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The government as godfather
The Indian consumer never had it so good. Deals have become steals. Cut-throat competition is leading to an almost farcical situation where all one needs to do is buy a TV to furnish one's entire home - with a "Made in Korea" or a "Made in Japan" tag to boot. Just the shock Indian industry needed to bring home the realities of reform? Perhaps.
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Disciplining NBFCs
Far from being a bolt from the blue, the Reserve Bank's norms for non-banking finance companies (NBFCs) have been on the horizon for at least three years. NBFCs mushroomed in the first episode of reform. Besides, every corporate worth the name floated an NBFC and ensured captive finance, thus bypassing denial of bank funds on grounds of prudence.
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Current-account or trade deficit?
The Reserve Bank report on currency and finance has expressed concern over the rising revenue deficit, widening trade deficit and industrial slowdown. But it believes that despite the widening trade deficit, the current account deficit narrowed to $3,730 million (i.e., 1 per cent of GDP) from $5,889 million (1.8 per cent of GDP). This is a good sign as it is below the manageable level.
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Shareholder rights
There have, of late, been several instances of shareholders agitating at annual general meetings. Poor financial results by companies, and the consequent non-payment of dividends has resulted in shareholders expressing their ire at managements.
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