In current on going G20 Summit US president Barack Obama is talking about the rejecting the protectionist approach. But I found it quite illogical in Context of India. Why?
The Present US market crisis has shown that the situation in Global market is still volatile and this way if we make the market more liberal for foreign investment the economy may boom but the situation will become more volatile and risky. At this moment when the world Scenario is full of insecurities we want some security. The foreign money cannot remain in our pockets for long, it always changes the place where it finds means to grow; so if this opportunity is more available some where else, it can switch in any time. Once the money is pooled into the Indian system, however is regulated and restrained by some measures like registration of the investing partners but such type of regulations are not clearly functioning in our system. Hedge funds and FDI's that offer more flexibility to the investors and thus are keeping the market at stake.
If however such kind of investments are to be planned the government should not look for near mighty gains but the bigger picture at far. Allowance should be given once all the investment related regulations and laws are clearly indicated. Many of the financial law prevailing in the country can be manipulated easily according to the convenience of the one and the other. It is like the same story of 123 agreement that was read differently by two Nations. Like the assurance given by the Prime Minister in the parliament about the nuclear deal, same kind of assurance is required in Financial Sector too, but that is not possible. It is market Man... profits of Super rich speaks more than the common aspirations. And Money here speaks louder than vote-banks. For Voters can be wooed not Money........................
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