Indian economy in a new phase called 'Raghuram Rajya'

[anant_s]

I'm really started to love the working style of new Governor.
He first made Dollars available and brought down the runaway exchange rates and now he has made it amply clear RBI's focus is on inflation and CAD management.
Give this man a few years and a better government, Indian economy will back be on 7+% growth path.

 

[Tangent]

I like the way the new governor is working...but the problem is that we are in the election year and how far will the ''madam' and her 'slaves' will let him work in the interest of country..???

 

[Indo-guy]

Well, it doesn't ... unlike in the pre-1991 era .. it was the govt which decided what the rupee rate to should be.

That was an utterly slow process, often hampered by politics.

Market are damn fast .. .which no politician or even bureaucrat (RBI guv) could match.

Also, have you seen opposition parties calling a strike or bharat bandh protesting revalution of rupee.

It's just because the rules are set in advance, and everybody is expected to understand them and play by them.



then, suparco will try to hire him.. because so far, suparco rockets don't rise high enough to reach the fan.

That was one of the best reprise I read in recent times !!!

 

[janon]

And that is what wise fiscal management can achieve. If only they had thought of appointing competent professionals a long time back...

Here is a radical idea - why not appoint professionals to do the executive work, instead of bureaucrats? So staff the defence ministry with a few (not all, just a few) people of military background. The urban development ministry with achievers in city planning and civil engineering. Railway ministry with people who have worked in the railways in various capacities, and so on.

One of the reasons for our government inefficiency is that executive work is expected to be performed by IAS officers, simply because they have passed the civil service exam, and specialized knowledge in the field amounts to jack. Unfortunately though, it is always the politicians (legislative branch) that face people's ire, and not the behemoth, creaking old bureaucratic machine which is accountable only to itself, and moves slower than a snail.

On another note, poor @SUPARCO really got owned, omghaha and started threatening "mushroom clouds" - the standard Pakistani response for anything from a drought to economy. Funny, isn't it?

 

[Indo-guy]

When the entire market sentiment depends on the action (or inaction) of one guy, then it's time to realize, something is inherently wrong.

I agree with you absolutely . If we need to depend on one man to set everything right that means something inherently wrong in the system .

Instead of depending upon individuals ....we need to strengthen institutions ....Because institutions last ....individuals don't !!!


why RBI under any other person was not able to and avert this crisis ....means something is wrong in its set up ?

which off course needs to be rectified ....

 

[Indo-guy]

And that is what wise fiscal management can achieve. If only they had thought of appointing competent professionals a long time back...

Here is a radical idea - why not appoint professionals to do the executive work, instead of bureaucrats? So staff the defence ministry with a few (not all, just a few) people of military background. The urban development ministry with achievers in city planning and civil engineering. Railway ministry with people who have worked in the railways in various capacities, and so on.

One of the reasons for our government inefficiency is that executive work is expected to be performed by IAS officers, simply because they have passed the civil service exam, and specialized knowledge in the field amounts to jack. Unfortunately though, it is always the politicians (legislative branch) that face people's ire, and not the behemoth, creaking old bureaucratic machine which is accountable only to itself, and moves slower than a snail.

On another note, poor @SUPARCO really got owned, omghaha and started threatening "mushroom clouds" - the standard Pakistani response for anything from a drought to economy. Funny, isn't it?

Do you think bureaucracy will allow technocracy to have its way ?

Ideally that should happen ....that experts should lead and assist day to day functioning of decision making structure !

Unfortunately ....World changed immensely in last 6 decades since independence , we are however stuck with same system since then .


The fact that we have to depend on one individual to make right things ...means the systematic failure of our institutions ...


Mr T N Sheshan first time made everybody realize immense power the constitutional body like CEC wields ....but his biggest achievement was that he strengthened instituition of CEC ! what Central government did was to counteract this by making it 3 member body to dilute powers of CEC !!! same happened with CVC and now with CAG.

Truth is that governments by favouritism and nepotism and by subversion have destroyed the institutions which are meant to safeguard country !


Much blame goes to government to interfere with RBI decision making .


If right people are there with right institutes at right time ....it can work wonders .

This is essentially what Pandit Nehru did when it came to Atomic energy ...

Dr Bhabha enjoyed personal relationship with Nehru which allowed him to bypass much of the bureaucratic hurdles in setting BARC .

We do have BARC director as AEC secretary and ISRO director as Space secretary ....we need to apply same model to other ministries where technical experts will be at crux of decision making and not some naïve IAS babu !!!

 

[Gandhi G in da house]

Rupee ko wapis 44 pe laye aur economy ko 8 % pe tab manunga

 

[Killswitch]

I am wondering why every Indian thread attracts the chinese trolls...when Indians dont even bother reading chinese threads.

Agreed. If you think India is not a threat why do you constantly have to talk like a child on the threads.

Pathetic.

 

[anant_s]

Here is a radical idea - why not appoint professionals to do the executive work, instead of bureaucrats? So staff the defence ministry with a few (not all, just a few) people of military background. The urban development ministry with achievers in city planning and civil engineering. Railway ministry with people who have worked in the railways in various capacities, and so on.

Radical as it may sound, it is the need of the hour.
Too much of interefence in running industry by incompetent people has restricted the growth. Govt. should only act as regulator and let people run the economy.
It is for this reason i welcome someone like Raghuram as Governor of Central Bank. Given strong and determined govt policies and sufficient independence, this man can turn the tide. I really have high hopes from him.

 

[Indo-guy]

@janon

" it is always the politicians (legislative branch) that face people's ire, and not the behemoth, creaking old bureaucratic machine which is accountable only to itself, and moves slower than a snail " '

Thanks for this observation .

Indeed Bureaucracy is backbone of governance and politicians in chair of executive are mere face !

Just like any other system there is lot of inertia in our bureaucracy to change !

Bureaucratic reforms are need of an hour !

we all know how our red tapism has killed our economy .....much blame goes to bureaucracy as much to government and political leaders .

 

[janon]

@janon

" it is always the politicians (legislative branch) that face people's ire, and not the behemoth, creaking old bureaucratic machine which is accountable only to itself, and moves slower than a snail " '

Thanks for this observation .

Indeed Bureaucracy is backbone of governance and politicians in chair of executive are mere face !

Just like any other system there is lot of inertia in our bureaucracy to change !

Bureaucratic reforms are need of an hour !

we all know how our red tapism has killed our economy .....much blame goes to bureaucracy as much to government and political leaders .

And you know something? The red tapism and bureaucratic inefficiency costs us much more in economic damage and diminished productivity, than all the political corruption combined. The taxpayer lost 64 crore rupees in the Bofors scandal. Air India hemorrhages tens of thousands of crores EVERY YEAR due to its inefficiency. How many billions do we lose because of the slow procurement of military hardware? The MRTT refuellers were deemed too expensive, and another five years was wasted by the ministry to end up buying that very same thing for twice the cost due to the inevitable price escalation that always happens for such items.

In the classic TV series 'Yes Minister', the poor minister makes the observation that existing licensing laws makes it slower to build a house in the 20th century than to build a cathedral in the 12th century. That is true of India today.

Another wise observation in that series was that the opposition party is only the temporary opposition; the civil service is the real, permanent opposition, opposing any change or progress.

Think what economic benefits would have accrued from faster building of infrastructure, fewer business regulations and so on. The creaking snail of a bureaucracy is the biggest factor stifling India's potential.

And to all this, add the bribes and corruption involved in greasing the palms of govt officers and other bureucrats, and that corruption itself would eclipse the corruption of politicians by several order or magnitude. From a taluk office peon to the bigwigs in the secretariat, how many people get bribes from common people everyday?

And yet, people naively believe that corruption is all about a political party, or that electing another party would end corruption.

Get the bloody bureaucracy off people's backs, and there will be no stopping India. It is the heaviest chain that shackles the elephant yearning to be free and charge forward.

 

[Indo-guy]

And you know something? The red tapism and bureaucratic inefficiency costs us much more in economic damage and diminished productivity, than all the political corruption combined. The taxpayer lost 64 crore rupees in the Bofors scandal. Air India hemorrhages tens of thousands of crores EVERY YEAR due to its inefficiency. How many billions do we lose because of the slow procurement of military hardware? The MRTT refuellers were deemed too expensive, and another five years was wasted by the ministry to end up buying that very same thing for twice the cost due to the inevitable price escalation that always happens for such items.

In the classic TV series 'Yes Minister', the poor minister makes the observation that existing licensing laws makes it slower to build a house in the 20th century than to build a cathedral in the 12th century. That is true of India today.

Another wise observation in that series was that the opposition party is only the temporary opposition; the civil service is the real, permanent opposition, opposing any change or progress.

Think what economic benefits would have accrued from faster building of infrastructure, fewer business regulations and so on. The creaking snail of a bureaucracy is the biggest factor stifling India's potential.

And to all this, add the bribes and corruption involved in greasing the palms of govt officers and other bureucrats, and that corruption itself would eclipse the corruption of politicians by several order or magnitude. From a taluk office peon to the bigwigs in the secretariat, how many people get bribes from common people everyday?

And yet, people naively believe that corruption is all about a political party, or that electing another party would end corruption.

Get the bloody bureaucracy off people's backs, and there will be no stopping India. It is the heaviest chain that shackles the elephant yearning to be free and charge forward.

@janon

this may be off topic ....alternatively you can reply to following query in a separate thread !

while governments can have wherewithal to change bureaucracy , they don't have will ! Governments don't fiddle with bureaucracy because it is one that actually runs government ....

It's more like who will bell the cat ?

Given the periodic pandering by governments to shield bureaucracy underscores importance of having it on their side !

Can any government really take on bureaucracy ?

How do you propose to bring in such wide ranging reforms in bureaucracy when there is so much resistance within ?


One of the main facet of IAC proposed Lokpal bill was to make lower bureaucracy accountable ....which off course was run down by government ?

I do not think any political leader in India has grasped the main problem of rotting bureaucracy being an obstacle towards progress .

How do you propose any political party or government to fiddle with very backbone of governance without precipitating obvious crisis ???

 

[Cyberian]

In the last fiscal year of 2012-2013, India has piled on $45 billion of external debt. That's a mighty jump from $345 billion in March 2012 to $390 billion by March 2013. You could say India has almost added $1 dollar of external debt a week compared Pakistan adds around $1 billion a year.

If the fearful analysts are correct, then the Raghuram Rajya effect is going to be absolutely disasterous in the long run where India is likely to add probably around $1 billion a day.

India, unfortunately does not release figures for its external debt on monthly basis like they do so in Pakistan, so its hard to figure out how's the Raghuram Rajya phase is playing out but it would be interesting to know.

Let's wait and see what the figure is on March 2014.

 

[HongWu]

What happens when this Raghuram Rajya phase hits the fan?

That was my first thought too! Raghuram Rajya = sh*t just hit the fan

 

[PlanetWarrior]

R Rajan is a genius. The question arises again and again why he wasn't selected earlier as per MMS recommendation. Now that he is in (and having attended lectures and presentations by this guy) I can only say that I am extremely optimistic about India's economic future whilst he is at the helm

That was my first thought too! Raghuram Rajya = sh*t just hit the fan

Shouldn't you be knitting a shoelace in a sweatshop in rural Shanghai somewhere?? I've read on google that the Chinese authorities are clamping down on internet usage due to labourers staying away from work to mess around in computer shops. Slaves like you are starting to make it harder for other slaves in China