Given its young demographic profile, large domestic market, over 6.5 per cent GDP growth, and a working democracy, India rightly aspires to be at the high table of global leaders. To get there, however, it must demonstrate far better governance and far less tolerance, or the ‘ chalta hai ’ attitude which has been its bane.

The recent statement, for example, of Kavinder Gupta, recently appointed Deputy Chief Minister of J&K, that the brutal rape and murder of an eight-year-old was a small happening that was hyped, is distressingly insensitive, showing a complete lack of the public mood, and an example of poor governance. Similar statements have been made by political leaders cutting across party lines which show apathy, an uncaring attitude towards the common citizen, and an arrogance that beggars belief. All these ‘leaders’ must be thrown out.

None less than the Supreme Court upbraided the Government of Haryana for misrepresenting the acreage of land it was auctioning for mining. It had 141 hectares but was trying to auction 558. The counsel for Haryana stated it was the duty of the applicant to ascertain the area! This is a prime example of abysmal governance. This is not the sort of governance that will get India to the high table.

Both investigative and judicial systems seem to favour the culprits and penalise the victims. Investigative agencies are known to be amenable to arguments that weaken the case to prosecute scamsters. Top lawyers knowingly make Mephistophelean bargains, even when knowing/suspecting clients to be guilty.

 

The CBI has named, in its FIR registered against C Sivasankaran, promoter of telco Aircel, some senior executives, including the former head of Bank of Baroda and of IDBI, other senior bankers and the former BSE Chairman. These are good, but incomplete, steps. Instructions to lend, given to PSU banks, come from political bigwigs and are delivered over the telephone. Until this nexus is broken, by naming these political handlers, the rot in the banking system will continue. If we wish to be on the high table, the clean-up of the system should start at the top.

Encouraging Q4 results

Some corporate results are encouraging. RIL posted a 20.6 per cent increase in PAT for the year ended March, to ₹36,075 crore. Maruti posted a 10 per cent increase in PAT for Q4 ended March.

ITC is joining hands with NITI Aayog to train two lakh farmers to raise productivity and increase their income. Since some 54 per cent of India’s population depends on agri income, but gets only 14 per cent of the national income, the success of the ITC-NITI Aayog experiment would be crucial to sustaining an over 7 per cent GDP growth rate.

With normal monsoons forecast, India’s GDP should grow at over 6.5 per cent. The US Fed has kept the key interest rate unchanged. Higher crude oil prices remain a concern.

India’s long-term outlook is good but it’s imperative that we govern well, for the people and not for politicos, that justice is swift and fair, and that investigative agencies not doing their proper jobs be severely penalised.

(The writer is India Head — Finance Asia/Haymarket. The views are personal.)

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