Sitemap | Contact
Search   Search
INDUSTRIAL ECONOMIST
Cover

The new government: The philosopher king is voted back.
more...

Editor's Notes

The Indian Profit League..
Enter the zoozoos...
Rich mix of sports and entertainment...
A culture shock...
Education reform needs priority...
more...

Banking - Analysis

Bank loans to the edu-cation sector: Growing and widening devide...
more...

Economy

Tasks for the new government: Stimulus and controlled deficit can't go together...
more...

Budget

Priorities: Competent governance, not freebies
more...

Comment

Elections: Congress must deliver on inclusive growth
more...

Elections 2009

Media moulds: From the T N Seshan era, the Election Commission has ensured more orderly conduct of polling.
more...

Elections

AP: Stunning victory, but rocky road ahead
more...
Kerala: Here anti-incum- bency works to precision
more...

Suggestion

Banking: Renewable energy schemes through DRI loans
more...

Energy

Dismantle APM: Energy subsidies - mother of all corruption
more...

Comment

Planning: Surely you must be joking, Mr.Ahluwalia
more...

Report

Insurance Sector in April: Recession hits insurance...
more...

Macro Economics

Savings Interest Rates: Modest impact of small savings on bank deposits
more...
Long term savings: New pension system could be a win-win proposition
more...
Financial sector reforms: Look beyond divestment of bank holdings and opening of insurance
more...

Analysis

DLF: Problems getting graver by the day
more...

Airlines sharpen focus on low cost format
more...

Comment

Sugar: Faulty policy, no timely action, blamed for sugar price rise
more...

Business Briefs

Madras HC's not for TVS twin-spart technology
Sri City gets Rs.80 crore investments from Rockworth
TN power regulator hikes tariff for bio-mass and co-gen power
Labour unrest at MRF factory
more...

Inklings


The mandate to govern with comfort

Economics and not politics was the guiding factor in the recent polls. The Indian electorate has elected a government that is more experienced to handle the effects of recession and ride out the crisis. Dr Manmohan Singh is the clear winner over LK Advani.

Perhaps even the Congress Party did not think it would be voted with such numbers! The UPA has been voted to power for stability and for its proven ability to perform.

Now Dr Singh need not have to bother about a Prakash Karat or L K Advani blocking the remaining part of the nuclear deal or on unveiling long pending economic reforms.

The people have given the government of Dr Singh a clear mandate. The UPA musters the support of 263 which includes 206 of its own, 19 from Mamta Banerjee’s Trinamool Congress, 18 from the trusted ally, DMK nine from National Conference, three from JKNC and two from JMM plus a few Independents.

The most interesting feature of the elections is that the third front and the fourth front have virtually crumbled. As if this was not enough, BSP’s Mayawati, who saw visions of becoming the prime minister with Left support, has suffered massive erosion in her support base.

Both the SP and BSP have come out with unconditional support for the UPA led by Sonia Gandhi, who has played a subtle but strategic role in the election victory. She first outsmarted alliance partner NCP Sharad Pawar, who had visions of becoming the next prime minister: she preempted his ambitions by announcing Dr Singh as UPA’s candidate for the post of prime minister. She struck another blow by reportedly asking Chidambaram not to extend support for the IPL 2 to be staged in India when elections demanded all the attention of the para military forces.

With 322 seats under its belt, including outside support, and no Left to bother about, one expects the UPA government to persue with its unfulfilled agenda of reforms on the banking, insurance, civil aviation and infras-tructure sectors including power, oil and gas, roads, highways, ports and other sectors.

If the UPA has a comfortable majority to work on further reforms, it also has great responsibility to deliver on its promises to steer the country safely out of the devastating effects of recession – large scale unemployment still looms large in several sectors. The worst hit sectors such as property development and real estate, BPO operations, large sections of manufacturing, exports and infrastructure cry for attention. Banks and other lenders are shy of lending and thus further retard the development process. Now that it has the numbers, the government should strive to bolster business confidence and attempt a repeat of the revolutionary reform phase of 1991.

Tamil Nadu, a key factor in the elections, elected the DMK and the Congress candidates in good numbers. The people did not vote for the Third Front in which AIADMK’s Jayalalithaa was a prominent leader. The DMK candidates have won with higher margins than the Congress’. DMK was voted for its delivery on its assembly poll promise of ‘a rupee a kg rice,’ free colour TV sets and other liberal financial packages. Entertainment and food are key factors in Tamil Nadu.

It is time for UPA and the allies to ride out the recession and deliver to the people results in terms of jobs and job security, higher rate of economic growth and spread of prosperity.

 
Advertisement
SEZs - Prospects & Challenges
Home | Archives | Special Supplements | Advertisements | Subscriptions | About Us | Contact Website design: mayuri multimedia