Archive for ‘India alert’

11/04/2014

India Under Narendra Modi Could Be Japan’s Best Friend – Businessweek

The results of national elections in India, expected to be announced on May 12, could mean good news for Japan and not such good news for China. Narendra Modi, the leader of the Hindu nationalist opposition party, has long been a favorite of Japanese Prime Minister Shinzo Abe, who would like to foster military and economic ties with India. Modi, the front-runner in the contest to be India’s prime minister, and Abe also share an antagonism for China. Modi has criticized the government of Prime Minister Manmohan Singh for being too accommodating toward China and has pledged to take a tougher line on issues such as the border dispute between the two countries that has festered for decades.

A supporter of Narendra Modi dons a mask of the Hindu nationalist candidate

Abe has clashed with China in a dispute over the ownership of several islands in the East China Sea. When it comes to the Chinese, “the Japanese are extremely apprehensive,” says P.K. Ghosh, senior fellow at the Observer Research Foundation, a New Delhi think tank. “It doesn’t take a genius to say India can be the largest friend of the Japanese.”

Abe has long treated Modi as a kindred spirit. Even after the George W. Bush administration put Modi on a travel blacklist for his alleged role in the 2002 riots that killed about 1,100 people, mostly Muslims, in Gujarat state, Abe welcomed Modi to Japan. The Indian politician, who was exonerated by the Indian courts, visited in 2007 during Abe’s first term as prime minister and then again when Abe was opposition leader in 2012. “Japan has worked very hard to improve relations with India,” says retired Indian General Vinod Saighal, author of Revitalising Indian Democracy. With a Modi victory, he says, relations “will get a boost, certainly.”

via India Under Narendra Modi Could Be Japan’s Best Friend – Businessweek.

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11/04/2014

Young professionals in Bangalore favour Modi’s promise, shrug off riots | India Insight

As far as Vinod Hegde is concerned, Indian prime minister candidate Narendra Modi bears no responsibility for the 2002 Gujarat riots. More to the point, Hegde doesn’t care.

Hegde, a 26-year-old stockbroker in Bangalore, said that for people like him, the Gujarat chief minister is the only choice to lead India after countrywide parliamentary elections that began this week.

Allegations that Modi failed to stop or even allowed deadly riots in 2002 don’t sway his vote, Hegde said. And if the ruling Congress party’s candidate is Rahul Gandhi, the choice becomes even clearer.

“Even assuming Modi has been responsible for XYZ, we don’t see an alternative,” Hegde said. Referencing a Twitter post by music director Vishal Dadlani, he said, “If I had to choose between a moron and a murderer, I’d probably choose the murderer.”

Not everyone states their case for supporting Modi in such blunt terms, but interviews with young professionals in Bangalore, the information technology hub known as India’s Silicon Valley reveals a calculation in favour of Modi and the Bharatiya Janata Party (BJP) that omits the riots from the equation.

For many people in Bangalore’s highly educated workforce, Modi is a welcome alternative to what is seen as an ineffective and corruption-tainted Congress party. They are part of what some media organizations have called a “Modi wave” that opinion polls, however unreliable, say could bring the BJP to power and push out the Gandhi-Nehru family’s Congress party.

Many BJP supporters see Rahul Gandhi, the party’s leader and the Gandhi family’s heir apparent, as ill suited for the job of running a country that is trying to revive its slowing economic growth and to provide opportunities for prosperity to its burgeoning middle class. (A note for people unfamiliar with this round of Lok Sabha elections: Indians will vote for members of Parliament in their local constituencies, and the winning party’s leadership names its ministers when it forms a new government.)

via Young professionals in Bangalore favour Modi’s promise, shrug off riots | India Insight.

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09/04/2014

India’s Election Choice: Growth Economy or Welfare State – Businessweek

Indian elections aren’t known for their clarity. Messy, cacophonous affairs, they stretch across months and almost invariably result in fragmented verdicts. Political groupings are opportunistic, driven by personality rather than issues; competing party platforms are often indistinguishable.

A shopkeeper displays water sprinklers with portraits of Rahul Gandhi and Narendra Modi in Chennai, India<br />

This year’s parliamentary elections—the nation’s 16th since independence, running from April 7 to May 12—are proving an exception. The distinctions between India’s leading parties are unusually sharp; the race is shaping up as a genuine battle of ideas, a real debate over the direction of the nation.

India’s two main parties are led by men who in many ways couldn’t be more different. Rahul Gandhi, the standard-bearer for the ruling Indian National Congress party, is the scion of a distinguished family that includes three former prime ministers. At 43, he’s also the candidate of youth. Narendra Modi, the leader of the Bharatiya Janata Party (BJP), which is ahead in most polls, is 63, a self-made man, and an experienced administrator who has served for more than 12 years as the chief minister of the state of Gujarat. Gandhi espouses a brand of secular, inclusive politics; Modi is viewed with suspicion by many for a series of bloody communal riots that took place under his watch in Gujarat. (The Indian courts exonerated him of personal involvement.)

via India’s Election Choice: Growth Economy or Welfare State – Businessweek.

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08/04/2014

Singapore Airlines to Start First-Ever A380 Superjumbo Flights into India – India Real Time – WSJ

Singapore Airlines Ltd.C6L.SG +0.68% will be the first commercial carrier to operate Airbus A380 superjumbos into India next month, after authorities there lifted a years-long ban on the world’s biggest jetliner.

The first A380 delivered to Singapore Airlines arrives at the Airbus Delivery Centre in Toulouse Blagnac, southern France, in this file picture taken October 15, 2007. Reuters

Singapore’s flag carrier says starting from May 30 it will deploy the double-decker A380, which seats up to 471 passengers, on daily flights to New Delhi and Mumbai, India’s two largest aviation hubs.

Those flights will replace two existing daily services currently flown by smaller Boeing 777 aircraft that are timed about 90 minutes apart, helping boost cost efficiencies for the airline. Another daily 777 service to both cities will remain unchanged, according to the airline.

Major airlines have been lobbying to fly the A380 into India since the aircraft’s commercial launch more than six years ago. Analysts say it will help alleviate worsening congestion at India’s major international gateways, particularly since the number of passengers is expected to rise in the coming years.

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India prevented the A380’s entry for years because the government feared that foreign carriers would gobble up passenger traffic from state-owned Air India and other domestic carriers using the large planes. None of India’s carriers operate the jumbo jet.

India’s civil-aviation ministry finally lifted the unofficial ban in January, permitting A380 flights to and from New Delhi, Mumbai, Hyderabad and Bangalore as part of efforts to liberalize the aviation sector and revive growth.

Nine of the 10 airlines that currently operate A380s have scheduled flights into India, with at least five having expressed interest in flying the large jet into the country.

via Singapore Airlines to Start First-Ever A380 Superjumbo Flights into India – India Real Time – WSJ.

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07/04/2014

Two Visions for India’s Economy, Sort Of – India Real Time – WSJ

India’s national election, which kicked off Monday, is a contest of old-fashioned socialism versus market liberalism, of handouts to the poor versus pro-growth reforms that will benefit all. Right?

Sort of. At least judging by the two main contenders’ official platforms.

The Bharatiya Janata Party — out of power for a decade — looks set to win big this year, helped by its popular prime ministerial candidate Narendra Modi, who promises to reboot India’s economy with a combination of smart policy and able administration.

But now that the BJP has at last released its election manifesto after multiple delays, it’s easier to see where exactly its economic policy ideas differ from the incumbent Congress party’s – and, perhaps more interestingly, where they don’t.

Both parties promise to revitalize India’s manufacturing sector, long a laggard amid the country’s economic rise. Both say they will implement a national goods and services tax, known elsewhere as a value-added tax. Both want to create a “single-window system” to expedite land, environmental, power and other approvals for investors. Both back the current system of food subsidies, though the BJP highlights that the program should be efficient and corruption-free.

And both parties want to build high-speed rail, stem inflation, modernize infrastructure, make housing affordable, create jobs, expand cities and make taxation more predictable. (Though the BJP wins style points for referring to retroactive taxes as “tax terrorism.”) The BJP even matches the splashiest item in Congress’s manifesto — a commitment to providing “universal and quality health care for all Indians” — with its own call for universal health care.

All of that said, the manifestos alone do give the BJP an edge in terms of structural reforms that many economists, businesses and investors have long craved from India’s government.

The party’s manifesto speaks of addressing “over-regulation” in business and “bottlenecks” in the delivery of public services. Its section on developing agriculture focuses more on investing in productivity-enhancing technology than on increasing government subsidies, which the Congress manifesto notes as a major achievement of its decade in office.

The BJP says it will “rationalize and simplify the tax regime,” which the party calls “currently repulsive for honest taxpayers.” The Congress manifesto merely reiterates its support for the Direct Tax Code, an earlier legislative effort to eliminate tax distortions and improve compliance that has stalled in Parliament’s lower house.

The BJP also says it will review India’s creaking labor laws, which it decries as “outdated, complicated and even contradictory.” The Congress manifesto, meanwhile, “recognizes the need for creating flexibilities in the labor market” while redoubling its commitment to “protecting the interests of labor through more progressive labor laws.” The World Bank said in a report last year that India’s “cumbersome and complex” labor policies “have unambiguously negative effects on economic efficiency.”

via Two Visions for India’s Economy, Sort Of – India Real Time – WSJ.

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07/04/2014

Facts and figures for India’s 2014 general election | India Insight

Voting in the 2014 election begins on April 7. More than 814 million people — a number larger than the population of Europe — will be eligible to vote in the world’s biggest democratic exercise.

Voting will be held in nine stages, which will be staggered until May 12, and results are due to be announced on May 16. Elections to state assemblies in Andhra Pradesh, Odisha and Sikkim will be held simultaneously.

Around 930,000 polling stations will be set up for the month-long election using electronic voting machines, first introduced in 2004.

Uttar Pradesh has the most eligible voters (134 million); Sikkim the lowest (about 362,000). Male voters constitute 52.4 percent of the electorate but women voters outnumber men in eight regions — Puducherry, Kerala, Manipur, Mizoram, Daman & Diu, Meghalaya, Goa and Arunachal Pradesh.

About 23 million eligible voters have been enrolled in the 18 to 19 age group, nearly 3 percent of India’s voters.

Of India’s 814.5 million eligible voters, 28,314 identify themselves as transgender and their gender is listed as “other”. There are 11,844 non-resident Indians registered to vote in the election this year.

Since introducing photo voter ID cards and electoral rolls in 2009, 98 percent of India’s eligible voters have the former, 96 percent have the latter.

Electronic voting machine security includes: transported under armed escort and stored in strong rooms, with a double lock system and guarded 24×7 by armed police, and CCTV coverage. Also, parties/candidates allowed to keep a watch on them.

Nearly 10 million officials (including police for security) will be deployed.

Uttar Pradesh has the most Lok Sabha seats (80) while the states of Nagaland, Sikkim, Mizoram and the union territories have one seat each.

A candidate can spend up to 7 million rupees ($116,350) for his election campaign in Delhi and all states except Arunachal Pradesh, Goa and Sikkim. For these states and other union territories, the limit is 5.4 million rupees ($90,000).

A candidate for the Lok Sabha makes a deposit of 25,000 rupees ($415) at the time of filing the nomination. If the candidate fails to get a sixth of the total valid votes polled, this amount is forfeited. Nearly 85 percent of the candidates lost their security deposit in the 2009 election.

In the 15th Lok Sabha, around 78 percent of the members have a graduate, post-graduate degree or a doctorate.

Malkajgiri in Andhra Pradesh is the biggest Indian constituency in terms of voters with around 2.95 million electors; Lakshadweep is the smallest with 47,972 voters. In Lower Dibang Valley district of Arunachal Pradesh, Hukani polling station has 22 registered voters. Officials travel 22 km on foot to get there.

In the 2009 election, 363 political parties took part. The Bahujan Samaj Party contested the maximum number of seats (500 out of 543), followed by the Congress (440) and the Bharatiya Janata Party (433).

The last general election had a voter turnout of over 58 percent. Nagaland (89.99 percent) had the highest turnout while Jammu & Kashmir (39.68 percent) saw the lowest.

Namo Narain of the Congress party beat his BJP rival by 317 votes in Rajasthan’s Tonk Sawai Madhopur constituency — the smallest margin of victory in the 2009 election.

“Basic Minimum Facilities” for polling stations include drinking water, shed, toilet, ramp for disabled voters.

Voters will have a “None of the Above” option on voting machines.

The indelible election ink that is applied while electors cast their votes is manufactured by Mysore Paints & Varnish Limited, a Karnataka government undertaking.

Narendra Modi of the Bharatiya Janata Party has emerged as the favourite in opinion polls, which reflect waning support for Rahul Gandhi’s Congress party that wrested power from the BJP in 2004.

Modi, the chief minister of Gujarat, will also be challenged by a clutch of regional parties that are vying for power as part of a “third front” opposed to both the Congress and the BJP.

Also in the race is Arvind Kejriwal’s Aam Aadmi Party, which made a stunning debut in Delhi elections last year and is now eyeing a national presence on the anti-corruption plank.

via Facts and figures for India’s 2014 general election | India Insight.

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02/04/2014

India’s Greatest Hits: A List of Foreign Firms Grappling With the Government – India Real Time – WSJ

When India’s top court Wednesday ordered Samsung Electronics Co.005930.SE +1.34%’s chairman to appear in person to face criminal charges, it was par for the legal course here.

Judges and other authorities in India have been cracking down on international firms in recent years, making some executives wary of investing in Asia’s third-largest economy.

Many of the best-known global names that have made the biggest bets on India are facing massive tax claims and other actions.

Here is a short list of some of the international companies – which together have invested billions in India – and are now stuck in high-profile battles with authorities:

*Samsung Electronics Co.– India’s Supreme Court ordered Samsung Chairman Lee Kun-hee to come to India within six weeks to face criminal charges in the city of Ghaziabad or risk arrest. The order was in connection to a four-year-old case in which an Indian supplier claims a Samsung subsidiary failed to pay bills totaling more than $1 million. Samsung said its chairman has nothing to do with the case in which it claims Samsung is the victim of fraud.

*Vodafone Group PLC–The British telecommunications giant has been struggling for years to avoid paying a $2 billion-plus tax bill connected to its 2007 purchase of a 67% stake in the Indian operations of Hutchison Whampoa Ltd.0013.HK +0.48% Vodafone fought the government in court and won In 2012. Soon after, however, New Delhi retroactively changed its laws to allow it to tax the transaction. Vodafone maintains that it does not owe the money and says it is in discussions with the government.

*Nokia Corp.—Indian tax authorities say the Finnish phone company claimed a wrongful exemption on exports and owes billions of dollars in allegedly unpaid taxes. NokiaNOK1V.HE +1.19% denies it owes the tax bill, but the Supreme Court of India said the company has to pay the taxes before its Indian assets can be transferred to Microsoft Corp.MSFT +1.04% as part of its $7.5 billion acquisition of Nokia’s businesses.

*Google Inc.–Internet giant GoogleGOOG +1.80% is being investigated for allegedly anti-competitive policies related to its advertising and search businesses. Last month, India’s antitrust body imposed a 10 million rupee penalty on the Internet search leader, to punish it for failing to cooperate with its probe. Google said last week that it is compliant with Indian law and cooperating with the investigation.

International Business Machines Corp.IBM +1.03%—India last year asked IBM to pay hundreds of millions of dollars in back taxes left over from alleged underreported income. IBM said it is challenging the tax bill.

*Sahara Group—The property-to-media conglomerate is not a foreign firm, but still a telling tale for any international executive thinking of ignoring Indian courts. The group’s flamboyant founder, Subrata Roy, was jailed after failing to show up at hearings connected to a case where his group is accused of allegedly failing to return money to bond holders. Sahara said it is trying to raise the money to pay back investors and has asked that its chairman be released to help it come up with the money

via India’s Greatest Hits: A List of Foreign Firms Grappling With the Government – India Real Time – WSJ.

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01/04/2014

The Links Between the Delhi and Mumbai Rape Cases – India Real Time – WSJ

The two crimes were strikingly similar: In both, a young, ambitious woman was gang-raped by a group of impoverished men in one of India’s premier cities.

But their connection didn’t end there.

National outrage at the first case, involving a physiotherapy student who died from her injuries in New Delhi in Dec. 2012, arguably had an impact on how the country reacted to the second, in which a photojournalist in Mumbai was attacked while out on an assignment in an abandoned area of the financial capital.

They are also linked through the law.

The Delhi rape triggered changes to legislation to protect women that were subsequently used to convict the men charged with the attack in Mumbai.

Parts of that toughened up legislation, which made death the maximum penalty for rape in the case of repeat offenders, are also being used, for the first time, against the men guilty of gang-raping the Mumbai photojournalist.

Three of the four men convicted of gang-raping the photojournalist have also been convicted and sentenced to life in prison for gang-raping a telephone receptionist a few weeks earlier at the same location.

This makes them repeat offenders, so eligible for the death penalty, said the public prosecutor when he pressed fresh charges against the men last week in the hope of securing a death sentence for them at a trial court in Mumbai.

In the case of the Delhi victim, the attackers were punished under the previous version of the law, which awarded the death penalty for murder in the rarest of rare cases but set the maximum penalty for rape to a life term of 14 years.

The trial judge in the case in Mumbai allowed the prosecutor to introduce the new charge of repeated offense before sentencing began, but the defense lawyers appealed against the decision in the high court. The defense also challenged the constitutional validity of handing the death penalty to repeat gang-rape offenders.

The Mumbai High Court rejected the defense’s appeal against the fresh charges but refrained from expressing  its view on the “tenability of framing additional charge.”

The judges added that their decision not to interfere in the trial court hearing fresh charges should not be construed as approval.

The High Court judges also observed that sentencing repeat gang-rape offenders to death could bypass the “rarest of rare” criteria, which has long been invoked to prevent judges from using the death penalty too frequently or in an arbitrary manner.

via The Links Between the Delhi and Mumbai Rape Cases – India Real Time – WSJ.

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01/04/2014

Dharavi’s once-booming leather industry losing its edge | India Insight

A busy street in Asia’s largest slum Dharavi leads to a quiet lane where Anita Leathers operates its colouring unit. As children play near shops that sell everything from mobile phones and garments to raw meat and sweets, the mood at the leather unit is sombre.

The leather business is one of the biggest contributors to the Mumbai slum’s informal economy, estimated to have an annual turnover of more than $500 million. About 15,000 small-scale industries, spread over an area of 500 acres, deal in businesses such as pottery, plastic recycling and garment manufacturing.

But the leather trade has been hit hard by increasing competition, an influx of cheap Chinese goods, rising raw material costs and labour shortages in recent years, leading to a decline in demand and dimming prospects of the once-flourishing business.

At Anita Leathers, which has been colouring and supplying leather sheets to merchants in Mumbai for more than three decades, annual sales fell from 5 million rupees ($83,000) in 2007 to 500,000 rupees ($8,300) last year. This has forced its owner Babu Rao to put some workers on paid leave.

“In every season our sales are falling, there is no business,” said Rao as he chewed tobacco in his Dharavi office where samples of coloured leather were displayed on the wall. “Even retailers are suffering. If customers come, they will buy bags; if bags are not sold, who will buy leather from us?”

Dharavi has earned its distinction among slums because of the entrepreneurial skills of its estimated 1 million residents. While no official statistics are available for the slum, census data shows India’s slum population grew by a quarter to 65 million between 2001 and 2011. Critics have disputed these numbers.

Leather production was one of the first industries to be established in Dharavi when Muslim tanners migrated from Tamil Nadu to Mumbai in the 19th century. But they had to move to the outskirts because the manufacturing process was considered unsuitable for the growing business centre in south Mumbai, according to a 2010 book RE-Interpreting, Imagining, Developing Dharavi.

Leather manufacturing, polishing, colouring and retail became dominant after tanneries were banned in 1996 because of pollution concerns. Still, most of these businesses are struggling.

Also affecting trade is India’s slowing economic growth, rising interest rates and high inflation, which have weakened consumer sentiment in Asia’s third-largest economy.

via Dharavi’s once-booming leather industry losing its edge | India Insight.

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31/03/2014

10 Vital Things Politicians Should Talk About – WSJ

From: http://blogs.wsj.com/indiarealtime/2014/03/31/10-vital-things-politicians-arent-talking-about/?mod=irt&mod=indiablog

Indian politics is disconnected from what India actually wants. A week before the largest democracy on Earth goes to the polls, here are 10 things the electorate is talking about even though most politicians aren’t.

1.     Unfulfilled Aspiration

If there is one thing two decades of liberalization has given us, it was a sense of hope that things can get better, but not at any cost. People want cheaper food, not cheap food. They want cheaper education, not cheap education. When people in villages have a little money, they prefer to send their children to a private school where there children are taught in English over public school where they learn in Hindi, staff are often absent and standards are low. People across India are aspirational.

They will give their vote to whoever taps into a person’s desire for a better future.

2.     Employability

India’s problem is no longer about employment, it is about employability. The trade association, National Association for Software and Services Companies says 75% of technical graduates and 80% of general studies graduates don’t have the skills to get a technical or call center jobs in a country where more than half of the 1.2 billion population is under the age of 25.

Young people want their lives to get better through the jobs they get. But we have to improve their skill sets first. The government has to take a step back and look at the lack of standards and quality that has overtaken our education system. Why are people still flocking to unaccredited colleges and institutes? Because they don’t have a better choice. It is easy to see where their frustrations come from. Unless someone fixes the lack of skills, a demographic nightmare is on its way.

3.     Food wastage and underweight children

Let us connect the dots between India’s inability to build granaries and cold storage centers and the hunger that exists in large parts of the country. India has the largest number of underweight and malnourished children in the world but it also wastes as much wheat each year  as Australia produces – 21 million tonnes.

People want someone to say they will fix this imbalance. Has a single candidate talked about this? You cannot argue that India cannot fix these things in the 21st century.

4.     Drinking Water

In 2012, the Water Resources Ministry essentially told Parliament that in time,groundwater will not be fit for human consumption. The aquifers are drying up and underground water is increasingly polluted or going saline. With India being the world’s largest user of ground water, there is a huge scarcity in the offing.

Add to that, 80% of untreated sewage in India flows straight to into drinking water sources such as rivers and groundwater.  Be it farmers or people living in the cities, access to clean water is by far one of the biggest issues for people across the country. There are ways to address this, such as rain water harvesting, but has a politician promised that on a war footing we can solve it?

5.     Electricity

Three hundred million Indians have never had access to electricity. So when theblackout in 2012 plunged nearly 600 million in darkness – for at least about half of them, it was just another day.

Meanwhile, in a coal abundant nation, all we have heard about energy in the last two years is that the mismanagement of the allocation of coal blocks to private companies resulted in a presumed loss of 1.85 trillion rupees ($31 billion) to the exchequer.

6.     Healthcare

India has barely one hospital bed per 1,000 population compared to the global average of nearly three beds per 1,000. We have one operating theater per 1,000 people. This at a time when the World Health Organization estimates that India is one of the few countries in the world where people have to pay the maximum proportion of their wages for private healthcare – and the Harvard School of Public Health calculates that the country’s economic losses due to non-communicable disease between 2012 and 2030 will be $6.2 trillion. There is an unprecedented crisis of public health and it cannot be resolved in a hurry.

7.     The Disease Burden

Our disease burden is one of the largest in the world. We lost 9.2 million productive years to heart disease in 2000. By 2030, the number is likely to rise to 17.9 million productive years. There are no immediate solutions for India and it spells potentially huge economic losses.

8.     Civilian Safety

Gun violence is one of the biggest killers in India. Nearly 40 million Indians own guns. Barely 15% of these are registered weapons. India has the second largest civilian ownership of guns, second only to the United States. Around 80% of all murders in India are carried out using these illegal guns. This is one of the biggest security challenges of India – but it is hardly addressed because many of those guns are connected to politics and politicians.

9.     Outdated Justice System

There are 30 million court cases pending in courts across India and a backlog of 66,000 cases in the Supreme Court. The system is sluggish. People don’t feel there is a justice system that can back them up or give them any sense of closure. India needs at least 75,000 new judges in the next 35 years and Indians want a government that can create more courts and hire more judges.

  1.  Inefficient bureaucracy

Communicating with an Indian bureaucrat is a terrible experience. They are unapproachable. You have to argue for your rights. Citizens want a voice and any way for them to be heard now is entirely absent.

Other than the elections, there is no other way for the electorate to show their frustration towards a system that is willfully unresponsive; that does not care about accountability. There is incredible frustration here – people, and businesses, are not willing to put up with such inefficiency much longer.

Hindol Sengupta is a senior editor at Fortune India magazine and author of “100 Things To Know And Debate Before You Vote” (Harper Collins). Follow India Real Time on Twitter @WSJIndia

 

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