Outlook For Indian State Run Banks Beginning To Sour

Interest rates increases by the Reserve Bank of India, slowing credit growth and shrinking net interest margins are not the biggest of problems for the Indian State Run Banking Sector. The speed with which loans are going bad in an economy that continues to grow nominally at 13-14% per year are alarming. More...

The Challenge Of The Small Indian Business

Over the last decade the Indian economy has completely opened up and barriers to trade have been almost completely eliminated. This has resulted in a tremendous increase in the standard of living of the average Indian. The productivity of the Indian economy has improved as well. The casualty in the process has been the Indian small business. More...

Relative Prices versus Inflation

Terms of trade have shifted away from agriculture toward manufacturing and away from manufactuing toward services since the industrial revolution started. This shift in terms of trade accelerated during the decades following World War II.

I have maintained that the introducton of 3 billion new producers and consumers into the free market system in the ealy nineties created a potential oversupply of labor for manufacturing (China) and services(India). The technology, media and communication revolution has made services tradeable. At the same time, the introduction of the new producers and consumers has increased the demand for agricultural products while reducing the labor supply to agriculture. More...