An “Interest”ing Week
Results of the fourth quarter have been anything but reassuring. With low oil prices, low commodity prices and falling interest rates, we expected more. What really went wrong? Who is really to blame? The investment cycle is just beginning to revive and new projects are very few. The pipeline of pending projects is drying up as more projects near completion. We have seen a time lag in business generation. This is severely hurting the sentiment. The near term outlook seems rather bleak for business. The government’s approach of solving problems was largely a tactical response. We have cleared long pending problems of several sectors. But, this did little to create a broader strategy for fresh investment. The lack of a sound strategy to attract big investments is what is hurting our economy. We need big investments and we need them fast. The thrust of forging strong ties with the West and inviting global investment is the right step in that direction. But, Indian business seems to be tiring and hungry for outcomes. We urgently need something to cheer business. A better than expected cut in interest rates will just be what the doctor ordered. Wait till Tuesday to find out
In investing what is comfortable is rarely profitable.