Network congestion
The Indian Express, January 20, 2015

By Pradeep S Mehta

All of us suffer because of the frequent call drops and lousy services of mobile phone service providers. Last year, the Telecom Regulatory Authority of India (TRAI) had imposed fines amounting to Rs 5 crore on telcos for poor services. But what is the reason for bad service? Fines have not been deterrents and too much competition has resulted in poor quality services. Indian telecom is frequently cited as an example of the benefits of a market-based sector…India is the world’s second largest telecom market and also the fastest growing. It presents huge opportunities for telecom operators. However, there are concerns that too many operators are competing in the Indian market. More...

How not to contain the fiscal deficit
The Hindu Business Line, January 22, 2015

By Pradeep S Mehta

India is in a precarious situation. More than eight months into the current fiscal, fiscal deficit is almost breaching the annual target; revenue receipts are not reaching even half the yearly target; and over ₹8 lakh crore are pending in direct tax recoveries. Future steps would demonstrate if the government has a long-term strategy in place for fiscal governance…Therefore, containing deficits is important. However, it must be noted that in doing so means are as important as ends. Use of unsuitable means, while providing short-term relief, compromises the ability of a country to develop a long-term fix. More...

Niti Aayog: No quick fix
The Asian Age January 20, 2015

By Pradeep S Mehta

As an institution, Niti Aayog will have to emerge as a credible lean knowledge body or a think tank. In doing so, it needs to be equipped to think through sound policy initiatives for the medium term and beyond to grow the pie. In order to do that, it must have the ability to envision future scenario and suggest corrective steps when required. Secondly, it must also revive the Independent Evaluation Office rather than depend upon an in-house body that has so far proved to be ineffective. In doing all this effectively, it will have to build up sustainable partnerships with the private sector, trade unions, media, think tanks and CSOs. In its second role, it needs to deliver directional and strategic recommendations to the governments on the developmental process. With no clarity on the fate of five-year and annual plans, it remains uncertain how Niti Aayog will achieve this. More...

Addressing civic indiscipline in Jaipur needs education & enforcement
DNA, January 12, 2015

By Pradeep S Mehta

Jaipur continues to take baby steps to achieve its dream of becoming a world class city, but a change in our mindsets is a precursor to its realisation, which is not the government’s responsibility alone. Another act of civic indiscipline is defacement of our road signage. There is a law against defacement, which includes a liability of the poster owner, but enforcement is nil…In the ultimate analysis, it is we the citizens of this beautiful city who have to take up the cudgels of dealing with indiscipline through education and enforcement, and ask the authorities to cooperate. More...

A $10 trillion economy by 2030?
The Hindu Business line, January 09, 2015

By Pradeep S Mehta

A strong national market backed by clean procurement policies and realistic fiscal management can take us there. While the general mood in the country seems buoyant, the business sentiment is not quite in sync. The reasons are well known, but there is ardent hope for progress under Narendra Modi. We need to cross the Rubicon of 5 per cent-plus growth rate and aim for at least 6 per cent in the new financial year, with the goal of turning India into a US$10tn economy by 2030 in absolute terms. More...

Time to Energize BIMSTEC
The Diplomat, January 07, 2015

By Bipul Chatterjee and Surendar Singh

With negotiations stalling at the SAARC, it’s time for India to focus on the Bay of Bengal. It has been more than thirty years since the South Asian Association for Regional Cooperation (SAARC) was formed to promote regional economic cooperation. However, it has made only middling progress. Each time, the SAARC Summit has ended with relative disappointment, as was the case in Kathmandu this year. Like previous summits, it became a hostage to India-Pakistan bilateral issues. More...

A bitter pill for doctors, pharma companies
The Asian Age, January 06, 2015

By Pradeep S Mehta

The ‘symbiotic’ relationship between the pharma industry and medical professionals has greater implications for developing countries such as India, with high private participation in healthcare sector. Many doctors often prescribe a particular brand of medicine for personal gains. To curb this unethical practice, the long awaited Uniform Code of Pharmaceutical Marketing Practices (UCPMP) is finally seeing the light at the end of the tunnel. Alas, it does not cover unnecessary diagnostic tests and surgeries. Yet, it covers a large area in our healthcare system’s distortions. More...

When the regulatory apparatus falls flat
The Hindu Business Line, January 02, 2015

By Pradeep S Mehta

During a recent star-studded seminar in Mumbai on the Indian Financial Code, Finance Minister Arun Jaitley said the government wished to implement a large number of recommendations of the Financial Sector Legislative Reforms Commission (FSLRC), including a cost-benefit analysis of regulations. He said the government had set up four task forces to study the IFC. These recommendations are in tune with the government’s agenda to ease doing business in India. As a result of erratic, unpredictable and frequently changing policies, the cost of doing business is a big problem. Compliance with costly, multiple and antiquated directives of regulatory or government agencies is a burden on enterprises; it eventually smothers economic growth. More...