India and its economic invincibility b.v.r raghunandan

India and its Economic Invincibility-B.V.Raghunandan, SVS Collge, Bantwal

SDM College, Ujire

August 11, 2011

The Dominance of the USA

• Advanced Technology• Best Healthcare in the World• Private Enterprise• Absence of Government in

Business• Biggest Consumer• Major Trading Partner• Developed Armaments Industry• Well Funded Universities• Military-Industrial-Government

Nexus

The Negative Side

• Highly Polluting Country

• Double Talk and Hypocrisy

• Global Policing• Transparency &

Secrecy• Spying and Hacking• Borrowing Culture• High Cost of Life• Broken Homes

What Went Wrong……

• Too much of Borrowing

• Too much of Risk Taking

• Financial Derivatives• Asset based

Financing• Professional

Managers• Japanese Competition• Chinese Competition

Early Indicators

• Accounting Scandals in 2000

• CDS Meltdown & Sub-Prime Crisis in 2008

• Bankruptcy of Lehman Brothers

• Bank Failures in 2010• Increased Cases of

Bankruptcies• Government Doles

Invincible India• Largest Democracy• Cultural Capital of the World• Diversity• Stability Oriented• Socialistic Belief

Indian Economy• Socialistic• Big Government

Participation in Business

• Government is the Biggest Spender

• Dominant Agriculture• Stability Orientation• Slow Adoption of

Changes• Basic belief in

Regulations• Seasonal Economy

Distinct Features

• Religious Practices• Festivals & Consumption• Saving Habits• Conservative Outlook• Family Ties• Less Dependence on

Borrowing• Different Lifestyles• Cheaper Cost of Living• Tolerance

Problems• Population-Two Way

Sword• Poor Infrastructure• Inefficient Delivery• Ignored Rural areas• Inefficient Government

Departments• Bureaucracy• Corruption• Dependence on

Monsoon

Liberalisation

• Better Infrastructure• Telecom Revolution• New Generation Banks• Disinvestment• Lesser Tax Rates• Insurance Reforms• Reforms of PSU• Financial Sector

Reforms• Rural Inclusion by

Corporates

Future-Strength and Weakness will Continue

Because

• Strength and Weakness are Relative Terms

THANK YOU