Catch the Signal of Change
Economic Times, February 27, 2012

By Pradeep S Mehta

Is India a banana republic or a dirigisme economy? Neither. Firstly, we are not a small country with a single export item, and we are neither a state-controlled economy. However, there is a preponderance of both elements in our governance system. In a colloquial sense, we are no better than a banana republic, where public interest is given the short shrift and crony capitalism rules. The state does control a large part of our economy, particularly natural resources, and has failed in allocating them in a fair manner to the best possible bidder, whether it is minerals or oil or spectrum. And private interest overrides public interest, coupled with unjust enrichment of the polity, babus and businesses . More...

Why we must normalise Indo-Pak trade
The Financial Express, February 14, 2012

By Pradeep S Mehta and Faisal Ahmad

The Indian commerce minister’s visit to Pakistan is likely to help develop a sustainable model of bilateral trade. In order to have a comprehensive and deeper engagement, both countries need to focus on several issues besides tariffs that act as impediments to bilateral trade and regional integration. A bilateral cooperation package covering transport and connectivity, harmonising standards in pharma, textile, cement, food products etc, streamlining financial institutions and banking facilities, and working for a common competition regime in South Asia has become a highly desirable goal. We thus need maintain the momentum of optimism of smoother business relations, taking it towards a peak. Here, two vital ideological considerations need continuous attention. One is political willingness, and the other is the effort to eliminate the trust deficit through change of hearts on both sides!. More...

A step for Indo-Pak trade normalisation
The News, Pakistan, February 05, 2012

By Pradeep S Mehta

The forthcoming visit of Indian Commerce Minister to Pakistan on February 13 is likely to make way for developing a sustainable model of bilateral trade. The Maldives SAARC Summit has already asserted the vitality of bilateral cooperation as a necessity not only for the region, but for all their trading partners as well. The Pakistan’s Cabinet nod for grant of Most Favoured Nation (MFN) status to India and the Indian Prime Minister’s optimism for gradually moving toward Preferential Trade Agreement (PTA) are defining the baselines of trade normalisation. The visits by the two commerce secretaries: Rahul Khullar and Makdhoom Amin Fahim to Pakistan and India have generated an atmosphere of optimism. This has been resonated by not only the business community on both sides but also echoed by policy honchos as more than baby steps. Further, Makhdoom Fahim’s declaration that they now have the mandate from their establishment to move ahead in this direction reflects the hubris.  More...