This has been a rather depressing week with bad news flowing in from all directions and that started with Kapil Sibal asking Google, Facebook, Microsoft and Yahoo! to screen user content and stop objectionable content from appearing on their websites.
This is ridiculous of course and will never see the light of day, but unfortunately, FDI in multi – brand retail has been killed and I guess we will have to wait for a crisis till this issue is raised again. The best thing I read about this was Bloomberg’s article titled Wal-Mart battles with Marx’s ghost in India.
This week also saw the UID project getting derailed, but cheer up it’s just 550 crores or so down the drain! Nothing compared to the 30,000 crore or so that will go down the drain in Air India’s bailout.
The third thing that got derailed this week was allowing 49% FDI in Insurance.
This coupled with a weak rupee, widening trade deficit, high fiscal deficit and slowing growth makes beyondbrics ask if India is in crisis yet.
Yet is probably the operative word there, and the way things are going you get a feeling that it’s only a question of when and not if.
Jim O’Neill – the Goldman Sachs economist who coined the term BRIC said this week that India has been the most disappointing of the 4 countries, and here is what he had to say.
All four countries have become bigger (economies) than I said they were going to be, even Russia. However there are important structural issues about all four and as we go into the 10-year anniversary, in some ways India is the most disappointing
That’s it for this week!