India's growth model - China or America?

In the previous post, we discussed about whether India and China were ever equal. Now we will go further and discuss the right model for comparison: United States of America.

As the analysts are finding the last couple of years, India and United States are much more common than what most people think (did I just say that the world's poorest & richest country have some commonality). Superficially, India's english, democratic tradition & British colonial legacy are visible. But, we have just got started. There are much more deeper. We will randomly see them and then put them in place.

1. Hollywood Vs. Bollywood - You must be thinking that I'm just kidding, as movies are not a factor for world economy. It is. At one point, not long ago, Russia overtook US as a super power and Japan overtook US as an economic power. But, how many kids dreamed of Russia & Japan, tried to imitate their culture, flock to their universities or even learn traces of Russian & Japanese? But they did all that to US, because of a very powerful influence - Hollywood. It shaped the world cinema, and gave a way for imagination and thought. In all that imagination and dream world, only America was there and its perspective on the rest of the world. Interestingly, whereever they lived most kids saw world from the prism of United States. Thus, US got the best of world relationships, best of students & scientists & entrepreneurs and easily outsmarted its competitors. I'm not saying that Hollywood was solely responsible for America's growth, but without hollywood, a lot of American succcesses would have never happened. For a long time, US benefited from the export of Hollywoodism, McDonaldism & CocaColaism. Culture shapes billions of bucks and US companies & brands (from Ford, GE to Pepsi, Coca-Cola to Microsoft) became a marque for the world.

Coming to India: India's long lasting legacy in Asia it is its export of culture. Everwhere from Thailand, Malaysia to China, Japan, Middle East, coastal Africa... you could see great influence of indian culture. Thus, even without magnificent war & army India had conquered a huge territory, just by being a powerful holder of cultural exports. People from Columbus, Vasco Da Gama to English sailors to Chinese buddists flocked to India and dreamed on a trade with India. In a way, it is similiar to American export of culture, only a good form of culture :). And as Bollywood emerges, people from as far as Africa to East Asia will see world from an Indian prism and will bring both development and international relationships with that, and Indian companies will get the visibility and brand promotion it requires. Probably we might even convince Pakistan and China to have better friendhship with India.

This is also extendible to other media. Washington Post, Time magazine & CNN has so much effect on world media. Now India has many of the strengths and can take a part of the strength just how US took from UK (with BBC, Times etc.).

2. Enthusiasm & Entrepreneurism: If a Rip Van Winkle from 19th century America suddenly woke up in current India, he could find the comfort of home in it. 19th Century America didnt have infrastructure, had shabby roads and dusty towns, quarelling federal government, but its people had an unique power: An optimism for the future, a sense of pride and vision & an overbearing urge to succeed. They quickly moved from the heterogeneous group of colonies to bring powerful economic houses that dreamed of growing big and conquering the world. This fiery capitalism and energetic entrepreneuship is what we see in India - from slums to high raises. We are poor in infrastructure and shabby in our cities, and our heterogeneous is quarallesome, but our energetic young men & women are going to overcome all of that with the same sense of purpose our godfathers (19th century Americans) had.

3. Stress on Unity in Diversity: America has a great power, it quickly assimilates its immigrants much faster than any other country. The irish, jews, Italians, Germans who came during the last 100 years are now fully integrated as Americans. Though, there is great diversity in terms of immigrants (we have huge African-Americans, Hispanic-Americans, Asian-Americans and of course European Americans) representing every continent in the world. But, they all are almost united on a concept: American (albeit diversity and fractionsim are growing).
Historically, only one other country had such a track record: India. It had such a power that whoever came to the land became Indians (or Hindus). We definitely have an exceptions like Islamics who will never be assimiliated anywhere. The Greeks, Afgans, Aryans, East Asians, Mongols, Arabs are all fully assimilated and the art & culture as an example for it. Thus, it has such a diversity (in language, religion, art forms) but a soft thread runs among all, conscious or sub-conscious. A sense of Indianism. A lot of Indians will oppose when I say it, till they feel their subconscious emotion of it at different times.

India's scorching growth

In the recent days, I'm pretty much disappointed with what economists forecast for India. I'm not rather disappointed at Indian growth, rather, I'm disappointed at the skills of the economists :P. I dont know whether they understand the whole picture and take all the information into account of what is happening to India. The other day, I found an economist's article totally questioning the India's growth statistics just on the premise that the growth of services is unusual for a growing economy, and he just had the east asian economies in mind, when saying that. I also read a gazillion articles of why people should invest in China, and why India is overheating, India will be affected by slow downs, India is just call-center centric, blah blah blah. Let me get around to my own understanding of what is happening.

First, the obvious. India's IT & BPO are having extrordinary growth. At this rate, the IT exports alone would cross $60billion in 2010 and the overall revenues might get closer to $100b. A lot of people are worrying about the rise of China and other players, lack of quality engineers in India and rising pays and these area all honest fears. But, these fears are not all big enough to rock Indian boat, and Indian entrepreneurs are smart to see through innovative solutions. They plan to buy out a number of foreign operators in the the competing countries, giving them both expanding market & foreclosing competition, and their greater clout could lead to more techonology exchange and capital for investing. By aggressively entering cheap Tier-II & III cities, having dedicated massive training programs to train cheaper non-engineering workforce, they can effectively blunt many of the cost-based fears, and by better market diversification and innovation they have also broadened their approach.

For most Indian economic focusers, their prediction ends here and they are myopic enough not to look ahead. The following ones are going to be the trailblazers that are going to outsmart the Indian IT growth and overshadow them in the next decade.

1. Telecom - By far this is going to be the strongest sector for India in the next decade. In the last three years, our teledensity tripled and now we add 7 million mobile phones a month. At this rate we would move from our current presence of 180 million phones to over 250 million by 2007 and over 500 million by the end of this decade. This would place us head-head with China, and overtake US. Already, VSNL & Reliance's FLAG Telecom's hold the world's largest backbone telecom networks, (undersea cables & fiber optics handling most of Pacific & Atlantic lines) and this greater domestic clout will lead to greater buy outs in the saturated markets & bring more technology to India.

See: http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/Flag_to_invest_15b_to_expand_cable_capacity/articleshow/969357.cms

Increasing Telecom clout would also lead to two major developments. First, is the growth of India as a major electronics player. To produce 500 million phones and for peculiar needs, major telecom companies are already increasing their massive presence in India in production, and such stellar demand for these devices would place us closer to China & Taiwan on electronics industry, using the same strengths in IT growth - good design knowledge, better English understanding & now backed by world's one of the largest markets. Second, the greater teledensity would enable better information exchange and ease of trade and commerce, and would lead to a stellar growth in a lot of sectors, particularly in rural areas that are the focus of cellular expansion from now.

2. Metals & Infrastructure - While analysts always crib about the India's faltering infrastructure, not much of a note is taken when a single state (one of the poorest) secured over 40 deals for investments in this core sectors worth a whopping $100b in a year. Given cheap labor, low cost of procurement and abundance of resources, 100 billion might be worth half a trillion in this state of Orissa. And, with that Reliance is planning to build a 12GW plant (world's largest single power plant), POSCO, Mittal & Tata for massive steel capacity expansion, stunning Aluminium expansion by Vedanta industries et al. and port and road/rail link expansion by a combination of players. Since, this is a poor state such developments can lead to stunning growth and these players are already building a city foused on health care & IT.

See: http://www.domain-b.com/industry/general/20061221_aluminium.html

Similiar to Delhi Metro, a lot of other expansion is expected to happen in city metro systems for almost all major cities including Pune & Bangalore, and this would pump billions of dollars in a decade & growth activities. Indian Railways has also emerged a strong company in the last couple of years and eyes on a massive expansion, including modernization of Railway stations with Private participation, Container privitizations, electrification etc. A number of road ways projects are moving at a breakneck pace, and in aviation India became the largest customer for planes in the last couple of years, and dozens of new airlines have started or staring by 2010 and airports like Delhi's & Mumbai's are going to get agreat facelift. All these might get in over $300 billion in the next couple of years, and if government plays right it would push India's manufacturing, construction sectors to new heights.

3. Banking & Finance- Though often ridiculed, the government owned banks have moved a great deal in the last decade. From being indifferent and lethargic, their employees have increased their zeal in expanding further. Indian banks are among the healthiest in Asia with the lowest Non Performing Assets, and greater branch coverage. With the sector opening up due for 2009, a huge growth is waiting to happen when new foreign banks will emerge and modernize the practices and the Indian banks would have a great footprint abroad. Public banks like Canara Bank, State Bank & Bank of India are aggressive on a massive expansion both in India and abroad along with private guys like ICICI & YES bank. With greater diversification into equity trading, investment banking, Indian banking sector is expected to grow leaps and bounds with their current strength and with that India's core sector will be pushed up, as they are the largest lenders & employers. Also, innovations like Microcredit are earnestly explored causing a potentially great rural expansion. India's stength with a huge number of finace & commerce students will not just lead Finance BPO expansion, but also massive stock & financial sector in India.

4. Organized Retail - This is one sector that would be a killer application in the future, as they start from almost nil, and would soon have over $50 billion investment in the next couple of years. Reliance has setup a highly ambition project of over few thousand outlets & Malls, Bharti with its Walmart tieup is looking to do big, and other smaller players will try to outbeat them by going early. The prospective opening up of FDI along with a greater middle class will let this sector grow by 100% in the next few years, as all these ambitious projects get along, and dozens of international bigwigs enter it. This would greatly increase the Indian revenue generation (current retail industry hardly contributes to revenue due to massive tax evasion), bring greater employment, reduce the prices & consumer inflation (ha! We have Walmart). But, to me the greatest development will be for Indian agriculture. Indian farmers hardly get a 5% of what they produce, while even with Wal-Mart squeezing American farmers get many times more than that. This is due to lowering wastage (this could be as much as 90% in India vegetables & fruits), increase farming productity with greater technology interchange & cutting down the middleman. Thus, we might finally have our Green Revoltion - II, finally.

5. Hoteling & Real Estate - Enough has been said about the fact that India has just as many hotel rooms as the New York City. While this is a disgrace, see it as a potential. As 99% of the market seems to be unutilized, with proper planning the hoteling industry can easily grow at 100% without reaching saturation for a long time. Atleast 75 International brands are eyeing India, and with proper real estate growth and better technology/infrastructure and greater tourism/business growth, this sector will add 100's of thousands of new hotel rooms in the budget and the luxury sector. Organized Real Estate will piggyback the growth of these & the retail industry. While the prime lands are at huge prices, still we have millions of hectares of lands at low prices of less than $2/sq ft, around the cities and these have huge potential for growth. For eg. a lot of hoteling industry is eyeing for the smaller city of Noida that has land at a fraction of price compared to the prime lands of Delhi. Indian Railways is also planning to share thousands of hectares of its land around the big railway stations for building hotels. A great hoteling expansion would in turn stengthen the tourism industry.

Read More here: http://www.hospitalitynet.org/news/154000355/4029788.search?query=india+china+growth

6. Healthcare & Pharma- By now you should have heard that medical costs in India are among the lowest in the world. Thus, we have a huge potential for expanding this booming industry as more and more people can now afford medical facilities leadind to a huge domestic expanision, and a lot of countries are thinking about formally sending their patients to India for treatment. And, Indian pharma companies are leading a great expanision, and busy buying assets abroad and expanding R&D facilities. Thus, with greater middle class clout and prosperity, these two industries will have a massive growth as more people can get medical care, and more drug development will be done in India.

7. Auto - There was a time when blindly took outdated european car designs and manufactured small amounts of car for domestic use. The times are changing. In Chennai alone four major manufacturers are setting up huge factories, Tata Motors is world's one of the largest medium & heavy commercial vehicle producer & also eyeing for a $2000 car. In auto components, India is slowly becoming the world's largest manufacturer. With great domestic market growth & a potential for cost cutting using cheap labor & facilities, a lot of foreign majors like BMW, Nissan, Fiat are entering India, big time.

8. Agriculture - Indian agricultural productivity lags behind world standards by a factor of few times though it has some of the best climatic and land advantage than all the other major nations. If the production is too low, then the wastage (which goes as high as 90% for some products) kills whatever remaining and due to inefficient practices we are not growing more lucrative crops. As technology, infrastructure & organized retail growth, are looming, this sector could close in on the international productivity standards, and this means we can have over 300% growth in the end value of what we produce, given our potential. This might take over a decade, but still if we have a potential for 300%+ growth in India's core sector in the long term, its effect on industrial consumption and Indian growth rate will grow exponentially.

As the article gets long & winding, I had to cut a lot of material and you could search online for each of the individual developments. The outcome it seems that, inspite of global slowdown India could maintain and increase growth, as the Indian core sector is starting from a very low base, and most of these developments can continue in spite of a weak world consumption, as they are based on domestic consumption that is again growing from world's lowest per-capita. Though, India could possibly slow in the medium term, in the long term, it could easily maintain a 10%+ growth, as all these segments above can maintain a double to triple digit growth in the near future.

A world recession can also indirectly benefit India, when its hungry entrepreneurs can get value buy outs at cheaper prices (like how VSNL & Reliance boughtout world's major telecom backbones like Tyco & FLAG). It would also hit upon the margins of international producers who might eye India for greater cost cutting, and Indian government would be more amenable to opening up to overcome the world recession. It would also make companies to look for the bigger & fast moving Indian market than the saturated world markets (like how Vodafone & Oracle are doing) and bring more investments. We benefitted from the American recession of 2001-02 (it increased outsourcing and cheapened telecom assets) and I guess we could now repeat the performance.

The writing on the wall is clear: India can grow inspite of what happens in the rest of the world - receding or prospering.

Should Indian government subsidize oil?

This question has been puzzling me and the answer to the question "Should Indian govt. control the petrol/diesel prices" produces an answer even baffling to me. I'm a free market supporter and in general against government intervention, but I feel Indian govt is not too wrong in controling the oil prices at the moment. At the same time, I also feel we in the US are enjoying a much cheaper petrol and the government here must raise the prices by increased taxes. I'll explain my contradictory position in this article.

Background:
In India, oil prices are not directly determined by the world prices, but controlled by the government in a process called APM (Administered Price Mechanism). What this means is that periodically, based on the international prices, government would set a prices for Petrol (Gasoline), Diesel (used by trucks), Kerosene (used by poor for cooking & lighting) and LPG (used for cooking by middle class) and all the oil market companies have to fix to that price. The price is set in a way that oil companies make profits on Gasoline, break even on Diesel and losses on Kerosene & LPG, and in return get compensated by government bonds.

In an effort to curtail inflation (and score political points ahead of forthcoming elections), the government has reduced the oil prices though the oil companies are still making losses out of subsidies on Kerosen & Diesel. A lot of columnists have blasted the government, and for once I'm not going to attack the government.

In India, currently after the reduction the price for petrol (gasoline) is around Rs.50/liter ($4.18/gallon) compared to US prices of around $2.3/gallon, while Diesel costs around Rs.32/liter ($2.55/gallon) almost the same price as in the US. And India has better refineries and slightly hence lesser cost of fuel production and distribution. Thus, its not correct to say that Indian government subsidizes oil. In effect, what Indian govt does is to tax the fuel heavily and then make profits at all levels mostly going to state & provincial governments.

So, gasoline in India is not cheaper than most countries and this makes sense as India should curtail the use of more cars till the necessary infrastructure comes up, and even then it is better not to go the American way of automobilzation. High gasoline price makes sense, but very high prices can affect sectors like tourism etc. and so I believe that current prices for petrol are neither too high nor too low. And the pricing of Diesel at lower rate makes sense, because Diesel is much more efficient (40% more power compared to Petrol) and it emits just 69% as much greenhouse gases as petrol for every kilometer of ride. Thus, by encouraging the Diesel usage government is pushing more people out of the more inefficient and nasty petrol towards a shade better Diesel. Moreover, Diesel is used by trucks transporting essential items and public transportation (Trains & Buses), apart from small captive power plants. Thus, Diesel subsidization encourages a more healthier practice of relying on public transportation rather than Automobilzation a trap that America got into. Now, US is considering more sops for Diesel based cars. And, since diesel is used in core sectors, a lower price will curtail inflation in a lot of sectors.

Now, coming to the sacred cow of Kerosene & LPG the main cooking and lighting source for the poor and middle class respectively. India has a ultra low price for Kerosene almost half the cost of production and this alone leads to a loss of over $2b/year and a similiar amount in LPG. I believe that LPG prices have to be gradually increased so that it breaks even, while some efforts must be made to modify Kerosene distribution. $2b is not a big deal for trillion dollar economy and the Indian government can effectively carry on protecting the poor for a longer time from the vissicitudes of global economy. The poor spend considerable portion of their earnings on energy, food & transportation and all these are directly affected by the fuel costs, and the resulting unrest can put the economy down by tens of billions of dollars, and hence Kerosene subsidies make sense. But, distribution mechanisms must be modified so that it reaches the appropriate persons and to protect the blackmarket sale and adulteration into petrol and other fuels. This paper has proposed good methods for this problem.

http://www.iimahd.ernet.in/publications/data/2006-07-06smorris.pdf

Global oil prices are erratic and you cannot have mechanisms that directly reflect the global prices in a developing economy. Oil prices swing from $10 to $80 in 5 years before coming to $50 in a few months, and this could totally collapse a fledgling economy like India, if the government doesn't interefere and smoothen things out. If you calculate all the taxes that various governing bodies in India make out of oil, it could easily compensate for the various subsidies - notably in Kerosene & LPG. And, even if you have to spend a couple of billion dollars more, its worth it to keep running an economy that adds $100billion to GDP every year. And to compensate the oil majors for the loss, the government has to provide sops, though in the long run I would prefer a more simple system, where the government reduces taxes on these oil products and also take away some of the sops from the companies. The non-m0netary sops including governmental intervention and support for acquiring global oil assets and exploration of alternative fuels and efficient systems should be pursued more.

In the end, I believe that India's currently policy of keeping a higher price for gasoline and a moderate price for diesel makes sense and should be continued. While the oil companies face losses due to this, they could easily be compensated with the government bonds, which inturn can be paid from the taxes the government earns on these fuels. And LPG prices in the long run should get in par with the global market, while Kerosene subsidies should continue but mechanisms must be reformed to ensure appropriate distribution.

Regarding the situation in US, I recommend higher prices and here is a slightly older post, but still relevant to the current issue.

Rate hikes counter productive - Part II

The previous post had given an introduction to the sectors that could face trouble due to the rate hikes. We will go further on analyzing the ramifications.

First, the rate hike would pressurize a fledgling banking system in India. Indian banks are tiny compared to world standards, inspite of India having one of the deepest and oldest financial markets and some of the best talent in this arena. One of the main reason for this is the over meddling of Indian government in its affairs. Now, things are going for worse. The Prime Lending rate in India has climbed above 12% for many banks, while you could borrow at 5% in Libor (London) or around 1% in Yen nominated loans from Japan. And, given that Indian rupee has bullish prospects both in short & long term, the overseas loans would have an effective rate of less than 3% in rupee terms. To add to this, recently Standard & Poor has upgraded India's ratings and thus, Indian corporations could get better rates due to lesser perceived risk. Thus, any corporation that could borrow from overseas will skip Indian banks and get it at the concessional rates. So, when you read about Tata or Birla's mega acquisitions and dont read any Indian bank acting as the banker for the deal, dont be too surprized. By being burdened with enormous rates, Indian banks lose out the best customers and have to be put up with the lousy ones.

Second, RBI would slowly lose control of Indian market. By forcing more companies to look outward for loans, RBI has little leverage over the market and over the course of time market would act independent of RBI's whims & wishes and long term rates would be less under control. This is somewhat similiar to the situation with US Fed that has control over short term rates but has little control over the long term rates. While, it is debatable whether RBI should have greater control over the economy or not, but an economy totally running out of governmental controls might get reckless if the markets are not mature and deep.

Third, small & medium scale enterprizes would lose out of competition. Large concerns like Tata, Reliance, Birlas, Essar, etc. could borrow at international rates, while their smaller rivals back home cannot do that and have to put up with twice the cost in interest rates. In many businesses that run on lower margins, a small change in the rates could topple the competition totally towards other side and kill a lot of fledgling enterprises that is essentially not good for the country.

In Part 3, we would see what other steps India could take to counter the current inflation crisis

Bank of Japan (BoJ) rises rates: What are the impacts?

It was a pretty interesting post and I agree to most of the contents. While, writing this I find BoJ has increased the rates to 0.5% and this surprize jolt has hurt a lot of speculators.

The speculators and short term traders will get hurt by any upward moment of the currency (strangely the currecy moved downward yesterday, as the rate increase was below expectation of few organizations) and/or increse in rates.

However, long term is a different story. I dont believe Japan/Germany can ever attain the state they were once in the early 80's. The world economy then looked totally different with tiny nations like Japan, UK, Germany, Italy along with their big boss US controlled the world economy. Now, those days of tiny tots are gone, and big wigs - BRICs are entering the show and if terrorism could be controlled even Middle east will join the show.

What this means is that not only there is enormous potential for greater depths for world markets, but also that these nations are no longer in US control to take things like Plaza Accord or Bretton-Woods agreements.

These nations by their size and population have enormous appetite for capital and can easily suck in trillions of dollars in the next decade for their development to come in par with the west. Atleast India, with its huge infrastructural requirement could suck few hundred billions in the next couple of years.

So, Japanese currency's appreciation potential will get diminished as they face import pressures due to rising oil prices and export pressures, where even countries like India would join as competitors for electronics, Auto and Steel. And with current deflation there is very little room for upward movement of currecy and the ageing society doesnt want to spend as much as their younger counterparts.

So, my guess is that these new countries could suck the entire investment fountains dry and would coast on the wealth that Japan and Germany built up for decades.

It is great time for countries like India that has great entrepreneurship scope but limited access to capital (till very recently) and can use this great "Akshaya Pathra" for supercharging growth.

RBI's Rate Hikes Counterproductive

What?
The RBI (Reserve Bank of India) the central bank in India has yet again raised the Cash Reserve Ratio. What this means is that banks should lend less of their deposits and currently keep more than 6% of the deposits with the RBI instead of lending. This will lead to higher interest rates for loans, by the supply-demand economics.

Why?
Inflation in India is raising very high and currently over 6%, the highest in 2 years. It has mainly contributed by the increase in food prices, along with world oil prices, property boom in India along with expanding business cycles. Whenever inflation grows high, banks follow the textbook method of raising interest rates, so that people will borrow lesser to buy stuff and the the demand will reduce therefore and the price raise will be contained.

Why is it counterproductive?
First, the inflation is more due to the supply side economics rather than demand side economics.
1. Real Estate
While, it is true that people are betting high & high for good properties, the core problem here is the lack of availability of good properties. For example, my 2000 sq ft property in Madurai has hardly experience inflation, while properties in Chennai, B'lore & Mumbai have shot over the roof. This is because, people get very few choices to buys houses if they want a minimum level development. The solution will be to develop properties more and more so that anybody with a decent level of employment could get a decent housing. India is no short of land - currently having more than 30 trillion sq ft of which atleast 10% is fallow and underutilized. So, if we have 3 trillion sq ft, every Indian household could build a 12000 sq ft bungalow and dont even need high raises! That's ideal, but the point is with proper development every household could be assured of a good housing. Invest more in planned housing development and allow real estate developing corporations to expand more and even if the SEZs turn out to be just real estate development, still it will do good for the nation. And once, enough supply of good houses are made, the prices will fall in the super hot spots.

2. Agriculture
Why the food prices have gone up should not be a surprize for those who watch Indian agriculture. The sector is in a state of shit, and the last decade there has been no growth in the yield or productivity, while industrial production surged and technology zoomed. Our per-hectare productivity for most crops are among the lowest in the world, and we have the highest wastage in the world. Lands have to be consolidated, supply chains strengthened and flattened and technology/capital has to reach the field. Allow big private houses to repeate their magic with industry on the field, and with a good retail sector growth, Indian farmers have huge potential to grow. If we do right things, we could potential expand the end value of Indian agricultural produce by 3-4 times and wipe out shortage that is boosting the prices now.

3. Cement/Steel & basic commodities
These are not too different from agriculture. India has vast reserves of coal, iron ore and bauxite (aluminum ore) and they are hardly utilized due to red-tapism. This had forced the stellar players in this field like Tata Steel & Birla's Hindalco to look for overseas purchases. Allow greater reforms, liberalize laws and promote greater development. Given our enormous potential in this segment, most commodities excluding copper & oil, could head south with better technology.

The key in all these three things are - investments, reforms & consistent policies. Regarding the last two the government has the ball in its court and regarding investments the increase in interest rate will jeopardize all the growth. If the interest rates climb up so much, the infrastructure, power development and these three sectors will suffer and the projects might be derailed.

Instead of taking a myopic view, the RBI should curtail the temptation to increase rates and realize that textbook methods are not directly applicable to this complex nation. The need for the hour is greater investment and the RBI should direct them to the right sector and by increasing the rates the RBI is not only curtailing growth but also leading to future inflation by choking supply & infrastructure.

God shall bring lights to the darkness filling economists' brains.

New Economics Blog

As I'm shifting more towards economics, I felt the need to write a separate blog for this. This will focus on economic issues around world and point you to interesting economic articles. Topics mainly covered will be investing, economic policies in different countries, industry watch etc.

If you are interested help me in contributing for this blog.