Salient to Investors:
William Pesek writes that Raghuram Rajan at the RBI has no control over what really ails India, namely:
- Politicians spending without accountability
- Corruption
- Government transparency
- The red tape that is deterring investment and strangling growth.
- Tax policies that limit revenue streams and encourage an explosion of startups
- Education and training programs that need reform
- Infrastructure improvements
- A parliament in New Delhi at odds with powerful state leaders on virtually every upgrade the economy needs.
- Barriers to imports and investment.
- Corporate governance that need improving.
- Reliance on foreign energy at a time of rising tensions in the Middle East
- The competitive threat from China.
- Gap between rich and poor.
Pesek writes:
- Prime Minister Manmohan Singh is a spent force.
- The double-digit output of the past decade was, in some ways, a debt-driven mirage enabled by short-term capital flows.
- The real reforms that India needs are on hold until May’s election. 270 days to hit new lows on the rupee and for rating companies to mull downgrades.
Read the full article at http://www.bloomberg.com/news/2013-09-05/india-s-new-central-banker-isn-t-a-superhero.html
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