FMCG, Automobiles, Fertilisers, Telecom are amongst the prominent sectors which get impacted either way by the quantum of monsoon each year. Companies in these sectors are bullish given the monsoon onset in view of the resultant rural economic activity.
A good or bad monsoon is contagious for politics as well. In fact, successive years of good monsoons have saved UPA from facing a shortage of food grains despite the government’s inability to push forward supply-side reforms, the primary factor behind inflation.
While the supporters of reforms believe that market-driven policies will bring prosperity, the other group thinks that the state's paternalism through doles and subsidies will ensure an inclusive development.
India is one of the few countries where improvement is huge. The policy prescription is right but there are issues of management, which can improve. India has some of the finest social welfare and rural development schemes which the world is trying to replicate.
India’s efforts to fill the yawning infrastructure deficit have met with little success with almost half of government projects running behind schedule, often leading to heavy cost overruns. About 81 per cent road, transport and highways sector projects stand delayed, making it among the worst hit.
Despite the various scams and the slowdown in the India economy, P Chidambaram feels that the Indian government is focused on economic growth as was 20 years ago when the country was faced with stock market scam, yet had one of the best economic reforms.
India is nearing the end of its credit tightening cycle, as 10 interest rate increases since March 2010 exact a toll on growth in a once-roaring economy, making Tuesday`s expected rate rise potentially the last for the near future.