Comments on: Crude realities for India’s economy http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/ Perspectives on South Asian politics Thu, 02 Jun 2016 08:03:22 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: India Real Estate http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-436 Fri, 27 Jun 2008 11:15:37 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-436 Bumpy ride is ahead. Inflation is still climbing despite recent rate hike and it looks that another one is on its way. India has become one of the poor performing Asian index this year.Oil has again claimed today (142$) despite sometime back assurance from Saudi’s (opec) pledge to increase production. Will Libya cut the production or is it just a talk?
But I guess oil hedging investors/funds making fortune, is there way to crackdown as US says they will?

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By: Ravi Krishnamurthy http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-428 Thu, 26 Jun 2008 09:04:01 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-428 Bumpy rides will be there for any growing economy. A PM who is clearly not a leader, but at best a honest man, is not helping India take tough decisions and rally support from masses.

India needs Young leaders. That never seems to happen in the country and somehow the ‘Left’ leaders not aging fast enough and retiring from active politics.

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By: krittivas http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-426 Thu, 26 Jun 2008 08:18:16 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-426 Syed aka Kamil your argument ignores India’s political reality. How can you ignore the political compulsions of the prime minister? After all he is leading a coalition. If he tried to bulldoze his policies through, the communists would brook no delay in withdrawing support and bringing the government down. Will political uncertainty be any good for FI interest? Democracy (however flawed) and political stability have been as important a magnet for FII interest in India as our huge market.

Also, you have spoken of the headstart the congress government had in terms of a comfortable forex reserve, a blazing GDP growth and FI interest that it could have capitalised on to push India ahead of China. Consider this: From an average of 6.9 pct growth (the time the congress took over from the BJP) to a 12-13 pct growth that is needed to overtake China would mean huge inflation pressures on the economy and infinite fiscal problems. Aren’t we already seeing the effects of an over-heated economy?

But then again I am not trying to completely absolve the prime minister. He has made mistakes. The government should have abandoned the outdated idea of controlling and subsidising fuel prices long ago. After a populist budget and fuel tax cuts, the fiscal outlook is also deteriorating and of increasing concern to investors.

The problem is this: hard decisions are tough in a country ruled by disparate coalitions. The government should have taken tough decisions last year to raise fuel prices and tighten monetary policy before things span out of control.

Instead, the need for some decisive policies
is obscured by an often inflated sense of well-being.

The resignation of Manmohan Singh may only help him salvage some of his personal dignity but not pull India back from the financial quagmire we are headed towards.

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By: Syed Mansoor http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-422 Thu, 26 Jun 2008 06:12:34 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-422 The Congress government had four years to build on high forex reserves, FII and FI interest, and strong GDP growth, to push the economy into a higher growth trajectory. But it, as Surojit rightly hits the nail on the head, timidly surrendered to its leftist allies and did not undertake any major reforms–whether disinvestment or financial sector reforms.I
It lost a golden opportunity to push India ahead of China in terms of growth. Posterity will not forgive Manmohan Singh for this lost chance. Now, inflation is rampaging and growth could be hurt. What a shame.

Again, Manmohan Singh is showing timidity and weakness in dealing with the left on the nuclear issue. Manmohan Singh, stop giving into the left’s blackmail. Resign and leave with a bit of dignity from high office. Otherwise, your tenure will barely be a footnote in history.

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By: LONDON (Reuters) - London's flamboyant mayor Boris Johnson is fuming after police took possession of a cigar case he removed from the looted home of former Iraqi Deputy Prime Minister Tariq Aziz shortly after the U.S.-led invasion in 2003. http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-418 Wed, 25 Jun 2008 18:03:48 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-418 Do you think decoupling will work? and I don’t have the US economy in mind. I think India and its economy can be secured only after we decouple politics from economy. How do we do that? I don’t have a clue. Can we have independent policy formulators? Just a thought

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By: Madhu http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-399 Mon, 23 Jun 2008 17:30:34 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-399 Do you think decoupling will work? and I don’t have the US economy in mind. I think India and its economy can be secured only after we decouple politics from economy. How do we do that? I don’t have a clue. Can we have independent policy formulators? Just a thought.

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By: Iftakhar Latif http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/comment-page-1/#comment-396 Mon, 23 Jun 2008 14:39:53 +0000 http://blogs.reuters.com/india/2008/06/23/crude-realities-for-indias-economy/#comment-396 Unless and until there is growth in industrial production, good quality agricultural production Indian economy will be always bumpy, India needs to innovate product
Not supply slaves in the name of outsourcing for industrial growth

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