Growth...

Article;

7% Growth not Contingent on New Reforms


Comment;

Growth is contingent on the Food Security Bill because the food and fuel inflation is still around 10% and is hovering around that level since 2004. Very sticky. Fuel prices depend on international factors such as dollar prices and external demand over which we have little control. But food prices are largely determined by internal demand, which is high due to fiscal expenditure, and due to internal supply conditions. I agree weather conditions were not conducive last year but the government has enough food grains in its coffers. And, definitely it can contribute in reducing inflation and inflationary expectations. The government is treading so slow...

Article;

 India should Cut Interest Rates Take on Chinese Goods 

INDIA has a comparative advantage as far as labor and wages are concerned even when compared with China but high interest rates and lack of skills are blocking rise in exports. Why can not we take advantage of this is largely unexplained? Probably the answer lies in lack of entrepreneurship culture. People are very hesitant to take initiative because of the red-tape in the process of manufacturing/production. We need to ease rule and regulations to start any process of production. This also may be due to shortage of skill-sets. People do not know, with skills shortages, that what they can do and what are the opportunities. Both skills and manufacturing are complementary ideas. One can not survive without the other. Skills should be such so that they can be consumed by the market. We need a survey that what skills should we impart so that every Indian is absorbed in the process of growth and development. We should also allow our foreign counterparts to help us in this direction. FDI in education and skills is feasible so that new technologies and skills can come to the Indian market...