‘Public sector presence holding back Indian economy’

New Delhi, Aug 16 (IANS) The "overwhelming" presence of the public sector, which has almost two-thirds share in the banking industry, is holding back the Indian economy, an expert said here on Wednesday.

According to Ruchir Sharma, author and Head, Emerging Markets Equity and Chief Global Strategist, Morgan Stanley Investment Management, the public sector's share in the banking industry is way above the average of one-third in the emerging markets.

Sharma, while delivering a special lecture on leadership organised by industry chamber Ficci, outlined the ten rules that need to be assessed over a time period of five years to determine an economy's current and future outlook.

"These parameters are what he describes as politics, role of state, income inequalities, concentration of wealth from a geographical standpoint, investment, inflation, exchange rate, kiss of debt, demographics, and curse of the cover story," the Federation of Indian Chambers of Commerce and Industry said in a statement.

"Citing the example of Indian banks, Sharma said that public sector's share in the banking industry is two-thirds, which is way above the average of one-third in the emerging markets. Thus, India has a low rank of around 2-3," it added.

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