India plans massive liberalisation of economy

The Telegraph ^ | 7/4/2009 | Dean Nelson in New Delhi

[bruinbirdman]

A massive economic liberalisation programme which could create vast new markets for British firms.

Pranab Mukherjee, Finance Secretary, has said the country needs to invite foreign supermarket chains, insurance, defence and engineering companies to help modernise agriculture, financial services and transport infrastructure.

His proposed reforms would shake up the country's strictly regulated labour market, allowing companies to increase working hours and make staff redundant without government approval.

Finance Minister Pranab Mukherjee

The annual Economic Survey he presented to parliament has recommended private companies be allowed to provide passenger train services on the country's nationalised railways, privatisation of the coal industry, lifting of price controls on petrol, and allow foreign supermarkets to set up stores.

Ministers are particularly keen to boost rural incomes and encourage investment to stop so much Indian farm produce rotting on the road to market.

A combination of bad roads, bullock cart transport, excessive numbers of agents and middlemen, mean Indian fruits and vegetables take so long to get to market that as much as half rots before it can be sold.

British supermarket giant Tesco already has a foothold in India, but has been prevented from opening its own stores by foreign investment restrictions which protect small Indian 'mom and pop' grocery stores.

Now ministers want companies like Tesco to play a role in developing India's backward food distribution and retail system by opening their own stores and introducing modern 'cold-chain' transport to make sure food arrives fresh at the markets. They want to see new computerised purchasing systems, more direct supply deals between farmers and supermarkets, and faster refrigerated transport to boost rural incomes.

India's railways need more than £500 billion spent on upgrading track, building new high-speed links, freight corridors and modern stations over the next 10 years, which

[dfwgator]

Pranab Mukherjee, Finance Secretary, has said the country needs to invite foreign supermarket chains, insurance, defence and engineering companies to help modernise agriculture, financial services and transport infrastructure. His proposed reforms would shake up the country's strictly regulated labour market, allowing companies to increase working hours and make staff redundant without government approval.

And yet here we are going 180 MPH in the opposite direction.

[j_k_l]

What is the ‘Over/Under’ for how long before the U.S. is a third world country and India stands as the sole economic super power?

[Tax-chick]

Best wishes to India. I love their food and clothes!

[JustTheTruth]

Countries that value growth and economic prosperity to generate more opportunity for their people (such as China and India - if you can believe it!) move to adopt and sustain economic policies that favor production, trade and business success. On the other hand, countries and leaders that are more concerned about wealth redistribution, increasing state control over private citizens, and increasing the role and dominance of government (USA in 2009/Obama) move in the opposite direction ...

We're clearly on a course to economic stagnation (or worse) in the USA under Obama and the Democrats, but unfortunately too many of us don't and/or won't face up to that fact yet.

[The Duke]

As darkness descends here in the US, it’s nice to see other areas, at least, growing brighter and more free.

[Tax-chick]

Everyone knows the basic requirements for a decent society and a functioning economy. If a government chooses to do the opposite, it’s deliberate - for the benefit of the governors.

It’s good that India has *somebody* in a position of authority who’s not totally sold out.

[Fred Hayek]

I would agree about India, however China (as far as I am concerned) merely tolerates market forces because it serves the state (keep in mind that fascism is just a little to the right of communism - and treats private property as a joke). Remember the PLA has its fingers in every pie.
India’s political system - in the long term, and the direction it is currently heading - would be more conducive to economic growth by its own entepreneurs. I have seen some of the new control systems products coming out of India - homegrown, original stuff, and the company owners are very hungry. These are the people who will break the stereotype of outsourced cookie cutter tech support.

And this great country is going backwards.

[Entrepreneur]

Good analysis, but a tad fatalistic IMO. While Obama, the Pelosi Dems, the Reid Dems, the bureaucracy, the unions, and the MSM want to take the US in the wrong direction, the American people have not really spoken. In the last election, they were largely deceived, asleep, and not presented with much in the way of alternatives (though today the distance between the alternative of a McCain represents a vast gulf).

While Obama is trying to wreck the nation at unprecedented speed (taking actions that are likely unconstitutional), I’m unsure he can drive his energy tax and socialized medicine through the Senate, even with Al-Minnesota-is-too-stupid-for-the-franchise-Franken. The 2010 mid-terms will be telling. Until then, I’m not willing to proclaim the direction of the country.

[libh8er]

[libh8er]

[bruinbirdman]

No "stinky eye" from Condo or GW!

yitbos