A different opinion

By far, as far as I have noticed, Siddharh Varadarajan is the only one who has not praised the FDI in retail bill:

There is no doubt that foreign capital inflows, including FII monies, have played a big role in India’s success story over the past decade. But the problem with the Manmohan Singh strategy today is three-fold. First, it leaves untouched the very structural imbalances in the Indian economy that are responsible for the onset of the slowdown and, worse, stagflation. Second, by pinning all hopes on the revival of foreign inflows, those imbalances will most likely get exacerbated. Today, instead of being used for productive investment, capital is getting locked up in property, gold and other ‘safe’ outlets. A revival of the Sensex on the back of renewed FII interest may breathe some life into the stock market. But the risk is that this may trigger speculative demand and have no impact on the real economy. The third problem with the Prime Minister’s current approach is that the appetite of finance capital will not be sated so easily. One concession must necessarily beget another in order for the foreign investor to keep the faith in the India story.

But even this piece does not talk about throwing open pension and insurance sectors. Take a look!

3 Responses to “A different opinion”

  1. Gaddeswarup Says:

    http://triplecrisis.com/indias-supermarket-move-shows-its-tired-government-has-run-out-of-ideas/

  2. Gaddeswarup Says:

    Guru,
    There is also a thread in Hub, a mainly Tamil site in which a discussion is going on
    http://www.mayyam.com/talk/showthread.php?9574-The-WAL*MART-thread-sillaRai-vaNikaththil-anniya-mudhaleedu/page17
    Some of the quotes are in Tamil and so I am not quite sure of some of the discussion.

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