Rewind. A lot to learn, if willing to listen      

After a recent visit to Singapore, Prime Minister Modi averred that India was a great country, but had a lot to learn from Singapore. He is right. But this implies a willingness to listen to constructive criticism and, alas, such willingness to listen to constructive criticism is missing.

Singapore is a city state that has none of the advantages God has blessed India with. It has no large land mass or natural resources that India is blessed with. It has, yet, converted itself into one of the richest countries in the world, with a per capita income of $62,400, compared to India’s $1,500. Are there lessons India can learn from Singapore?

Certainly! One of the key success factors is a very low level of corruption. When the former Prime Minister of Singapore, Lee Kuan Yew, first came to power, he clamped down strongly on crime and eradicated corruption. The legal system is strong and a timetable is fixed for every case, and is adhered to. Law works for the benefit of the litigant and not the lawyers.

In India, cases drag on and adjournments are granted on the flimsiest of grounds, innumerably, prolonging the matter and denying justice. Our system works for the benefit of lawyers and not the victims of wrongdoing. Yes, India can learn from this system, if it is willing to listen.

Singapore, being a tiny city state, discourages private transport in three ways. All cars are imported; there is no auto plant. A buyer has to obtain a licence to own a car, which sets him back at least $50,000. Then, he pays an import duty of 100 per cent. Finally, every time he drives on a busy road he pays a tax calculated based on usage of road and time of day.

But there are other options, such as public transport (efficient, regular, affordable bus and underground services) and taxis. This results in improved traffic management, and a cleaner environment.

India encourages private transport, because of the jobs created in the auto manufacturing industry, and has neglected public transport. Air quality in metros such as Delhi is terrible, leading to higher healthcare costs. Traffic management is awful. Yes, India can learn from Singapore, if it is willing to listen.

But is it? As a society we seem less willing to listen to well-intentioned criticism of any decision.

This is sad because, at a time when the US is likely to raise interest rates, India’s economy is seeing some green shoots. The better performance of the US economy in Q3, when its GDP grew at an annual rate of 2.1 per cent, compared to 1.5 per cent in the previous quarter, bolsters the case for a hike in interest rates at the December 16 meeting of the Fed.

When the US hikes interest rates, the Chinese currency would come under pressure and Chinese commodity importers may cut back further on imports, as it gets more expensive.

Falling demand from China for commodities (iron ore, coal, copper) has led to prices being cut in half and a sharp decline in world trade. And global trade may be further reduced.

Last week the Sensex closed at 26,128.

India seems to present a silver lining. There is higher demand for automobiles, oil, power and road construction.

Two-wheeler sales in October were up 13 per cent and four-wheelers 21 per cent. Oil demand was up 17 per cent. The Ministry of Roads is aggressively pushing for projects, with the public sector taking a larger share. Coal is no longer a bottleneck.

The Government and the Opposition must have a constructive winter session of Parliament and must clear the pending GST Bill, an important reform.

Yes, a lot can be done and good ideas can be picked up. The key is to listen!

The author is India Head, EuroMoney Conferences

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