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A sinking ship
policy apathy, lack of financing options, ageing fleets, crumbling port infrastructure, continuing red-tape problems with customs etc. The currency crisis in South-East Asia, which over the last decade or so has been the engine of world trade growth, has only hastened what must surely be a major industry shakeout.
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Narasimham recalled
Private sector banks in India lend aggressively to the priority sector, notably, to small scale industry. The public sector banks seem to be reticent in this regard. Even the new private sector banks which, it was assumed, would confine their lendings to the cream of the corporate sector, do not shun priority advances. This is supported by data in the latest Report on Currency and Finance. But directed lending (favouring, inter alia, small industry) is anathema to liberalisers. There is, however, profit in lending to the priority sector. M Narasimham, who has been appointed to review his report on financial reforms, please note. The astute Narasimham will also find that the asset reconstruction fund has not taken off. The reason is simple. There is no way of distinguishing between the risk associated with normal lending, and the risk that has been forced on the banks by political diktat. So how to identify the part of the bad debt that should go to the asset reconstruction fund?
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Are the domestic markets ready for futures trading?
Much of the written and public discourse in India tends to perpetuate comfortable myths that future trading is necessary for globalising Indian stock markets and that one should not worry much about its unintended and sometimes even harmful effects for domestic investors.
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Amartya Sen calls for balancing social, economic policies
Noted economist Amartya Sen has underlined the need for positive governmental action and rapid social progress for furthering economic growth in India. Delivering a lecture on "India; What prospects ?" organised by the Confederation of India Industry (CII) in New Delhi, Sen suggested that the country should adopt a policy with proper balance between economic and social sector.
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Economists, cricketers playing on same pitch: RBI deputy governor
There is much in common between Indian economists and the Indian cricket stars, according to RBI deputy governor YV Reddy. Both, according to him, excel in individual performance but are a failure as a team. And not surprisingly, the Reserve Bank of India too is confronted by a dilemma which dogs the Indian selectors. It is having a tough time finding new talent good enough to meet standards.
Financial sector reforms - an assessment
In a bid to remove the weaknesses in banking system, Finance minister P Chidambaram has taken the right step by announcing the setting up of a committee under the chairmanship of M Narasimham, former RBI governor, to review progress of financial sector reforms. The panel is also required to chalk out a new agenda for further financial sector reforms that may be adopted by the new government in March 1998 for strengthening the financial sector and making it internationally competitive.
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 A sinking ship
Financial sector reforms - an assessment
Amartya Sen calls for balancing social, economic policies
Narasimham recalled
Economists, cricketers playing on same pitch
Are the domestic markets ready for futures trading?
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