Inconsistency and Mob Mentality

It is a no brainer to confirm that what is good for the country is good for the economy, industry and the companies that constitute the industry. This would apply to the entire value chain. If that was true then the reverse logic should also apply to a large extent!

This logic has however been given a go by in the recent political developments. There is evidently a double speak by the government on the matter. I was reading a news item of the finance ministry calling the bank unions for talks over the proposed merger of banks about which there are protesting. Here we are at one end of the spectrum justify merger/consolidation of banks to ensure greater strength & optimization of resources and on the other hand we go about taking decisions on bifurcation of states just to appease political classes. It is extremely surprising that successive governments have been procrastinating and holding talks over the need for consolidation banks for years but did not arrive at a decision but took a decision at midnight to bifurcate a state just because one individual has been fasting for a couple of days!

No sooner than an announcement was made regarding one state, the rest of the crowd of political classes joined the chorus making similar demands in other states. Small mercies that I am through having written all my exams - Imagine trying to remember the state capitals of all these states!

This brings me to my next favourite topic of the mob mentality in India. The average Indian firmly believes in my opening statement – what is good for one is good for all! If one person engaging in a activity you will soon find hoards doing the same thing! Be it a business, investing or even frauds!! The media and channels would do well to investigate as to how this information travels so fast down chain!

This mob mentality is already beginning to hurt the telecom companies. The sunrise industry is surely heading towards disaster if companies do not work hard on innovating! The ARPU is dropping quite fast and the only growth in revenue has been through new acquisitions. That is bound to flatten at some point of time. Compounding to the woes number portability is going to add pressures. Consumers are going enjoy but investors may see bloodshed at the market place.