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Journalism of Courage
Paralysis on Raisina Hill is reflected in the absence of top executives in state-owned companies
Policy paralysis is a phrase that has come to define the UPA governments mid-term record,and its implications were brought home recently when growth forecasts for 2011-12 were revised to below 7 per cent. With this,expectations that 8-plus per cent GDP growth had become the new normal for the Indian economy have been shattered. What is most unfortunate is that this slowdown does not result only from a tough global economic outlook it is also,in large part,a result of a failure,or refusal,to undertake incremental reform measures and just routine economic and financial decisions. Put simply,UPA 2 is turning a blind eye even to low-hanging fruit take its less than energetic political groundwork to allow FDI in multi-brand retail. And this paralysis on Raisina Hill has crept into the execution of normal decision-making processes on appointments: almost a dozen of this countrys top state-owned companies are without top executives for long stretches. Put together,it undermines confidence in the governments capacity to steer the economy back to a high-growth trajectory.
Reasons reported for the delay in making appointments include disagreements over candidates and non-receipt of vigilance reports. Yet,whether it be dithering or attempts at favouritism in carrying through these high appointments,the message emanating is a lack of seriousness in governance of this countrys financial and infrastructure companies. Reversing this is crucial to reviving positive sentiment in the Indian economy and attracting investment.
