The global banking and financial services landscape has witnessed the demise of blue blooded brands over the last couple of months. The ripple effects have been felt closer home in the stock markets and with some leading banks having taken moderate hits on account of their exposure in international instruments.
The sentiment has turned for the worse as FIIs withdraw their positions in the stock market. The peaking delinquencies in the retail assets market is coincidental and not linked with the other chain of events. Hence the need for a reality check....
The India story is not disappearing but taking a breather. A GDP growth in excess of 7% is by no means a poor achievement, when most advanced economies are fearing a deceleration if not a recession. The key imperatives for the nation...
1. Infrastructure : It is imperative that the government does not lose sight of its plans in investing in infrastructure. Public private enterprise is the key to ensure timely and cost effective implementation. This would ensure that the fiscal deficit is kept within manageable levels and impetus is provided to all round development
2. Rupee Valuation : The RBI would do well in supporting the rupee over the next 6 - 9 months. The substantial dollar reserves can be optimised to support the value of the rupee and tide over the uncertain global exchange fluctuations in the months to come
3. Real(i)ty Check : A price adjustment may not be as detrimental as one might fear. With lease rentals and housing prices inhibiting rather than fueling economic enterprise (Indian metros currently sustain one of the higest rental expense contributions to the overall operating expenses in organised retailing globally). A price adjustment may just fuel organised retailing once again, and also nudge the anxious middle class towards house ownership once again. Time for the speculators to make way for the home makers.
4. Services : As Indian corporates achieve global level scale, the IT & ITES players are slowly but surely finding a rapidly expanding domestic market.
5. Retail Lending : Banks and financial services players are going to go through a rough patch till at least the mid of next year. This is perhaps going to be that one key factor in sustaining the growth through next year
6. Telecom & Inclusion : The telecom explosion will continue through the next two years, further catalysing mini industries and entreprenuers across the country. Financial Inclusion is gaining momentum as a serious business initiative rather than a CSR initiative to look good in annual reports. Corporates have clearly realised the opportunities ouside the top 6 metros and are quikly adapting their technqiues and approach to understand and serve these markets
7. Sort Out the Land Acquisition Process : The cumulative amount of investment slated for the development of SEZs in India exceeds the GDP of several countries. Singur is a single instance. The government needs to quickly define its role and charter an action for the way forward. Else the SEZs would remain a blueprint forever.
The task lies in not losing sight of the larger opportunity but in constantly questioning and redefining the way business is conducted. You can still potentially sell a Rolls Royce in Nandigram (even in these tough times)
As the global banking and financial landscape lies littered with the casualties of the sub prime experiment, the gloom has descended on Indian shores. The impact has been felt on the sensex, the rupee, some leading Indian banks and also with leading companies in the ITES space that had been servicing the blue blooded royalty of Lehman, Bear Stearns and others.
As the doomsday proponents propogate widespread economic gloom, believe some sound rational arguments need to be asdf asdf
The sentiment has turned for the worse as FIIs withdraw their positions in the stock market. The peaking delinquencies in the retail assets market is coincidental and not linked with the other chain of events. Hence the need for a reality check....
The India story is not disappearing but taking a breather. A GDP growth in excess of 7% is by no means a poor achievement, when most advanced economies are fearing a deceleration if not a recession. The key imperatives for the nation...
1. Infrastructure : It is imperative that the government does not lose sight of its plans in investing in infrastructure. Public private enterprise is the key to ensure timely and cost effective implementation. This would ensure that the fiscal deficit is kept within manageable levels and impetus is provided to all round development
2. Rupee Valuation : The RBI would do well in supporting the rupee over the next 6 - 9 months. The substantial dollar reserves can be optimised to support the value of the rupee and tide over the uncertain global exchange fluctuations in the months to come
3. Real(i)ty Check : A price adjustment may not be as detrimental as one might fear. With lease rentals and housing prices inhibiting rather than fueling economic enterprise (Indian metros currently sustain one of the higest rental expense contributions to the overall operating expenses in organised retailing globally). A price adjustment may just fuel organised retailing once again, and also nudge the anxious middle class towards house ownership once again. Time for the speculators to make way for the home makers.
4. Services : As Indian corporates achieve global level scale, the IT & ITES players are slowly but surely finding a rapidly expanding domestic market.
5. Retail Lending : Banks and financial services players are going to go through a rough patch till at least the mid of next year. This is perhaps going to be that one key factor in sustaining the growth through next year
6. Telecom & Inclusion : The telecom explosion will continue through the next two years, further catalysing mini industries and entreprenuers across the country. Financial Inclusion is gaining momentum as a serious business initiative rather than a CSR initiative to look good in annual reports. Corporates have clearly realised the opportunities ouside the top 6 metros and are quikly adapting their technqiues and approach to understand and serve these markets
7. Sort Out the Land Acquisition Process : The cumulative amount of investment slated for the development of SEZs in India exceeds the GDP of several countries. Singur is a single instance. The government needs to quickly define its role and charter an action for the way forward. Else the SEZs would remain a blueprint forever.
The task lies in not losing sight of the larger opportunity but in constantly questioning and redefining the way business is conducted. You can still potentially sell a Rolls Royce in Nandigram (even in these tough times)
As the global banking and financial landscape lies littered with the casualties of the sub prime experiment, the gloom has descended on Indian shores. The impact has been felt on the sensex, the rupee, some leading Indian banks and also with leading companies in the ITES space that had been servicing the blue blooded royalty of Lehman, Bear Stearns and others.
As the doomsday proponents propogate widespread economic gloom, believe some sound rational arguments need to be asdf asdf
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