Millennium Post

FIIs not good for economy, Modi reminds Obama’s favourite PM

Gujarat Chief Minister Narendra Modi has said that there should be a balance between retail investors, foreign institutional investors (FIIs) and domestic institutional investors (DIIs). Addressing the Zee Business Financial Market Analyst Awards in Ahmedabad, he said that if foreign institutional investments are too high, it is bad for the stock markets.

The BJP’s prime ministerial candidate, who has been barred by the USA and several Western nations from entering their countries, was fiercely critical of the Manmohan Singh Government, saying that Singh’s consistent record of non-decision making has led to a severe policy paralysis. Modi, in fact, termed this the biggest problem plaguing India today.

Singh has repeatedly been hailed by US President Barack Obama as ‘one of the world’s greatest leaders’, an endorsement that has been proudly highlighted by the ruling Congress as proof that he is doing a good job.

The gathering, which consisted of the crème d l crème of India’s financial and banking sectors, was treated to some vintage Modi oration when he remarked sarcastically that the rupee and the Government’s reputation are in fierce competition to see which of them can fall faster. The Gujarat Chief Minister, who has been widely praised for his dynamic, imaginative and efficient handling of his state’s economy — despite consistent hostility and economic sabotage from the USA and its Western allies — also reminded the pro-West Manmohan Singh that a continuation of the present state of policy paralysis is hardly conducive to an increase of FDI.

Modi also criticised Finance Minister P Chidambaram for warning Indians not to buy gold. ‘When the markets are falling, economy is going down, real estate investments are not giving profits, where will people invest?’ he asked the Harvard Business School alumnus.

‘Our savings rate, which was earlier an asset for the economy, is going down. Because of high inflation, no money is left with the middle classes to save.... During Shree Atal Bihari Vajpayee’s regime, even with nuclear sanctions we controlled inflation and continued on a high growth path,’ he pointed out.

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