ChinmayC Blog

The economist in Dr. Manmohan Singh, Prime Minister of India, has finally decided to take control of the country’s economy and growth, and end the nearly one-year-long policy plus reforms paralysis politically enforced by the opportunist opposition parties as well as the allies of the ruling coalition. Undaunted by the countywide rallies and protests against the diesel price hike on September 13, 2012 Dr. Singh captained his government along to push through the reforms further the very next day. Goodness for the country’s economy and future growth prospects in a global perspective must be kept beyond politics and political fortunes of the government; he seemed to have decided upon. In a landmark decision on the evening of September 14, 2012 the Government of India approved the much opposed 51% FDI (Foreign Direct Investment) in the over $500 billion Indian multi-brand retail market and 49% FDI in the misery-ridden Indian aviation sector. The FDI cap for the Broadcasting sector has a...

Finally Indian industrial and agricultural interests lost out to the political ones today. Cornered and forced by opposition political parties including lobbies in the ruling coalition the government of India had to suspend its decision of allowing 51% Foreign Direct Investment (FDI) in the Indian retail sector. The winter session of the Indian Parliament had been stalled for nine days out of which fives days were lost because of the FDI decision. Today morning the government called for an all party meeting on the burning issue and decided to suspend it on reaching consensus. The opposition parties called it victory for democracy. And, the Indian Parliament was allowed to function normally from today. Very forceful democracy indeed! Ironically, the industrial and agricultural experts welcomed the government’s decision of allowing retail FDI pointing out the benefits of more employment, availability of goods at cheaper rates for the consumers and the long run favorable impact on the ...

Article first published as The Indian Retail Not For Sale on Technorati. The government of India’s decision to allow 51% Foreign Direct Investment (FDI) in the Indian multi-brand retail sector has led to a virtual ‘no sales’ politically for eight days on a trot and for the real markets today. The much awaited winter session of Parliament could not function for eight consecutive days four of which have gone to the FDI implosion. The political protests inspired more than fifty million Indian traders go for a   Bharat Bandh   (a general strike call to shut down markets all over India). The major trade unions as well as the opposition political parties extended support to this protest closure. The din of politics is not letting anyone to listen to the economics. Like in the India-US 123 Nuclear Deal outrage three years back when hardly anybody read the content of the deal document, this time around too ‘no sale’ ignorance rules the roost. Like the FDI puzzle the Bandh call has g...

Article first published as Retail Politics! on Technorati.   The Indian parliament began its winter session on November 22, 2011 and so far it could not function even for one day. That is say the supreme constitutional body was not allowed to function by the opposition political parties. First was the issue of the continuous price rise despite the fact the inflation rate had been showing a declining trend for the last three weeks. Then there were issues of bringing back the black money deposited in foreign banks and other regional tangles. The first week was guillotined on these issues. Before the second week started the Indian Government announced a 51% Foreign Direct Investment (FDI) package thus opening up the very attractive multi-brand Indian retail market for international players like Wal-Mart and others. The opposition parties including coalition allies of the government got another sought-after excuse to go on disrupting the Parliament. The opposition political p...