[Business News]As Modi euphoria cools, India faces test to keep foreigners invested.

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iPwnz

iPwnz

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Nearly two years after Narendra Modi was elected as India's prime minister with an ambitious business-friendly agenda, the feeble pace of reforms is starting to test the patience of one of his biggest group of supporters: foreign investors.
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Long overshadowed by China's spectacular rise, Modi's powerful electoral mandate stirred hopes that India finally had a leader capable of boosting its underwhelming investment climate and stolid global image.
However, in a disappointingly reminiscent narrative of previous administrations, partisan politics and a hostile opposition have stalled Delhi’s reform push, including delays to legislation on an important goods and services tax sought by businesses hamstrung by existing, cumbersome levies.
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Foreign investors are showing their displeasure by heading for the exit, dumping a net $2.4 billion in shares this year - the second-biggest outflows in Asia excluding China, according to exchange data around the region.
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A critical test now awaits Modi on Monday when the government unveils its budget for the year starting in April, giving the prime minister an opportunity to turn around views of the likes of Sergio Trigo Paz who said that India and Mexico were no longer the darlings of foreign investors.
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The numbers tell the story. The NSE Nifty has slumped about 12
percent this year and around 24
percent from its record high of March last year, helping to send the rupee dangerously close to near an all-time low against the dollar.
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ouch.

Stock prices are now lower than they were in May 2014 when Modi swept to power with the biggest electoral mandate in three decades with a promise to deliver jobs to millions of youth and to transform India as a magnet for business.
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Foreign investors have also turned sellers of Indian debt with net outflows at $833.5 million. That
contrasts with $54.6 billion in debt
and equity investments over 2014 and 2015.
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Analysts also warn the perception of India as being the least worst off among emerging economies will not buy it unlimited time. "I have been investing in India too long to hold out much hope before things actually happen," said Anthony Cragg, senior portfolio manager at Wells Fargo Emerging Markets Equity Income Fund in Denver, Colorado.
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Full details on http://in.reuters.com/article/idINKCN0VZ0GN?irpc=932

TL;DR: India is still waiting for AccheDin. Seriously. Hope it comes before our economy flows down to the dogs.
 
This doesn't matter as long as BJP is able to generate jingoistic patriotism among its Bhakts on issues that don't have any place in the broader picture at all and also in the meantime keep on changing the method of calculating the GDP of the country to better suit its narrative.
 
Ye the GDP thing is a mess. Some reports say its doing better but we know the situation of our currency value, some critics said it was bad but govt ridiculed the claims. But i believe the above article is the most reliable one yet.
Arun Jaitley I'm watching you.
Similar thing with the whole "will innovate and improve condition of startups", "create <insert any number you like> number of employment by 20XX year" yada yada yada.
I mean one of the promises before the election was to strengthen the INR and we are currently knocking on the door of "70/USD."
I'm tabbing news channels and live posts eagerly waiting for something good.[DOUBLEPOST=1456557041][/DOUBLEPOST]Related,
"Our banks are in trouble."
https://www.reddit.com/r/india/comments/47ogw5/our_banks_are_in_trouble_we_need_to_talk_about_it/
 
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Haryana burning and both centre n state bjp govt. did nothing at all. Every passing day modi sarkaar becoming more useless.

No black money back in 2 years , corruption reduction hasnt happened much, no security in even metros, most of modis promises failing even after having majority. feel like my vote was wasted

 
Haryana was a consquence of Congress meddling - you do realise that Hooda's political aide, Mr Virendra, has had sedition charges slapped against him? Although of course, their response could have been faster. WRT The banks, whose incompetence and crony capitalism led to such large bad debts in the first place? The Congress, of course. AT least they're out in the open now, and the bank recapitalisation process has started.
India has been one of the best performing EM currencies - the dollar has just become very strong.
4000 crore of black money has been repatriated to India (http://economictimes.indiatimes.com...er-600-stash-holders/articleshow/49177887.cms)

The way the country was mismanaged in the 2004-2014 time period, it is going to take time to get back up to speed. Give the man some time, he's doing his best.
 
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TechHead said:
Haryana was a consquence of Congress meddling - you do realise that Hooda's political aide, Mr Virendra, has had sedition charges slapped against him? Although of course, their response could have been faster. WRT The banks, whose incompetence and crony capitalism led to such large bad debts in the first place? The Congress, of course. AT least they're out in the open now, and the bank recapitalisation process has started.
India has been one of the best performing EM currencies - the dollar has just become very strong.
4000 crore of black money has been repatriated to India (http://economictimes.indiatimes.com...er-600-stash-holders/articleshow/49177887.cms)

The way the country was mismanaged in the 2004-2014 time period, it is going to take time to get back up to speed. Give the man some time, he's doing his best.
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So you saying the govt in power has no control over their own state ? why no action was taken in the entire week against anyone ? even if congress meddled what did khattar or anyone in power do ? nothing !
 
@TechHead its true that the Congress led-UPA govt. screwed up their time. For this reason I hate and can never trust a word Rahul Gandhi say. But you have to understand the promises made before election by the PM/BJP. One minister even boasted and claimed that we will see the value of the currency will rise the moment they come to power. Now look at what's happening now. Not-so-recent news, don't forget the startup tax drama. Its like all the promises made were for a parallel universe.
Most recently though not directly related to the currency/bank economy, the budget on railways. It will be a dream come true even if only 50% of the claims be fulfilled for real. No bs. Railways can be the highest earning sector in the whole country (and even internationally if China is not counted) if properly maintained.
 
The way you said that its like I'm an Overlord of the country or something lol.
On a serious note I'm not sure if that's a good idea. Let the govt. do what they can with what they have. Let the people judge.
 
 
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nimod said:
Let BJP have a majority in Rajya Sabha (by the year end) and nothing will be left untouched of reforms.
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We have already seen how bullish this govt can be, so I don't think that's a good idea. This could help pass some good laws for sure, but also unjust bills like Land Acquisition will pass. Also we know how BJP would love to make lives miserable for people who don't want to agree with their Hinduistic policies.
 
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You might as well call it a dictatorship if a govt has free reign in every thing and every where. It would be no different than the Nazi rule in Germany. Don't forget that Hitler too was a democratically elected leader who enjoyed too much power and support that ultimately allowed him to get above and beyond the powers afforded by democracy. Yeah, depending on one's perspective, some short term good many come out for at least a few people as it did in Germany, but don't forget that would also bring about abuse and absolute corruption in the end and nothing good will come out of it for the people in the long run.
 
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Lord Nemesis said:
You might as well call it a dictatorship if a govt has free reign in every thing and every where. It would be no different than the Nazi rule in Germany. Don't forget that Hitler too was a democratically elected leader who enjoyed too much power and support that ultimately allowed him to get above and beyond the powers afforded by democracy. Yeah, depending on one's perspective, some short term good many come out for at least a few people as it did in Germany, but don't forget that would also bring about abuse and absolute corruption in the end and nothing good will come out of it for the people in the long run.
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you mean to say nothing good can come out of democracy?
 
The flaw in that example is Modi Govt can be voted out in the next elections. Not sure if Hitler had left any scope to do so.
I would want them to have that majority to get any kind of work done. I'm, like many am sure, tired of this slow-moving bullshit. Single biggest reason why this govt. tiptoeing on enacting some reforms is fear of losing further ground in state elections thereby costing further numbers in the upper house.

Some bills and laws would always be more controversial than others. No two ways around it.

Lastly, would want the same for any government that gets elected.

As for FII money, less said the better, and as for INR value, a fall to 70 will be on the cards if worldwide pressure on currencies sustains and China continues to devalue its own. Jack shit that the government can do here. This is not like Sep 2013 when reasons for the INR crash were quite different IIRC.
 
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I honestly like to believe that the whole world is facing the same problem but I can't mainly because of the tall claims and promises by the govt.
 
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eternoMind said:
The flaw in that example is Modi Govt can be voted out in the next elections. Not sure if Hitler had left any scope to do so.
I would want them to have that majority to get any kind of work done. I'm, like many am sure, tired of this slow-moving bullshit. Single biggest reason why this govt. tiptoeing on enacting some reforms is fear of losing further ground in state elections thereby costing further numbers in the upper house.

Some bills and laws would always be more controversial than others. No two ways around it.

Lastly, would want the same for any government that gets elected.

As for FII money, less said the better, and as for INR value, a fall to 70 will be on the cards if worldwide pressure on currencies sustains and China continues to devalue its own. Jack shit that the government can do here. This is not like Sep 2013 when reasons for the INR crash were quite different IIRC.
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The problem with such a suggestion is the current govt. They have been peddling their pseudo- Hinduism inspired policies.
Also the land acquisition bill was a big alarm bell for me. Many points under that bill were good and there are projects like inter-connectivity of our rivers ( something I have been hoping for years now) which would have benefitted from the law, but the govt first needs to build trust before coming out with such laws as only then people would be less skeptical about them.
 
rdst_1 said:
The problem with such a suggestion is the current govt. They have been peddling their pseudo- Hinduism inspired policies.
Also the land acquisition bill was a big alarm bell for me. Many points under that bill were good and there are projects like inter-connectivity of our rivers ( something I have been hoping for years now) which would have benefitted from the law, but the govt first needs to build trust before coming out with such laws as only then people would be less skeptical about them.
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Name one pseudo hinduism inspired policy the government applied.
 
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