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    India hangs up on investor confidence, says Time

    Washington, Feb 6 (IANS) The Indian Supreme Court's decision to cancel 122 controversial mobile phone licenses has opened up a new round of scepticism about India as a destination for foreign investment, according to Time magazine.

    Outlining the issues in the controversial allocation of licenses for "2G" spectrum by then telecom minister A. Raja, who is in custody awaiting trial, the prestigious US magazine said: "The outcome may be the worst case possible for those worried about wobbly investor confidence in India."

    "First, it sends a signal to companies dealing with India's powerful ministries and bureaucrats that following the letter of India's regulations is not enough," it said in a long story titled "India Hangs Up on the Mobile Phone Industry - and Investor Confidence."

    Despite economic liberalization in many sectors, India's rules regarding foreign ownership of companies, imports, exports and taxes remain extremely complex, Time said citing it as the reason for India's low 132nd place in the World Bank's latest ease of doing business rankings.

    While publicly telecom companies go along with whatever the government demands, privately they say "they are increasingly frustrated with India's regulators, who seem more concerned with maximizing revenue than protecting consumers or developing the industry," Time said.

    Telecom isn't the only industry that has become wary of India's tantalising but not-quite-free market potential, the US magazine said citing the "politically disastrous round of flip-flopping" over opening of retail sector to foreign investor.

    Suggesting the ruling "Congress Party is extremely vulnerable on the issue of corruption in state elections this year and national polls in 2014," Time said for Prime Minister Manmohan Singh's government the political fallout of the Supreme Court judgment is far more important than the opinions of foreign telecom companies.

    "Having hung up on the mobile phone industry, Singh's government is now hoping that voters will still take their call," Time said.

     

    25 comments

    • chandra  •  Bangalore, Karnataka  •  3 months ago
      We have the biggest FDI in India - ManMohan Singh ! Surprised ? Dont be, he is the FDI of IMF, and the command given to this robot is "show growth by hook or crook". Rest everything he isnt bothered, thats upto 'high command' the proxy govt in control.
    • Rakesh  •  3 months ago
      One does'nt have to dig much into Indian politics and of politicians and what ails India..this paragraph sums up all that has been situation since independence. Only its got worse now. Instead of "telecom companies", replace any industry or service.....

      "While publicly telecom companies go along with whatever the government demands, privately they say "they are increasingly frustrated with India's regulators, who seem more concerned with maximizing revenue than protecting consumers or developing the industry," Time said.
    • Krishna  •  3 months ago
      Most outside India don't trust Indian politicians, especially Sonia Gadhafi Congress bandits and their babus, judiciary judges/justices and cheap media people. This is the proof that these filthiest and dirtiest paid news agencies like IANS, PTI and many more need Time to back their write ups!
      • Mohammed 3 months ago
        You just praised her with your ignorance by calling it Sonia Gadhafi congress.....sorry to see that you are fully influenced by the media whom you are rightly swearing upon.....

        Gadhafi was the most respected socialist leader of the world who gave more to his people than any so called democratically elected leader.......but for the filthy propoganda machines his image has been portrayed completely opposite...................and the bitter truth of life is good people meet such fate and the criminals & traitors lead lavish life's like these politicians
      • Divakara 3 months ago
        Mohammed: Nice to read some sense coming out of your seventh century desert narrow minded outset. So not all Mohammed's are international liabilities and a curse on a society, nation and earth!
    • pearl  •  3 months ago
      Nobody will trust a banana republic
    • dementia praecox  •  Faridabad, Haryana  •  3 months ago
      My sincere advise to prospective foreign investors is : if through corrupt practices you want to earn profits on your investments in India or want to start business and flourish, you are welcome because corrupt people are always welcome here. You will find lot of like minded facilitators in government to help you. But if you are sticking to honesty, then forgive us, you are at great risk. Enter at your own risk.
    • Annu  •  Kolkata, West Bengal  •  3 months ago
      Dear Foreign investors : Our Italian waitress Munni gives damn to FDI in India. She is rather interested in investing Swiss Banks
    • Strongman  •  3 months ago
      The political class in India is the biggest threat for our country. We talk about free market economy, but we straddle our companies and foreign investors with complex regulations. On the one hand our ministers and bureaucrats are the biggest stumbling blocks, and on the other the very regulations can be twisted, turned and interpreted exactly in another way to go against companies and investors. Our leaders are a corrupt lot and this is the real problem. If A Raja awarded 122 licenses for 2G spectrum to various Telcos, why the hell the Telcos should suffer now for Raja's corrupt decision? We must learn to honour the position, and punish the individual for acts of corruption. Let's understand that licenses have been issued, and how can these be revoked/cancelled after so many years in operation? It is as good as destroying the entire city built painstakingly for someone else's fault.
    • Divakara  •  Mumbai, Maharashtra  •  3 months ago
      In India, best way to do business is take loans from PSUs and give a share to Sonia and her gang downwards, enjoy and then file bankruptcy. Vijay Mallya and his King Fisher are the best examples. Of course, his beer business is doing well.
    • Hindustanee  •  3 months ago
      What does the Time magazine think of the US government's decision to change the rules in the middle of the game when it wanted to not allow Chinese companies to buy up American ports?
      Actually I agreed with that decision and do not want China buying up US ports, but did Time then magazine ask the world to dump the USA because of this decision?
      Similarly, if crooks have managed to steal things, then it is the duty of the courts to give those things back to the rightful owners, in this case, the deserving companies which will now be able to bid in the upcoming auctions. It was the East India company stealing India's national wealth two hundred years ago. It is someone else trying to do the same now, in a much more subtle way.
      I'm sure all the honest businessmen all over the world would be a happy lot today. From now on, they stand an equal chance as the big unscrupulous corporations who have deep pockets with which to bribe any politician.
      Three cheers for the SC judges.
      Hip hip, hurray!
      Hip hip, hurray!!
      Hip hip, hurray!!!
    • Arjun  •  3 months ago
      before analyzing Indian top court judgement, Time also need to think of what US have done with British petroleum company BP in case of oil spill.
    • R  •  Thane, Maharashtra  •  3 months ago
      FDI LORDS: If you come to control India, you will be sadly mistaken. If you come here to do business then it is wise. Otherwise, you will be unwise.

      Keep your money in safe custody. When we need at your terms, we will knock at your doors.

      Till then good bye.
    • Divakara  •  Mumbai, Maharashtra  •  3 months ago
      In corruption, India ranks 89th in the world and fifth most in Asia. Earlier it was license, permit, quota and Nehru/Indira/Rajiv loot raj. Under liberalization and globalization, it is licenses and clearances and Italian mafia boss, Sonia massive loot, abuse, rape and kill raj! After a steel plants is working for few decades, it will require Jai Sonia Ramesh’s environmental clearances.
    • MumbaiWorm  •  Mumbai, Maharashtra  •  3 months ago
      I am proud of Apex Court for this. All corrupt big shots should be hanged and their property fizzed be Court.
    • Sanjay  •  3 months ago
      maduri dixit will go back to US... seeing this issues :P
    • sunil  •  Thiruvananthapuram, Kerala  •  3 months ago
      Want to start business in India? make it honestly, why are you feeding the corrupt politicians to get an extra milage? We trust judiciary more than the government.
    • Aam Aadmi  •  Bangalore, Karnataka  •  3 months ago
      When America and UK are now practising protectionism, why should we bare all to the foreign capitalists... I agree on one thing.. Crook investors who want to exploit Indian public and make quick bucks, will now be scared to invest.. but Genuine, straight forward investors would be happy if the now Corrupt UPA government is thrown out and a clean and transparent government comes to rule the country. Well done Supreme Court.. you and your judgements are now the only hope of billion Indians against this scamster government... hope this Corrupt Government won't buy you with their ill amassed wealth, just like they have bought the CBI, EC, ED, IT, lower courts and even the electorate (by bribing them to vote just before the elections).
    • Chandra  •  Mumbai, Maharashtra  •  3 months ago
      Because this corrupt congress,image of india have really been damaged internationally,May god curse the whole bunch of corrupt congress & GOD give prosperity,peace,happiness,health to all indian....
    • Sudip  •  Gurgaon, Haryana  •  3 months ago
      The Western Media has never left any stone unturned to put down India or praise it as long it benefitted them economically. However India has stuck to its guns and upheld Demcracy to the highest level in the world. All these western countries who tout being democratic have many instances of autocracy, nepotism and cronism too.
      Yes the SC verdict does create a sense of doubt but then it will also endeavor the players to put things right and uphold fairplay.
      • India SOLD! 3 months ago
        You said EXACTLY what TIME has missed out reporting or should we say "misled.." its readers!!
      • Strongman 3 months ago
        Sudip - Who should be blamed for this corruption? The investors or the corrupt Indian politicians? Why blame the Western media like Time Magazine? They only wrote the facts! Why are we unable to digest the facts now? The fact is that Indian politicians have shown the whole world and global investors that India is not the right place to invest billions of dollars. If you were to put in money as a US investor, would you put in your hard earned money? The answer is obvious to you. So don't be emotional in such matters. We as a country are not ashamed to show our motheerland in such a poor light, and start blaming Western media.
    • Joseph  •  Kochi, Kerala  •  3 months ago
      I feel that the Supreme Court Verdict shall teach a good lesson to foreign and domestic corporates who feed the corrupt politicians in India, to have their way. Probity in public life is a must, for politicians and corporates alike whether they are Indian or foreign.
    • bill  •  , Meghalaya  •  3 months ago
      Yeah, so in order to please the Yammerikkans we should hand over our economy to them for exploitation, lock, stock and barrel. No thanks.