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Blind rush for FDI
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Bikky Khosla | 23 Jul, 2013
A number of businessmen with whom I have had conversation in the last few days are not finding much logic in the Centre's recent decision to hike the foreign direct investment limits in a host of sectors. While some of them are raising concern about national security, which, according to them, could be threatened due to further opening of the FDI gates in sectors like defence, telecom and media, almost everyone I talked to are of the view that the Centre has run out of all other options to pull the economy out of its slump, and now they are pinning all and every hope on foreign investors' money.
Personally, I am not against the idea of opening up of the market, but what I find surprising and worrying is the rush at which the policy makers are churning out such decisions. What are the decisions based on? Are all relevant factors considered before allowing FDI in these sectors? Are we compromising with long-term interest of the national economy for the sake of some 'quick fix' solutions? Such questions are dime a dozen. And most importantly, our national security should always be the top priority.
And now look at the irony: the same day on which the government announced its FDI proposals, South Korean steel major Posco revealed its decision to pull out of Karnataka where it was planning to set up its Rs. 31,800-crore steel plant, citing 'long delay' in acquiring the required land as the reason. The next day ArcelorMittal, another giant in the steel industry, also announced scrapping of its Rs. 40,000-crore integrated steel plant in Odisha, giving similar reason. This may be a mere coincidence but the fact remains that India is still an unattractive place for foreign firms to do business. If the bumps are not smoothed out, FDI invitation is not going to fetch much result.
In the World Bank's 'Doing Business 2013' list, India ranks 132 out of 185 countries. This goes in line with our entrepreneurs' view that time, costs and difficulties in running a business in India are very high, and it is, in fact, so challenging that these days even some local entrepreneurs are showing interest in shifting their manufacturing bases outside the country. I think improving the business ecosystem -- an area to which policy makers have never given much attention -- can bring much more results than any other means.
Now, coming back to FDI, I think the government is creating no less mess by means of confusing guidelines. For example, in September 2012, they lifted curbs on FDI in multi-brand retail but so far no global retailer has moved to file applications. Some experts view that this is because of lack of clarity on some critical issues, such as investment in back-end infrastructure, local sourcing, population limit, etc. Similarly, restrictions on FDI in B2C e-Commerce, which could be a much faster route to attracting foreign investment, haven't yet been removed. These concerns should be urgently addressed.
I invite readers' feedback. Do you think the government is on the right track?
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FDI
Subrata Roy | Mon Aug 26 12:38:20 2013
I am not a expert on the subject to make any credible comment.
However commonsense tells me that the Govt of the day did not try sincerely in its endeavor to do what it had been harping all along in public.
It also failed to build a consensus among the different sections of the political spectrum. The share of the blame also goes to the opposition as well.
In short, the govt. did not show any wisdom or courage to change the DNA of this country which it has been professing for the past decade. When it is itself directionless what do you expect of it. Finally, it has, which we feared the most, resorted to populism hoping to continue in power for the next five years.
We hope post general elections we get to see things improving and pray we have a young and dynamic leader with a vision for this Great Nation who can think and act differently and make betterment of the nation his/her only priority.
It is sad that we are not able to use our young educated dynamic human resource to its full potential.
Our govt has no vision or mission only laid back action.
Prabha Mohanty | Sat Aug 17 06:34:27 2013
It is indeed sad to see our country's economy in such a mess.Our politicians, bureaucrats have no long term strategies,mission nor goal to improve our economy.FDI is like a last minute saving grace for our Govt.But we all know what happens when we let others reap fruits from our garden.The Britishers also came via east India Company only to rule. If only we could have paid heed to improve our small scale manufacturing units to generate employment and improve quality of our products.We could have easily competed with a country like China which is growing economically by capturing various markets.If we do not rise to the present situation and mend our mistakes,the country would soon go for a bigger economic disaster.A few bunch of politicians have no right to meddle with our lives.We need to boost exports, reduce imports from china,encourage technically educated entrepreneurs,manufactures,farmers by providing facilities like easy loan from banks,cheaper land on lease, reduce duty on imports of improved tools and equipment reducing tax liabilities on artisan and handloom products. Planning commission's strategy should also focus on helping the young entrepreneurs who are ready to take risks.Outdated social and poverty reform program need to be discarded.Our bureaucrats should stop blowing trumpet on poverty and social reforms and help technocrats, scientists,designers to build a strong economy.The potential of every Indian needs to be discovered.
For them, it doesn't matter if country goes to hell
Manoharkantak | Sat Jul 27 01:00:48 2013
The present state of our government is such that, to keep the things going they need money. The government expenditure itself is very high, the demand from the coalition partners and the expenses to maintain the superiority over the opposition, by feeding the media. These do not allow the government to perform any development. So out of compulsion, they want to go all out for FDI. It doesn't matter if country goes to hell. They are all above 70 and have made enough for their future generation. Our future generation is going to suffer. We have only elected them.In future there will be more crimes and suicides. This will lead to foreign invasion of our country.MERA BHARAT MAHAN TO MERA BHARAT PARESHAN.
Why no rush to get local industries going
R B Kale | Fri Jul 26 06:40:48 2013
If there is blind rush to get FDI, why there is no blind rush to get our local industries going? To day depreciation rate for plant and machinery is 15 %!!! It was 25 to 30 % till now. And we do not have any investment allowance. And to add to the difficulties we have MAT. There are no new industrial estates where new SMEs/ or MSMEs can come up.NO new industrial estates have come up at least in Maharshtra for last twenty years!!!!
The Interest rate for industries is 14 %
same as for any trader.Earlier we had SFCs and they used to charge much lower rate for MSMEs. All in all Govt has neglected local industries . this has had adverse impact on industrial production.
Govt should realize this before it is too late.
Blind rush for FDI
PM Menon | Fri Jul 26 00:05:09 2013
I would think its more a cynical ruse on public perception and a irresponsible knee jerk stutter by the Govt. The politicians have no clue- they have lost control of the economy with their bigoted short shortsightedness, condescending approach to major corruption within and without, flog the wells without caring that the wells will collapse. The fundamentals what should have been the pillars and foundations for economic stability have been ignored-quality and timely infrastructure, a realistic education, basic health care, openess and transparency in policy formulation, making only Laws that they can implement and decision making based on merits of the case rather than whims and fancies. It would be no surprise that no significant investor will want to set up anything in India, other than perhaps a institution of excellence in corruption and incompetence, which would have many takers, Govt sponsored. Maybe just start with implementing the SC directive on banning criminals from law making bodies. Can they do that? Even the Press seems muffled to take up this issue. So FDI is only a way to go the Western way of- sell out your long term manufacturing and core industries to the likes of ME, Far East, China and get the shoit term hot funds of speculation and hype. Why not take a lesson from UK and Germany who have got hundreds of ,millions returned by SWISS banks of illegal money stashed away?? That alone will fulfill more than what any FDI rush can do , many times over
Indian leading business groups can make difference
NandkshOr T0SHNIwAL | Thu Jul 25 23:44:33 2013
Given identical facilities I am confident Indian leading business groups can raise and bring in huge FDI in their existing business in form of deposits, loans and equities
Now selling the country because can't run the country
POLLY | Thu Jul 25 09:47:07 2013
We need to sort out the basics like
rule of law, efficient implementation of policies from local to
national level- lacking seriously as always. Now we are selling the
country because we can't run the country. Our national security is
seriously threatened and there is no assuring statement from defense
minster ! And corruption is a way of life ! We deserve to be slaves
again unless we choose the competent and honest representatives and
demand all that we can from them or tell to go.... We can't be fools
all our lives. Wake up or suffer for ever.
FDI may be desirable but . . .
Uday Gosavi | Thu Jul 25 05:04:48 2013
FDI may be desirable but a country unable to stand up to a China's bullying by merely increasing tariffs on Chinese goods, their leaning toward Huewei for telecom, inability to finalize defence deals which would bring in currency is surprising. We do not need a Walmart but more effective storage facilities for perishable produce. Clearing the already constructed warehouses (pending for want of Govt inspection??) for grain around the country rather than clearing Walmart in India would probably be a better action.
Learn from Brazil
Abhay Sharma | Wed Jul 24 20:11:57 2013
I agree, in my point of view any govt. should allow FDI only when the internal industry is strong enough to compete with these giant foreign investor. If they think they can bring economy back by opening FDI doors then it is their mistake. Economy depends on many facts other than Investment only. Policies, customer confidence, investor confidence, reliability, sustainability, political stability are some of the factors which drive economy. Blindly opening doors for FDI without analysing internal and external situations will definitely hurt countries interest soon or later.
I am residing in Brazil, economy here is also not doing very well, but their approach to handle this situation is different and in interest of country.
Start facilitating local investors
Amir Ladak | Wed Jul 24 17:46:36 2013
Let the government start facilitating local investors. In my view this should generate enough investments that FDI will become unnecessary. The state of Gujarat provides a solid example of how investors can be attracted.
Open only in wholesale multi brand
ASHOK KANKARIYA | Wed Jul 24 17:25:02 2013
Government should open door for FDI only in wholesale multi brand. They can sell only and only to retailer and deliver to there door step.
Always better to utilise domestic facilities, investments
Rajappan | Wed Jul 24 17:21:51 2013
It is always better to utilise domestic facilities and Investment for growth. Modern machinery if required shall be purchased from out side. Here, we have plenty of raw materials and skilled man power. But, we lack intelligent and efficient management. The administration with a slavery mind and with highly corrupt practices are the disgraces to our Country. It is simply a fact, no body from outside will come without definite motive of expansion of their business.
For our Country, agriculture and connected products and definitely, IT based Industries with intelligent Man power are the best. Here, we have plenty of raw materials, but highly inferior Infrastructure.
Hope, one day we can utilise every thing for the betterment of our Great Country.
Investors are not waiting in queue
Raje Swali | Wed Jul 24 15:29:06 2013
I feel our ministers live in Ivory towers , they think Investors are waiting in queue to come to India , its sad but reality is way different , some day I hope our ministers wake up .
Ask an SME owner what it takes to survive and do business in this country , Jungle of laws have been created over years to catch the dishonest but sad part is honest businessman suffers and dishonest who does not follow the law gets away with it .
Tribals are suffering in Odisha
N K MADHI | Wed Jul 24 15:12:22 2013
Mittal is never known to have setup any new steel plant. He purchases old/ready built plant. He did not do even basic work in Odisha but expects huge mining area? Your article contains half truth. Do you think that the land should be handed over at almost free of cost to set up plant while Tribal/landowners get pittance. Do you know that a tribal is not allowed to carry on any business in his own land in Odisha (Tribal are not allowed to take loan for business purpose mortgaging the land) but u people want his land to be handed over to non tribal/FI for business purpose! on the very same land?
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Re: Tribals are suffering in Odisha
Prithvi | Thu Jul 25 17:11:58 2013
I agree that no investment is worth it that is at the cost of welfare of its people. Any development has to be inclusive.
If that be the facts let the government work to resolve issues. An informed swift decision making is required.
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Govt looting the public through various scams, eyes election
Shankar | Wed Jul 24 14:25:35 2013
It appears UPA 2 wanted to show some dramatic results before 2014 and somebody might have suggested FDI in some sectors.
Ironically, with the present global economic situation and the status of the Indian economy, this could have been postponed at a later date. The dismal performance of UPA 2 may be mainly due to total mismanagement like looting the public through various scams and governments failure to arrest and punish the guilty and failure to set the house in order. With the good monsoon, our economy can sustain the present level comfortably.
These actions are aiming 2014. Hope and pray better sense prevail and lift India in the global arena.
Build infrastructure
TAPAS NATH | Wed Jul 24 14:24:50 2013
I agree with the Editor. Govt. should make clear guidelines, lucrative enough for FDI. They should make the infrastructure available before announcing such ideas. Again I do agree that the Country/Govt. should not negotiate with National Security by opening gates on Defense, Telecom etc.
It is not the economy but political interest
Lalukumar Choubey | Wed Jul 24 12:36:35 2013
India is probably under the threat of stagflation looming in the horizon.
Entire govt machinery is acting with one and only one objective i.e. to safeguard the interest of a particular family and nothing else.
Policies are made with loopholes
KRaj | Wed Jul 24 12:22:06 2013
I agree you. Many policies are made with loopholes & nobody is held responsible.
For eg. MSME CREDIT GURANTEE SCHEME. To start a software business I approached multiple banks, SIDBI & the Chamber of Commerce and all lead me to contact Chartered Accountants to prepare business plan. I met multiple CAs & they had different opinions. Some said you can't get it for software business, some said that you need to run your business for some time & can't get loan for setting-up the s/w. busness.
My another project alternate to WALMART-FDI model.
It can straighten the PDS system, involve existing retail shop-keepers, help reduce subsidy yet effective and transparent..
But again I got the same reply.
Another eg. is Education Loan. The banker is asking for the parents income proof and poor labour/farmer can't easily get it.
So, what is the need to frame such policies when it cannot effectively implement it?
Govt. is not very serious to fully implement any of its policies and fill the loopholes in it.
Finally, govt. must use computers, software and e-Commerce and B2C programs effectively & avoid duplication of work.
So, in my opinion instead of making absurd policies and push them, implementation and monitoring of existing policies and fixing the loopholes must be set top-most priority and this will definitely bring our country and our economy to a better state. Then all FDI will stay in queue to invest in our country rather than we request them to do so.
Future of India
MANOJ SINGHAL | Wed Jul 24 11:43:51 2013
In coming days, we will become slave again not physically but economically, financially ...
Does it not seems that we have became slave politically???
Why govt is interesting only in foreign investors instead of foreign political leaders? Why they not invite foreign political leaders to rule upon us???
Just fire fighting
Ajeet Guruji | Wed Jul 24 11:04:40 2013
I will call FDI rush as fire fighting, which is now required because government has never trusted our own business owners. Gov.has done almost nothing to make over businesses more competitive and increase exports. If it is done in proper way there is no need of FDI.
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Re: just fire fighting
Abhay | Wed Jul 24 20:17:37 2013
Fire fighting is correct, but I m more worried...Ok this time they can manage by allowing 100% FDI..what if same situation occurs again after 10 years, what option they will have then..100 out of 100 is already gone...now...the only option then will be selling states to other countries.
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FDI - please not for defence
R.Ashok Kumar | Wed Jul 24 10:46:04 2013
FDI is necessary but that has to accepted in Certain Sectors and not for Defence.
What India Needs
Rahul Goyal | Wed Jul 24 10:40:18 2013
With big Giants pulling out their Investments, clearly shows where India lacks and which Sector needs FDI badly. Consumerism is doing extremely good currently, and the availability of any brand in India is a proof to it. Today we are already using more foreign items right from toothpaste, soaps to machines. While we are self sufficient in food grains etc even though lacs of kgs are rotting in Govt Godowns & centers, we are being made to import Chinese rice, fruits etc.
What India needs is INFRASTRUCTURE and ACCOUNTIBILITY for all its work. Govt job is treated as a “Secure” job wherein what ever work one does, he shall never be questioned / penalized for it, and incase he is penalized, Bribery comes to his rescue. No foreign company would like to come here to do the dirty job of providing Infrastructure, Augmentation of Natural Resources, Using India Rich Art , culture in making and promoting India’s Items, instead they will be very Happy to deplete all our Resources, so that we shall always be at their feet. If entry of “Foreign” cars could kill Detroit’s market, then GOD save our country.
Ruling under guidance of Europe & America
Sanjeev Singhal | Wed Jul 24 10:05:57 2013
On the subject, I can say that the Govt of India, is ruling the state under the guidance of Europe & America. The officials of Govt of India are not able to serve the nation by any means. They are acting like a agent of these powers, otherwise there will be reason of hike in Dollar/ Euro against Indian Rupee, while in 1925 it has 1:7 for USD. The Power of Dollar / Euro is not calculated on the basis of generation of money, its based on the benefits of these countries.
I can explain so many thing here, if we have any joint forum.
During 1997 Asian crisis, Koreans lined up near banks to hand over their gold
Prof Ram Natrajan, Pune | Wed Jul 24 08:42:18 2013
This is called groping in the darkness...never in the world has an economist made real leaders as economist themselves grope around to quote sen saheb...why not we for a change restrict ourselves to Indian products....does a hul product really make a change to us when they have increased royalty outgo...why not give a chance to good old juices instead of sugary pepsis and cokes....during the 1997 Asian crisis Koreans lined up near their banks to hand over their gold to the state banks ...if we can imitate just 10 pct of this we don't need any FDI.
Will never be on the right track until . . .
HEMANT SAJNANI | Wed Jul 24 08:21:48 2013
The government will never be on the right track until the fools are not removed from the ministry.
Congress government extremely myopic
Hemant Nagar | Wed Jul 24 08:21:21 2013
Congress government has been extremely myopic to the extent of being blind on core national issues such as education, health, public safety/security etc ever since independence. "Hindi - Chini Bhai Bhai", Granting of special status to J&K, License permit raj, Nationalization of banking/insurance/transportation & other sectors that could have been run more efficiently by private enterprises coupled with vote bank politics, appeasement of dalits/other castes, induction of antisocial elements having strong nexus with corrupt babus & police have already played havoc & v r thus witnessing an overall chaotic situation.
The government already under enormous pressure due to scams & forthcoming general elections has therefore become utterly confused & resorted taking decisions without proper legislative actions that could have long term negative implications on the nation & society as a whole.
There is an old proverb in Hindi, "Vinaash Kale Vipreet Buddhi". Perhaps this is going to be true for UPA2.
Environment for FDI is not conducive
Arvind | Wed Jul 24 07:56:41 2013
It is obvious that the Govt. is making all out efforts to attract investments into India, but the Fact remains that Policies are not very clear, environment for FDI is not conducive and what is hurting the country the most is the Red Tap. We need to look for simpler procedures to attract investments rather than opening our economy at the cost of our security.
Motives are different to take all hasty steps.
chaluvadi | Wed Jul 24 07:48:48 2013
The great PM is in the seat for the past nine years, but comfortably slept and dreaming in the sleep to forget his election promises.He promised to control the prices in 100 days,no one knows when the 100 days will complete.Instead of control,there is further raise by many folds,since his promise.Now ,because entireworld slapped him for his failures as a timid PM and the elections are coming vey near,now he wants to show the public is committed and wants to do better things,but opposition is not allowing him to do.To create this impression he is acting in hurry.Further to meet the election expenditure ha shal open some windows to loot the money both within and outside nation.People are watching the enmtire episode and will teach the lesson at appropriate time and manner.PM and his trusted team is putting their best efforts to push back the economy to 1991,so that the incoming Govt also cannot do better and gain name.he wants to prove that he is the big hero in 1991 to save the nation from the crisis.This is the motive of this great Govt.
Only a miracle could save our beautiful country
D.Sukumaran | Wed Jul 24 07:45:22 2013
As a lay person, I am a bit worried about the financial position of our country. Will I be wrong if I contend that our Politicians are trying to hide something. Pulling out by Posco and Arcelor Mittal, depreciation of our currency to a never before level, vigorous marketing of FDI in USA and Japan by FM, RBI's intervention, happens to be some of the recent incidents which makes me feel jittery. Are we losing ground financially because of the Politician’s mishandling of our country’s finances?
Until our economy improves, can’t we postpone the Food for all security expenditure of 1.25 lakh crores for a year or so? Why can't the Government consider suspending The alleged Tax Exemptions of Rs.5.25 lakh crores granted to Big Corporate Companies for at least one year. Foreign jaunts by Ministers and Bureaucrats must be reduced to the barest minimum. Imports from China should be restricted to the level of our exports to them.
On one side many people could not get three square meals a day and on the other hand a few of our big bosses in the industries draw a salary of Rs.6 crores a month. Poor becomes more poorer and the rich becomes more richer. Can’t we ask them to pay more Taxes for their super incomes?
Governance, it appears have come to a standstill. Our Rulers are groping in the dark without knowing the solutions. I think only a miracle could save our beautiful country. Neither the UPA (now) nor the NDA if in case it comes to power, can save us.
Indian manufacturing industry is suffering
S K Agrawal | Wed Jul 24 07:18:50 2013
Indian Manufacturing Industry is suffering and wants business.
Defense shall be available first to Indian Manufacturing sector.
FDI is attractive to Indian Politicians because Indian businessmen pay in Rupee while foreigners pay in dollars and deposit money abroad.
Mad Rush to FDI ?- Craftsmanship Training is the key
Dr. Kari Appa | Wed Jul 24 07:13:22 2013
I perfectly agree. What we need most is quality control and craftsmanship training in every product we produce. Towards the end of second world war, Harley Davis went to Japan to teach the young minds the quality control. That was the great investment in turning Japan around to prosperity.
India has failed to invest in training young minds. Invite Harley Davis like investors to turn our countries products around the world. Just like we see "Made in Japan", "Made in South Korea," and "Made in China."
Some day, may we see, "Made in India?"
Just we need to talk less and work harder.
Blind rush for FDI
Haridas | Wed Jul 24 07:01:54 2013
Let the Government encourage the entrepreneurs - small , medium or large by removing hurdles in the way of setting up and doing business. In the name of regulation and compliance , business people should not be harassed.Investments and FDI will automatically happen. Employment will increase.Can't we improve our dismal rank in 'Doing Business 2013' list ?
Many startups want and wish to do business in an honest and transparent manner . The Government can facilitate that to happen.
FDI is must ....
Dr. Sudhiranjan Dey | Wed Jul 24 06:58:11 2013
Surely government is on the right track and government should have done it few years back rather than waiting for so long and making a mess out of country's economy for which the ruling party, oppositions, smaller regional parties and this country's most citizens are responsible. The economy had weakened due to lack of foreign investments and weakening rupee will slowdown the economy further and will reduce employment creation. Political division in the country based on religion, region, caste, community bias, irrational social indifference, ignoring national interests for the sake of political and regional bias and not so investor environment forced thousands of wealthy foreign investors to look for investments in other countries. People opposing FDI for years either do not have any basic knowledge of economics or nurturing their own hidden agendas and must look at other Asian nations with open economic policies which had gone much ahead of India in all respect and are also growing at much faster pace.
Focus on export and tourism
A.K.SRIVASTAVA | Wed Jul 24 06:49:01 2013
You are absolutely right, government is not clear what to do to control Dollar. Rather than focussing on export and tourism, it is doing nonsense.
All decisions have some political shade
Rajendra Nisal | Wed Jul 24 06:45:05 2013
In India all decisions have some political shade no matter whether it is FDI or LBT. Can you please throw some light on facts and figures of state Gujarat in Industrial growth, employment opportunities and tourism business ? I think people in India deserve the true view of the reality in Gujarat.
Fools rush in where angels fear to tread
Prithvi | Wed Jul 24 06:03:22 2013
With the economy stagnating and elections around the corner it is a sign of desperate attempt to seek some release to notch up the numbers.
It is both short sighted and dangerous.
FDI - even investors are not really impressed
Bawa Grover | Wed Jul 24 05:31:09 2013
Good article. I think the government is not realizing that most of the answers to our economy problems are within. We need to make it easier to do business in India. With the problem of wide spread corruption and bureaucratic delays, the internal clogged arteries of the country need to be cleaned up - to enable our country to start sprinting again. Time is of essence -and focus clearly needs to be on internal "execution" and "internal liberalization", rather than on external liberalization - i.e. FDI opening - which is not the solution and as we can see - even investors are not really impressed.
Guns & Ammunition near the road side Dhaba
Raja Bhatta | Wed Jul 24 05:26:56 2013
I agree with Bikky Khosla on his article.
FDI in defence sector ...
This will promote Guns & Ammunition flooding the Indian market like the Chinese toys !!
Has the present government still not learnt from the massacre of their leaders by Maoists.
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Re: Guns & Ammunition near the road side Dhaba
Raja Bhatta | Fri Jul 26 15:55:35 2013
Depreciation of Rupee means erosion in value of efforts of the Indian citizens. Rupee depreciation facilitates Foreign investments & hurts Domestic investments. What is the need of raising the voice for FDI now ?
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Need wise ways to protect and develop to make a great nation
Raja (T.T) | Wed Jul 24 05:25:13 2013
Yes certainly it looks a measure not taken out of detail study or whether adequate checks are incorporated or not.
In any case India needs - FDI in any kind of high tech areas very importantly, service areas where in general Indians.Indian companies (including banks) are very poor. We need to improve and bring in other culture if not our traditional culture could not be revived up in a great manner adapting to the today's and tomorrows world order.
The matters of steel investments what you mention I don't see are anything great or needed at this time as already Indians/Indian companies can able to invest, invite better technologies I guess.
Defence I feel is good idea as the potential is immense and example is Israel, and I am sure Indian companies or FDI on this sector is need of the time to change government attitude, but government and defence need to have upper hand, wise ways to protect and develop to make a great nation.
Infrastructure woes
Priya | Wed Jul 24 05:24:22 2013
Many companies would find difficulty in expanding due to poor infrastructure across country. We still have bad road, rare electricity! Now I feel that India shouldn't have got freedom as politicians has done more worse than foreigner. Those foreigner would have made our country somewhat on better European countries.
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Re: Infrastructure woes
Chaluvadi | Wed Jul 24 07:04:41 2013
Less you talk about infrastructure of India is better,Govt gives least priority to this segment.The biggest licenced looter in India is the Govt Machinery.first control this machinery before making any attempt to improve the nation/economy.
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Make stringent laws against corruption
VINESH ARON | Wed Jul 24 05:22:16 2013
Dear Sir, I am not satisfied with the policies of Government of India. Why our Govt is running after the foreign investors? Why they are not relaxing the rules and regulations for Indian Industries? Why they are not abolishing the licenses which are useless and attracts corruption by inspectors and politicians? Our Government should make one license fee which includes all the license fee so that all the industries can concentrate on the production and export items which they manufacture. Take the case of China, what they have done is -- they have abolished all the licenses ( they have four licenses) organised the fairs in which all the small industries take parts and get orders from foreign buyers. In China they have given free hand to the manufacturing industries who are making the items for home and foreign consumption. In India we have babu/clerk who controls the economy and they are the worst with little/no I.Q and their aim is to create more difficulties so that they can take out the money, whosoever goes to them for their own benefit. Government first should make stringent laws against corruption like it is in Singapore. A death penalty should be imposed for the corrupt people. I can see that if the death penalty is imposed, India can earn more foreign exchange than any other country even America and we will be on top. We have good Brain which we are not utilizing and simply going waste, this is because of babus/cleark corrupt brain that do not allow us to work.
Entire governance is living in a fool's paradise
N K Tawakley | Wed Jul 24 05:10:50 2013
The author is absolutely right in his views on the subject. It seems that the entire governance is living in a fool's paradise thinking that by taking such steps the economy will improve. Even the RBI has run out of options to stabilise the INR. The Indian economy reaching the dumps is not an overnight phenomenon but a build up of neglect for the last 10 years or so. It is even more surprising that a plethora of leading economists are not able to find and recommend a solution to the present mess. ALL THAT THE GOVERNANCE HAS TO DO IS OPEN ITS EYES TO THE REALITY.
The steps that need to be taken are very clear and straightforward. However since these steps will also require addressing the issues of corruption and accountability the governance is side lining these steps at the cost of national economy. The governance has to open its eyes to a number of grass root truths including corruption. Beating around the bush, as has been done by the governance will not give results. The governance also has to stop fooling the public because people are very smart and know everything. The governance should not think that people do not understand depths of economics. People of India should now be ready to face spiralling inflation and shall see USD touching Rs.100.- before elections if the right steps are not taken immediately. For a full analysis send an email to zindia.truth@gmail.com
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Re: Entire governance is living in a fool's paradise
chaluvadi | Wed Jul 24 07:20:35 2013
For quiet long,it is known that CAD of India is beyond permissible limits.Knowingly the digitalset top boxes for TV sets is made compulsary and it is the fact that these sedts are coming only through imports and further FE is drained to import them.Please think that this is a compulsary reqt and is of top priority under accute CAD crisis.No economist /intellectual sitting in the south block thought this and the imposition of compulsary settop box is taken.FM advises publick to stop purchse of Gold,which is a good advise but no control on other unwanted imports like smart phones,cars and many more luxary items used by Super Rich class of the Society.This shows the talent of great economists sitting in the Govt viz Manmohan,Chiddu,Montek,Ranga,Rajan.A common man has somuch concerned for the economy,why this lot is lagging of the same.This is shame on the part of the Govt.
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For strict policy
Sanjeev | Wed Jul 24 04:51:41 2013
Dear Sir,
First of all I am very thankful to you for your studied notes of various issue. I like it and I am impressed too. While implementing FDI policy, no doubt we have to give top priority to national security and proper care of local entrepreneurs, local employment, environment and also to stop converting agriculture land into Non agriculture since agriculture is backbone of our economy. The policy should clearly says that if Indian Government noticed that the Foreign Company is doing wrong or against rules and regulation then Indian Govt. reserves the right to forfeit all assets of foreign investors and expel foreign culprits.
Why Government does not support Indian investors
K.S.Jayarama | Wed Jul 24 04:43:51 2013
First of all we do not have a stance. What is it that we tried to achieve earlier & what has changed. If FDI is for development then our 65 years traverse & economic achievement is insufficient or not there. We talk of volume & opening up. Why Government does not support Indian investors with variety of soaps first to get investment like Modi's campaign. If we are on the street of industrial business one could understand how lobbying, bribery kills entrepreneurship and why expected growth is not met, be it industry or agriculture the two supports of our society.
No special invitation required, just remove red tape
Uday Kumar | Wed Jul 24 04:33:46 2013
You have hit the nail right on the head... Businessmen and investors are like migratory birds where they find it easy, secure and conducive for business they come to roost. There is no special invitation required from the government, on the contrary if government implements one window clearance and removes red tapes, FDI is bound to flow and job opportunities & ancillaries bound to go up in our country.
Highly appreciate the point
Parveen | Wed Jul 24 03:49:32 2013
Dear sir
I highly appreciate the point that you have brought out through this editorial that the cost and difficulties of running business in India is very high. The amount of red tap and harassment by any tom dick and harry who is on a government post of any department that touches your business (specially SMEs) is so much that at the end of the day we feel so exhausted that all the creativity and intent to expand the business goes for a toss. The rules and regulations are so complex it is very difficult to understand them and almost impossible to implement them as per book for a SME. The result is either we face the harassment and penalties or the easy way out bribing the officers. The manufacturing and trading environment in India has been very damp owing to the difficulties that we face form the government legislation and unsympathetic and corrupt officials whose focus is to find fault and force us to pay up the bribe . In either case one's esteem and zeal to work takes a severe beating
the insensitive laws may it be vat ,customs,excise, labour , pollution or any other are drenching out the entrepreneurial juice out of us. If we loose the current breed of entrepreneurs to such circumstance and decide that our future generations shall not enter business due to the harassment and lost of self esteem that we face everyday we may not have future entrepreneurs and we may once again become slave to some other East India company.
Bringing back their Black money
Bhartiya | Wed Jul 24 03:38:04 2013
This is the only way to bring back their looted scammed dacoited black money in the country. UPAs especially top leaders of UPA govt - they already own India and now they will own 80% in each and every sector industries. Small traders and domestic business will be ruined. This is the plan of our queen to ruin this country. Small scale industries are already finished now.
Why FDI in retail?
Jitendra Tah | Wed Jul 24 03:27:26 2013
I can only lough at the silly policy of
the govt. Why in retail ?. Do you need to kill millions of small
retailers to set up 2000 odd stores? Do you have to make millions
jobless and create law and order problems in country for the benefit
of some crores? This policy is made by people who far far away from
reality of Indian living conditions and style. Small income credit
from neighborhood grocer are the necessities of poor in this country
.Will these big money bags not exploit them? By creating one lakh
jobs you are making 10 lack families income-less of small grocers. I
will give a example - today all these wholesale points are in fact
retailers in practice their whole sale share to actual user purchase
is 20:80. They are cheating the govt already, and in process killing
wholesalers in all majors towns. This will increase unemployment,
kill enterprise as they want their own labels procured from small
manufacturers at very low prices. They are killers of Indian economy
being welcomed by unrealistic people who are far far away from truths
of trade.
In India, why put up with the hassle.
Greg | Wed Jul 24 03:14:32 2013
I remember the days when it was impossible to think about importing to India with all the restrictions - since then of course there has been huge benefits to India from foreign firms paying for outsourcing and goods but for most ventures it seems that India is still a protected territory but that is not the real issue as an outsider giving my own "personal" opinion. I deal with many companies, many of whom who have CEOs with backgrounds from India - almost all of them refuse to deal with India and during my 30 years of attempts over the years to provide not only business but social benefit I have always been stymied by the unending corruption and waffling of the government. It is unfathomable the level some individuals are able to sink to and yet India snubs it's nose at other cultures it feels superior to. It is so unfortunate for India is such a rich country but it's relentless arrogance by the powerful will only serve the few and foreign firms will simply find ways to manipulate the gov at the peoples expense. To add to the amazing views is the demand by Indian investors for very high returns yet when in reverse they expect to pay the most conservative rates - sorry folks but it does not work that way - one sided transactions only last so long. Just as China has to clean up it's foreign/domestic investment track record so too does India. I think the difference is we have found ways to work in China - in India, why put up with the hassle.
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Re: In India, why put up with the hassle.
PROF RAM NATRAJAN | Wed Jul 24 08:47:01 2013
my question is do we need to import anything
we should reverse engineer....do we need to import cokes and colas....DO WE A MITTAL AND POSCO TO BUILD STEEL PLANT ,,,,TATA STEEL HAS BEEN AROUND A HUNDRED YEARS AND HAVE THE BEST METALLURGISTS WHO RUN CORUS....STUPIDITY TO INVITE FDI
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In 35 yrs of experience, not came across a single law for protection or saving of productivity
K S VERMA | Wed Jul 24 03:13:14 2013
Sir, I agree with what you have written and of the opinion that all the governments till now could not make a without-barrier nation for freely movement of material from state to state i.e. without CST and road permit forms and so many formalities in 65 years of amalgamation of states. In my opinion "kaam na karne ke sau bahaane, karne ka ek nahin shreeman, fir bhi mera bharat mahaan. Holiday karne ke sau karan hain hamaare desh mein, par ek bhi aisa day nahin, jis din ke naam hamare desh mein jyada kaam kiya jaye". Everywhere there is a rule deployed to make hindrance to productivity, but in my 58 years life and 35 years of business experience as a trader, not came across a single rule which have been deployed for protection or saving of productivity. All the big industrial players are victims of our systems and at last are forced to get material manufactured by foreign contry in their name and sell here, because labour laws, taxation and state barriers and policies changing by every govt as per their convenience , not in the national interest or productivity.
Will this affect small entrepreneurs
Jerusson Devassy | Wed Jul 24 02:15:22 2013
I don't know whether the government is on the right track, but my question is that will this affect small entrepreneurs' business because some of them depends on FDI investments, as for their projects.
Too difficult to do business in India
Dilip | Tue Jul 23 22:55:48 2013
All major government decisions are made by Sonia Gandhi with a view of how to get elected. The current crisis is self-wound, from poor management. FDI is a quick fix. But foreign investors are smarter now and do not see success in India and emerging markets. It is simply too difficult to do business in India.
Modern India - devoid of morality
Syed Karim | Tue Jul 23 19:38:30 2013
Economic progress, Social & Political progress rest on certain fundamental ethics. Now, the trio ( Politicians, bureaucrats & even Judiciary) are steeped in corruption. In such a situation no amount of FDI can change our picture. We are decadent and we are at the verge of paying very big price. Transparency, Integrity, Honesty, Fairness and Justice have become mirage to majority of Indians. We are modern 'Bhasmasurs'.We have no option but to pay the price of being most corrupt in all our walks of life. Laws and regulation are required but that is not the real solution. We need upside down change in our education system. We must know that success - for all - lies by upholding natural principles. India of our dream is slipping away fast and we all are responsible. The first sign of corrupt nations are complex laws without clear cut accountability. We are stinking, we are immoral, then we all have to pay the price. Multi nations will enslave us and we shall sell our soul in the name of material progress. Material progress without moral progress is two edged sword. Our young generation shall pay the biggest price if they chase material progress san morality. Let us come together and fight the cancer of corruption by bringing change in ourselves. Let us sacrifice economic progress which is throwing us in abyss. We are powerless because we are corrupt. Let us get aligned with power principles and transform our motherland.
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Re: Modern India - devoid of morality
Ganesh | Wed Jul 24 08:13:51 2013
Excellent review by you but same time its very true and dangerous that such things are promoted by indecisive and politically motivated government like ours.
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Nature of Indian Politics & Economic problems
Hitendra Laljani | Tue Jul 23 19:01:46 2013
I totally agree with you Sir. But I have seen everyone is talking about wrong steps taken by govt. No one talks solution. I believe in solution. One more thing you are regularly dealing with is growth of import of all type to goods. This thing is also dangerous. Due to high duty and lots of tax types, Industries are not interested to start new ventures as it was in the past. They even don't show right figures, so we are not able to track industrial growth. This is leading to lack of quality control also. But here question is who will take action govt. No way. Only public of India has to start change. I give a call to you and your group to make a successful start. This not Anna resolution it is only business and social reform no steps based on government's decision.
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Re: Nature of Indian Politics & Economic problems
Chaluvadi | Wed Jul 24 07:35:29 2013
Dear sir I appreciate your suggestion that people shall give suggestions to overcome the crisis rather criticism.In the current Gove there are Pancha pandavas who claims they are great economists in the world and savers of india.i.e Manmohan,Chiddu,Montek,Ranga,Rajan.Is it the way they Coalblocks episode to be handled to allocate to the captive users but without any riders on time frame to develop and prevention to sale the same soonafter allocation at highpremiums,mortagaging the same and take loans from the Banks.As acommon man I can frame better terms and conditions for allocating the Coal blocks for Captive consumers.On scrutiny by CAG abd CBI it is revealed that all these are lagging and the allocation is done on faulty claims without proper scrutiny ,and without proper clause for timely implimentation etc.When the intentions of the Govt is clear to loot,no advises/suggestions are helpful to the Nation.Instead of Corrective measures ,the govt (great Chiddu) is going on justifying the Zero loss theory ,on people street dogs are also laughing on him,but no shame.What else you need from the general public.They are not taking the advises of Constituitonal bodies like CAG.PAC,Opposition Leader.They are attacking everybody who ever say the right of doing things.
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Ease out procedures
Sanjay Singla | Tue Jul 23 18:05:56 2013
Dear Sir
I agree with you that instead of easing out procedures and simplifying, govt is opening areas like defense which shall be compromise on our national security. With so much money available in India and no dearth of entrepreneurs in India, the govt is going on a shortcut route for ramping up the economy. We cannot be dependent on the foreign money for ever and it is not very far, when we shall fall in the trap of debt and full blown recession. Govt must ease set-up procedures for local bred entrepreneurs and provide soft loans to genuine small and medium scale investors and also at the same time keep in focus for implementation of mega projects.
This is pressure from USA
Raj | Tue Jul 23 17:53:17 2013
The government is not thinking at all. This is the pressure from USA on this govt. This is going to ruin the country. The small companies and traders will be eradicated, there will be rise in unemployment and bring down the company. The country will be dependent on other countries that are not what the previous congressmen wanted. They should be stopped if you wish to save the country.
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