General Awareness

April 04, 2017 @ 01:15 PM

April 04, 2017 @ 01:15 PM

K. J. Somaiya Institute of Management Studies and Research, Mumbai

9 Easy Steps to register for SIMSR (Infographic)

Download Now

Now, reforms in India seem like a mirage

 MBA aspirants must be updated with General Awareness on current topics. General awareness topics with analytically drawn conclusions will benefit you in Essay writing   / GD & PI. Today, you will read General Awareness Topic:

Now, reforms in India seem like a mirage
 
The Indian government has promised a number of economic reforms to its citizens before the elections. But will these promises remain empty promises or will they bear fruit in the near future? As of now, these promises of economic reforms seem like a mirage or an illusion, far from reality.
 
Earlier this year, the Reserve Bank of India (RBI) reduced the interest rates in order to boost foreign direct investments (FDIs). The government had hoped that by attracting more foreign companies to India, it would be able to address the high unemployment rate, improve the currency value and increase the Indian market’s competitiveness. 
 
Sadly, none of the aforementioned objectives were met. Despite reducing the interest rates, India did not see a significant increase in the number of foreign firms entering India. In addition, the currency’s value decreased to an all-time low of Rs 60.75 to the US dollar in June 2013.
 
Now, the Indian government has decided to increase the caps on FDIs in a number of sectors, including the telecommunications industry. In fact, the Indian government increased the cap for the telecommunications industry from 74 percent to 100 percent in an attempt to enhance foreign revenue flowing into the country. 
 
The government hopes that this foreign revenue will help in financing its enormous current account deficit (CAD), which is 4.8 percent of the GDP. However, the US government believes these sporadic reforms introduced by the Indian government may not be sufficient for the overall growth of the economy. Multi-national corporations (MNCs) prefer to invest in countries in which they are confident in. 
 
Sadly, India does not fall into this bracket.Investors have raised concerns over localization measures undertaken by the Indian government to enhance domestic manufacturing output and achieve objectives related to domestic policies. 
 
In addition, investors are concerned over intellectual property rights, particularly in the pharmaceutical sector, in light of recent actions by the Indian government to impose additional rules for patenting of medicines, which already meet international standards.
 
So, apart from making it easier for foreign companies to enter India, the government should come up with policies that are favorable to these firms. Only when these firms are confident of their survival and success in India will they start a venture here. 
 
So, the Indian government has to work harder than just coming up with reforms. Earlier this year, the Indian government announced that it will enhance the railway sector and build top-class infrastructure that is on par with international standards.
 
How will the Indian government fund these projects when it has a huge current account deficit? Recently, ArcelorMittal and Posco scrapped their multibillion dollar plans of building steel plants in India because of administrative issues like long delays in acquiring land for the project. 
 
This will surely have a negative impact on the sentiments of other investors, and may push other investors to scrape their projects too.
 
Reforms in India will seem like a mirage if the Indian government does not do anything to improve the internal administration conditions. As mentioned by the US government, India has to gain investors’ confidence, which is possible by implementing policies that favor businesses in the long run. 
 
Entry into the Indian market is not the only criterion that businesses look out for; they expect favorable policies during their operations in India too.
 
Read General Awareness Topics, Stay informed and inspired at MBA Rendezvous

Crucial Dates, You Should not Miss

Manav Rachna International Institute
of Research

Admissions Open for all MBA programme at Manav Rachna International Institute of
Research and Studies.
CII School of Logistics Amity University, Delhi and Mumbai
Admissions Open at CII School of Logistics Delhi and Mumbai campus, Apply Now!
GITAM School of International Business, Visakhapatnam
Admissions open for MBA programmes at GITAM. Application Deadline is February 20, 2018
XIME
Application Last Date for Online Submission - February 25, 2018
TAPMI, Manipal
Last date extended to 11 February, 2018. Apply Now.
BIMTECH, Greater Noida
Admissions open at BIMTECH, Greater Noida
ICFAI Business School
Admissions Open at ICFAI Business School Apply Now!
FORE School of Management
Apply for PGDM & PGDM-IB Programmes. Application Deadline is January 18, 2018.
MDI Murshidabad
Applications for PGPM 2018-20 at MDI Murshidabad are open
NIRMA
Last Date to Apply for MBA (Full Time) Programme at NIRMA is January 29, 2018
Institute of Public Enterprise, Hyderabad
Last Date to Apply for IPE, Hyderabad is 21st January, 2018
IMI New Delhi
Admissions Open for Executive PGDM at IMI, New Delhi. Application closes on February 12, 2018.
K J Somaiya Institute of Management Studies & Research, Mumbai
Last date for Application is 31st Jan, 2018
SDMIMD Mysore
Application for PGDM 2018-20 at SDMIMD is open till February 28, 2018
img

Admission Open Now

Following Colleges are accepting applications.

INTERNATIONAL MANAGEMENT INSTITUTE

Admissions open for 2018-20

PGDM, PGDM (HRM), PGDM(B & FS), Executive PGDM

Apply Online