From our india blogs India.advantages.us and the wp Image here
We as india writers have pushed out everything with insight in the last three four years, short of the unworthy Indian infrastructure which could not attract even $100 bln in Gross investments yet with two debt funds of $3 bln each and some older established PEs like Macquarie and 3i and the Govt of India grants of INR 750 bln. Short because Indian Infrastructure sector with all the public enterprises involved is very short on the details and as it works without meaningful graft like the Telecoms, the Roads, Power, Aviation and Ports infrastructure continue to work with construction companies like our FMCG sector works with $500 mln brands from HUL, P&G and ITC and we are the wrong ones because we criticise something as if it was the end of the road for the sectors in each case and nothing else going to happen because it is not.
At least that is also what the Dy Governor of the RBI, Subir Gokarn seems to feel if we read into his new timetable to plan out Capital Convertibility for India. FDI in India has always been able to attract the bigger dollars irrespective of investors’ fascination with issues like the retroactive introduction of taxability of transactions and the impossibility of investing more than tokens of currency in our banking sector with restrictions of M&A or the recent failure of FDI in multi brand retail/ defence, healthcare and aviation.
The true problem comes in India’s cultural intractability compared to China or Signapore or others total rolling out of the Carpet for the bbigger dollar including the State sponsorship of the project, and not an immobilised set of half dozen land reform and Tax reform bills, and the Private state and comsumer acceptance of that way of life that the investment unwittingly imports itself with. Being open to cultural transfusion, this is a real anachronism always heaped on the middling old politicians who could not run coalitions but it runs deeper as the next few generations will find out.
Probably what we need to bring in each sector is like the perfect storm, at least two representative investor in each such sector, like probably Yum with KFC and Pizza Hut and Tata Global – Starbucks and or Dominos with the Bhartiyas where there are unlikely to be any hiccups with all three biting the bullet and all government departments, consumers and politicians able to sell and compare. I would even aver that the 2g experiment is still very much a success for the FDI story right now. A similar base exists in Banking where the world’s Top Banks are increasingly looking to Asia and India in particular to roll out bigger base staff or the magic wands that the local and global Harry Potters need to win the magical sorcerers over at state and center.
Whether it is International Quality standards for Highways or structured products in Banking, Indians more than other s are Comparison shoppers who like to think their Point-Of-View is appreciated and part and parcel of the product/standard unlike others who let FDI build a parallel Eco system, much like
empty highways and cities outside Bejing while the Eastern corridor esp around Beijing keeps cars stuck in Traffic queues that take three days to move from end to end, or even more
The simplification stated in that, is to be taken with the usual detailed quid pro quos and the details of a contract like bringing the capabilities to service rural consumers becoming a new reality for banks, auto and credit card and durables/discretionary sector plays from Pizza to That larger personal loan than the $500 on my Kissan Credit Card.
THE INDIA BUDGET 2012
- The Rail Budget 2012-13(awardz.wordpress.com)
- THE INDIA BUDGET 2012: Food Security moved to #1 priority(awardz.wordpress.com)
- THE INDIA BUDGET 2012: Subsidies and Extra Tax revenues(awardz.wordpress.com)
- THE INDIA BUDGET 2012 (Pre Budget Speech) INR 1 tln in Service Tax receipts this year?(awardz.wordpress.com)
- Predilections: Manufacturing a perfect pre budget rlally(awardz.wordpress.com)
- THE INDIA BUDGET 2012: Tax Proposals, Personal Taxes, Service Tax, Corporate Taxes(awardz.wordpress.com)
- 2012 India Economic Survey(awardz.wordpress.com)
- THE INDIA BUDGET 2012: Healthcare, Education and the Rest?(awardz.wordpress.com)
- THE INDIA BUDGET 2012: Agriculture, Welfare, Textile sector push continue(awardz.wordpress.com)
- The India Inflation Report (February 2012)(awardz.wordpress.com)
- India Infrastructure: HSBC, ADB funding to bring up $ 1 bln debt fund(awardz.wordpress.com)
- Food and Fertiliser Subsidies, No FDI, Oil bill and state elections(india.advantages.us)
- The PMEAC cut: Pt II(india.advantages.us)
- Re’soul’utions for India 63(awardz.wordpress.com)
- Happy Thursdays! Paan Singh Tomar and UTV – What ails Indian entertainment, polity and budgets(awardz.wordpress.com)
- India Inc invests $ 797 mn overseas in January(ibnlive.in.com)
- Union Budget 2012: Under-performs Aam-aadmi Expectations !(trak.in)
- Latin America, India’s next big thing?(thehindu.com)
- India FDI: India superpower in application development (E&Y) (awardz.wordpress.com)
- Happy Thursdays! Celebrating Cricket, Getting FDI to local consumption markets and growing global trade (awardz.wordpress.com)
- The 49% FDI from Foreign partners in Aviation (awardz.wordpress.com)
- 100% FDI in Single Brand Retail, Aviation and Multi Brand FDI also on the anvil (awardz.wordpress.com)
- Overseas FDI by India reaches $45 bln (awardz.wordpress.com)
- THE INDIA BUDGET 2012: Banking for All, Infrastructure and Industrial Development (awardz.wordpress.com)
- Happy Thursdays! Paan Singh Tomar and UTV – What ails Indian entertainment, polity and budgets (india.advantages.us)
- Luxury brands make a beeline for Asia (advantages.us)
- Overseas FDI by India reaches $45 bln (india.advantages.us)