RISING SUN
SENIOR MEMBER
- Joined
- Jun 1, 2012
- Messages
- 4,015
- Reaction score
- 0
- Country
- Location
'I think most would rather have India's problems than the West's'
NEW DELHI: India, staring at the slowest pace of economic expansion in a decade, can afford to lose a few percentage points of growth to greater public activism if the end result is better governance, says Anshu Jain, co-chief executive at Deutsche Bank.
Jain, the first person of Indian descent to head a large European bank, told ET that India's mostly supply-side problems were any day preferable to the ones bedeviling the West as he exhorted policymakers to tackle the budget deficit, prevent a credit rating downgrade, and frame "stable and predictable" rules to attract overseas capital. "India is growing far slower than it could be for a variety of reasons related to politics and governance... But I think sacrificing some growth in the near term is a price worth paying for the higher level of public engagement and activism," he said in an exclusive 90-minute interview, his first globally since taking charge as Deutsche co-CEO last year.
Read : Full Interview
Jain, who was born and raised in India and is now a British citizen, said the country's true potential could be realised by supply-side reforms and more efficient targeting of subsidies. In any case, the problems India was grappling with were the opposite of what Western economies faced.
"I think most would rather have India's problems than the West's as it is far easier to solve these supply-side problems than overcome structural demand-side ones," said the alumnus of Delhi's Shri Ram College of Commerce.
Jain, who ran Europe's most successful investment bank that he built into a global bond trading powerhouse, praised the recent burst of reforms in India and noted that the country was at an inflection point and needed to avoid a ratings downgrade.
"A sovereign downgrade would be a negative development and would place further pressure on the rupee... The Indian economy's greatest problem is its budget deficit. The country's credibility with investors cannot remain high if the budget deficit and trade deficit together are running at 8-9%," he said.
I'd rather have India's problems than the west's: Anshu Jain, co-CEO, Deutsche Bank
The government is trying hard to repair its finances and its recent reforms burst has elicited a lot of positive commentary. The global investor outlook towards India is slowly turning positive - January has seen inflows of $2.3 billion into the markets - but experts warn against complacency.
Finance Minister P Chidambaram, on a tour through Asia and Europe to woo investors, is trying hard to contain the deficit at the revised target of 5.3% of GDP. The current account deficit, a broad measure of trade in goods and services, hit a record high of 5.4% in the September quarter, a level not even seen during the peak of the balance of payments crisis of the early 1990s. The government this week raised import duties on gold to 6%.
Jain, who hosts Chidambaram in Frankfurt next week, said overseas capital was "useful and necessary" for India and urged stable policies to attract it. "On the regulatory side, India's FDI regime should be made stable and predictable. In fact, I would say the FDI regime is part of a broader set of issues related to improving the ease of doing business."
Keenly sought for his thoughts on the global economy, Jain said though the world economy had seen off the most acute phase of the crisis, helped by some unprecedented level of liquidity - $7 trillion since 2007 - infused by central banks, significant risks remained.
"The storm clouds have not parted completely and I still see significant issues to keep an eye on," Jain said.
'I think most would rather have India's problems than the West's' - The Economic Times
His inter view to the today's Economic Times is great.
'I think most would rather have India's problems than the West's'
NEW DELHI: India, staring at the slowest pace of economic expansion in a decade, can afford to lose a few percentage points of growth to greater public activism if the end result is better governance, says Anshu Jain, co-chief executive at Deutsche Bank.
Jain, the first person of Indian descent to head a large European bank, told ET that India's mostly supply-side problems were any day preferable to the ones bedeviling the West as he exhorted policymakers to tackle the budget deficit, prevent a credit rating downgrade, and frame "stable and predictable" rules to attract overseas capital. "India is growing far slower than it could be for a variety of reasons related to politics and governance... But I think sacrificing some growth in the near term is a price worth paying for the higher level of public engagement and activism," he said in an exclusive 90-minute interview, his first globally since taking charge as Deutsche co-CEO last year.
Read : Full Interview
Jain, who was born and raised in India and is now a British citizen, said the country's true potential could be realised by supply-side reforms and more efficient targeting of subsidies. In any case, the problems India was grappling with were the opposite of what Western economies faced.
"I think most would rather have India's problems than the West's as it is far easier to solve these supply-side problems than overcome structural demand-side ones," said the alumnus of Delhi's Shri Ram College of Commerce.
Jain, who ran Europe's most successful investment bank that he built into a global bond trading powerhouse, praised the recent burst of reforms in India and noted that the country was at an inflection point and needed to avoid a ratings downgrade.
"A sovereign downgrade would be a negative development and would place further pressure on the rupee... The Indian economy's greatest problem is its budget deficit. The country's credibility with investors cannot remain high if the budget deficit and trade deficit together are running at 8-9%," he said.
I'd rather have India's problems than the west's: Anshu Jain, co-CEO, Deutsche Bank
The government is trying hard to repair its finances and its recent reforms burst has elicited a lot of positive commentary. The global investor outlook towards India is slowly turning positive - January has seen inflows of $2.3 billion into the markets - but experts warn against complacency.
Finance Minister P Chidambaram, on a tour through Asia and Europe to woo investors, is trying hard to contain the deficit at the revised target of 5.3% of GDP. The current account deficit, a broad measure of trade in goods and services, hit a record high of 5.4% in the September quarter, a level not even seen during the peak of the balance of payments crisis of the early 1990s. The government this week raised import duties on gold to 6%.
Jain, who hosts Chidambaram in Frankfurt next week, said overseas capital was "useful and necessary" for India and urged stable policies to attract it. "On the regulatory side, India's FDI regime should be made stable and predictable. In fact, I would say the FDI regime is part of a broader set of issues related to improving the ease of doing business."
Keenly sought for his thoughts on the global economy, Jain said though the world economy had seen off the most acute phase of the crisis, helped by some unprecedented level of liquidity - $7 trillion since 2007 - infused by central banks, significant risks remained.
"The storm clouds have not parted completely and I still see significant issues to keep an eye on," Jain said.
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/i-think-most-would-rather-have-indias-problems-than-the-wests/articleshow/18157963.cms
His inter view to the today's Economic Times is great.
NEW DELHI: India, staring at the slowest pace of economic expansion in a decade, can afford to lose a few percentage points of growth to greater public activism if the end result is better governance, says Anshu Jain, co-chief executive at Deutsche Bank.
Jain, the first person of Indian descent to head a large European bank, told ET that India's mostly supply-side problems were any day preferable to the ones bedeviling the West as he exhorted policymakers to tackle the budget deficit, prevent a credit rating downgrade, and frame "stable and predictable" rules to attract overseas capital. "India is growing far slower than it could be for a variety of reasons related to politics and governance... But I think sacrificing some growth in the near term is a price worth paying for the higher level of public engagement and activism," he said in an exclusive 90-minute interview, his first globally since taking charge as Deutsche co-CEO last year.
Read : Full Interview
Jain, who was born and raised in India and is now a British citizen, said the country's true potential could be realised by supply-side reforms and more efficient targeting of subsidies. In any case, the problems India was grappling with were the opposite of what Western economies faced.
"I think most would rather have India's problems than the West's as it is far easier to solve these supply-side problems than overcome structural demand-side ones," said the alumnus of Delhi's Shri Ram College of Commerce.
Jain, who ran Europe's most successful investment bank that he built into a global bond trading powerhouse, praised the recent burst of reforms in India and noted that the country was at an inflection point and needed to avoid a ratings downgrade.
"A sovereign downgrade would be a negative development and would place further pressure on the rupee... The Indian economy's greatest problem is its budget deficit. The country's credibility with investors cannot remain high if the budget deficit and trade deficit together are running at 8-9%," he said.
I'd rather have India's problems than the west's: Anshu Jain, co-CEO, Deutsche Bank
The government is trying hard to repair its finances and its recent reforms burst has elicited a lot of positive commentary. The global investor outlook towards India is slowly turning positive - January has seen inflows of $2.3 billion into the markets - but experts warn against complacency.
Finance Minister P Chidambaram, on a tour through Asia and Europe to woo investors, is trying hard to contain the deficit at the revised target of 5.3% of GDP. The current account deficit, a broad measure of trade in goods and services, hit a record high of 5.4% in the September quarter, a level not even seen during the peak of the balance of payments crisis of the early 1990s. The government this week raised import duties on gold to 6%.
Jain, who hosts Chidambaram in Frankfurt next week, said overseas capital was "useful and necessary" for India and urged stable policies to attract it. "On the regulatory side, India's FDI regime should be made stable and predictable. In fact, I would say the FDI regime is part of a broader set of issues related to improving the ease of doing business."
Keenly sought for his thoughts on the global economy, Jain said though the world economy had seen off the most acute phase of the crisis, helped by some unprecedented level of liquidity - $7 trillion since 2007 - infused by central banks, significant risks remained.
"The storm clouds have not parted completely and I still see significant issues to keep an eye on," Jain said.
'I think most would rather have India's problems than the West's' - The Economic Times
His inter view to the today's Economic Times is great.
'I think most would rather have India's problems than the West's'
NEW DELHI: India, staring at the slowest pace of economic expansion in a decade, can afford to lose a few percentage points of growth to greater public activism if the end result is better governance, says Anshu Jain, co-chief executive at Deutsche Bank.
Jain, the first person of Indian descent to head a large European bank, told ET that India's mostly supply-side problems were any day preferable to the ones bedeviling the West as he exhorted policymakers to tackle the budget deficit, prevent a credit rating downgrade, and frame "stable and predictable" rules to attract overseas capital. "India is growing far slower than it could be for a variety of reasons related to politics and governance... But I think sacrificing some growth in the near term is a price worth paying for the higher level of public engagement and activism," he said in an exclusive 90-minute interview, his first globally since taking charge as Deutsche co-CEO last year.
Read : Full Interview
Jain, who was born and raised in India and is now a British citizen, said the country's true potential could be realised by supply-side reforms and more efficient targeting of subsidies. In any case, the problems India was grappling with were the opposite of what Western economies faced.
"I think most would rather have India's problems than the West's as it is far easier to solve these supply-side problems than overcome structural demand-side ones," said the alumnus of Delhi's Shri Ram College of Commerce.
Jain, who ran Europe's most successful investment bank that he built into a global bond trading powerhouse, praised the recent burst of reforms in India and noted that the country was at an inflection point and needed to avoid a ratings downgrade.
"A sovereign downgrade would be a negative development and would place further pressure on the rupee... The Indian economy's greatest problem is its budget deficit. The country's credibility with investors cannot remain high if the budget deficit and trade deficit together are running at 8-9%," he said.
I'd rather have India's problems than the west's: Anshu Jain, co-CEO, Deutsche Bank
The government is trying hard to repair its finances and its recent reforms burst has elicited a lot of positive commentary. The global investor outlook towards India is slowly turning positive - January has seen inflows of $2.3 billion into the markets - but experts warn against complacency.
Finance Minister P Chidambaram, on a tour through Asia and Europe to woo investors, is trying hard to contain the deficit at the revised target of 5.3% of GDP. The current account deficit, a broad measure of trade in goods and services, hit a record high of 5.4% in the September quarter, a level not even seen during the peak of the balance of payments crisis of the early 1990s. The government this week raised import duties on gold to 6%.
Jain, who hosts Chidambaram in Frankfurt next week, said overseas capital was "useful and necessary" for India and urged stable policies to attract it. "On the regulatory side, India's FDI regime should be made stable and predictable. In fact, I would say the FDI regime is part of a broader set of issues related to improving the ease of doing business."
Keenly sought for his thoughts on the global economy, Jain said though the world economy had seen off the most acute phase of the crisis, helped by some unprecedented level of liquidity - $7 trillion since 2007 - infused by central banks, significant risks remained.
"The storm clouds have not parted completely and I still see significant issues to keep an eye on," Jain said.
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/i-think-most-would-rather-have-indias-problems-than-the-wests/articleshow/18157963.cms
His inter view to the today's Economic Times is great.
