Thursday, September 20, 2012

India will soon become Asia's Greece ?

It's seems like Chidambaram has emerged as a one man army fighting the Maoists. After having caused substantial damage to the Maoist movement as the Home Minister and plotting the assassination of many of it's leaders, he has now moved on to become the Finance Minister where his immediate priority is to prevent the collapse of the Indian economy.

A further deterioration in economic indicators over the next few years will definitely benefit the Maoists unless Chidu thinks he can save this sinking ship ?

The question remains how much control does Chidambaram have and what tools he will use in trying to prevent the collapse of the Indian economy ? Will he succeed or fail ?

We live in interesting times...

India, Greece GDP Growth rate comparisons. 
Policy hurdles may make India Asia’s Greece:
Aditya Puri, MD- CEO, HDFC Bank
India will miss its best opportunity to fish in troubled international waters and faces the spectre of becoming Asia's Greece if coal, fiscal deficit and land acquisition issues are not fixed, said the chief executive of the nation's most valuable bank. 
Permitting FDI in retail and insurance would help the economy on the margins, but not take India back to 8% economic growth rate; politicians burying differences and parliamentarians getting their act together will, he said. "FDI in retail and insurance is not the big-bang reform," Aditya Puri, CEO of HDFC Bank, told ET in an interview.
"If you tell me one Walmart coming into India will solve your agriculture problems and issues about cold chain, production, irrigation and distribution, then you must be living in a cuckoo land." Puri joins the chorus of corporate giants such as Kumar Mangalam Birla and Adi Godrej, who are demanding that politicians address national issues which are dragging the economy down. Legislation has been stalled by the Opposition over the Coalgate scandal. 
"They should address the fiscal deficit problem, resolve the coal issue, introduce transparent and clear policies on land acquisition, mining rights and other environmental issues, and bring in accountability of the government and public sector," Puri said. 
Sounding a note of caution, he said, "If you continue living like this, we will have problems like Greece...If you carry on like this, you are headed towards disaster." "The whole world has problems they don't know how to fix. By God's grace, we know how to fix the problem, we're just not doing it."
Source :

Related News Articles :

Run, Chidu, run: Only weeks left to rake in the moolah

Government should bring in transparent policies & accountability: Aditya Puri, HDFC Bank


  1. It doesn't seem likely to me that 8 percent growth will maintained. Plus the instability in the region is probably going to start reducing international business, making it an even steeper battle.

  2. P Chidambaram has done a lot while he was the Home Minister. But introducing FDI in India will not solve the economic issues that India is facing and maintaining 8% growth doesn't seem quite practical. It is important for the Government to actually address and resolve the major issues like fiscal deficit, coal issue, land acquisition,mining rights and other social issues as said by Mr. Puri. Once these issues are being resolved many other economic issues will also come to an end.


NOTE : The Comments section is provided in the interests of free speech only. It is mostly unmoderated, but comments that are off topic, offensive, slanderous, or otherwise annoying stand a chance of being deleted. The fact that any comment remains on the site IN NO WAY constitutes an endorsement by Naxal revolution, of any view expressed, fact alleged, or link provided in that comment.