Investors value policy stability. Attracting investments will become difficult if decisions are reversed with the change in governments. This is exactly what has happened in Andhra Pradesh, and not for the first time. Some of the recent decisions of the Central government can also affect the investment climate. Business Standard Opinion pieces of the day highlight this and other important policy issues. Our lead editorial argues that as long as governments allow political considerations rather than a commitment to policy stability to dominate, investment in India will continue to be muted and growth will not return to a sustained higher trajectory. Read it here By opting out of the RCEP, India has shot itself in the foot and missed a golden opportunity to be an important player in the affairs, not only of this region but globally.
The argument that India would have had to play second fiddle to China under this arrangement is completely misplaced, as is the belief that it would have led to an upsurge in imports from China, argues former Union minister Yashwant Sinha. Click here to read In the context of imposition of President’s rule in Maharashtra, our second editorial notes: As things stand today, no one has gained from the political shift in the state. The biggest losers are the people of Maharashtra, who don’t have a government and might have to fund another election. Click here to read Now that the Ayodhya issue has been settled largely to majoritarian satisfaction, let’s take a closer look at other asymmetries in modern, aspiring India that deserve focused governmental attention, writes Kanika Datta. Read it here