Tuesday, May 19, 2009

Indian Stock Markets: Another point of view

Some analysts warned the new government could disappoint investors - not least because of unrealistic expectations and more opposition than immediately apparent to market liberalisation. As the FT notes, the “bulk of the Congress party’s electoral support did not come from people seeking reform”.
All the while, India is suffering from the global downturn. Economic growth rates have fallen from 9 per cent to nearer 5 per cent this year, some estimates show.

Four Warnings from Gideon Rachman, Financial Times (ft.com)

(First) While Mr (Manmohan) Singh is an impeccable frontman, the country’s politics has a much sleazier and more disreputable side.

(Second) Just because India is a democracy, it does not follow that it will automatically side with fellow-democracies around the world. The sleazy side of Indian democracy has led to a third common notion — popular in the authoritarian parts of Asia: the idea that democracy imposes a sort of tax on India.

(Third) But it is still true that, for all the virtues of its political system, Indian governance has failed hundreds of millions of people. Rates of poverty and illiteracy are much higher in democratic India than in authoritarian China.

(Fourth) Euphoria about modern India has led to a fourth mistaken idea: the notion that democracy has given the country a deep and unshakable stability. It is certainly true that the political future of China looks more uncertain and alarming than that of India, Asia’s other great subcontinental nation. But India still faces serious threats to its internal stability.

2 comments:

karmavir said...

Thanks for sharing. However, westeren commentators have consistently shown their short-sighted and/or biased apprpach towards India / China. May be it is Neighbours' envy, Owner's pride. After these elections, where common people of India have given mandate for clean politics (all deal makers / non performers, irrespective of whih party they belong to, have been shown the door).

Shreeja said...

Sir,
In my opinion,
india has a long way to go to cum at par with china.
one thing that i common between china and india is that their developments are geographically concentarted...it is not diverse..
But china's development is far superior than that of India..inspite of being more populated than India.
There was a time when India was doing better than China...China surpassin India was impressive..