A case for keeping FIIs out - Business Line

A case for keeping FIIs out - Business Line

The unbridled dependence on import of essential commodities like oil 
and not so essential luxuries like gold, besides total absence of 
control on extravagant lifestyle have compounded forex-related 
problems. While full convertibility of currency has been rightly 
delayed or postponed, spending on import of toys to aircrafts, floor 
tiles to machinery for theme parks, expenditure on travel abroad are 
not budgeted and accounted factoring in the matching of export-import 
costs and benefits. 
Though there has been sincere effort from the side of RBI to bring 
down gold import, there has not been perceptible policy support or 
even a realistic effort to create awareness among people about the 
need to put into productive use the domestic stock of gold or reducing 
the appetite for accumulation of gold and gold ornaments. 
Self-reliance is not a bad idea. Neither is borrowing for productive 
purposes. But, leaving everything to market forces may create 
imbalances that could turn unmanageable.
from:  M G WARRIER
Posted on: Apr 2, 2013 at 17:44 IST  


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