By Fareed Zakaria, CNN
Last week marked exactly 10 years since the term BRIC was coined. The catchy acronym for Brazil, Russia, India and China used to describe the new powerhouse emerging markets. But the man who invented the moniker now says one of the four has been a great disappointment. No, not Russia, with all its recent troubles; not Brazil, whose economy contracted in the last quarter; and certainly not China, which continues to power on.
Goldman Sachs' Jim O'Neill says that the country that has been the biggest letdown has been India. He pointed out last week that India's inability to attract foreign investment could actually lead to a balance of payments crisis. From BRIC to basket case, "What in the World?" is going on?
Well, some numbers tell a troubling story. Growth has dipped below 7% for the first time in two years. The Indian rupee is Asia's worst performing currency this year, falling to a historic low against the dollar.
India's deficits are soaring and funding is drying up. India received less than $20 billion in foreign direct investment in the first six months of 2011. China got three times that amount. Even Russia, with the smaller GDP, took in more.
Why is India struggling? Sadly, the real problem isn't economics. India has a very dynamic private sector - probably the most dynamic in the emerging markets. But it has a government that simply doesn't work.
And it's not for lack of knowledge. India has the know-how. The government is, after all, led by a reform-minded world-class economist, Prime Minister Manmohan Singh. The problem is politics. The world's largest democracy seems to be paralyzed.
Singh's government recently announced a plan to open up India's retail sector to foreign investors, a continuation of the reforms that jump started the economy 20 years ago. The proposal would have made it easier for big Western chains like Walmart to set up shop in India.
Now, Indian agriculture is hugely inefficient. Middlemen take huge cuts, and because supply chains are inefficient, up to a third of farm products, vegetables for example, rot before they reach the market. So the Walmart model would transform India's agriculture and its retail sectors. It would empower farmers, lower prices for consumers and create huge gains in productivity.
But it was not to be. India's opposition turned this into a story of the big guy fighting the little guy, Walmart versus the mom and pop. Parliament was gridlocked for days, and politicians mobilized mass demonstrations. Small stores across the country were kept closed in protest.
So, what does the government do? Instead of standing firm, it backtracked and canceled plans to reform the retail sector altogether.
This is a depressingly familiar pattern. For two years now, India's government has done nothing, hanging on to power, presenting no plans to open up the economy, raise living standards, build infrastructure or attract new investment.
In the West, India's leaders sell the story of a dynamic, "Incredible India." But, at home, they pander to populist protectionist sentiment, dole out subsidies and do basically nothing. That paralysis is hurting the economy.
India's blessing and curse is that it has a messy, chaotic, decentralized democracy. Unlike China, it has no unified sense of direction. But the prevailing view has often been that when the going gets tough, New Delhi gets its act together. That's what it did 20 years ago when it was on the brink of default and a balance of payments crisis. Well, once again, it's time for urgent reform.
New Delhi has for years expressed pride in being part of the BRICs. If it doesn't get its act together, 10 years from now people might still be praising the BRICs, except that the "I" in BRIC might stand for Indonesia, not India.
For more of my thoughts throughout the week, I invite you to follow me on Facebook and Twitter and to visit the Global Public Square every day. Also, for more What in the World? pieces, click here.
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Fareed Zakaria studied in which school, or did he.
Fareed, you blow it. How dare you degrade India like this! You are committing the cardinal sin of reporting on India.
India is the world's greatest democracy and its greatest super power. We may have had one quarter of bad luck, but that does not take away our super power status and to be commented on by you minor little islanders.
As the world's greatest democracy, Incredible India will automatically resume hyper growth the next month.
With Russia melting, China imploding, and Brazil running into the ground, India is the undisputed leader of the BRIC countries. Here in Mumbai, there in Delhi, and there again in Pune, India shines while the world declines!
And what are the rest of you in PIIGS, Bordello, Chinks, and Yankees? A crisis of course. All, come to sugar daddy, India; we are willing to rush to your help! We got all the jobs in the world, and our dalits are certainly willing to spare their jobs for you. Our prime minister has already pledged $300Billion US dollars of aid, virtually every single drop of dollars in our coffers.
Because we can afford it! India's Tata has been lording over the world industries by purchasing such Western properties as LRJ and Corus, and making these former money pits a big success. Our Mittal has been overwhelming the world's steel makers by swallowing up Arcelor. Our mobile phones have been out-talking all other countries by growing 100 million users every quarter. Our architects had designed and finished the world's largest airport in Delhi in Terminal 2. Our engineers have built the world's greatest hydro dam. Our road builders had just completed the world's longest bridge in Mumbai. Our prime minister has been presiding over these big international meetings by sounding our voices over all these heads of all your minor states. Our super aircraft carriers have been patrolling the world's oceans and scaring all the Ethiopia and Somalian pirates off their pants.
For all these a million reasons, submit to your fate under our Hindu colossus, beg our 5-rupee meal middle classes, bow to our super powers.
Pray for India, we will have pity on you. Jai Hind!
Still sleeping, please wakeup.
You Pakistanis are pathetic. Can you stop posing as Indians and instead do something worthwhile. Please.
Folks, Experimental democracy is DOA (Dead On Arrival) in India. It is has never worked in large populated countries. Particularly those with mostly illiterate populace such as India. Too big to manage, minorities such as muslims, sikhs, christians get disenfranchised etc. India will need to go back to its socialist/communist roots. Maybe splitting it up into smaller pieces (circa USSR) is an alternate scenario. CIA is probably running some models to deal with the potential implosion.
Not withstanding the gloom – Farid has hit the nail on the head.
India has a first world private sector and a dead-third world govermnment.
All in all – the biggest cuplrit in India's sagging fortunes is the state of West Bengal!! its decades old affair with communism and now an inward looking socialism under Mamata Banjerjee is unfortunately now hijacking national politics!!
West Bengal communists- who supported the UPA government during its first 5 years – prevented any reforms.
Now TMC under Mamata Banerjee- after the Communists were routed – is now holding up reforms.
If India needs to grow – the backwards and regressive West Bengali politics should be suppressed. Their archaic and economically destructive mindset has already damaged the counrty for 10 years. Its about time the regional politics was killed in the interestes of saving the country!!
Are you for serious? It looks like you live in North Korea.
Is this person 'friendsofindia' and some of the other responses (Indian) for real? You all need to double up your dose of his medication – whatever it is, it does not seem to be working. The article was meant to provide a perspective and provide potential ways to break political paralyses in moving the economy forward – it was not meant to be a comparison with other economies.. all of them have their unique issues. Take it easy and calm your hindu / indian jets down a bit and focus on what needs to get done to move your country forward – you are not there yet!.
AN INDIAN SAGA
HUMPTY DUMPTY: Had a great fall
India is pretty much done. The bubble has burst. India is sliding downhill at supersonic speed. GDP growth has disappeared...the only growth left is the hair between their legs. Inflation is in the clouds and India has asked Pakistan to help out. Pakistan has opened up Wagah Border to help Indians with food/goods etc. The Indian Rupee has collapsed against US $. US owns India financially now. As of last week the Indian bourse also collapsed.
There are three methods to gaining wisdom. The first is reflection, which is the highest. The second is limitation, which is the easiest. The third is experience, which is the bitterest.. Confucius
You, my friend, have not tried any....so pull your head out of the sand and start reflecting and you will recognize India's shortcomings that will possibly lead to its downfall, along with its achievements.
Inida is filthy and no hope! period.
This guy and KRM are regulars on Attack India propaganda. These guys are part of ISI propaganda division. Pakistan's military has resources for activities like this but not to educate its people.
Fareed you are right, India's growth is in Danger unless the government bucks up.
Well, let Indians come up with their own rules of business. Why should wal mart or k-mart or any other FDI should come to straighten the supply – chain of agricaultural products. As a matter of fact, most of the supply-chain systems in companies like walmart are built by Indian brains. I do believe Zakaria made a wrong assessment of situation without giving proper credentials to local economies. There are several companies like walmart already in India. The logic of FDI's bringing up better quality in agro-business doesn't make any sense. Let the investment for such an entrepreneurship should come from inner circles of India. This way the economy will be self sufficient. Let the western markets respect markets of other regions also. This is a very reasonable way of mercantiling.
The real bothering is a person like Zakaria, who talks high of Democracy makes a mockery of Indian Democracy. If a government listens to its people, it is not crime. It is the best way to lead the democracy. Democracy is by the people for the people and to the people. If there is a logical argument, let Mr. Manmohan Singh put it infront of people. Unlike China, India is an open country, everyone likes to listen to a good opinion. Government failed because, FDI in retail is going to hurt millions and the benefits are meagre. Zakaria's ananlysis sends a misinformation on India. It is very disappointing to see Zakaria not acknowledging the vibrancy of democracy in India.
I am happy to inrfom you that your article is awesome. I agree with much of your inrfomation. Thank you for writing this great content.
Now with the Mexico Scandal breaking I think walmart's effect needs to be reevaluated. However Walmart has failed in less corrupt countries like Germany etc. Walmart at the end will bring much needed efficiency and quicken the pace of progress. IIndia's poor will agree.
Well; all is well, that ends well.
I believe, I read similar stories in Gulf region area. The architecture collected donations equivalent to $300, 000.00 USD $0.01 or 0.01 cent coins and built Five side Coin House.
India's government is an ailing leviathan, as it has failed to have the whole country under control. Decentralisation and federalism are democratic virtues. Yet due to the cultural, ethnic and cultural diversities, moreover the inability of the government to act appropriately, disparities come as no surprise. The central government in Delhi has to reform the judiciary. In many parts of the country justice and equality still leave much to be desired.
Sadly, diversity has nothing to do with it. Its corruption all the way. Weasel politicians just use diversity as a card to cling on to power. Any endeavor undertaken by the present govt has been marred with mega corruptions(2g, common-wealth etc) and thus, even the public has lost faith in them. The next two years for the govt is just going to be a fight to stay in power and not get caught for all they have done.
We just are a pseudo democracy.
Corruption plus incompetence. Take a look back 10 years – which state's politics has hijacked UPA since inception? West Bengal – first it was Communists and now its TMC under MAmata Banerjee.
Bengalis are legendary for their laziness and wilfull destruction of industry as they have done to West Bengal.
Now their warped ideology is destroying the counrty -simply because they have a little say in national politics by virtue of political blackmail!!!
Bengalis need to get out of their backwards mindset – they've already destroyed west bengal. now they're destroying the country!
Zakaria, if you want to smudge the image of the BRICs (the last survivors of this crisis), you should talk about the vacant cities and ghost shopping malls in CHINA.
But I know that the Chinese government is the main sponsor of CNN, that´s why you never talk bad things about them.
No way Jose'...nice try though. We all know the dirty games India is playing in the region...financing terrorists who are killing US/NATO/Pakistani troops ....undermining democracies, paying off some factions of talibans protection money so they won't do another Mumbai attack, All this because they are scared of Al Qaeda and Talibans.
Unity is not be choice for most indian states where some citizens dream of having their own countries like what happned with erstwhile USSR. If it is by some modest force, so be it. But every citizen indeed has a chance in India, not unlike china or russia where scores of people just go missing, never to be seen again. India's share with such stories is not zero but it is much smaller as compared to most of other countries. Talks of dividing India as a nation has to be very strictly dealt with and opposed very very vehemently.
Yes, India's democracy is a problem but is also its stregnth. We have to look at our weaknesses, do a SWOT analysis, and then move ahead with a single point agenda of making all indians well fed for a start. And yes, to hell with most of the politicians. Maybe Anna Hazare movement would bring some sanity to them. So may god help.
Jai Hind.
India is really, has a great history and its Nations are more obediences for Western Nations, although it has been Colonized more than Three Hundred Years by Great Britain.
I heard also, most of the English speaking Indians still use the oldest Shakespeare dialects. Indians, they love their Country and their Cultures. And also, my current Biochemistry Professor said to me, "Mahatma Gandhi did made very big mistake, when he signed former Indian Province (Pakistan) to be separated from India. Still now, most Indians doesn't accept Pakistan is a Country. He... Gandhi, never consulted even 1% of Indian Populations when he signed a separation agreement. Still, most Indians who loved their Country are upset on him".
I myself,... Most of my People actually, growing up watching, "Mother Indian" movie. We are not related with Indian by blood, but we love them and their Great History. Indians are a very quick Sociable Nations. Most of my People, never heard of Pakistan as a Country.
AN INDIAN SAGA
HUMPTY DUMPTY: Had a great fall
India is pretty much done. The bubble has burst. India is sliding downhill at supersonic speed. GDP growth has disappeared. "Experimental Democracy" has failed in India. An experiment that was being shoved down India's throat by western countries too eager to propagate their own values on a country that was trying to decolonize itself while trying to shed the communist skin of being a Soviet ally. What has become evident now is that this "Experimental Democracy" has marginalized the country. The marginalized groups of the country – Dalits and ‘backward’ castes/classes, indigenous ‘tribal’ people and religious minorities have been disenfranchised. "The belief that corruption is the important issue in the country is shared only by the minority living in urban areas and towns who have been beneficiaries of economic liberalization policies mandated by western countries. The most important challenges of Indian society remain as follows: justice, social and economic equality and equal access to certain standards of life for all Indians. “While India seems too eager to please its western masters and put on a progressive and softer face for CNN for public consumption, people see through it. The consequences of this "Band – Aid" approach will be brutal for India geo-politically when it realizes that the GDP statistics that it has been relying to gage its progress has not amounted to much in the long run
@100% ETHIO STRONGER!
DID YOU JUST SAY 300 YEARS????????? UTTER NONSENSE!!! ABSOLUTE GARBAGE!! DRILL THIS SENTENCE INTO YOUR HEAD, YOU REPULSIVE CREATURE:
ONLY 60% OF ANCIENT INDIA WAS "ADMINISTERED" BY THE BRITISH FOR 65 YEARS!!
Stop spreading malicious misinformation on a public forum!!
There is need to change the parameter of judging the performance of nation. It is true that there are problems of centralisation etc, but it is must that a holistic view of things are taken. wallmart can never the indicator. I feel that you as a well-wisher of India and also the BRIC should go beyond and look at the issues from the angle of the nation, its personality, history, vision and overall plhilosophy. The mindset of FDI, gdp,exports have to be relooked and it seems a time has come to redefine the parameters of so called development.
INDONESIA READY!
yes we are. gdp is soaring, gov't is stable, now just need to fix the roads...
very aptly put forth by Mr. Zakaria... But Mr. Hazare and his gang of self righteous civilians have made the ministers apprehensive of taking any constructive steps. Any efforts to liberalize a industry segment will be scrutinized to see if any private sector company benefited from the move and thrust more corruption scandals and questions on the hapless government.
Well said. The only comment that had a realistic understanding of the situation.
The rest are either trolls or die-hard Indians blind to their many problems.
Finally! Good to see that there are some Indians who see the problem with Anna Hazare and his gang of lefties. Nothing is going to happen till the Indian economy is on the brink of collapse and then suddenly everyone will rush into action. In this environment it's almost impossible to get any minor economic reforms passed. After debating FDI in retail for 15 years, Indian politicians are warning the government not to "rush" things - only in India!!!
Wow! Thank you! I cnlitoualny wanted to write on my website something like that. Can I include a fragment of your post to my blog?
Bravo, Monish. You really got it right. But wait till the Anna cronies come to know that you have taken their God's name in vain and they descend on you with their righteous fury.
Monish,
Your argument is weak. You make it sound as if scrutiny is a bad thing. If the governments books are clean, they shouldn't have an issue with scrutiny. How else do you keep elected officials accountable? Wait for another 4 years?
Lets take an analogy, you send your kid to the best private school but find him cheating on all his exams. But you don't want to call him out and rectify his behavior lest he not perform for the fear of being scrutinized in future.
this was a tough year for india, but we still have worlds largest work force and i am sure will emerge out stronger than ever
Arun
All the workforce is useless, without investments that will build the factories and firms. India ALWAYS had workforce – what changed in 2000s was investments that led to actual workers.
India is capital starved, and we run trade deficits and fiscal deficits, so we need foreign investments. this is simple maths, not a mater of opinion.
Rejecting foreign investments in retail was the STUPIDEST decision even take by India middle class, and they will pay dearly for this. The world has moved on, investments will go elsewhere where it is welcomed.
Need proof? look at the pakistani bloggers glee. that should tell you
india is poor, but indians are rich. raise investments by bringing back black money.
Columnists sell due to controvercies and outragious statements they make and this peace is no exception.
There is no big let down in the fundamentals in past two years in India. But somehow you Goldman Sachs and you want us to belive that not allowing Walmart and Tesco is going to make heavens fall but care to explain Why exactly ? What is the big fundamental dramatic change in India except the sentiment in last 6 months ?
Banks here have better balance sheets then in west there is no big change in any other policy yes FII is out due to various global situations and FII is a casanova but is there any other market fundamentally looking more beautiful ?
The GDP growth rate projected now is 7% down from potential 9% but in isolation is it not a good growth rate ?
So just coz we didn't open our retail sector for American co., we are bad guys?...we are still growing strong, stronger than Russia and Brazil, our growth has slowed down coz of global recession, just like that of China has, specially the European crisis...you seem like a nagging lobbyist for Walmart here.
India is capital starved, and we run trade deficits and fiscal deficits, so we need foreign investments. this is simple maths, not a mater of opinion.
Ronit
You mean well, but are focusing on the wrong issue. Rejecting foreign investments in retail was the STUPIDEST decision even take by India middle class, and they will pay dearly for this. The world has moved on, investments will go elsewhere where it is welcomed.
Wealth growth/income growth comes from productivity growth, which in turn requires specialization and trade. Our food supply bottlenecks, which the FDI investments was supposed to ease, besides growth the retail market to $1T from current $450B, limits our growth to below 8%. we simply cannot grow faster than that without stroking inflation.
Till the Indian middle class does not realize this simply fact and stupidly supports the bania lobby who will always oppose reforms (as they skim off the huge margins), we will lose out. the World will move on and one day, India will find themselves living in the shadow of China.
Wake up, Indians
FOUL: To say "It is not the economy, stupid. Its governement" is absurd. I could concede that either side could be at fault, depending on perspective, therefore it is very poor judgement to call anyone "stupid" in this debate. C'mon Fareed...TV show, PHD, New York/Jet-set lifesyle, calling people stupid... The Arab Spring may protest you next! lol
I think Fareed is pulling an old reverse psychology teaching technique on us. Happy Holidays to all!
This is sheer pressure building tactics on India to lift FDI cap on retail sector. I agree with the comments that Indian govt got Indian growth story off the tracks. But at the same time lifting FDI cap in retail sector is not a penacea to all problems India is facing today. The corruption levels in India is added to Retail industry, about 10 million people will loose source of livelyhood with no guaruntee of new jobs bein created, no guaruntee on benefits of efficiencies beng passed onto consumers.
There are lot of things that India needs to fix internally before they call in any further external investments, this is where the govt has been failing repeatedly.
Appears to be very lop sided, negative review of Indian economy situation. All the great strengths of India economy has been ignored to give an impression that its going down. India's scientific and intellectual capital has powered many nations growth and its soft power has far reaching impact than any other nation in that group. What really needs to be highlighted is that Indian economy is still doing well despite these initial hiccups. There are more problems statements than solutions and deeper understanding of Indian economic condition.
Those dudes stole those towels from my hotel!!!!!!!!!!!! Hahahahahahahaha.
I truly enjoy radnieg through on this website , it contains good articles . "Wealth and children are the adornment of life." by Koran.
FDI solves it ? how please ? the word is foreign direct "investment" not donation. walmart improved condition in other countries ?
Personally feel O'Neill is all washed up. Brazils's Bovespa is at 55,000 quite a bit off it's all time high of 75,000.Russia is also up the well known creek with RTS around 1400 and all time high at 2100. And China's Shanghai- all time high +6000, now languishing at 2200. Hang Seng? All time high 34,000+ now at 18,000. As some of my heavy-hitting analyst freinds are saying O'Neill is a pure sodium sulphate(euphemism from school compound talk). Not that India is shining- but neither are any of the other BRIC countries.Even though their economies are expanding more than others, they all are still struggling with only a certain percentage having benefitted. It is true that India's middle class has burgeoned from 50mn to 300mn but there are still 700mn in poverty. Similar stats for all BRIC countries- actually worse for Russia they say.Basically the BRIC is there but it ain't as solid as one thinks. BRIC is made up of watered down cement(people from India will know what that means- maybe it's the same in Russia, Brazil and China).
Yes, the Indian bureaucracy is inept and moribond due to many factors, including the cultural and religious differences, cast system, the judicial system, and even to some extend democratic principles.
But the private sector is so vibrant and let's face it, 7% GDP growth and $ 20 billions FDI in 6 months: this is not bad at all! Even Indonesia would love it!
Let's stop the indian bashing, just because they won't let Wallmart in. Maybe they are not wrong on that one...
I think it's important to identify that the goal of India's economy is not to be a leading member of BRIC, though that's a nice bonus. The overarching goal is uniform development at whatever speed, not fast development in certain sectors. There are positives and negatives to economies with each goal, but it's unfair to hold one nation up to metrics that judge the other group and say that the economy is failing.
Although admittedly, even considering progress towards their own self-identified ends, India's rate of development leaves much to be desired. It's good, but certainly not great.
I think, simultaneously, an important question is if India should re-evaluate its goals.
I totally agree with you nisha... If rich gets richer it will increase economic inequality. As a nation our aim should be to grow collectively not partially . We need to fix our education system first to make it more compatible with entrepreneurship and jobs. If the poor will become educated and start earning good only then we can go to next level of Walmart type of investment. This time investment in technology and basic infrastructure will be more useful and sufficient.
Agree Fareed. Its a nice article. But something is missing in this. That is a minor social revolution going in India which is fundamental to the structural change for India. Equality of share, corruption and rising of self-confidence at all level. A combination of Anna, Ramdev, Ravi Shankar and few others to bring value of Indianess. Probably that will compensate the temporary lull in government. American in last 20 years is slowly turning into a mega-Walmart / hand to mouth / defence spending / stagnant middle class. Why? Because of unbalanced corporate rulers and politican gain with limited growth for common man. Media in America will in general sell their story without substance ( I would say soap-opera). Clear example is running presidential debate for 2 years (nonsense?). India should know that in america eating in mcdonalds in regular is for the lower end people as being projected as fancy and a middle/upper middle class eatery. India need to fix its policies, bureacracy and political stalemate for its good but not to sell for FDI. If reformed consistently, it will attract money where it needs. Not where the media and money powered man say it needs. India needs in supply chain and not in Walmart. That means internal reform and investment in supply chain (cut bureacracy and corruption). FDI is myth. India is self driven economy (80% internal GDP).
The changes internally going through will shine through in next years and you urselves write that I is the shining piece among the group.
Have a lovely christmas and new year fareed.
This is like a wake up call. but We indians wait for the 11th hour of any crisis to finally do something. it has become like a a tradition, a very indian thing to do. the economy is still growing and we carry on our daily business noticing little abt the gradually dipping growth rates. we all know how it ends... hasty last minute actions and or post crisis management( worst case scenario). i mean everything...from economic crises to terrorist attacks to natural disasters. but we are accustumed to it. we r just too many of us and this is simply the indian way.
Zakaria badly needs to know this against his all ROSy story of china he is trying to depict. http://www.nytimes.com/2011/12/19/opinion/krugman-will-china-break.html?_r=2&smid=fb-nytimes&WT.mc_id=OP-E-FB-SM-LIN-WCB-121911-NYT-NA&WT.mc_ev=click
On the other hand, is it harmful for India to be part of BRIC? India seem's to have extracted maximum benefit from this BRIC nomenclature, but now what do they stand to gain by being grouped with the others in BRIC? Please elucidate. From a purely actuarial point of view, this grouping might have made sense for India for the past 15 years and before the current world economic crisis. After India's economic trajectory has reached a certain profile, internal corrections and optimization needs to happen before moving further ahead. By allowing India some breathing space, the world will only be allowing for sustained economic growth for the next 100 years in the region. If they are too pushy now, they will have killed the golden goose, for Walmart and Tesco will reap benefits over the next 5 to 10 years, only to find India buckling under the weight of all the poor that are pushed out of their livelihoods by these retail giants. The country will get divided into the haves and the have-nots, which is dry cinder for all kinds of trouble. If India is allowed to grow at its own pace, it could become an economic engine for all of South Asia and in turn for the rest of the world to benefit from. Dont kill this possibility. Furthermore, the west should understand that what they call as poor people in their countries are almost like middle class in India. The middle class in America would be the upper class in India. So the poor in India have no equal counterparts in the west. Infact, only the super rich billionaires can be compared to their counterparts in the west. So, the mapping between quality of life and stratification of society between countries in the west and India is not simple and can be misleading.
Who are these terrorists looking guys in the picture. Scary dudes, I must say.
they are the Shikhs! Its time you get out of your redneck ghetto and learn some thing about the world, your redneckism would prove more expensive once you have to work for these people..as clearly your education is doing much ore good to these skilled immigrants than Friday beer did to your East European ancestors
Seems like the India is falling apart at the seams. First hundreds of sick left burning in a hospital fire, then hundreds dead drinking some hindu concoction and now economic jeopardy which to begin with was built on smoke and mirrors by CNN and the West to further their short term goals in India while fighting Iraq and Afghanistan wars. That is now over and India is being kicked to the curb. Sadly, in India poverty is rampant, societal values have collapsed; inflation is in the clouds while the rupee is in the toilet. This economic and political model has failed. China is going to be all over India now. I doubt India will survive 2012 as we know it and may have to revert back to its communist/socialist roots as a fragmented nation divided along ethnic lines as independent states.
I though you are a redneck..you are even worse..you are from Pakistan..scroll to the top of the page and read the fine print that says "terrorists not allowed"...a better time for you would be to simplify your holy book so that less people read it wrong and not blow themselves up..also read up about democracy, it contains secrets on how to protest without strapping bombs to your vest and certainly how to marry one wife at a time
Well said! Bravo.
India (land of the bankers to terrorists) is geographically, culturally and politically trapped, isolated and encircled. Now that it has been cut off from rest of Asia, the Indians (unfortunately) have nowhere to go but into the ocean. A look at a map conveys the inevitability of this scenario. For India to survive, it has no choice but to have excellent relations with Pakistan. This is a matter of time. The question is whether Pakistan has a big heart to accommodate the very survival of India/Hindu race. Perhaps not this time around.
Pakistani Terrorists are not allowed to comment!
Krm I guess you are sitting jobless in Pakistan. your level of intelligence is so low even terrorist organisations wont employ you. Your frustration has hit the roof in life. Feel Sorry. Pray to Lord Shiva to help you LOL!!!
Once again Fareed isn't afraid to tell the truth. Before we went to India in Feb/March we were wondering about all the hooplah of how fantastic the country was doing. We have been traveling to India since 1975 (first time during the "Emergency") and have watched many changes over the years. We were more than a little dismayed at how phoney so much of the hype turned out to be. I decided that anyone foolish enough to invest in India deserves to lose their money. There is still major corruption and the thin veil of high tech over the non-existent infrastructure is simply the delusion of modernization on a foundation of sand. India has the talent but not the will to fix it's most basic problems.
PAKISTAN.....The New Gateway to Central Asia and Europe.
With a population of over 180 million most of whom are well educated, English speaking, entrepreneurial and a cultural and social fit with Central Asians...Pakistan will now become the new face and gateway to Central Asia and Europe. Pakistan will thus span this region and provide the impetus for growth, prosperity and unity among these countries. These are new and exciting times for Pakistanis who should now look forward to their new leadership role aligned with Central Asia and Europe rather than the Subcontinent. We wish them much success as they have sacrificed the most during the past 30 + years creating a new world order
Absolutely brother.
All we need is to check corruption in Pakistan. We are not a poor nation, but a poorly managed one.
And for one thing, we dont go in self denial about the poor here. Unlike the indians who go beserk once the reality of incredible india is exposed.
No really!!!!! Hahahahahahahahaha.
Read your history kid, the piece of land you call Pakistan today has always been a volatile place with chaos, war and instability...Ruled by Delhi, Agra, Kabul, Pataliputra, Tehran etc..."gateway to Central Asia"??? yeah right...lol....and gateway to europe???? ROFLOL
Please do not make fun of a Pakistani, he can blow himself up, but the sad part is a popped Paki tastes worse than a popcorn...
INDIA: On a Goat and a Stick:
The problem with India is that is built on a system of cultural and societal values based on Hinduism which is a cult. Nations built on a cult seldom survive in the long run. You can only take it so far based on symbolisms of a goat and a stick with a skinny little man aka gandhi banging boys at night and spinning wheels during daytime.
@krm1007
The cults are those organized groups in which people follow conmen, The two most popular cults in the world are Islam and Christianity...Hinduism is a way of life...its Hindu-ism i.e lifestyle of a Hindu, a Hindu means an Indian...Hindu aka Indian civilization is one of the oldest and richest in human history...for 1000 years, from 1st century to 11th century, we had the largest economy on the face of this planet, and again the largest in 18th century, we also started Buddhism and exported it to all the known places, from Europe to North Africa and from Central Asia to East Asia...we were a cultural superpower in 400 BC, we exported religions and cultures much much before Islam and Christianity started...so we can say, "been there done that"!!
World order? Failed state more likely! Joke of the world. Well done to the US Special Forces....go guys, go...expose this terrorist fake state called Pakistan.
Once again indians are fuming and in self-denial mode.
Indians, grow up and smell the stinking fresh air of Mumbai if you may.
300 million poor, and still counting.
Yep. this is "incredible india".
wow, that coming from a Pakistani, who can't even feed and educate more than half of their 190 million people(less than 1/6th of India's population) after 65 years...unlike you, we had a close economy for 45 years after 1947, we opened it in 1991 and see where we are and where you are...you are a small country, statistically and logically you should have done much much better than us, your per capita income should have been 3 to 4 times that of ours, but guess what, its LESS than ours...and yes, in the mean time we maintained a full working democracy unlike you and even your "taller than mountain friend" China, we never allowed military dictators and communist authoritarian regime...we are a democratic, living country, not a factory like Chinese or an army garrison like you.
Thank you for your msasege ! Your website is a great discovery as i love world cuisine too.
Is it a paid article or what? Ranting against India for withdrawing plans for FDI in retail?
Blindness has no eyes
I stand against the article. This is untrue . If india wants its economy to expand the production and manufacturing should take place in india .and the same should not come from the western region.and for the transporation part.if govt wants it can do it themselves..it jst shows the inability of our govt.both current and past.
Absolutely, we are a wealthy country, with growing wealth, but with poverty...the reason is that our economy is generating wealth from service sector like IT, BPO etc. which creates more wealth but less jobs, hence less reduction in poverty, unlike China, which has established itself has a cheap destination for manufacturing for big 'first world' MNCs, which has lead to both growth in wealth and more jobs for their poor masses...and still China has 200 million people living in dire poverty, imagine the mountain that we have to climb.
First congrats for a very good article, I am an Indian and as a true Indian I understand the problems going within the country Just a point I thought u missed while discussing bat Wal-Mart. you talk about negative BoP, well u must be aware that Wal-Mart as a group imports most of its raw material to keep up with its brand promise of Every day low price....so how could you miss that , even after Wal-mart entering india the BoP would turn towards teh positive needle? however as a cnsumer I would want Wal-Mart to come soon...
Cheers
Fareed needs to explain how not allowing FDI in retail is affecting Indian economy. Indian society have some reservations about allowing FDI in retail. But India in general is open to FDI in other sectors. It would have been better Fareed gives a list of policy changes for India to grow at rapid pace. Without such clear suggestions, this part of the show looks more like wallmart sponcered news.
I see lot Pakistanis comments here who is gloating at this article. I hope they better look at the conditions of their country which is nothing but a failed state with nuclear weapons. I hope Pakistan becomes a responsible, terriorist free, prosperous, moderate democracy one day. Its in the interest of India too. Good luck.
The views in this article are not fare to say the least. I think that India is just doing fine if not better than the other BRICS nations. India's fundamental rate of growth is perhaps higher than China, because China is functioning under a communist regime where people have no say or freedom to stand up against brutal government. Where India has been growing under divers democracy.
As for the Pakistani fellows, your country can do better than what it is doing now. There are equally talented people in your country too. You just need to set your priorities right. Stop following the religious leaders and the army, public is just feeding into it. India has no interest in acquiring land of Pakistan and US has no interest to derail your country. It is China you have to worry about. After US leaves Pakistan will become too dependent on China for everything and will live on its terms.
Thanks for the beautiful and in-depth article. Telling you the truth, India is just an idea, imagination and mostly learned from its employer – British empire. If there was no British empire, there was no India. Look at the southern part, eg. Tamil Nadu, Kerala, Andhra Pradesh – they never wanted to be a part of India. In Western side, eg. Punjab never wants to be part of India, Northern – Jammu and Kashmir, you know already and now Northeast- there are dozens of militants fighting against the GOI. In the name of Gandhi, India plays the role of a leader, a world class reformist, matured democracy, but in reality, India is a hallow. Some billionaires concentrate in Mumbai and Delhi and rests are full of dirt filled people. Look Uttar Pradesh, Bihar, West Bengal, Jharkhand, Rajasthan, people are dirty, poor, unemployed, foul smell, what’s more they are the people who become a laughing stock. When they go to the West, they are called Indian dogs. But they won’t do anything because they are shameless animals. Even after some Englishmen ruled for more than 200 years, that’s too by a small people of a British company – East India company – they never learned or they never knew who they are. Many states of India were annexed forcefully by then forces of the British remnant. Jammu and Kashmir was never a part of India, Sikkim, Assam, Hyderabad, Arunachal Pradesh, Manipur, Nagaland were never a part of India and still they claim it were their part. What a funny! India has been fighting a war within for more than half a century in the eastern and northern sector, but it never discloses to the outside world, it never accepts the reality. If India wants to grow than it has to accept the truth and make it know to the world that it did some mistake and a make a formal apologise and finally it has to give their rights of self determination to those states which are fighting half a century. I pray for breaking down of India.
I strongly support Mr Meckley. Jammu and Kashmir and North east were never a part of India. We will support your cause when we get our freedom from the yoke of India. Long Live Kashmir, India Murdabad.
Currently, There is only one secessionist movement in India that is in Kashmir(where less than 2% of Indian population lives) with active support of Pakistan. Even in Kashmir we have elections and there is popularly elected governments there. For brief period in 80s there was secessionist movement in Punjab with some extreme Sikhs(small % of Sikhs) wants to seperate from India(who had the support of Pakisan again). For last 2 decades Punjab is peaceful. Even current prime minister of India is a Sikh. Again Punjab state have less than 2% of India population. Other than the movements in these 2 states there is/was no movment in any other state who want to seperate from India. North-east insurgency mostly about creating new states and sometimes a result of riverly between various tribal groups. India created new states when and where there is popular movement. It is messy democracy but it works. Govts change peacefully. Military is under civilian control. Canada with 2 languages having all kinds of problems. Even Frech speaking canadians want to secede from it. But in India, there at least 25 major languages and few thousand dilects. Even then India learned to handle competing demands of various groups harmoniously in democratic fashion(relatively speaking. There is always scope for doing things in better way)
Indians have common cultural affinity like Europeans have. Just like Europe, India was ruled by variours rulers. Due to British, and due independence movement and due to their common cultural affinity, it remained one country. Europeans want to create European union now. But Indian for various reasons had thier union long time back. All nations in the world were created by accidents of history. India is no different. Its like asking what would have happened if columbus did not find the new world? What if queen Elizibeth did not become queen? What if Frech did not help America in revolutionary war? What if USA did not expand westwards and restricted itself to original 13 colonies? What if Germany made atomic bomb before 1944? If any of those events happened, World would have been different place.
NEW YORK: Renowned Indian activist and novelist Arundhati Roy has decried the silence of the international community over the continued “brutal Indian occupation of Kashmir” and said Kashmiris should be given the right to self-determination……
She said so little was known about the atrocities being committed by more than half a million Indian troops, the continuing repression and indignities let loose on Kashmiri men, women and children.
More than 700,000 troops were concentrated in the tiny valley, with checkpoints at every nook and corner of Kashmiri towns and cities. The huge Indian presence, she added, was in sharp contrast with 160,000 US troops in Iraq.
Ms Roy alleged that Indian army or security personnel were killing young children, adding that Kashmiris were not radical Islamists or jihadists as India portrayed them. She deplored the Indian government’s attempts to demonise Kashmiris who were moderate Muslims.
@krm1007
LONDON : Renowned Pakistani activists have decried the silence of the international community over the continued “brutal Pakistani occupation of Balochistan”, they said, "Baloch should be given the right to self-determination……
They said so little was known about the atrocities being committed by more than half a million Pakistani troops, the continuing repression and indignities let loose on Baloch men, women and children.
Large number of troops were concentrated in the mineral rich nation, with checkpoints at every nook and corner of Baloch towns and cities. The huge Pakistani presence, they added, was in sharp contrast with 160,000 US troops in Iraq.
They alleged that Pakistani army or security personnel were killing young children, adding that Baloch were not radical Islamists or jihadists as Pakistan portrayed them. They deplored the Pakistan government’s attempts to demonise Baloch people who were moderate Muslims.
Mr Ram, you are mistaken. Seem to be a well reader, but not fully. I have one advice for you – little learning is dangerous. Hope you have heard about it. It’s not only Jammu and Kashmir and then Punjab that have been demanding this secessionist movement against the GOI. There are Naga insurgency movement, the longest in the Asia pacific and then Manipur. Do you know – India’s democracy is the biggest flop in the world?
Mr. Meckley
Manipur have 2million population(0.2% of India population). I agree there are some groups in Manipur who want to secede from India. But its not the major problem. But the major problem is conflicts between various groups(tribal leaders). Pace of development is slow because of bad infrastructure and location of that state. It is at the border of Burma. Entire north east is hilly region in Himalayas sadwitched between Bangladesh and Burma. Manipur is farthest state away from Plain of India. Given the terrain, India needs to put special focus to develop the region. Islolation of Burma also did not help the region.
http://en.wikipedia.org/wiki/Naga_people#Statehood.2C_factions_and_ceasefires
haha....looks like going to school was not your fav thing and hence you did not read history, India has always been a country from the days of Mauryans, Guptas, Palas, Cholas, under the occupation of Mughals, then under Marathas and then under British occupation...only country that Britishers created is USA, which was home to red-Indians not the European-American population that live there today
Wake up GPS world is not limited to walmart, GOI took decision to protect own civilians. Walmart will not solve our problems and we are not a export oriented economy.
BTW India has strong fundamentals and independent policy designed to protect our interests.
Today "Moody's upgrades Indian bonds" thats the reality.
http://www.thehindu.com/business/Economy/article2735582.ece?homepage=true
http://www.thehindu.com/business/Economy/article2735582.ece?homepage=true
What Fareed indicated in this post is kinda 'bitter truth'. Indian UPA govt has been meandering for past few years with no concrete policies. It's simply trying to keep govt stakeholders happy by announcing some changes and then backtracking. Coz of this many of the sectors such as Infra, Finance etc have almost come to standstill.
Fareed...I am regular follower of gps. do not loose your creditibility by making such false propagation. Think twice before making such claim. Every country can make their own decision how they want to be. It is not that one western model suits the entire world. What India adopts today may become a new world order. We need to wait and watch how things shape up instead of bashing false claim and painting an ugly pic.
Why on earth is Hunger and Homelessness is growing in America .... When FDI , Goldman Sachs & Wall Mart is fully functional ..... http://sjlendman.blogspot.com/2011/12/growing-hunger-and-homelessness-in.html .....
Poor logic Mr. Zakaria! Factors like farmer's not being paid their due and inefficient logistics demand improvement of these weaknesses, not getting in foreign retailers. One of the (unintended) impacts of MNCs in retail could be better incomes for farmers, but how, the heck, can it be the primary cause for inviting MNCs in? MNCs need a better business case than that. On the other hand, killing of SME, or at least causing havoc in the distribution landscape of any country they enter is a recorded fact. You should be addressing that as well. Could you do that please?
Good cetnont like this isn't found often, so I am pleased it's here. Information like this is deserving of accolades. I see lots of comments.
Fareeds announcement that India is out of BRIC is very strange when BRICS fourth summit is scheduled to take place in India in 2012 .... Also note its no more BRIC its BRICS http://en.wikipedia.org/wiki/BRICS i.e. Brazil, Russia, India, China and South Africa .... South Africa's BRICS joining news .... http://www.guardian.co.uk/world/2011/apr/19/south-africa-joins-bric-club ..... More over recently in 27 Nov 2011 BCC article " India's annual GDP growth is more than 6.5%. Russia is awakening after the "shock" period. Brazil's GDP is leading South America, and after South Africa joined the group, BRICS is now even more representative globally.
About 42% of the world's population, and 30% of the world's territories, are in BRICS countries. It is expected that by 2015, the GDP of BRICS will reach 22% of the global total.
With the development of their economic power, BRICS are destined to play an even greater role on the international stage." ... BBC Article "Viewpoint: China and the BRICs – golden years ahead" can be accessed from http://www.bbc.co.uk/news/business-15911603
India's Democracy is the Horse without the Leash.No Control.Talk about economy, it's control by the center, no matter what. Why Progress so far?, Well they have no choice. If you tie empty cans behind the running car, it has no choice but dragged along but make loud noises. (if you know what I mean) If British to today take over India, it will take them 60 years to go back to 60 years where they left the things.
Looking at India's population and diversity it will be prudent only to compare India with China. India is a functioning democratic country, not a communist dictatorship like China so we will face more problems than China in implementing economic decisions. The reason why growth is slowing in India is that its exports were US facing and with US economy going down, I hope Mr. Fareed is equally disappointed with US economy, the growth drivers have slowed down. Ofcourse with US economy in deep problem Walmart and other similar companies would like to enter emerging markets to get new business opportunities. We have heard similar arguments when Pepsi and Coke rentered India that they are saviours of farmers and will revolutionise the supply chain, nothing of that sort has happened. To help farmers you need cold chains, I don't hear any foreign company talking of putting up cold chains (there is no restriction in putting up cold chains but its hard work). Lets face it Walmart and others are not interested in uplifting the farmers they are looking at Indian middle class as a market whose population is more than the population of US.
And should we care if "I" in the BRIC is replaced by Indonesia or some other country, its a big No, looking at Indonesia's volatile politics and its part in ASEAN crisis in 1997 we wish anyone betting on Indonesia a very best of luck.
Its not anything outrageous Mr. Fareed telling us he is disappointed with India, aren't we all disappointed, but he seems disappointed for all the wrong reasons thats what is outrageous
Please don't insult China by comparing to india
yeah, you do not compare a cheap labor factory to an IT giant like India.
India and China can be compared only on their population, and thats what I did krm. Zakaria's premise that strong rupee and allowing FDI in retail are indicators of growth makes a complex problem seem overtly simple. Many exporters of India have infact welcomed a weakening rupee as it makes exports more lucrative for customers. Walmart and similar comapnies will give direct and indirect employment, but will it drive the Indian economy it is hard to say. Ofcourse Indian governments have been slow in taking decisions since the time coalition government came in force, sometime in 1990's, and it is not only affecting economy but other equally important matters like handling law and order, corruption, admisnistration, education, health, defence, sports etc and as I said before we are disappointed with the government but not because of the reasons highlighted by Zakaria. PS: krm India will not disintegrate in 2012 or 2013 or some time in future, since 1947 the size of India has only grown (first the princely states, then Goa, then Sikkim got added)
This dude just inadvertently admitted that India has been an expansionist bully in its neighborhood since 1947 Certainly India has grown, by robbing other countries. Who is next on your list of "grow"
Dear John, I guess the sarcasm in my last line to krm (regarding Goa, princely state etc) was lost on you. Anyway if security of a country is described as being bully I don't care. Btw did you forget how India saved Maldives when it was taken over by sea pirates and liberation of Bangladesh maybe its bullying for you too. Anyway we are digressing from the topic
That was in 1997. A lot has happened since then, you know. Dictator got kicked out, economy growing, etc... Indonesia is obviously not there yet, but it's going in the right direction. Oh by the way, just because India is culturally diverse doesn't mean it will fail. Look at other successful nations (USA, for example) that have a multicultural society.
Latest News ......Fareed Zakaria has been summoned by International Criminal Court for making False propaganda against India ........ he is currently out of job and missing in action......
Isn't propaganda still free speech? Look at campaign ads in [insert nation here] elections.
To all the 'Indians'... I have quite a few of them as friends..the ones here seem to have a genetic disposition to get emotional, discuss tangential issues not relevant to the central tenet of the article, and you bring national pride and ego into the whole debate. You need to drive greater investments into India, improve the crumbling infrastructure, implement progressive economic policies (the retail sector reform is a badly needed one), enforce standards and rules failrly, reduce your deficits, and drive greater exports with world class innovation and products. These are the measures by which any country makes progress. I have not seen a thread / post on a constructive way for India to move forward – either the response is a defensive one or an attack on Pakistan (or Fareed) or one that basically says we are fine and do not need to debate how awesome we are in comparison to the rest (especially the US of A!).
dude, when Europe was dark, your parents/forefathers, came to US, we will do the same, look at US, the Indian diaspora is the richest.
Hello Roger, don't tell this indian, they won't listen. They will make nuclear bombs when thousands of farmers are dying of hunger.
The "Company" of East India(ns) is taking over UK. Why can't you digest the truth of 21st century.
Mr Meckley
Just becoz you can type, doesn't mean you have to, use the filter between the brain and the fingers, before you type the moronic, out of this world, nonsensical trash, you are not only embarrassing yourself but your whole country
@Roger. You make a perfectly valid point. As one of the other responses to you stated Indians are today held back today due to the environment that exists. Unfettered by bureaucracy and corruption the same Indians have done exceptionally well in the US and elsewhere. We Indians have to accept it and fix it. There is no point in blaming GPS/Mr Zakaria or spewing poison at the nonsensical Pakistani posts here.
The only growth left in India is the hair between the legs. Value of rupee has tanked, inflation is in the clouds, stock market has crashed, corruption is rampant, hospitals are burning, people are dying in scores, societal values have rotted, Microsoft and GE are pulling the plug on call centers...Dell and Delta Airlines have almost packed up and shifted the call centers to Canada. Pakistan has opened up Wagah Border to provide food aid for India (Thank you, Pakistan, for helping out).
Joke of the Day. Pakistan (beggers) helping anybody?
First become a nation, then we'll talk:))
What is with all these comments.. none of them actually make sense – looks like a bunch of whinos. "We Indians are so special and awesome and we hate Pakistan" seems to be the central theme. We are better than surely the US where poverty and squalor are rampant and China has empty malls and buildings and is on the brink of collapse. Thank god for India – what would the world do without you. Thank you for the moronic comments!
Now wipe your asses and get to work – the world needs your help – especially from the brain surgeons who commented here – if only we could be as cool as you! We will do our best in 2012 to copy India and Indians!
Half the comments are from Pakistanis who gloat at every bad news about India and Indians responding to Pakistani comments. Like in every country in the world, India also have its share of patriotic people who does not want see anything bad about their country. You have to read their comments with pinch of salt. Some Indians talk about local politics blaming ruling party and opposition party.
Regarding the main topic. Indians of course understand the problem in not attracting FDI. There are some concerns about FDI in retail sectors because people are worried about Big retails companies affect the livelihood of over 20millon mom and pop stores. But in general all major parties in India agrees on attracting FDI in other sectors including manufacturing. India has to use every opportunity to improve the standard of living for over billion of its people. India hs to introspect and make appropriate policy changes to attract more FDI. With over half billion population under 20years old, India needs double digit growth rate for next 20-30years. For that it needs hugh capital which it do it only by attracting foreign investors. everybody in India convinced about that. We have Chinese example in front us. With being democratic and open society India should be able to attract more foreign investors. As Chinese standard of living improves, their wages goes up and some of the manufacturing might move out of China. India can use those opportunities to attract some of the capital. Indian govt needs to much more pragmatic and shrewed in in its mission. Both ruling and oppostion parties should stop playing politics when it concerns national interest. May be its too much to ask from politicians.
Fareed – I have been an avid follower of your show every week due to the neutral content presented. Unfortunately I think your coverage of India losing the BRIC status due to the FDI political issue there is completely unfair and seems pretty odd for someone of your stature. The logic does not add up – you seemed to say India has only 7% GDP growth. I can't think of too many countries in the world that are closer to that high growth levels. Politics paralyzes all countries from the all mighty USA to European Union countries to anywhere else you cam imagine. If your view is that India can get more growth, by completely stopping any protectionism policies that protects its own people, you ought to hold countries like US to the same standard – like the poor immigration policy, recent Bill in the Congress to stop Off-shoring of work, broken debt deals every month, etc...Or is GPS getting any contributions from Walmart's of the world? You are not serious by saying Walmart bring increased GDP growth to a country. That only takes money away from Indians to a foreign firm and it will employ Indians for very low wages, I find it hard to believe that you would say that would boost the economy in India. Atleast the money middle-men make in India stay within India and brings joy to their families and in turn stimulate the Indian economy. Please do not confuse FDI issue with the other corruption related issues faced by India. I expect someone of your stature to own up to the erroneous reporting and make any announcement to correct those statements.
India as we know it won't survive 2012. Probbaly will be broken up into independent states along ethnic lines similar to communist former Soviet Union. India has become too big to govern and is becoming a liability on its neighbors and the world. If the implosion is uncontrolled, it will be a disaster. I am sure CIA is running scenarios and planning the inevitable. from the economic point of view, this will be good for world economy as these independent states will become decentralized and unleash consumer demand that USA and Nato countries need. Plus there w ill be a tremendous demand for military equipment that will be good for the defense industries throughout the world.
The mere fact that people have turned this excellent article into a india-pakistan debate signifies the extent of problems that are facing this part of the world. I agree with everything Fareed has to say about the economic state of India or Pakistan. People are in denial of everything happening infront of their eyes...
@Venkat:- Your arguments are not completely true– "Walmart bring increased GDP growth to a country. That only takes money away from Indians to a foreign firm and it will employ Indians for very low wages" –well having some wages is better than no wages for a large number of people and also this increases tax revenues that could be used in the absence of corruption to build roads, create infrastructure etc..anyway india is screwed unless things change politically..
Most multinationals are pulling out of India. Dell, Delta et al either have or are in process of moving operations to Phillipines, Canada. USA artifically inflated India and is now taking taking the air out. After all USA had done for India it awarded defense contracts to european enterprises and botched the American retailers from entering its markets. UNACCEPTABLE TO AMERICANS.
It is PAK that has been pampered by the US as an ally in war on terrorism. We all know what US thinks of PAK in reality. PAK is doomed.
Everybody is ignoring the two headed elephant in the corner. One head is the entrenched bureaucracy and the other is rampant corruption. The reason that the government finds itself on the defensive is the level of corruption that it has allowed to fester. It is extremely rare in India for a corrupt minister or a bureaucrat to be prosecuted. This is because the investigative arm (CBI) is under the Prime Minister. As an example couple of years back a suave US educated External affairs minister Shashi Tharoor (One time candidate for UN secretary General against Ban-Ki-Moon) was caught when he obtained a 10% stake in an Cricket franchise in the name of his fiancee for certain services rendered. When caught he resigned and apologized. That was the end of the case. The Government has been looting in billions from the people. The bureaucracy is horrible, one can see it even in the consulates. Diktats follow without any reasoning. David Headley one of the accused in the Mumbai Bombing case visited India frequently to case out the location. The Indian Govt. now says, if you have a tourist Visa to India you cannot make two visits within two months. Is this a country which is looking for foreign inflow ? It does not look like it. Getting a Visa to India is the most arduous task so people prefer to skip the country. 2011 was the year when people finally woke up to put a stop to the corruption. So i expect the the Govt. paralysis to be temporary. You have to sedate the patient before you excise the lesion.
All those who critisize India is because you guys dont like India growing... Eventhough you guy spread negative image about India.... we will not go bed and sleep peacefully.. We will work hard and work smart.....
India has millions of youngsters which is more than your countries whole population.. please keep that in mind....
To krm1007....
I think you should go to some mental hospital and check.... If you dont like India then keep quite....
The macroeconomic picture in India has certainly deteriorated in the last year, the rising deficits are especially worrying. However, the low quality of governance is only partly responsible for this situation. This is more a result of the Indian governments arrogance and neglect of the serious issue of corruption. Indian officials might not be taking decisions and in the short term that might affect the economy, but the fact that they will now be held accountable to their decisions and not be as free to indulge in corruption is certainly good for the long term future of the country. I would think that a good investor would rather invest in a country whose government has credibility and where corruption levels are low.
I think Mr. Zakaria (and a lot of other commentators) are unecessarily stuck up over the FDI issue. India now demands a greater, more complete debate before decisions, and this is a good thing, not bad.
Wonder where these concerned analysts were when the incomes of the rural poor in India were declining at rates close to 15 %
http://vikramvgarg.wordpress.com/2011/12/19/distant-from-prosperity-the-rural-indian-economy-1993-2005/
What do we expect from an ISI inspired Muslim Fareed Zakaria!
I would say India is taking three steps forward and two steps backward. In a democracy you must listen to people. If people don't want Wall-Mart then so be it. India cannot cut the middlemen banyas. They are the backbone of the traditional capitalism in India. India needs to get these banyas to create their own wall mart. only then the farmers will get their fair market share.
You have said the truth. Not only ISI sponsored but also sponsored by christian churches and funded by christian missionary organizations who are nothing but a herd of criminals rogues
Well hold on guys:
1.Good news is that the bill will pass in 2012 in March.Opposition too is hypocrtical as NDA in 2001 proposed a 100% FDI in retail.
2.This is not the first time MM Singh and India are facing a crisis, the crisis as it is is 0.1% of that of 1990s when India was saved by MM Singh under fierce communist and socialist opposition.
3.India needs Right wing Hindu Nationalist government more than MM Singh under the leadership of Narendra Modi as this regime will be free from Communist and Socialist deadlocks and will take drastic measures for Indian masses like in 2002 when NDA brought Golden Quadrilateral road project which now handles 66% of India's traffic and Space Mission to Moon , he also had slum rehab on his cards but was dethroned due to Hindu-Muslim riots.Presently NDA states of Gujarat,Karnataka,Bihar,Tamil Nadu are fastest growing states of the country.
Nothing wrong in this article, its wake up call for Indian politicians
Its time for Delhi to learn from Gujarat and Bihar!
NRI should really shut up about India. You know nothing.
I ayawls got what ever I want in you post. Thanks again for This amazing post. I will share this with my friends for sure. Keep it up.
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OMG, Nostradamus prophecy about India is coming to life.
The GOvt cheats the People.The People retaliate in Election.Secular Congress wiped out forever.A hindu Nationalist organisation comes to Power.Vedic Aryanism on the rise.Internalisation of ancient knowledge.Aurbindos predication about India comes to pass.An ancient juggernaut rises again.Wow..
India can do the friendship with any other country ...proud to be an Indian