.