I read an article on Banking in Business World - latest issue. It is captioned as Driving in Reverse Gear..... about RBI's recent decision to hike repo and reverse repo rates by 25 basis points about after a month of GOI's Union Budget and ahead of RBI's Monetary Policy announcement for next year. That is how our policy makers function, of course. It is not simple.
The Financial Services industry players are using some interesting jargon. Reverse Repo, Reverse Mortgage, Reverse Mergers, Reverse Book Building, and so on. In fact, what we have been experiencing in the last about two decades since 1991 is reforms which I could term as reversing of all the previous rules, norms, guidelines, policies and practices. Because it has been found that the economic environment is wanting reforms ie., to undo the previous set of rules or guidelines.
For over four decades since independence, India has been gearing up to be a democratic, socialistic republic but continuing the legacy of British rules; The elected government representatives have also been looking at America and Russia as models in certain fields. Today, we have to look at Japan, Singapore, Hongkong - China or Australia or UAE to develop new models for infrastructure development and economic growth. One thing is sure that now and then we dream of making Mumbai an International Finance Centre like Shanghai and becoming a Financial Super Power. God knows when?