Indian Economy: News and Discussion (Apr 1 2011)

vera_k · Post by **vera_k** » 22 Dec 2011 05:25

^^^

That Income Tax percentile figure is low because only about 2.77% of people pay income tax. Also, tons of indirect taxes exist that target this same pool of taxpayers - for example higher and now primary education for low income children is subsidised by having the "middle class" pay higher tuition.

Could the government collect more income tax? Sure, but that'd need courage to tax more constituencies, plus improvement in productivity so people have income that can be taxed.

Yagnasri · Post by **Yagnasri** » 22 Dec 2011 05:27

{Deleted. Please, enough of this rona dhona over NAC.}

Cosmo_R · Post by **Cosmo_R** » 22 Dec 2011 05:36

{Edited}

Theo and Cosmo: Please, there's no need to have two otherwise productive posters get into a fight here.

Santosh · Post by **Santosh** » 22 Dec 2011 07:16

Theo, not questioning your data about India being a 2T economy in 2011. But can you cite your source please? TIA.

BTW, saying that Indian GDP was 1.7T in 2010 and 2T in 2011 is basically saying that Indian GDP grew by 17% YOY, that's astounding by any standards.

Suraj · Post by **Suraj** » 22 Dec 2011 07:36

Approx $1950 billion was estimate from the last budget/economic survey. It may be less because of the appreciation of the USD recently. The 15%+ figure is a due to a combination of real growth, inflation and concurrent debasement of the USD causing it to (except for the recent jump) remain stable vs INR despite significantly greater domestic inflation in India.

Singha · Post by **Singha** » 22 Dec 2011 10:24

starting a distractive fire over retail FDI ties down the oppn parties and takes the focus away from the need for domestic reforms, manufacturing FDI SEZ land issues, pervasive corruption etc. if you noticed, most if not all the sarkaari mehmaans in tihar jail have got bail and scooted out of the limelight this past month, some were accorded tumultous receptions worthy of victorians legions returning to rome. after 5 years of heehaw where exactly are the mega steel and metals plants that were supposed to be the cash cows of Odisha, chattisgarh and jharkhand may I know? have they instead been setup in brazil, indonesia and turkey?

I have a feeling many of the 'initiatives' being floated now are measures to shape and divert the debate away from where GOI is not doing well.

Muppalla · Post by **Muppalla** » 22 Dec 2011 10:37

^^^
Long time back we discussed this one. It is very important for the Uncle to see that India does not grow beyond 7% until there is recovery and readjustments in the western world. The CTs based on that axiom is that west likes to see the UPA continues. Jai ho UPA>

Santosh · Post by **Santosh** » 22 Dec 2011 11:30

Suraj wrote:Approx $1950 billion was estimate from the last budget/economic survey. It may be less because of the appreciation of the USD recently. The 15%+ figure is a due to a combination of real growth, inflation and concurrent debasement of the USD causing it to (except for the recent jump) remain stable vs INR despite significantly greater domestic inflation in India.

India's finance ministry expects growth to be around 7-7.5% for 2011-2012. So Finmin figure excludes inflation where as you are basically saying that inflation means growth. So for e.g. if India produced 1MT of steel in 2010 and earned Rs 5000 crores from selling it last year, whereas in 2011 India again produced 1MT of steel but earned Rs 5500 crores from selling it because of 10% inflation, India grew by 10%. So, in an overly simplistic world, add 10% inflation to finmin's 7% growth and we have 17% growth. The real gdp though would be 7% over 1.73T from 2010 which is 1.85T. End of next year we will be digging at 2T and the year after that is when we overtake Italy in terms of GDP. Maybe that is con-graze inspiration to pull Bharat Varsh down.

Suraj · Post by **Suraj** » 22 Dec 2011 11:56

Santosh: Real GDP growth rates reported are net of inflation everywhere, but in the real world all growth seen, i.e. nominal, is inclusive of inflation. There's no 'real growth' in your example - the $1.73T in 2010 itself is a nominal figure, as is the estimate for 2011. Every country has finite inflation. It is real GDP growth that's a statistical measure computed from nominal growth and inflation data. What exactly is the issue here ?

kumarn · Post by **kumarn** » 22 Dec 2011 12:32

This whole rona-dhona is similar to the rona-dhona in stock market when prices fall. When prices start to rise again the same old arguments are brushed up to say why the stock is so great. I am waiting for another few months, when inflation cools down, rates decrease, the external environment improves, growth back to 8-9%. Then the same old arguments about why we are good will be back.

What has changed in India to warrant such doom and gloom? Is the population shrinking? Is it getting less healthy or less literate? Are we saving less?

James Blonde · Post by **James Blonde** » 22 Dec 2011 13:08

I think the more we open up the better
that is what SG is making sure for Indian economy
we have to give credit where it is due to her vision.

The opening of retail and food business to FDI will automatically
fill the coffers first the individuals behind FDI
(in economic certain times it is called cost of initial investment aka CII
not to be confused with Confederation of Indian industry)
then it will bring the taxe Rs directly to GOI
instead of any hanky panky indulged by mom and pop run retail shops
in SG we have a champion of a cause because she personifies FDI
the queen and living proof of Foreign Direct Involvement and is as powerful as FDA of our own FDA (Food and Drug Administration or is it Foreign Direct Adminstration I can't really recall)

svinayak · Post by **svinayak** » 22 Dec 2011 14:43

Very funny argument

Austin · Post by **Austin** » 22 Dec 2011 18:19

India food law: The hungry republic

gakakkad · Post by **gakakkad** » 22 Dec 2011 18:22

Santosh wrote:
India's finance ministry expects growth to be around 7-7.5% for 2011-2012. So Finmin figure excludes inflation where as you are basically saying that inflation means growth. So for e.g. if India produced 1MT of steel in 2010 and earned Rs 5000 crores from selling it last year, whereas in 2011 India again produced 1MT of steel but earned Rs 5500 crores from selling it because of 10% inflation, India grew by 10%. So, in an overly simplistic world, add 10% inflation to finmin's 7% growth and we have 17% growth. The real gdp though would be 7% over 1.73T from 2010 which is 1.85T. End of next year we will be digging at 2T and the year after that is when we overtake Italy in terms of GDP. Maybe that is con-graze inspiration to pull Bharat Varsh down.

The GDP deflator for the US economy base 2000 is close to 190%. Which means that whatever growth US has had in the last decade is inflationary .

Anyway Real GDP is measured keeping a base year in mind. India until recently used 2006 base .

If nominal growth is 20 % this year our GDP exceed 2 trillion this fiscal . 1.75 trillion + (1.75*.2) = 2.1 t . currency depreciation will reduce it a bit. but that is temporary. Rupee will eventually bounce back.
ideally it should be measured in INR.

James Blonde · Post by **James Blonde** » 22 Dec 2011 19:14

when you say bounce back and INR in one breadth it is fresh air to me.
say INR is at 44 to dollar yester day
it went up to say 56 to dollar today
then according to you it will bounce back to 66 or higher day after or very soon. no

bounce back
when you bounce you go higher
according to dictionary bounce is "a light springing movement upwards or forwards "

back according to dictionary is "The part or area farthest from the front"

so INR will soon to be greater than what it is today to dollar
I think its time to rejoice and we are doing this effort less ly

Theo_Fidel · Post by **Theo_Fidel** » 22 Dec 2011 19:59

Rupee is not the only currency getting hammered right now. Everyone is pulling back to dollar. If you recall, the consensus here 3 months ago was that USA was useless and dollar was now worthless. I had pointed out that dollar is always the last refugee in a panic but was shouted down back then. The Rupee will stabilize and rise again. This decline is not due to fundamentals but a market panic. No point fighting it, instead exploit is as most NRI including myself have done.

Mostly this Rhona-Dhona is because UPA is vulnerable and everyone is piling on. The truth on the ground is that there is simply no competing vision of India for the 70% lower middle class and destitute that shares a piece of the pie with them. Other than claims based on caste and religion no attempt is being made by other groups to financially reach out to them. Every country does this, including republicans in the USA through things like disaster help, business loans, food stamps, health insurance help, child welfare payments, pregnant womens health programs, unemployment cash, recession work programs, state directed construction, etc. The entire organization of government is focused on the lower 70% despite what all the TV's blare at you WRT the 1%.

Gujarat is held out as a striking model but the truth is very little has changed on the ground in Gujarat. I'm sure I will be shouted down for this. When NM's career is over the organization will spiral apart as it has done elsewhere and the lower 70% will again be vulnerable to financial poaching. What is the competing vision to NREGA and Food Bill. Without a competing vision the princeling will be in power soon.

I'll even give an example, instead of all these myriad 'programs' a cash support program could be adopted as opposition vision and plan. This would help reduce corruption and get the GOI out of the economy. The cash support could act as a backstop so the poor could take more risks economically to better themselves. This would be a conservative agenda. The opposition could relentlessly promote this idea from every street corner and drown out the UPA plans. They would be able to move away from caste and religion pandering.

Instead we get silliness like AH and his, 'I'll spank you' sermons on corruption.

gakakkad · Post by **gakakkad** » 22 Dec 2011 20:21

Sir the welfare program's in khanate are far better thought out than what happens in India. I ll try and explain when I have more time to type.I have observed the health schemes of both the countries. in a nutshell GOI welfare scheme burns money where it should not and leaves critical areas under financed. It is especially true in health care. The American government too burns money at places. But the bottom tier maternal health schemes are fairly well thought out ones . And in spite of the far greater economic depth of US in comparison to India and far better thought out programs , it is facing a tough time keeping its health care cost low. It has gone to the point of crisis. Something which India with far lower per capita income cannot withstand.These days there is a debate on medicare cost cutting. Two models are being debated upon . The SGR and the wyden-ryan scheme.

I don't know where you read what about Gujarat. But even for the bottom 70% things have changed for the better . I have seen it myself. Only some regions are problematic . (Dangs , chhota udepur). But these are extremely difficult tribal areas . And he is achieving breakthroughs even there . Some maternal child health indicators take a while to show results. However you ll find a lot of stuff written about this in some sources. Most of the sources can be traced to a teesta related propaganda site .

Supratik · Post by **Supratik** » 23 Dec 2011 00:06

Slightly OT. I agree with Theo there is no competing vision or competing leader at the national level. All I see the BJP
do is lecture in parliament and on TV channels. No connection with the masses. I think Anna has taken the role of opposition.

The bottom 70% is looking for handouts. The Congress has been successful in the past with handouts. The AIADMK and DMK have also been successful. The developmental model takes time. But the question is where is the money going to come from and at what cost to other necessary programs. Meanwhile, 4.5% reservation for minorities has been passed by the cabinet.

nachiket · Post by **nachiket** » 23 Dec 2011 00:11

Supratik wrote:Meanwhile, 4.5% reservation for minorities has been passed by the cabinet.

One good thing is that it is within the 27% OBC quota. The only hope at reversing this is if the OBCs get angry at having to share and use their considerable vote-bank power against it. But this is OT for Economy thread. So my apologies.

Theo_Fidel · Post by **Theo_Fidel** » 23 Dec 2011 00:32

G,

Agreed. The question is if there is an opposition party willing to take up that challenge.

WRT Gujarat the state is doing well and the people benefit from that. But there isn't yet vision program that could be translated to the nation and get it to sell as well. Esp. for states that may not be doing as well.

UPA gets away with blue murder because opposition has few ideas of its own other than saying NO.

Supratik · Post by **Supratik** » 23 Dec 2011 00:53

nachiket wrote:
Supratik wrote:Meanwhile, 4.5% reservation for minorities has been passed by the cabinet.
One good thing is that it is within the 27% OBC quota. The only hope at reversing this is if the OBCs get angry at having to share and use their considerable vote-bank power against it. But this is OT for Economy thread. So my apologies.

Just to clarify, they don't get much OBC votes so they don't care.

nelson · Post by **nelson** » 23 Dec 2011 09:44

Now for some plain-speak from someone within the establishment.
http://www.indianexpress.com/news/patro ... y/891034/0

kmkraoind · Post by **kmkraoind** » 23 Dec 2011 09:49

US to invest $1 trillion in India: Nirupama Rao - TOI

gakakkad · Post by **gakakkad** » 23 Dec 2011 17:25

IMHO BJP does know what is good for the nation. And they do talk about it. But the congress controlled media never gets the message through.

http://www.livemint.com/2011/12/2223324 ... onomy.html

The BJP favors the goods and services tax which the congress is hostile towards and they believe it will be largely beneficial for the agrarian economy.

The congress controlled media publicised that BJP was against GST . But the truth is opposite.

member_21708 · Post by **member_21708** » 23 Dec 2011 23:41

Warren promoters reach accord on ownership
Ruias, Goenkas have agreed to split the firm’s 14 tea estates, all located in upper Assam, between themselves
http://www.livemint.com/2011/12/2223035 ... ccord.html

RamaY · Post by **RamaY** » 23 Dec 2011 23:46

kmkraoind wrote:US to invest $1 trillion in India: Nirupama Rao - TOI

USA doesn't have $1T to spare.

chola · Post by **chola** » 24 Dec 2011 01:04

No true. There is around $2 trillion in corporate America's reserves.

Aside from the private sector, the US government can print as much as the world wants provided it does not bring about excessive inflation. And since 2008 the US Fed had simply created a trillion dollars out of thin air from the two Quantitative Easings without much in the way of inflation. Only the US can do this since, as the world's reserve currency, it will always be in demand.

Long and short of it is if the US truly wants to invest a trillion in India, it can do so. That said, I believe what Rao really means is over time a trillion dollars would come from US investments. Obviously, there is no way that the US will invest $1 trillion or India can even absorb that much in a short period of time.

SBajwa · Post by **SBajwa** » 24 Dec 2011 01:23

USA has all the money of the world., in innovations, in human resources, in physical (water, oil, gas) resources.

Prem · Post by **Prem** » 24 Dec 2011 02:24

RamaY wrote:
kmkraoind wrote:[url=http://timesofindia.indiatimes.com/busi ... 214520.cms]US to invest $1 trillion in India: Nirupama Rao - TOI[/url

USA doesn't have $1T to spare.

RamYa , the looted money is still here. The itch to invest for good return is the immovable ,eternal truth in Croporate America. The kitty is increasing by 7-800 Billion a year. No harm if we get to take big bite of Amerxan Apple. Indian must become the melting pot of Amerixan, Japani and Middle Easetrn money. You pour in Dollars, Yen and Riyals , melt and churn them to produce Ruppias and do the Kaya Kalp of Desh .

svinayak · Post by **svinayak** » 24 Dec 2011 02:47

Jhujar wrote: No harm if we get to take big bite of Amerxan Apple. Indian must become the melting pot of Amerixan, Japani and Middle Easetrn money. You pour in Dollars, Yen and Riyals , melt and churn them to produce Ruppias and do the Kaya Kalp of Desh .

India will become slaves of these countries. Until the house is put in order the structural problem will continue.
Indian companies have to go IPO inside India and attract all these money as a normal investment for long term

smart laws which make sure that capital investmnet only is encouraged and which increase TOT and new mfg capability will add +tive results

RamaY · Post by **RamaY** » 24 Dec 2011 06:13

it is not even funny how short-sighted we have become.

India's current GDP is $2T. To get that RoI from an industrial economy what would be the capital investment?

What would be the expected GDP increase from say $1T FDI? What Profit is expected out of this investment? What will be the impact of this FX flow on INR? How does it impact already existing investments that are made at current rates and projections?

If US can print $ and fund India, why cant india print INR and fund internal investment. I know it will result in loss of value for INR but how bad it will be compared to the scenario above?

gakakkad · Post by **gakakkad** » 24 Dec 2011 08:16

RamaY wrote:it is not even funny how short-sighted we have become.

India's current GDP is $2T. To get that RoI from an industrial economy what would be the capital investment?

What would be the expected GDP increase from say $1T FDI? What Profit is expected out of this investment? What will be the impact of this FX flow on INR? How does it impact already existing investments that are made at current rates and projections?

If US can print $ and fund India, why cant india print INR and fund internal investment. I know it will result in loss of value for INR but how bad it will be compared to the scenario above?

The M2:GDP ration in India is around 60% .( Ratio of total moeny in circulation to GDP). For Panda it is around 200% . But Pandas currency is backed by the 3 trillion worth of forex reserve and Investment .

I don't know what you have against FDI.

Tragically most planners look at FDI from a conspiratorial view.

You know which country receives the most FDIs ? It is not China . China (-hong-kong) is not even in the TOP 5 . The country is US .US receives the most foreign direct investment India is 22nd in THE LIST.
..

List countries fdi (in million US dollars )

Code: Select all



1	 United States	2,581,000,000,000	2010 est.
2	 France	1,207,000,000,000	2010 est.
3	 United Kingdom	1,169,000,000,000	2010 est.
4	 Germany	1,057,000,000,000	2010 est.
—	 Hong Kong SAR	962,200,000,000	2010 est.
5	 Belgium	741,700,000,000	2010 est.
6	 Netherlands	687,800,000,000	2010 est.
7	 Spain	668,500,000,000	2010 est.
8	 China	574,300,000,000	2010 est.
9	 Canada	528,700,000,000	2010 est.
10	 Switzerland	514,000,000,000	2010 est.
11	 Italy	405,100,000,000	2010 est.
12	 Brazil	349,200,000,000	2010 est.
13	 Australia	329,100,000,000	2010 est.
14	 Mexico	328,400,000,000	2010 est.
15	 Sweden	321,400,000,000	2010 est.
16	 Russia	306,800,000,000	2010 est.
17	 Singapore	274,600,000,000	2010 est.
18	 Ireland	228,000,000,000	2010 est.
19	 Saudi Arabia	204,300,000,000	2010 est.
20	 Japan	199,400,000,000	2010 est.
21	 Poland	198,800,000,000	2010 est.
22	 India	191,100,000,000	2010 est.

Understood the game fellows ?

It is not that US is the country with maximum top quality humans or anything of that sort . US does not have any magic that makes it the best. US always made it easy for foreigners to invest in it. Thats how it became the super power. There is a reason why I , you and most of the posters are either based in the US or have at a point in their life worked or studied there. US attracts most investment. US attracts most human capital. While India is hostile to investment . India is hostile to foreign human capital .

It is idiotic and lunatic to thing that FDI will bring slavery and other such conspiracy theories (like that of free mason

)

By making foreign investment difficult India is losing out to the world. It is not that Indians are idiots. But Indian politicians peddle these nonsenses to remain in power. They know that they would not last if conditions improve .

EDITED FOR COPY PASTE ERROR.

Ambar · Post by **Ambar** » 24 Dec 2011 08:35

#1 : These are "cumulative" investment and not something that will happen over an year.

#2 : We are still some way away from hitting the 2T mark.

#3 : Why is foreign investment short-sighted? Have we become so pompous with hubris when the rest of the world is fighting for every $ of investment, and we want to close doors when FIIs and FDIs are drawing anywhere from 1-2 billion $/month from our economy? Would like to see how our shiny new cities will look like if every penny of foreign investment disappears overnight.

#4 : The impact of such a investment will depend on the sectors it'll reach. We should first be in a position to sop up such a investment with infrastructure that could attract the investment and make the best use of it. Although it is impossible to say what exact % GDP increases from 1T$ over the years, in the recent past based on some rough math done using BoP figures, and depreciation rate, Indian FDI has returned around 7-8% over China's 9-10%.

If its in form of FDI, we'll benefit from long term investments rather than FIIs which are short term and speculative in nature.The threat of massive inflows making rupee too strong wont arise because we are not capital account convertible - yet, and RBI can take throttle the appreciation through repos and CRRs.

#5.Our public debt is hovering around 65% of our GDP,not counting the external obligations and unfunded liabilities which would make our total debt/GDP well over 90%. Nobody can print their way to prosperity. Else Zimbabwe would be the richest country on earth by now!

gakakkad · Post by **gakakkad** » 24 Dec 2011 08:42

^ Very true-

The Americans too could have come up with silly arguments that Indian politicians come up with -

QUESTION-Why does US need FDI when it has the "best" human capital and "can print dollars" for god sake ?

ANSWER - US does not have the best human capital . It attracts the best human capital from the world by making people easy to invest in it. Similarly US per se does not do 60% of the world innovations. The whole world does there 60% innovations in the US.

Get the point ?

Mean while mamta blocks pension fdi . She is proving to be an albatross around neck.

http://video.in.msn.com/watch/video/aft ... /24s79ocb8

uddu · Post by **uddu** » 24 Dec 2011 08:53

I don't think that anyone is against FDI, be it in retail. But there need to be checks and balances in all sectors to ensure that it suits development of India rather than it's destruction. Already there is FDI in retail, so it's not that India is against FDI per say. There may be slight restriction like Single branded retail with 100 percent investment and investment in retail with an Indian partner etc. Without regulation, some decision to allow freedom can be destructive. Take the case of Air India. The govt must have sold Air India before allowing every other airline to have a field day. Who lost with the loss of Air India? The Indian people. Their money. Who benefited? May be politicians and the private, foreign airlines.
The investment in U.S comes from Europe. It's said that about 75 percent of the investment comes from Europe and say about 50 percent from three countries. U.K, Belgium and Switzerland.

I don't think there's any risk for the U.S from this kind of an investment. I'm surprised by SWZ investing that much in U.S.A. Where the money is coming from?
FDI is good as long as it's in India's and Indians interest, but if it leads to issues of destruction of anything within India, it must be blocked immediately. My opinion is that FDI in retail is not good for Indian economy. Take the case of govt rule that stipulates 30 percent procurement compulsory from within India. Is this not a diversion by the GOI to say that look we are doing everything to ensure that the Indian people benefited and the company sources from within India. And who is this who will supply the 30 percent? Politicians who do business and the businessman who will have connections. But what about the remaining 70 percent? If that's imported, how's it going to benefit India and Indians. If job are created abroad and what are we supposed to do? Just purchase from these retail shops while the smaller ones go kaput due to issues from being small and not providing the experience of shopping in a big mall. FDI in retail can be allowed, if the company sources everything from India (100 percent, Swadeshi stuff only and that also products made in India, not imported stuff by Indian companies) and they must source 30 percent of whatever they sell worldwide from India. Is Walmart ready for that? Then i think it's good for Indian economy. Else a big no.

Ambar · Post by **Ambar** » 24 Dec 2011 08:53

gakakkad wrote: Understood the game fellows ?

It is not that US is the country with maximum top quality humans or anything of that sort . US does not have any magic that makes it the best. US always made it easy for foreigners to invest in it. Thats how it became the super power. There is a reason why I , you and most of the posters are either based in the US or have at a point in their life worked or studied there. US attracts most investment. US attracts most human capital. While India is hostile to investment . India is hostile to foreign human capital .

It is idiotic and lunatic to thing that FDI will bring slavery and other such conspiracy theories (like that of free mason )

By making foreign investment difficult India is losing out to the world. It is not that Indians are idiots. But Indian politicians peddle these nonsenses to remain in power. They know that they would not last if conditions improve .

US and other highly industrialized nations benefit from a huge demand for licensing,services,IP and finished goods from abroad that also shows up as FDI. Not to mention the massive investments US companies make abroad and bring back certain amount back into the states which also shows up in FDI when used for local operations.

I wouldn't go as far as to call someone idiotic or lunatic for disparaging FDI. In highly volatile countries like India, a massive reliance on FDI can easily lead to massive collapses too in case of a quick pullout. But at this point atleast we need all the money that we can get from abroad for investment.

gakakkad · Post by **gakakkad** » 24 Dec 2011 09:08

I am not in favour of the FDI rule for retail that congress passed. There were too many imperfections and ambiguities in that bill . Nor of cheaply divesting Air India to foreign firms . There has to be a regulation . IMHO the multi brand fdi was a distraction from real issues.

But IMHO it is dangerous to pass empty slogans and create a hysteria for the public. India does appear unfriendly to foreigners from the investment perspective. Like people threatening to burn walmarts etc. We need to educate the public and politicians . And not engage in rhetoric. If the congress was serious about FDI it would have permitted debate and ensured proper regulations and checkpoint mechanisms .

IMHO FDIs cannot exit overnight unlike FIIs. India is no more volatile than oirope . And with economic growth things will stabilise and risk of people leaving reduce.

I mean in the infra sector or the power sector or the high end manufacturing sector , I don't see how FDIs can exit easily. If at all they can exit.

shyam · Post by **shyam** » 24 Dec 2011 09:50

Jhujar wrote:RamYa , the looted money is still here. The itch to invest for good return is the immovable ,eternal truth in Croporate America. The kitty is increasing by 7-800 Billion a year. No harm if we get to take big bite of Amerxan Apple. Indian must become the melting pot of Amerixan, Japani and Middle Easetrn money. You pour in Dollars, Yen and Riyals , melt and churn them to produce Ruppias and do the Kaya Kalp of Desh .

I want them to invest in India in real gold and not in fiat currencies like dollar, yen or riyals. They took out gold, and that is what we need back, and not any quatitatively eased, printable money.

member_21708 · Post by **member_21708** » 24 Dec 2011 09:54

shyam wrote:I want them to invest in India in real gold and not in fiat currencies like dollar, yen or riyals. They took out gold, and that is what we need back, and not any quatitatively eased, printable money.

+1

member_21708 · Post by **member_21708** » 24 Dec 2011 09:57

gakakkad wrote:I mean in the infra sector or the power sector or the high end manufacturing sector , I don't see how FDIs can exit easily. If at all they can exit.

they use their political lobbying power in such cases, as Enron used it while exiting Dabhol power project