The recent fall observed in the rupee-dollar exchange rates clearly hints at the fact that our economy has taken a beating, a very severe one at that! Ballooning inflation left untamed over the last couple of years has also compounded the existing crisis. The global economy is reeling under the effects of the whirlpool of unabated recession and is gasping for the much-needed oxygen of finance and liquidity in the economy. Now, ‘time’ is going to be the litmus test with which we will gauge the ‘muscle power’ of our economy! But if you go around the market discussing this, it seems that the common man has already given up hope. Will the UPA-2 mull over our problems or go into a deep sleep, something it appears to have been in for a long, long time?
There is nothing wrong with what Ratan Tata has observed about India’s diminished standing in the eyes of the world. And there is no doubt that India has fallen short of the world’s expectations. This is evinced by the rapid exit of FIIs from the Indian market. When the going was good, our government thought better of introducing much-needed, painful structural reforms. Instead, it proceeded to antagonise business, most notably in the Vodafone case. More than anything else, it has now become clear that the UPA-2 is unable to remove administrative bottlenecks and unfriendly regulations.
New plant? Not really
This refers to the news report titled “Maruti, Tata Motors plan plants in South America” (FE, September 2). This is incorrect. The company has no plans to set up a manufacturing base in South America.
Deputy General Manager,
Maruti Suzuki India Limited