The World Bank has said in a report that while uneducated Indian workers have shown resourcefulness despite the constraints they face, the business are too small to improve the well-being of their owners. What India needs is a substantial increase in salaried jobs with growing earnings for the standards of living to rise in the country.
Human development indicators for the southern states of India resemble those of upper-middle-income-countries, while that of the northern states is closer to sub-Saharan Africa. At the same time, the population of northern states has been increasing at a much higher rate than that in the southern ones. As a result, there is an increasing perception in the south is that their resources are diverted to the north, while they become a political minority with little control over the situation.
The biggest problem with the Indian banking sector is a lack of proper checks and balances. Without them, future scams cannot be ruled out. RBI needs to get more powers, besides doing a lot more to ensure that transgressions of the sort seen recently at PNB, ICICI Bank and Axis Bank do not occur elsewhere again.
The first bubble on the BSE dates back to 1863 when the American Civil War began. The conflict choked the supply of American cotton, and importers turned to India. This caused a massive boom in cotton and related stocks, and the commodity was nicknamed "White Gold". The bubble enriched traders beyond their wildest dream, and stocks across the board joined the rally.
However, the bubble met with a familiar end - the end of the Civil War brought about a massive crash, and with it a swathe of bankruptcies.