What to make of India (20% of world population)
From the country confidence department. India and Indians relish in the chaotic democracy they proclaim to exhibit but many events including those noted by their auditor general suggest the chaos could be real and worse.
India lost up to $210bn in revenue by selling coalfields too cheaply, according to a leaked draft report by the state auditor on Thursday. The sale of the coal development blocks appears to have rewarded a handful of politically connected companies over the greater interest of India’s 1.2bn people, raising questions about the fairness of economic liberalisation.
Only days before, the government introduced a retrospective tax that could penalise old foreign investments. This means that – despite winning a Supreme Court ruling earlier this year – Vodafone, India’s largest foreign investor, may still face a $2.5bn tax bill it did not expect when it entered the country five years ago.
Relevance to Bankwatch:
India desperately wants to be accepted as a world player. But ask the question … name an Indian bank? There are a few but none will come easily to mind. India sufferred when the Commonwealth Games almost did not happen. India suffers from a confidence issue.
There is so much potential and optimism in India. Yet there is still serious doubt that only the government can tackle.