Wednesday, June 13, 2012

Standard & Poor downgrades India

S&P has downgraded India to BBB-. This will mean difficult international funds for India. S&P has also criticised Dr.Manmohan Singh saying he is "unelected". Nice joke !! Sikhs like jokes even if made on them.
The world is unusual. Advanced countries like Spain, Greece are facing economic problems. How can an advanced country have economic crisis is beyond me. Only thing could be Spain when compared with Germany or France can be possibly considered less advanced. So does it mean that the countries are being benchmarked with one another? Likely. Then in that case is India benchmarked with the other BRIC countries?
India's problems are different. It is capitalist. It is socialist. I would like to mention here that some of our businessmen are world class and have big reputation. From that angle it is a bit unfair to downgrade India. But most of Indians are poor but hard workers. They physically work hard and deserve food and money.
S&P has also talked about rift between the PM and cabinet and Sonia Gandhi. This is news to me. The newspapers never talked about it. I thought serious efforts were made by the PM but did not yield results.
The problem as I see is the socialist India prevents efforts made by government if the effort seemed capitalist in nature. Where only a few will make money.
Leadership is crucial at this difficult juncture and it is hoped India will come out of this problem.

3 comments:

  1. One reason why Europe is going through crisis would be that there will be two currencies. Euro and local.
    The problem with India is what is stated by Fitch, poor reforms, inflation and no progress in fiscal consolidation.

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  2. problem in India is policy for rich by rich
    let poor die in gutter.

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