The momentum created in the past has run out of steam, and there is an all-encompassing slowdown because there has been so little reform in the last 15 years.
Without a Congress revival, there can be no challenge to the BJP pan-nationally. Modi’s party is growing, and almost entirely at the cost of the Congress.
Why the diffidence ? Dr Singh got the top job in 2004 because of the good work he did as FM in 1991. He did virtually no worthwhile reform for a decade, basking in the automatic high growth till 2008. The Left and the NAC were constraints, true, but he should have prevailed at least on economic reforms, while ceding real power on almost everything else. The mandate of 2014 made a lot of worthwhile initiatives possible on the economy. That was what made an entire class of supporters go weak in the knees. Zilch. A poorly designed and executed GST – in the works for much of the preceding decade – and a much touted bankruptcy code that thoughtful observers are already consigning to the history books like its many predecessors are hardly an impressive achievement. One does not need a parliamentary majority to build toilets. 2. India reforms when it is pushed to the wall. That moment is here, visible from outer space. Whether or not the next government has ideological conviction, when the true numbers and state of the economy are placed before the coalition partners, they will have no option but to give their political consent to a tough package of reforms. Let foreign investors pull out $ 50 billion, give us another taper tantrum moment and the debate will be over. India Inc should get over its extreme diffidence when dealing with the government, give some worthwhile advice.
Yes, “thoughtful observers” — like you? IBC for the first time in the history of India has made businesses realise that the hundreds and thousands of crores they borrow from mostly govt banks — have to be re-paid!
As the Supreme Court observed in a landmark judgment recently upholding the IBC law– that India will no longer be a “debtors paradise”.
Crooked promoters are realising that they can very well lose their companies, as many of the erstwhile top corporates have realised. Their companies sold to the highest bidder — Bhushan Steel, Binani Cement, Jaypee, Essar (the brothers are trying their best to shortcircuit this new law) Ruchi Soya and hundreds more. And hundreds more are fighting a desperate battle in the courts to save their companies from getting penalised for the loans on which they defaulted.
The point is independent India has never seen such an effective law which has put the fear if God in businessmen who thought that the crores they borrowed was the bank’s headache and not theirs (unlike the aam aadmi struggling with their EMIs).
No wonder all vested interests have ganged up to try and neutralise the IBC and try make it useless as previous laws on debt recovery!
But these vested interests seem to be losing. And kudos to the new law — where creditors take possession from day one of the company which is unable to pay its debts — unlike previously where the debtor was in possession and could strip all assets.
You might not like the current govt, but please get rid of your blinkers on a momentous law which the lay public have little idea of (and which this govt should have publicized in its election campaign to counter the baseless crony capitalism charge)
Reportedly a 99% haircut for Aircel. The scalp itself must be bleeding …
The pill for growth is free market capitalism but Bharat is allergic to it.
1. This article makes readers to think. Need for reform is obvious. Problem is this: who would bell the cat? Yes, it is true that both Union and State governments should implement (a) fiscal, (b) election law and (c) administrative reforms to improve governance. 2. Is it not a fact that populist pressure compels political parties to delay implementation of reforms? This is the experience of last four decades or so. Though PM Narendra Modi led NDA government had comfortable majority, it could not go ahead with many economic, fiscal or other reforms. This is a fact. 3. I believe that in the existing political scenario we can never expect our political parties to implement above mentioned reforms. This is also because our politicians wish to retain power at any cost and they are ready to abandon even basic good governance rules for sake of popular politics and for retaining power. 4. When such a scenario exists, can we expect national parties like BJP & Congress (forget regional parties) to take steps to improve governance and performance of economy? Unfortunately answer is NO. 5. Therefore, my outlandish suggestion (which definitely I consider a serious one) is this: the centrist and saner elements in both BJP & Congress should compel the party bosses to join hands and work for formation of a grand alliance government which can implement all reforms and take the Indian economy in fast lane.
Why the diffidence ? Dr Singh got the top job in 2004 because of the good work he did as FM in 1991. He did virtually no worthwhile reform for a decade, basking in the automatic high growth till 2008. The Left and the NAC were constraints, true, but he should have prevailed at least on economic reforms, while ceding real power on almost everything else. The mandate of 2014 made a lot of worthwhile initiatives possible on the economy. That was what made an entire class of supporters go weak in the knees. Zilch. A poorly designed and executed GST – in the works for much of the preceding decade – and a much touted bankruptcy code that thoughtful observers are already consigning to the history books like its many predecessors are hardly an impressive achievement. One does not need a parliamentary majority to build toilets. 2. India reforms when it is pushed to the wall. That moment is here, visible from outer space. Whether or not the next government has ideological conviction, when the true numbers and state of the economy are placed before the coalition partners, they will have no option but to give their political consent to a tough package of reforms. Let foreign investors pull out $ 50 billion, give us another taper tantrum moment and the debate will be over. India Inc should get over its extreme diffidence when dealing with the government, give some worthwhile advice.
Yes, “thoughtful observers” — like you? IBC for the first time in the history of India has made businesses realise that the hundreds and thousands of crores they borrow from mostly govt banks — have to be re-paid!
As the Supreme Court observed in a landmark judgment recently upholding the IBC law– that India will no longer be a “debtors paradise”.
Crooked promoters are realising that they can very well lose their companies, as many of the erstwhile top corporates have realised. Their companies sold to the highest bidder — Bhushan Steel, Binani Cement, Jaypee, Essar (the brothers are trying their best to shortcircuit this new law) Ruchi Soya and hundreds more. And hundreds more are fighting a desperate battle in the courts to save their companies from getting penalised for the loans on which they defaulted.
The point is independent India has never seen such an effective law which has put the fear if God in businessmen who thought that the crores they borrowed was the bank’s headache and not theirs (unlike the aam aadmi struggling with their EMIs).
No wonder all vested interests have ganged up to try and neutralise the IBC and try make it useless as previous laws on debt recovery!
But these vested interests seem to be losing. And kudos to the new law — where creditors take possession from day one of the company which is unable to pay its debts — unlike previously where the debtor was in possession and could strip all assets.
You might not like the current govt, but please get rid of your blinkers on a momentous law which the lay public have little idea of (and which this govt should have publicized in its election campaign to counter the baseless crony capitalism charge)
Reportedly a 99% haircut for Aircel. The scalp itself must be bleeding …
The pill for growth is free market capitalism but Bharat is allergic to it.
1. This article makes readers to think. Need for reform is obvious. Problem is this: who would bell the cat? Yes, it is true that both Union and State governments should implement (a) fiscal, (b) election law and (c) administrative reforms to improve governance. 2. Is it not a fact that populist pressure compels political parties to delay implementation of reforms? This is the experience of last four decades or so. Though PM Narendra Modi led NDA government had comfortable majority, it could not go ahead with many economic, fiscal or other reforms. This is a fact. 3. I believe that in the existing political scenario we can never expect our political parties to implement above mentioned reforms. This is also because our politicians wish to retain power at any cost and they are ready to abandon even basic good governance rules for sake of popular politics and for retaining power. 4. When such a scenario exists, can we expect national parties like BJP & Congress (forget regional parties) to take steps to improve governance and performance of economy? Unfortunately answer is NO. 5. Therefore, my outlandish suggestion (which definitely I consider a serious one) is this: the centrist and saner elements in both BJP & Congress should compel the party bosses to join hands and work for formation of a grand alliance government which can implement all reforms and take the Indian economy in fast lane.