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.

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