Defcon 1
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- Nov 10, 2011
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I don't understand why do you keep talking about things you know nothing about. The company you are talking about is maxx, not micromax. Both are different, and the customs duty hike was from 1.34 percent to 7%, not 7% to higher up.Most of India's CAD problems are arising out of the stupid UPA govt policy of running massive deficit with China which baffles any strategic expert .
If a govt with spine assumes office in next elections it can easily curb this. For example india's trade deficit with China was around a billion or two. Now it is close to 40 billions or so.
The UPA allowed even boiler equipments for power projects to be imported from china citing a cheaper rate. Now with looming forex crisis and spiraling own rupee we can all see how any cost savings would have evaporated by now.
There are always incentives for foreign investors to come here and they will come because for another market the size of india thay have to go beyond Mars.
it is the stupid trade policies followed by UPA which has comeback to bite, if a new govt corrects this then there will be no dearth of investors confidence either.
So if remedial measures are taken ,"net inflows to CAD ratio was mere 100.7 percent" this will reverse itself
A case in point is the reopening of the Micromax mobile manufacturing unit in india a few months back.
Due to the stupid policy of levying just 7 percent duty on crap chinese handsets micromax 's indian manufacturing unit became unviable. Now after a slight duty hike from the govt and depreciating rupee the unit has gone on stream.
So reversing this net inflows to CAD ratio of 100.7 percent is not a herculean task either.
the depreciating currency alone solves most of the CAD problems and if govt takes more steps by giving concrete incentives for big FAB units then it can easily reverse this ratio.
So the size of Indian economy has nothing to do with any 5th gen fighter production.
Rest of your post is not even worth replying. Study about CAD something first before coming back. And please refrain from replying to me in future. You are in my ignore list because I want to ignore you. Lets keep it that way.