Monday, August 27, 2007

Politics Vs Indian growth!!!!!!

Indian politics is known for it backlash, its true when ever &wherever there is peace and prosperity rings. Indian political parties come into picture and try to disturb the harmony. Recently three different issues are raised by political parties in all booming sectors: power sector, retail sector, Share market & telecom sector.

Telecommunication sector: On 23, August 2007, Department of Telecom issued a new guideline for children below 16 years will not allowed for using mobile phone because health hazards. According to DoT, electromagnetic radiations emits from cellphone effect the growing tissues of children which may cause health hazards.

But on the other side if we 400 studies on biological and health effects of mobile communication radio frequencies are going on but still researchers are not come on the conclusion that these radiations are really highly hazardous for us. If we see the statistics of mobile usage in India- around 39% of children between 5-16 yrs used personal mobile phones. It’s a big market for telecom operators.

According to Dot, Telecom companies are instructed to roll out their base stations and antennas, including asking operators to install radio base stations away from schools and hospitals. Telecom operators are shocked by DoT new safeguards and are opposing its (DoT’s) move.

Retail sector: 1 or 2 days back UP government shutdown the two retail giants shops in Lucknow & Varanasi on local administration’s recommendations. In the mean time, there was fight between local traders & MFS (Modern format stores). It’s a warning bell for other big players who are expecting to enter in this booming sector. Few months back Reliance fresh faced same problem in Bihar also..

As per my thought there are two possibilities:

1. U.P & Bihar will be left for any development by private player due to such politics & misconduct from local businessmen.

2. These issues will effect new retail entrants physique.

Power Sector: 123 agreement: Today, Left parties are snatching every piece of flesh from UPA government. In fixed period of time Mr. Karat ready for announcing the annoyance against every initiative of UPA government i.e. privatization of airports, Merger of AI & IA (air India , Indian airlines) and now most awaited agreement of nuclear deal .

Unfortunately if the deal will not done it will affect India’s stand in world level esp. at strategic deals with other countries i.e. Australia for uranium etc. Its not a internal regular political tug-of- war between between parties.

ShareMarket: Recent political instability leads share market variation & affect FIIs decisions on investment .

1 comment:

Krista said...

Well written article.