Recently, Financial Times (of UK) dated 17 Apr 2012 carried an article on India. Some of the interesting points (embellished with Financial Thought views) are given below:
1. India is in fact turning back to its model of 1970s when Indira Gandhi stifled Indian businesses and focused on poverty (eradication). They nationalized banks such as Bank of Baroda who would have rivaled HSBC or Stan Chart today. BoB had operations in ME and Africa while a few south based banks were active in Far East.
2. Socialism is making an entry through back door. It believes in equal distribution. Since socialism hardly creates wealth, often it means "Poverty distributed equally' while the able escape to the west.
3. Narasimgha Rao gave his then FM free hand in the matters of Finance, unlike Indira Gandhi.
FT goes on to say that Sonia Gandhi tries to imitate her mother in law, Indira Gandhi. It is reported (not FT) that someone is going to make a movie on Indira Gandhi. However, Financial Thoughts is not a fan of Indira Gandhi, although some of her decisions such as 1971 War, 1983 Blue Star operation may get a few points. But Indian economy was a disaster during those days. An Indian economist familiar with the benefits of poverty alleviation of 'Reforms' pleaded to liberate the economy from license raj, however he just was ignored by Indira Gandhi, possibly because she thought of herself good in economics?
It took Narasimgha Rao to give economic freedom to India; however it seems to be taken away slowly.
India's own industrialists feel discouraged by the economic policies (read 1970 socialism) and they have billions to invest. They are looking outside to invest - say a place like UAE, which hosts several illustrious businessmen who conduct business hassle free with rest of the world. Or ask why Swaraj Paul or Mittal, why they left India in the 1960s and 1970s. Given the kind of policies adopted by Sonia Gandhi (re-appointment of 1980s FM Pranab Mukherjeee, selection of relatively unknown Mrs. Patil as President) brings dejavu experience of Indira Gandhi, back in action!
Modern days need modern leaders - turning to the failed model of 1970 defies logic.
Many have often wondered why an eminent person like Dr. Manmohan Singh (who did a lot for the country) seems uninitiated or lacks motivation he showed in the 1990s. FT article provides some good insight on the backseat driving . Moreover, Indian PM has friends like 'Mamatha Banerjee'. With such friends, who needs enemies!
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