“Obama not properly informed of our strong economic fundamentals”
Responding to U.S. President Barack Obama raising concerns over “deteriorating” investment climate in India, the government on Sunday said certain “international lobbies” were spreading such stories and he was not properly informed of the country’s strong economic fundamentals.
“Certain international lobbies like Vodafone are spreading this kind of a story and Mr. Obama was not properly informed of the things that are happening, particularly when India’s economic fundamentals are strong,” Corporate Affairs Minister Veerappa Moily told reporters in Bangalore when asked about Mr. Obama’s remarks.
Opposition parties lashed out at the U.S. President for his remarks that India prohibited foreign investment in too many sectors, with the BJP saying the country could not open its markets just because he wanted it.
“If Mr. Obama wants FDI in retail and India does not want, then it won’t come just because he is demanding it,” BJP leader Yashwant Sinha said in Delhi.
Mr. Moily said the perception of deteriorating investment climate in India was not based on economic parameters, but on certain impression of few individuals, entrepreneurs and investors.
“That is also being removed. Once that perception is removed, I think in 2-3 months, we are back again with a kick-start to pick up the same speed as we had done in the last decade,” he said.
No crisis
Mr. Moily said there was no crisis in India, whereas the U.S. and other countries faced crisis, “not once but twice in 2008 and 2010.”
“Not even a single financial institution has collapsed in this country, whereas many such things have collapsed in the U.S. and other countries,” he said.
In the last one decade, India had registered a vibrant growth rate of 8 to 9.5 per cent, “but for the economic crisis in the U.S. and Europe, the country would have definitely crossed 10 per cent of the GDP.”
“That is the potential of India which can recover back immediately by taking remedial steps,” Mr. Moily said.
He said 55 per cent of the investment in the form of FIIs and FDI came from as many as 10 countries including Mauritius, Cyprus and Singapore, and only 19 per cent came from the U.S. and other countries.
“Ultimately Prime Minister Manmohan Singh is going to address all these problems and it is being considered. That’s why again the investment climate is picking up,” he said.
BJP Vice-President Mukhtar Abbas Naqvi termed the U.S. President’s remarks “laughable.”
“That country is giving us a certificate on investment and economy when it itself is facing economic problems. We have to ensure our national interests on our own. It is laughable,” he said.
CPI(M) leader Nilotpal Basu said: “They [The U.S.] want to open up our economy and market on their terms. For this purpose they are creating this pressure.”
The BJP and the Left have opposed the FDI, especially in retail, citing interests of the small trader.
SP’s stand
The Samajwadi Party, which is extending outside support to the UPA, said India would not take a decision in support of the United States.
“They only want their market to expand in our country,” SP leader Shahid Siddique said.
Keywords: India economic reforms, Barack Obama remark, Moily remark
FDI in retail will not kill our small traders. We definitely need
economic reforms, and these politicians are simply trying to get short-
term votes by opposing those reforms, knowing full well that our
country will be in peril in the long term without these reforms.
It embarrassing to read these comments by Indian politicians. When
the world embargoes India's goods and services, only then would India
realise they don't live on an Island. You want export markets but
dont want to open India? Get real.
Mr.Moily,
U r giving the standard expected response, nothing original or inspiring. Sadly this is the state of affairs of all eminent personalities, whether government or opposition, or even the eminences among the public.
Talking about lobbies, our Indian press is another example of a LOBBY, when it comes to any strong comment from the US.
I recall Obama's comment on India's inaction over Myanmar Junta's long misrule, when he visited India. Our press unanimously expressed rebuttals on why and what of India's stance on Myanmar. All concerned felt satisfied that a good job was done because we have hit USA ;-(, not that we did justice to Democracy. But now when Myanmar is opening up, THEY ARE NOT INTERESTED IN INDIA, SUPPOSEDLY A MAJOR ASIAN SUPER POWER... how sad ;-(((
We all take pride that Indian culture is the oldest one which teaches sincerity and humility. But these are the very factors missing in the voices of our Nation, our elite.
As per latest data, India's GDP growth rate is 5.3%, India's inflation is at 7.55% and
currency exchange rate stands above 55 Rs against Dollar, which is a clear indication
that Government of India is fabricating data against a dampened economy, and all
political parties are supporting it in doing so including the opposition. Seeing the
size of US economy, you can not compare it with India's economy, and greater
exposure comes with bigger economy with greater risks of institutional defaults. FDI
in retail sector has been supported by Government of India for which a legislation is
pending in parliament, so why a different talk for media bites. FDI in retail will make
available best products to consumers while keeping the market competitive and will
create huge number of jobs, so whom we are kidding. Culture of malls have already
taken a toll on small shopkeepers but FDI in retail will force these mall owners to
house competitive products.
This is a typical knee jerk reaction from politicians trying to hold on
to their seats. Indian software companies that are big revenue
generators for the Indian economy are able to register and start
businesses as a 100% US Corporation. Why don't the Indian
polity/population acknowledge the same benefit to US Corporations.
There may be the downsides/plus-sides but the overall impact is going
back to 'protectionism' era of the 70's and 80's. Baseline: If you want
to benefit from unfettered access to the US let them also benefit from
the same. Equal the playing field and that would get rid of the rule of
a few for the majority of the Indian populace. Also better laws and
implementation would be welcome in the land of self described fairness.
!
Opening up of market is just a part of the comments by the US President. But, why none speak about economic reforms? Economic reforms and global competitiveness are the main agenda, not opening up of the markets.
Our government and opposition are almost of same nature......They always want to hide their own faults......it is clear that India need policy reforms at this stage,as all the countries like China,South Korea are taking extraordinary steps to promote FDI in their countries but Indian govt. always stick to their economic fundamentals which are definitely strong but will not remain so if India does not take positive steps in this regard......Govt. should take Obama's comment in positive way and should not frustrate all the time
Mr. Moily. I saw a TV program yesterday in which economic experts were
uncovering many veils which covered our economy. I was shocked to find
out your blunders. It seems you are giving 20 lakh crore as subsidy to
corporates. Subsidy to Benz driving and Audi driving corporate guys
boggles my mind. I am an ordinary middle class guy who does not get
any subsidies. The economic experts also told that while China stocked
petroleum when the oil price fell from 102 dollars to 82 dollars per
barrel we did not do the same. Do you know of a guy named Louis Palmer
who traveled the world in a solar car called the solar taxi. Economy
and technology have to go hand in hand for effective development. It
seems the steam engine is undergoing a revival. Look into it sir.
Check out Pritchard's steam engine and Bessler Steam plane. Free our
country from OPEC. Louis Palmer's technology can be used for cooking
also, just use it power electric hot plates. Check out all the
technologies I have mentioned.
US is a country that is friendly to India, so is it possible to make all
the same points, but in a less combative tone?
Does naming and attacking a significant investor company help attract
other large foreign investors?
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