Ratan Tata blames the government
In this issue:
» Govt. seeks to step up spending
» More than 10 m mobile subscribers to lose their connection
» US housing companies no longer looking for buyers?
» Fiscal cliff a result of wrong math?
» ...and more!
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The Tata group has been at the receiving end of the government's inefficiencies. It has suffered a series of setbacks in business operations thanks to the government. It faced inordinate delay in setting up a steel facility at Orissa. The fiasco surrounding the Nano plant in West Bengal was one of the most talked about incidents at that time. All such issues have led to huge losses for the group. As per Mr Tata these issues are all examples of the government's inability to make decisions. On top of it different government agencies have different interpretations and opposing views on the same law. Such issues would naturally make any major business house cautious when it comes to making additional investments in the country.
Alas, the point Mr Tata has made is true. The country's slowing economic growth stands testimony to the government's inefficiencies. India's GDP growth has dropped down to the region of just a little over 5% which is the slowest in nearly a decade. This is all because of policy paralysis and slowdown in investments. Things were not helped by the list of scams and corruption cases either.
The thing that India needs is action. Action against the wrong doers. Action on the policy front. It has tried to take a step towards it with the recent announcements of FDI in retail and aviation. But these are just baby steps. A lot more needs to be done. There are land reforms and labor reforms that need to be looked at. Not to mention the need for a body to kick start the pending infrastructure projects. And these are just the beginning of a long list. Hopefully the government would continue with its new found momentum towards reforms. Rather than just taking the backseat all over again and basking in the glory of their small reform moves.
Do you agree with Mr Tata that the government is driving away foreign investments from the country? Let us know your comments or post them on our Facebook page / Google+ page
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Source: Telecom Regulatory Authority of India (TRAI) |
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As per an article in Business Standard, the government is likely to spend additional Rs 308.4 bn to meets its revised fiscal deficit estimate of 5.3%. But do not be surprised if the Finance Ministry revises its deficit estimate still higher. It is not just higher government expenditure that is the culprit. Failure on the revenue front is also to blame. The 2G spectrum auction was a damp squib. The divestment of stake in PSUs has not worked out as per plan. This is the reason why most experts are of the view that the fiscal deficit could go as high as 5.6-5.8% by fiscal end. This, in turn, would result in additional borrowing of Rs 300-500 bn. Will this result in a rating downgrade for the Indian economy? The warnings have already started pouring in.
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Amongst the other markets, China was the top gainer (up by 4.1%) followed by Russia (up by 2.4%).
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Source: CNNfn, kitco, Yahoo Finance |
04:55 | Weekend investing mantra |
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29 Responses to "Ratan Tata blames the government"
C.M.Belawatgi.
Dec 11, 2012Yes I agree his statements,all Politienc are after tehir Votes and their Chairs,we need a man like Sardar Patel to take bold steps for the Nation.Now the most needed thing is Selfless Service to the Nation.
R.S. Mani
Dec 10, 2012Every political party is functioning for the vote bank only and it is not possible to please all the people all the time. The Govt has to take certain decision for the welfare of the whole country not worried about the vote bank. Thanks to Mr Tata for his boldness and i hope the Govt should wake up from the illusions by respecting the view of the Industrialist to get more foreign investments. Already we are loosing lot by helping china's growth.
Monojit Mustafi
Dec 9, 2012The problem is very deep rooted. The solution is never such easy that our few words can achieve. Men like Mr. Ratan Tata know many things by direct association. We the normal citizen can feel the existence of corruption at every step. We can only ensure we act right in our respective position, but that way we can not demand understanding from younger generation and they get frustrated, faced with grave reality around them in the society beyond their control. If men like Tatas, Birlas, Ambanies, Goenkas, Mittals, Narayana Murthys, Parekhs, etc. etc. feel so helpless in helping the nation's cause, we the commonest of common men in this part of the world are at great loss and we do not know how many generations we need to fight it out. The fact remains that the spirit of anti-socialism, anti-nationalism and even anti-humanism is very very strong in many of us, enjoying power and authority in governance in each and every aspect of life. There are many individuals who use party politics as camouflaging covers to all their misdeeds in public life. Identifying as representative of some political party or other, forget the publicly laid down principles of functioning of the party. It is a huge subject that can not be explained in few words only. Regards
Monojit Mustafi
Dec 9, 2012What Mr. Ratan Tata has alleged may be absolutely right, even though for an ordinary citizen like me has no access to every details. I feel for this state of affairs in the country, destroying the opportunities of free, fair and honourable living to our future generation. I personally feel, it is not Government only to blame, it is the individuals concerned who has no sense of honesty and integrity in guarding the interest of the nation, in helping the present and future generation breathe fresh unpolluted light and air from the atmosphere. These people never minds acting destructive against the interest of the Almighty who created this universe with some purpose. They might enjoy highest grade of professional and social status, only at the cost of others. Government, if you go by the present status, it is an inevitable combination of a number parties with varied outlook and principles, different approaches to life policies. For mere survival to maintain governance so it does not turn into a jungle of beasts, every action needs to ensure majority support. Opposition parties are always there to create further chaos and confusion to the constituent parties in the Government. With established principles of action laid down in Govt policies, there are individual entities who try to make their fortune in the process. If the head of the Govt publicly support their action, it is off course a crime, rendering normal citizen mere helpless. If their corruptive action is not approved by the Govt. Head, law of land can take action. It is also established fact that there is no cut short in the country's legal system, unlike Sher Shah's time that needs there be an Authoritarian Dictator, the very words that can raise big hue and cry from specially those people who have been enjoying special status in a democracy like ours. So, we may need some foreign rule or rule by an Indian individual, next to Lord Shiva! Else, if we can have more patience and try helping situations around us with all our might to help the cause of our future generation, we have to strive for the same, with blessings from God only.
Dalip Singh
Dec 9, 2012I agree with what Mr. Tata has to say,and common man is angry and frustrated with the way the govt. is handling the affairs of the nation.Almost all the major parties in the parliament,whether in the ruling or the oppositon are hand in glove and corrupt.There is no opposition in this country,we the common man is the one who is in the opposition and there is no body to appeal to.This country has never experienced anything worse than the present corrupt regime and foot in the mouth ministers who have become too hardened and shameless with the passage of time.God save this country.
G.Rajan
Dec 9, 2012Yes I fully agree with Tata's views. In fact it is the Nation's View. But the johnies in UPA will realise this only after their apple cart has been turned upside down.
They only know how to defend Madam Sonia and her family members, at the country's cost. The general public who voted the johnies into power should bring the johnies physically back to their constituencies, and put them under house arrest.
People should teach them a lesson when it comes asking for votes in 2014.
kukreja
Dec 9, 2012If One of the most respected person of corporate world says truth(just before retiring) shows acts of politicians have crossed human tolerance limits.Indian media should be bold to send message across nation about present state of govt else all these will remain comments only without results
PG DAS
Dec 20, 2012I agree with RATAN TATA's views. Govt's new glory reform attempts cant out-way the losses of opportunity of the past decade together their inefficiency and corruption shielding for financial and political fronts.