FDI in retail: "Modern" solutions to "old" problems?

The government of India is patting its back as by the passing of the much awaited "FDI in multi-brand retail", some experts believe that the reforms are back on track. In this blog, I don’t intend to discuss the criticality of the reform rather my focus will be on the efficacy of this reform. With the issue increasingly being politicized across the nation, let’s try to see whether this reform really aims at solving issues esp. inflation, which a common man faces. Will the benefits percolate to aam aadmi or will, once again, the crème-de-la-crème in the metros only share the spoils?

Telecom Industry in India: More players may lead to higher tariffs?

Telecom industry has been instrumental in revolutionizing the lives of common Indians. The mobile phone and now the internet has been in focus of late at almost every level be it policy, corporate, consumer etc. But the industry is going through turbulent times. The 2G scam, the steeply priced 3G spectrum, tax claims… the list is endless. It doesn’t make for a good reading as telecommunication will go a long way in determining our future growth rate as we are in the information age. 

Let’s have a look at some of the problems plaguing the industry. Let me divide the problem into two parts based on the technology involved; 2G and 3G. 

2G: If you look at problems in this space, the 2G scam comes to your mind straightaway. Undoubtedly it’s a blot on the Indian face. And its findings will certainly leave many embarrassed but let’s not waste our time over these facts related to the scam. Instead, let’s concentrate on the other major issues related to 2G. The one that comes to the mind is “too much competition or should I say too many players”. While FCFS basis used to allocate spectrum helped keep the cost down hence low tariffs but it allowed too many players to enter the fray. 

The Past, The Present & The Future of Asia.

We all love keenly contested battles. Isn’t it? Such contests can take place on the sports ground, in the academic setup, on the battlefield etc. The one such battle that I am going to talk about, is taking place on the global scale. It’s the battle to become the next economic superpower of Asia. In this blog I’ll discuss the three countries that look set to stake their claim for the Numero Uno tag. The great thing about this contest is that we could have three different leaders at three commonly classified points of time i.e. the Past, the Present & the future. So, let me break the suspense on the trinity (if there was ever one). They are Japan, China & India. Let’s us analyze their strengths, weaknesses and the possible road ahead.

Base Rate System : A change for the real ?

(My heartfelt thanks to Mr. G. C. Nath, Senior V.P., CCIL for his invaluable insights on this topic)

There hardly is an adult nowadays who hasn't felt the need or has gone ahead to avail a loan. You can blame it on the increasing consumerism or the inflationary forces. Anyways, I am not going to discuss the rate of inflation or conspicuous consumption rather I will focus on the rate of interest on these loans. These rates were affected by a major change that took place on the 1st of July, 2010. This happening was; "coming into effect of Base Rate System".This blog is on Base Rate System and its likely impacts. 

Is the Government ready to roll out the GST?

(This article was published in the 7th Dec, 2009 edition of the Financial Express. The Link for the same can be found here.)

Reaching a consensus between the Centre and states on the issue is the biggest stumbling block

The goods & services tax (GST) is part of the proposed tax reforms aimed at evolving an efficient and harmonised consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the central and state levels. The world over, goods & services attract the tax. But what is the key to the introduction of GST? The first step is to progressively harmonise the service tax rate and the Cenvat rate. The central government plans to roll out GST by April 2010. Therefore, the question is, are we ready to do it?