TMS Ep225: 5G auctions, Indermit Gill, telecom stocks, middle income trap
India’s first 5G spectrum auction, which kicked off on Tuesday, brought the government far more than officials expected. Telecoms Minister Ashwini Vaishnaw described the participation of telecom operators as “strong”. About one-third of the total auctioned spectrum in value was purchased by major telecom operators on Day 1. We bring you an analysis of what this auction response means.
The World Bank has appointed Indermit Gill as the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. We look at Gill’s rich contributions to development economics, his extensive experience at the World Bank, and what he could bring to the table in his new role.
A “complete economist”, Indermit Gill’s new position at the World Bank will give him the opportunity to train young Indian economists and policy makers on the world stage. At home, telecom stocks are back in the spotlight amid the government’s spectrum auction. But are they worth your hard earned money?
With analysts pointing to higher-than-expected spectrum spending by Reliance Jio and Bharti Airtel, the telecom industry is expected to grow faster to justify its large investments. But this can be a tricky situation if a country falls into the middle-income trap.
A middle-income trap is a situation of economic development in which a country reaches a certain middle income and remains stuck at that level, failing to move into a high-income group. While some experts don’t believe this theory, others swear by it. Tell more about this trap in this episode of the podcast.