Indian Budget is disappointing for investors

Lalit K Jha

Washington, July 10 (PTI) The Indian Budget 2009-10
presented by Finance Minister Pranab Mukherjee earlier this
week, has disappointed many Indian American investors as it
does not focus adequately on some of the key issues, including
disinvestment and infrastructure development, IACC said
Friday.

Participants of a panel discussion organised here by the
India America Chamber of Commerce said the budget does not
adequately address the issues that investors are looking for,
including disinvestment leading to the reduction of fiscal
deficit and emancipation of the entrepreneurial spirit of
India.

Also it does not adequately address the issue of
investment in education by allowing private universities and
increased government spending, they said.

Further, it does not address the issues of bolstering
infrastructure for the power sector and of opening the economy
to foreign investors, the Chamber said in a statement, which
according to it is the majority opinion of the panelists at
the discussion held in New York.

However, Deputy Consul General Ajay K Gondane defended
the budget as a necessary step in the road to inclusive and
calibrated growth.

He pointed out the example of Russia where quick
disinvestment had led to chaos.

He also pointed out that in the current market situation,
the valuations may not be attractive enough for disinvestment.

The Chamber President Rajiv Khanna said that the Chamber
would be presenting its recommendations to the Indian
government soon. "The eyes of the world are now turned to see
whether the brightest spot on the globe, India, will go
the way of Mexico or will (it) truly emerge as a world
economic power and the growth engine for the world," Khanna
said. PTI LKJ
AM
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