The Hindu Business Line : Annual reflections

AS ANOTHER December ends, one is inevitably reminded of unmet targets and unfulfilled promises, public and private, and can too easily give way to wistful regret.

A perennially optimistic friend of mine used to say, whenever we discussed something not matching expectations, let's see if there has been a positive displacement. In other words, even if the government or a company in question has not met its professed targets, do we see any encouraging signs at all?

We should in most cases be happy to settle realistically for that, he would say. It sounds admittedly a rather conservative or fatalistic attitude. Yet, on the whole it is a sensible one to take in Indian conditions. Otherwise, one can be overwhelmed by the bad news flooding in from all directions.

A year that began with the tsunami ended, for Chennai, with a historic deluge and its aftermath. In between we had much else, including the Mumbai floods, the earthquake in Kashmir and the other scandalous political tremors that rocked Parliament and many political tectonic plates — including the Congress, the BJP and the Shiv Sena. In cricket, the year saw India sweep Sri Lanka aside, while the soap opera of the erstwhile captain's stop-go career went on.

Yes, the positive displacement was indeed visible. We managed after many a season to implement the Value Added Tax, to good initial effect too. After much to-ing and fro-ing, the price of fuel was marginally adjusted, reducing the potential losses of the oil companies.

In the teeth of internal opposition, further liberalisation in the retail and telecom sectors was essayed, although the Congress had to beat a strategic retreat on divestment in the Navratna PSUs. Some attempt was made in the all-important area of fiscal discipline. The good news on the stock market front, of course, is well known, but few would put it down to irrational exuberance, since industry and the economy as a whole have posted impressive growth rates for two quarters. And the intention to progressively sweep away a tangled web of rebates and allowances in income-tax has been announced.

An effort is being made to appreciate the inherent absurdities of the fringe benefit tax which appeared to treat sales promotion, conferences and advertising as perquisites given to the employee.

As the year ends, the tussle in the oil sector between the management and the owners (which means basically the Minister and his civil service cohort) continues but at least it is in the open. The year was remarkable for the dynamism and buoyancy of the ICT sectors. The mobile revolution well and truly hit Indian society, with a 100 per cent growth in phone ownership for two years running. Few modern technologies (including colour television) have been embraced as passionately by the Indian as the mobile phone has been.

Employment in the BPO and call centre sectors has risen and so too the computer software category, with the big three companies alone accounting for several thousands of new jobs every month. Overall, the stable inflation rate has proved to be a reality and not mere post-Budget hype.

Investment definitely appears to be on the upswing, both from abroad and from Indian investing public, and the commercial and industrial leadership seems upbeat about 2006, with more companies finalising plans rapidly for entries into overseas markets.

While it would be too much to say we've never had it so good, yes, things on the economic and business fronts could have been a lot worse. And I think the country, seen now in many fields as the happening place by the richer nations of the world, deserved the break. Happy Holiday season to you all!

(Feedback can be sent to srchander23@netscape.net)