Wednesday, August 6, 2014

Modi's First Budget, Failed WTO Deal and BRICS World Bank

Narendra Modi government presented its first budget recently as well as, as per the news reports, Modi personally advised the Indian commerce minister to block the recent WTO deal on trade facilitation (the Bali Package). Modi did this allegedly to help the poor people of India and to further the national interest. Also recently the BRICS nations decided to create their own World Bank. In my latest economic report I analyze all three events.


  1. Superb analysis as usual. A clear verdict and no beating around the bush! Had not realised the extent of war mongering by the Government. This is indeed worrisome. Thanks a lot for pointing it out! What about the selling of government bonds done today by RBI to purchase dollars ? Will it help boost up a falling economy? Can it be argued that the Government is waiting to build up forex reserves before trying to push for big ticket reforms?

    1. RBI mostly is buying dollars to stop the rupee from appreciating too much against dollar (their mercantalist mentality of promoting exports), and to build up forex reserve to counter the next big financial crisis around the world, which is looming large and can happen at any time.

      Any kind of reform in the present system of fascism will never help the Indian economy. We need a total change in the economic system of this country because the present system is immoral, inefficient and rotten to its core, and you don't reform an immoral system; you replace it with a moral and efficient one.


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