India needs real reforms, says Dhirendra Kumar CEO, Value Research
Wave of reforms that govt has unleashed threatens to sweep all before it. Or rather, wave of media applause for reforms threatens to sweep all before it.
The wave of reforms that the government has unleashed threatens to sweep all before it. Or rather, the wave of media applause for the reforms threatens to sweep all before it.
In the middle of this noise, it is sobering to take a moment and think about what the attitude of the investors outside India is. Last week, here's what I heard Alan Chua, a portfolio manager with the Templeton Global Equity Group, say about business environment continuity.
He spoke about Thailand, which has suffered huge discontinuities in the system, with military coups and violent changes of government, but a high degree of business continuity.
Businesses grow and expand and businesspeople make decisions that facilitate growth in conditions that are not just conducive to business but are predictably conducive and can be reasonably expected to remain so for extended periods of time.
However, having an apparently bipolar, manic-depressive attitude to reforming the economy does little to instill any confidence in continuity. A government that stays in its depressive phase for years together and then goes into a mania of reforms that builds to a crescendo within days is no doubt very exciting for headline writers and TV anchors.
In the middle of this noise, it is sobering to take a moment and think about what the attitude of the investors outside India is. Last week, here's what I heard Alan Chua, a portfolio manager with the Templeton Global Equity Group, say about business environment continuity.
He spoke about Thailand, which has suffered huge discontinuities in the system, with military coups and violent changes of government, but a high degree of business continuity.
Businesses grow and expand and businesspeople make decisions that facilitate growth in conditions that are not just conducive to business but are predictably conducive and can be reasonably expected to remain so for extended periods of time.
However, having an apparently bipolar, manic-depressive attitude to reforming the economy does little to instill any confidence in continuity. A government that stays in its depressive phase for years together and then goes into a mania of reforms that builds to a crescendo within days is no doubt very exciting for headline writers and TV anchors.
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