FDI tango: It’s useless band-aid for the wrong disease... The real problem is that the CAD is soaring because of the plummeting rupee, as well as galloping demand for oil. There are no quick fixes for these. The rupee is falling because the economy is collapsing. The economy is collapsing because of lack of investment in infrastructure for the last 50 years, and the loss of competitive advantage due to huge, unproductive entitlement policies......India doesn’t have the roads, ports and electricity in place to support just-in-time global supply chains. Half of Indian agricultural produce is spoiled, or eaten by pests/rodents because we don’t have the storage silos or refrigerated warehouses or value-added processing facilities....As much as the UPA in its desperation might gyrate its hips, its charms at the moment are simply not seductive enough to attract the kind of white-knight foreigner who can rescue the damsel. In other words, there is no quick-fix remedy for a lingering, structural malady. It is black comedy that in the very week FDI was offered to all on a platter, two of the biggest investors pulled out of their mega projects.
Posted on: Mon, 29 Jul 2013 09:02:52 +0000
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