Archive for May 29th, 2007

More reports on Indian economy

May 29, 2007

I had posted about reports on Indian economy earlier as well ( here (from RBI) and here (From EAC) 

Eleventh Plan document is not yet out, but we have a number of reports from the Planning Commission which would form the base for the 11th plan. As the website says:

“In the context of the formulation of Eleventh Five Year Plan (2007-2012), the following sectorwise WORKING GROUPS/STEERING COMMITTEES/TASK FORCE have been set up by Planning Commission, to make recommendations on various policy matters.”

Most of the reports which have been completed can be seen here.

I was just reading the report on Savings which provides the base of the entire plan. The report is pretty neatly done and explains in detail how much savings need to be generated and the sources to finance the growth. It also includes scenario analysis and portrays different levels of growth and the different level of savings needed to finance the growth.

The report is a good read for someone who needs to understand how savings are computed in India and the trends so far. It has projections but does not discuss in detail. I am waiting for sub-committee reports on the same for some details.

The report also covers SME sector and the approach is still the same- give them more credit. I don’t know when would we have some policy paper discussng the role and development of equity markets for SME.

Incidentally, Planning Commission has an excellent report on role equity capital can play in developing SME sector and innovation in the economy. Somehow, it has few takers or atleast I am not aware of any useful discussion in the public domain on the subject.

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Assorted Links

May 29, 2007

1. A good article from Economic Times on policy with respect to Indian Roads.

2. I was surprised to know that UTI Mutual Fund is the most profitable of the lot. Considering the fact that most of its equity funds are not top performersexcept for UTI Infrastructure Fund (I take equity funds as majority of the incomes come from equity funds ; read the above mentioned article), whether you take pure returns ( 5-year period) or you see it on the basis of alpha only fund you see performing is UTI Infra fund. This means the funds are not performing and still profits continue to go up. So what explains the higher profits?  I need to look at the balance sheets of the various fund houses.

3. A.K. Bhattacharya’s take on Export Promotion Councils.

4. A nice round-up on the Jan-Mar quarter performance of the Indian industry. In a summary, the sales have slowed but due to improving operating margins all seems to be well. The party pooper could be higher interest rates.

5. Jaimini Bhagwat is absolutely right on the state of education in science and technology. It is hightime Indian policymakers do something aabout improving the quality of overall education and dovert their attention from IIM/IITs etc. For people wanting a detailed analysis on the nature of science in India, see the Indian Science Report.

For an excellent discussion on why science and technology is important, read this interview from a damn-good thinker and economist Paul Romer.

6. Some good collection of papers by George Akerlof. Looks like a must read. Thanks to New Economist for the pointer.


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