China offers to finance 30 per cent of India’s infrastructure development plan

[Hermione]

We have plenty of money too, $4.2 trillion in foreign exchange reserves to be precise.

Yet we still encourage tons of FDI, and the latest data shows a record-breaking inflow of FDI into China.

But then, we are looking for a higher rate of growth. If India is content with its current rate of growth, nobody is forcing them to accept FDI.

It is not what I meant. I meant we can mop up the money and certainly we will be growing much faster under BJP govt than now. It is not snubbing China. But we have a huge unemployment rate now. With all the infra building up, if jobs are not created then there will be huge problem. Also doing business is not easy in India. By the time one acquires land and permission and all that it takes a lot of patience and perseverance.

 

[jarves]

India has the money to build its own infrastructure. More than that we need to create jobs for our people which wont be possible if China brings its own workers. If it was only money and expertise China was offering and not the labor that come along with it, the govt of India would not have much hesitation except in the sensitive areas.

India doesnt have the money thats why Japan is investing in two corridors.

 

[Chinese-Dragon]

It is not what I meant. I meant we can mop up the money and certainly we will be growing much faster under BJP govt than now. It is not snubbing China. But we have a huge unemployment rate now. With all the infra building up, if jobs are not created then there will be huge problem. Also doing business is not easy in India. By the time one acquires land and permission and all that it takes a lot of patience and perseverance.

Well then you can set the conditions for the incoming FDI.

Same as how we set conditions for Western companies investing in China, which are often very strict.

 

[Hermione]

India doesnt have the money thats why Japan is investing in two corridors.

It has a lot of money. Only it did not have the will and the heart in the right place.

 

[illusion8]

The Chinese are smart. They got the money, we have the demand. It's perfect demand and supply situation. There is a plan in the BJP circles. It is Arun Shourie's plan. If Modi comes to power, there is a high chance it might get approved as a plan. It basically speaks about distributed industrial zones all over the country and not isolated coal, oil etc sectors.

Supply and demand matches, India also has successfully operationalised the build, operate and transfer and the PPP model, so high returns and safety of investments are always guaranteed for the investor. There are twin advantages going with China as a partner - one is they have no shortage of funds and second is they are highly experienced.

There is only one problem. If it does get approved, India might face a labor shortage as massive infrastructure upgrades are planned.!!! Getting the Chinese in to fill the gap definitely serves our purpose. There is also a Slum alleviation Programme - some parts of it I did not like.

This is where the Chinese expertise will come into play, their construction and infrastructure process will be highly automated - way more than what Indian contractors usually do. Which parts of the program did you not like?

 

[Hermione]

Well then you can set the conditions for the incoming FDI.

Same as how we set conditions for Western companies investing in China, which are often very strict.

That is something the govt will seriously consider.

 

[jarves]

It has a lot of money. Only it did not have the will and the heart in the right place.

Ok then please explain if we have so much money why we are not financing all the corridors by ourselves and why we are not approving remaining cooridors.???

 

[Chinese-Dragon]

Ok then please explain if we have so much money why we are not financing all the corridors by ourselves and why we are not approving remaining cooridors.???

Bureaucratic inefficiency of the Congress party would be my guess.

 

[jarves]

Bureaucratic inefficiency of the Congress party would be my guess.

+Super socialist schemes of Congress

 

[Hermione]

Ok then please explain if we have so much money why we are not financing all the corridors by ourselves and why we are not approving remaining cooridors.???

Because people had no trust in this govt and the govt was indecisive and not creative enough.

Bureaucratic inefficiency of the Congress party would be my guess.

The Bureaucrats stay no matter what the political party is. Congress high-command surrounded herself with Naxals and they acted as the opposition to her govt in everything. Their entire focus was on freebies.

 

[OrionHunter]

China is the way to go for Indians. Bow before the dragon and the prosperity will be in the horizon.

Wow! Now that was one of the biggest brain farts of the century!

We bow before no one except God, the Almighty!

On topic. We need to go in for Chinese investments in a big way except telecom. It would be a win-win situation for both countries.

 

[jarves]

Because people had no trust in this govt and the govt was indecisive and not creative enough.

What creativity does Babus need on just signing on the papers???

 

[Hermione]

What creativity does Babus need on just signing on the papers???

Jarves just the post office savings of Indians is more than a trillion dollars. Indian rate of savings is 35% and has been so for the last 15 years. Now calculate that from 35% of 1 trillion dollar economy to 35% of 2 trillion dollar economy.

 

[Rajaraja Chola]

And unless we fix our creaking infrastructure, those production factories will move to Vietnam, Indonesia, etc.

If we fix our infra, we would be the country of first choice...and to do that we should not just accept, but welcome investments from every country on the planet( bar Pakistan and Bangladesh).

As for this investment, I am firmly in favour of removing any additional restrictions on Chinese investment in India that we donot put on other countries.

An equal playing field for all.

Of course you are right. We should improve our infrastructure, port facilities especially sucks. I have seen lorries standing for days in Ques outside on one of the major ports in the country, Chennai port. We need to improve everything related to infrastructure.

 

[jarves]

Jarves just the post office savings of Indians is more than a trillion dollars. Indian rate of savings is 35% and has been so for the last 15 years. Now calculate that from 35% of 1 trillion dollar economy to 35% of 2 trillion dollar economy.

I am talking about gov. budget and not personal savings.

the foreign reserve to debt ratio of India is .74
India's External Debt end-March 2013 - Reserve Bank of India
Which means we have less foreign reserves than the external debt.