In today’s world of globalization, a disaster here & a political upheaval there can throw a spanner into the growth engine. The world is more connected than ever. As such, the regulatory bodies governing the various systems play a crucial role in showcasing their aptitude to deal with this ever-changing environment. Their mix of policy implementations, their contingency plans & actions help prospective investors abroad to determine if their interests are well- protected. We might have limped through the crisis owing largely to its tightened regulations & largely risk-averse nature, but now more than ever we need another round of reforms-this time largely regulatory.
The central authorities- RBI, SEBI, CCI, etc. all have their actions of looking after the interests of the regulated, ensure a level- playing field & at the same time make the country a hub for heavy inflow of investments. It’s a difficult job, especially, since the last few months have been riddled with scams. To offset these ‘unforeseen’ hiccups, the regulatory system needs to now forego sight of the shore & venture into the dangerous waters of uncertainty, albeit for a short time.
A string of reforms running across the breadth of sectors would help. To begin with, we need to come up with mechanisms that would help our country to be less oil- reliant. Our import bill is ballooning owing to the oil price volatility. The government’s bureaucratic labyrinth as seen recently in the Cairn- Vedanta deal & their reluctance to provide capital support to RIL to expand in the K6 region is crippling the growth. Even after a near-quarter-century of growth, we are still driven by the ‘capitalism occurs when there is blood on the streets’ mindset.
The protectionist attitude towards FDI in insurance has reduced enabling Berkshire Hathway paving the path for many to follow. However, it’s too-little-too-late, similar initiatives need to be fast- tracked, regulated & implemented to offer more options to the market. The current discussion paper hints at granting banking licenses to industrial houses, but very severe stringent conditions. The approach needs to be a little more consumer- centric, not protection- centric. The latest announcement of reducing FDI in banking from the current 74% to 49 doesn’t help.
In terms of battling inflation, the monetary policy measures have failed. While increasing bank rates has marginally improved the situation, but demand- side pressures have made progress slow. We therefore need now a new mix of fiscal policy changes coupled with the monetary ones, these include:
Prudent spending
Improvised tax collection
Implementation of UID
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India does have a huge- deposit base with nearly 36% in savings. To better promote competition in the industry, the regulators must take up a relaxed policy stand.
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Rural banking combined with MFI has tremendous potential in this country, regulators need to extend a hand & establish a model to aggressively promote the same.
The organized retail sector is less than 20% of the entire retail industry in the country. Implementation of FDI in multi- brand retail will help in changing that. Coupled with it is the much- needed improvisation in the food supply chain management of the country.
Revised definition of real estate for the purpose of understanding the actual opportunities of FDI in infrastructure sector.
Clear mandates on the sections related to M&A in the 1997 SEBI takeover code & that of CCI.
Inclusion of steps to increase FDI in tourism.
Processes to improve the inclusion, implementation & execution of PPP projects.
[/list]
No business works in isolation. It’s affected by the country’s ancillaries like the judiciary, infrastructure, political & demographics. To that extend, an overhaul in every single facet is needed. To improve investor confidence, the people in positions of power need to carry out reforms in each sector.
A string of reforms running across the breadth of sectors would help. To begin with, we need to come up with mechanisms that would help our country to be less oil- reliant. Our import bill is ballooning owing to the oil price volatility. The government’s bureaucratic labyrinth as seen recently in the Cairn- Vedanta deal & their reluctance to provide capital support to RIL to expand in the K6 region is crippling the growth. Even after a near-quarter-century of growth, we are still driven by the ‘capitalism occurs when there is blood on the streets’ mindset.
The protectionist attitude towards FDI in insurance has reduced enabling Berkshire Hathway paving the path for many to follow. However, it’s too-little-too-late, similar initiatives need to be fast- tracked, regulated & implemented to offer more options to the market. The current discussion paper hints at granting banking licenses to industrial houses, but very severe stringent conditions. The approach needs to be a little more consumer- centric, not protection- centric. The latest announcement of reducing FDI in banking from the current 74% to 49 doesn’t help.
In terms of battling inflation, the monetary policy measures have failed. While increasing bank rates has marginally improved the situation, but demand- side pressures have made progress slow. We therefore need now a new mix of fiscal policy changes coupled with the monetary ones, these include:
Prudent spending
Improvised tax collection
Implementation of UID
[/list]
[/list]
[/list]
India does have a huge- deposit base with nearly 36% in savings. To better promote competition in the industry, the regulators must take up a relaxed policy stand.
[/list]
Rural banking combined with MFI has tremendous potential in this country, regulators need to extend a hand & establish a model to aggressively promote the same.
The organized retail sector is less than 20% of the entire retail industry in the country. Implementation of FDI in multi- brand retail will help in changing that. Coupled with it is the much- needed improvisation in the food supply chain management of the country.
Revised definition of real estate for the purpose of understanding the actual opportunities of FDI in infrastructure sector.
Clear mandates on the sections related to M&A in the 1997 SEBI takeover code & that of CCI.
Inclusion of steps to increase FDI in tourism.
Processes to improve the inclusion, implementation & execution of PPP projects.
[/list]
No business works in isolation. It’s affected by the country’s ancillaries like the judiciary, infrastructure, political & demographics. To that extend, an overhaul in every single facet is needed. To improve investor confidence, the people in positions of power need to carry out reforms in each sector.