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Manmohan Singh Takes Finance Ministry. Bad Luck, India.

By on Jun 26, 2012 | 4 comments

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As Pranab Mukherjee resigned from the Government as Finance Minister, our awesome Prime Minister, Man Mohan Singh has decided to take control of his chair. People without common sense are rejoicing and now thinking that MMS will magically restore India’s growth story and put a check on inflation. But the news is bad. All MMS is going to do is sell India to foreign companies, just like he did in 1991.

I’ve often wondered why this government and few literate people think that FDI and letting foreigners put their money in India is the master solution to all the financial problems. What clearly is a ‘failure of administration’ is being fixed through foreign investments. India’s already released the rules for foreign investments. Now, I wonder whether the investors coming here are coming with a social cause in their mind. All the foreign investment isn’t coming here to throw the money at Indians. It’s common sense that they’re coming here to bring back 2 dollars for every dollar they throw at us.

I just wish that the current government goes down. I’d also hope that the Mr. Narendra Modi becomes the next prime minister of India. He seems to be the only hope.



4 Comments

  1. durga

    June 27, 2012

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    I dont understand. Already the Indian market is flooed with stuff made in china, malaysia and the great indian mentality as well ‘looks’ for non made-in-india labels. For example- Bigger furniture show room, mre non indian stuff. I would rather pity the homegrown carpenters.Same goes with eateries , automobiles. electronics. I dont know how deep will be the next plunge.

    • The Big K

      June 30, 2012

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      Thanks to the idiotic policies of this Government that I have to buy a Chinese Lamp to light my home in Diwali. Instead of working on supporting local manufacturers to produce for their own countrymen and then exporting stuff to other countries; this government thinks we need to ‘import’ the technology. ‘Made In India’ has become synonymous with low quality stuff.

      Why did the government do that? Because the ministers get heavy ‘cut’ to allow the companies to operate in India. I wonder why Fair & Lovely , Pepsi is still being sold in India. What technology did they bring here? Did anyone see their balance sheets? Where do insane profits made by selling sugar water go?

      I wonder whether ‘what’s so obvious’ has lost in the jargons and shiny packaging.

  2. Akshay Sharma

    June 29, 2012

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    Its conspicuous about the present Indian government strategies regarding FDIs to overcome the depreciating INR, as well mentioned in the article above. In the present scenario where our country people are flabbergasted with finance ministry lead depose, simultaneously rejoiced by the Economist MMS comeback after years. The need of the hour is obviously to curb inflation and to recover INR value. At this pernicious situation, author is very true regarding the mentations of MMS but I’m not entirely in accord to the argument mentioned.
    At this point of time the booming Indian market is so enticing to all international brands that they are ready to get into in almost every reasonable conditions. Here, the need of hour for Indian government to tie up with a few FDI along far sighted constraints on them. These FDIs are not only need at this point of time but will also give salutary effects in near future. For e.g. in agrarian sector where almost 60% of indian population is involvedbut still agriculture sector contribute approx. only 20% to the GDP. The logic behind is that more than 30-40% of grain produced are spoiled because of either no food-stores or pathetic dependency on climate or lack/dead grain distributing network etc. Here, the resolve is technology and management along with infrastructure.
    Its apprent that how good we are in technology and management when it comes to Indian government. For the last few decades we are planning to have irrigation in each field to avoid dependency on unpredictable monsoon, but growth in irrigation area increased percentage per decade is despicable. When FDIs ll allow international brands to advent to these conditions, the state of art technology & management can make things in order along with many indigenous players to stand on their own in supporting role. Here, the win-win condition appears when our local players can withstand alone after the International brands departure as per the now signed policy constraints and can manage with the expertise of years they gained with international brands.This is all possible when Indian Government will be sanguine and Far-sighted for at least 10-15 years rather than next 2014 election.
    During 1991 MMS have saved India or have put it in a booby trap which has started cursing us ? Even if he has committed a colossal fiasco, he still has a chance not only to revive the Indian economy but to take it to the apex. what do you say ?

    • The Big K

      June 30, 2012

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      The point I wanted to make was – the government is showing the ‘FDI’ is an answer to the ‘administration’ problems. I’m confident that Indians can develop their own technology and even manage things better. I fail to understand Government’s obsession to ‘import’ technology and management from the foreign countries.

      FDI ‘looks and sounds’ good; but remember, it’s ‘investing’ and no one invests unless they’re sure of getting returns. I wonder what ground-breaking technology will cold storage bring to this country. Has PEPSI, P&G brought any new technology to this country?

      It’s a clear loot in the name of bringing technology to India. No company will ever bring technology here; they’ll either license it (taking money away from us) or sell products or services based on that technology (again, taking money away from us).

      Answering your last question: Did it revive Indian economy? I think the answer is so obvious. It has NOT. Foreign investment cannot help any country’s economy boom. It’s ultimately the goods and services produced in any country that will eventually matter.

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