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Sushma-Ramachandran

After India bought its oil during Ukraine crisis, Russia keen to invest in India

Sushma Ramachandran Russia seems to be the new kid on the block in the arena of foreign investments in India. Its enthusiasm for investing in India can only be welcome when the economy is showing a slight slackening of growth. The data for the second quarter of the current fiscal - July to September - has shown a rise of only 5.4 percent, the lowest in the last seven quarters. This dip is attributed to the impact of the elections...

India needs to be prepared to deal with Trump's promised tariff hike

Sushma Ramachandran The election of Donald Trump as the next U.S. President has created global concerns over the prospect of trade wars. His declarations during the campaign about raising tariffs on imports from all countries with a special focus on China means that the open nature of the American market will change. At the same time, it must be clarified that protectionist trends have already taken root in the international trading system...

India needs to be prepared to deal with Trump's promised tariff hike

Sushma Ramachandran The election of Donald Trump as the next U.S. President has created global concerns over the prospect of trade wars. His declarations during the campaign about raising tariffs on imports from all countries with a special focus on China means that the open nature of the American market will change. At the same time, it must be clarified that protectionist trends have already taken root in the international trading system...

Indo-US economic ties unlikely to change no matter who moves into White House

Sushma Ramachandran The world’s biggest economy is set to have a change of guard in the coming days. Elections in the United States are being watched avidly by most countries including India as the outcome could impact bilateral ties. Both the Republican and Democratic candidates - Donald Trump and Kamala Harris - have tried to show their warmth towards India during the campaign. The latest salvo was fired by Trump who has assured th...

Baton passes on at Tatas amid rise of Indian businesses with high revenue, ethics

Sushhma Ramachandaran The reputation of the Tata Group for maintaining high standards of corporate governance and being one of the most philanthropic industrial houses in the country has been highlighted in recent days. The demise of the group’s scion, Ratan Tata has prompted an outpouring of commentary over the values on which the business house has been based. The reality is slightly different, however, as its perfo...

Indian Textile industry is awaiting policy changes to reclaim its global share

Sushma Ramachandran One of India’s biggest industries has come back into the limelight recently. The vast textiles and apparel sector which is the second largest employer in the country is proposed to be expanded rapidly. Textiles Minister Giriraj Singh has just unveiled a roadmap to virtually double the size of the industry from the existing 164 billion dollars to 350 billion dollars by 2030. The plan envisages an investment of Rs. ...

UP and Bihar need to catch up with South and West: PMEAC report

Sushma Ramachandran Regional variations in development have been wider than expected in India, judging by a recent report of the Prime Minister’s Economic Advisory Council on the performance of states from 1960-61 onwards. It has shown the impact of differing policies and programmes on the developmental parameters in the country. This became more apparent after the 1991 economic reforms and liberalisation process. ...

Need to liberalise Chinese FDI in non-strategic sectors

This article examines whether it's possible to plug India into the global supply chain without plugging itself into the Chinese supply chain and how can India strike a fine balance between importing goods and importing capital from China. Sushma Ramachandran As India seeks to become part of global supply chains, it faces numerous challenges especially related to the dominant role of China. It is in this context that this year&rsquo...

World Bank asks India to ditch rulebook to escape Middle Income Trap

Sushma Ramachandran A World Bank report has raised questions about the road map for India and other emerging economies to reach the high-income levels of the developed world. It warns that most countries seeking to move out of low-income scenarios tend to get mired in a “middle-income trap”. Getting out of its grip is not an easy task. It suggests that countries like India which seek to become advanced economie...

Modi 3.0 budget acknowledges signals from ground, economic ambitions of India

Sushma Ramachandran Budgets are expected to reflect both political and economic realities. The first budget of the Modi 3.0 government has certainly done so; It has maintained fiscal prudence while seeking to meet widespread concerns over unemployment as reflected in the elections. The deficit has been brought down from the 5.1 percent specified in the interim budget to 4.9 percent without imposing any fresh taxes. Behind The News ...

Modi-Putin meet synergises Russia-India economic ties

Sushma Ramachandran India and Russia are witnessing a resurgence in the economic relationship after several decades. In recent years, the formerly burgeoning rupee-rouble trade had contracted and became confined to defense purchases. Both countries had also been relying increasingly on Western developed countries for consumer goods as well as heavy equipment and machinery. With the onset of the Ukraine war, this scenario has altere...

Modi-Putin meet synergises Russia-India economic ties

Sushma Ramachandran India and Russia are witnessing a resurgence in the economic relationship after several decades. In recent years, the formerly burgeoning rupee-rouble trade had contracted and became confined to defense purchases. Both countries had also been relying increasingly on Western developed countries for consumer goods as well as heavy equipment and machinery. With the onset of the Ukraine war, this scenario has altere...

Complex India-China economic ties need a review

Sushma Ramachandran The complexity of the India-China relationship has become even more tangled in recent weeks. As is evident, there is a wide gap between the tensions of political ties and the closeness on the economic and business front. Even as border frictions have been growing in recent years, bilateral trade has risen while Chinese investments here have been going up. This is evident from mobile phone brands l...

Modi 3.0 must focus on job creation to keep fastest-growing economy flag fluttering

Sushma Ramachandran The new National Democratic Alliance (NDA) government inherits a recovering economy but is equally faced with many challenges. These will be tackled by the newly minted Cabinet which has many familiar faces handling key economic portfolios including Nirmala Sitharaman, Nitin Gadkari, Piyush Goyal, and Ashwini Vaishnav. This brings a sense of continuity that is bound to provide reassurance to both domestic and foreign in...

Indian automakers embark on one trillion dollar export journey

Sushma Ramachandran The next big thing on the export front is likely to be automobiles. Major car manufacturers are making plans to ensure that India becomes a global hub for exports. There are already signs of progress with the latest data for April showing that passenger vehicle exports have risen by as much as 21.1 percent while two-wheeler exports have shot up by 24.3 percent. State of...

Indian economy in the pink of health for the next govt. to breathe easy

Sushma Ramachandran Even as the country is buzzing with heightened political activity during the elections, the economy continues to be on the upswing. Latest data on Goods and Service Tax (GST) collections shows these have crossed the Rs. two lakh crore mark in April for the first time. Petrol consumption has also risen by 12.3 percent while LPG sales have risen by a similar 12 percent. The eight core sector indus...

Flare-up in Iran-Israel conflict could lead to major oil price hike

Sushma Ramachandran he situation in West Asia looks grimmer by the day with Iran and Israel going ahead with retaliatory attacks. Though leading western powers are calling for restraint, it is difficult to predict the future of tensions in the region. The fall-out of these developments is likely to be wide ranging on the economy here but the immediate concern is over global oil prices. These had already been hardening over the past month b...

Idea of living wage as against minimum wage system could transform India

Sushma Ramachandaran The proposed shift from the minimum wage system to the concept of a living wage in this country is likely to have huge repercussions. It could lead to a decline in poverty levels and improve the quality of life for millions of workers. At the same time, it would impose higher costs on the entire range of enterprises from the large industrial houses to the tiny cottage industry. Central and state government projects wil...

Conflicts, rising demand likely to push global oil prices

Sushma Ramachandran Taking advantage of the lower world crude oil prices, prices of petroleum products including cooking gas, petrol, and diesel have been slashed recently. However, just days after this relief to the consumers, there is a real possibility that global oil markets could see a hardening price trend. The benchmark Brent crude is already touching 87 dollars per barrel, after months of hovering in the range of 75 to 82 dollars. ...

At WTO, India again manages to protect its farmers' interests

Sushma Ramachandran The latest ministerial conference of the World Trade Organisation (WTO) in Abu Dhabi ended with few significant outcomes but India managed to continue protection to its farming and fishing communities. It was not possible, however, to make any changes in the method of estimating agricultural subsidies, leaving the global North free to continue providing massive support to its farmers. India which has been repeatedly...

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