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Updated: June 23, 2013 01:37 IST

India needs no investment from abroad, says economist Gurumurthy

Special Correspondent
Comment (8)   ·   print   ·   T  T  
S. Gurumurthy
S. Gurumurthy

India is too huge a country to be developed with the help of other economies, he says

Noted economist and Swadeshi Jagran Manch co-convenor S. Gurumurthy asserted that India is set to emerge a major economic power in the coming years.

Dr. Gurumurthy debunked widespread projections by economists on the need for investments from other countries in India for its development saying, “India is too huge a country to be developed with the help of other economies.”

“Of the total investment made in the country between 1991 and 2011, foreign investment accounted for only 1.8 per cent while the remaining 98.2 per cent was generated from within,” he said.

Mr. Gurumurthy was speaking at Swami Vivekananda’s 150 birth anniversary talk on “Vivekananda’s socio economic thoughts for sustainable development of Bharat” here on Saturday.

He said reports by leading intellectuals and economists project India, China and the US to be the three leading economies by 2030.

The two Asian economic powerhouses are already contributing significantly to the huge borrowings of the United States for meeting its liabilities on account of social security expenditure.

Swami Vivekananda’s vision

Swamy Vivekananda, he said, envisioned the growth of the country as a leading economic power a century ago as he could realise the inherent potential much ahead of others.

“Sociology drives our economy and sociology is driven by spirituality here,” he said.

Swami Bodhamayanand, director, Ramakrishna Math Centre for Excellence, and leading cost and chartered accountant K. Narsimha Murthy spoke.

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I am surprised that an eminent economist like Mr Gurumurthy claims that India
would not need investments from other countries for economic development.
Implicit in this is the assumption is the view that the country would be able to
generate capital from domestic sources alone.

While I do not wish into get into the polemics of the drivers of economic growth in
large countries, I must point out one serious issue that he neglects is the issue of
capital flight in India. Capital flight can be defined as “...outflow of resident capital
which is motivated by economic and political uncertainty...”

India has both illicit & legitimate capital flight, perhaps in response to the poor
investment regime & political corruption. Not surprisingly, many blue chip Indian
firms like Tata, Mittal etc. prefer to invest outside India,

Does Mr Gurumurthy believe that there would be optimum growth despite the
absence of FDI and the presence of capital flight?

from:  V. Suresh
Posted on: Jun 25, 2013 at 12:56 IST

(2/2)

Rather than argue for the creation of a transparent and clean investment climate in
India, it is odd that an eminent economist mixes economics and spirituality and
makes a case for the discredited swadeshi economics that created nothing but a
pernicious licence raj. Barring perhaps North Korea, I know of few countries that
would reject FDI or create conditions that are difficult for any investor, foreign or
domestic.

Sadly, Mr Gurumurthy’s statements remind me more of the crazy views of that the
other amateur economist Baba Ram Dev than those of a trained economist.

from:  V. Suresh
Posted on: Jun 24, 2013 at 16:16 IST

I fully endorse Mr. Gurumurthy's views. Though I am not an economist , still I can say with confidence that a large number of foreigners/investment bankers/fund houses talk of huge fund requirement for Indian economy which is not necessary. All these foreigners are doing is , to sell their capital goods and creating market for their machinery and off course their 'consultants' who just talk a lot without knowing Indian ground reality. In my opinion Indian middle class has enough surplus to take care of the country's investment needs.

from:  Kandarpa Ashok Kumar
Posted on: Jun 24, 2013 at 10:47 IST

@shankar kare...
FDI and FII data are all available on govt. websites. You can search them yourself
using google etc. Its also given in terms of % of total investment made.
I have searched it and its true.
BTW Mr. Gurumurthy is an expert himself.
In any case, nobody in his right mind would put a claim with hard data that can be
easily disputed.

from:  Ashutosh
Posted on: Jun 24, 2013 at 02:50 IST

Sounds very nice. But the average man is not sure if that is true and
would like some experts to send their comments please....

from:  shankar kare
Posted on: Jun 23, 2013 at 16:09 IST

How we wish the likes of Sri Gurumurthy were in government? It is a misfortune that this nation will never get such people in high positions. We only have politicians and bureaucrats who are so eager to sell the country to businessmen (both Indian and foreign) and pave the way for another East India Company.

from:  Ramana Murthy
Posted on: Jun 23, 2013 at 12:44 IST

It is important to note that, successive governments in the past have
not experimented with Swadeshi Economics. As Swami Vivekananda has aptly
described, we have huge energy and resources but we seldom use it.

from:  Nithin
Posted on: Jun 23, 2013 at 12:09 IST

Bring all the money that has been put in swiss bank and tighten the
rules around this - India can lend money to other nations.

from:  Murthy
Posted on: Jun 23, 2013 at 07:51 IST
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