A government at cross purposes
12 Nov 2012 7:46 AM IST
It is of interest that prime minister Manmohan Singh announced this Saturday that his government will soon take further steps to boost investor confidence. This is a strange comment for the prime minster to make for several reasons. The prime minister has also said that investor confidence has been spooked by recent taxation measures like anti-tax avoidance rules and retrospective tax amendments. This is also most surprisng. As prime minister, Singh is not just supposed to be in the know of the taxation measures pronounced in the budget presented by his government but is also supposed to be an active participant, if not leader, in its preparation. Yet the prime minister now seems to be suggesting that either he was not aware of these taxation measures announced then or that the government of which he is the prime minster took wrong decisions. In either case, this is a most regrettable state of affairs for it would appear that the government does not seem to know what it is doing.
It also seems that prime minister Singh is more interested in promoting investor confidence among those who live outside india and less in promoting domestic industry. As prime minister, it is Manmohan Singh’s job to work for the welfare of the Indian people. He should therefore be worried more about Indian investments and not so much about foreign ones. In any case, is it right for the prime minister to promote foreign investments to such an extent as to harm domestic industry. This is because some of these foreign investors are only interested in making a quick buck. They are not interested in the welfare of this country and they have hardly any commitment to it. Companies that they invest in are likely to collapse in the long run as has been seen in the last decade or two with many other countries that have followed similar policies. This is not to say that all companies are of a similar kind for there are some reputable companies as well. But those who takeadvantage of these new conditions that are being introduced by this government, especially if they are to the detriment of this country. Therefore, the economic policies of this government need more scrutiny by the people of India.
It also seems that prime minister Singh is more interested in promoting investor confidence among those who live outside india and less in promoting domestic industry. As prime minister, it is Manmohan Singh’s job to work for the welfare of the Indian people. He should therefore be worried more about Indian investments and not so much about foreign ones. In any case, is it right for the prime minister to promote foreign investments to such an extent as to harm domestic industry. This is because some of these foreign investors are only interested in making a quick buck. They are not interested in the welfare of this country and they have hardly any commitment to it. Companies that they invest in are likely to collapse in the long run as has been seen in the last decade or two with many other countries that have followed similar policies. This is not to say that all companies are of a similar kind for there are some reputable companies as well. But those who takeadvantage of these new conditions that are being introduced by this government, especially if they are to the detriment of this country. Therefore, the economic policies of this government need more scrutiny by the people of India.
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