Best of BS Opinion: Strengthening recovery, India's marine resources & more

Here's a selection of Business Standard opinion pieces for the day
 

Corporate results for the third quarter of the current financial year (October-December 2020) show positive signs across many sectors. Profit margins have improved on the back of lower costs and moderate sales growth. Looking ahead, the 2021-22 Budget’s focus on infrastructure development should encourage investment and employment, which in turn, should help push consumption. However, in this context, as our lead editorial notes, despite all the encouraging signs, there are also reasons for caution. Valuations are running very high, with major stock market indices valued at 40 times earnings. Most of the earnings growth has been discounted and further profit margin expansions are unlikely. Sales growth must rise in order to sustain this recovery.
 

As if demonetisation and convoluted GST implementation were not enough, the Covid-19 pandemic appears to be the final nail in the coffin of many MSMEs. Anecdotal and visual evidence indicates that in cities around the country many service-oriented enterprises have shut down, writes Jaimini Bhagwati
 

India is a laggard in developing its blue economy despite being bestowed with copious marine wealth comprising over 7,500 kilometres of coastline and over two million square kilometres of exclusive economic zone. The infrastructure needed to harness the economic potential of marine resources extending across nine coastal states and 1,382 islands is insufficient for the task, noted our second editorial

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“The government has no business to be in business. When government monetises, that space is filled by private sector of the country. Private sector brings investment and best global practices with them.”

Prime Minister Narendra Modi