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Delhi blasts, US financial crisis - not the best of times for exporters
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Bikky Khosla | 16 Sep, 2008
The week turned out to be not the best of times for the Indian industry in general and exporters in particular. After Saturday's Delhi blasts shook the industry's confidence level, the recent financial crisis in the US has added salt to the already wounded exporters.
On Monday as news of Lehman Brothers' bankruptcy and the $50-billion sale of Merrill Lynch to Bank of America spread like wildfire across the globe, Indian exporters are now fearing that the worse is yet to come. Orders are likely to be cut with the onset of the recession in the US. These course of events will dampen the demand for Indian exports to its markets.
And Saturday's Delhi blasts did not help at all. Now it's not just the Australian cricket team which is thinking twice about coming to India after Saturday's Delhi serial blasts. Several exporters across the country have seen cancellation of business meetings and eventual contracts.
The industry seems to be living in constant fear now after regular attempts by terrorists to destabilize the functioning machinery of India's economy. The motive of the terrorists is evident from the places they have chosen to carry out their horrifying acts of terror - Bangalore, Ahmedabad, Jaipur and lately Delhi. Their motive of instilling fear amongst both the industry and foreign buyers seem to have been achieved to some extent if not in totality.
The problem however lies in the lack of effective internal governance although the government seems to be in perpetual denial mode. It would have everyone believe that it is doing whatever needs to be done. If these ugly incidents keep cropping up on a regular basis as is the case now, a growing economy like India will see long-term effects - an undeniable fact. Incidents of terror act as a major dampener for both foreign buyers and investors.
Enacting a stringent law similar to the US Patriot Act can probably send out a strong message that India cannot be messed around with. The recent blasts have also shown that the security agencies are up against technically proficient terrorists. To tackle them the security agencies require a complete overhaul of their operational apparatus. It's sad that at a time when India is being seen by the world as an economy to reckon with, the government is not doing enough for reforms in internal security.
I would however not comment nor focus on the wardrobes or dressing sense of key Cabinet ministers supposed to be overseeing the law-and-order situation of the country. But the fact remains that if they are not being able to give the industry a security cover, they should make way for someone more capable. The industry can't operate with the constant fear of being the soft targets of terror.
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Financial Crisis US & Europe
P. J. Bhavnani | Thu Oct 16 14:31:49 2008
It is good that Bikky has brought up this topic about the Banking Financial crisis all over US & now Europe. A deep analysis prompts us to think back to a few happenings in the world.
A few years ago US and Europe join hands to form a coalition army to attack Afghanistan and Iraq. The finance input into these wars was in Billions of US Dollars.
US is now undergoing elections and we keep reading that millions of Dollars have been put into this election.
Take the fact that the elections in US are scheduled in November 2008. The banking Financial crisis was announced in September 2008. In October 2008 the Bush Government announced a reprive to the banks and a promise of pumping 700 Billon Dollars into the banking sector. In October Europe announced colapse of the banking sector. Europe also announced to pump in 450 Billion Euros into the banking sector in October 2008. All this in a span of 2 months before the Elections in US.
Take all these facts and what do we get?
Responsible government action
Adrian Akau | Wed Sep 17 13:15:53 2008
"The problem however lies in the lack of effective internal governance although the government seems to be in perpetual denial mode."
Inneffectual internal governance has been most obviously displayed in last months persecutions of Christians in Orissa during which the provincial government blatently refused to function according to its responsibility. It permitted and by its inactions, promoted numerous beatings, murders, rape, burning of Christian churches and homes forcing about 50,000 to flee to the forests without food, clothing or sanitary facilities. Provincial police refused to act; even roads were blocked by Hindu Extremist so as to be able to continue their violence by cutting off areas. An appeal was made to the Central Government to stabilize the situation by sending in troops but this was not done. If the administrators of the Orissa government have shown such callousness and disregard to their responsibility to control this violence and the Central Government's actions are limited to verbal efforts, it is evident that the internal governing system of India cannot function as should be happening in a civilized nation. If governing bodies cannot even protect their own citizens, how could they even be expected to promote laws beneficial to the economic sectors of their country. It is evident that Mahatma Ghandi's efforts on the celebration of the 60th year of Independence have not been well appreciated for violence in India still reigns.
adrianakau2aol.com
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Re: Responsible government action
sanjiv | Wed Sep 17 14:17:34 2008
Let us make an united effort in making clear to the Government that the Union Home Minister needs immediate alteration and a proactive terror containment plan is put into place immediately to eliminate such cowardly acts.
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Re: Re: Responsible government action
rajeev mohan | Thu Sep 18 07:42:54 2008
during which home minister , there were no terrorist attacks, why get jittery, instead think of ways to deal with the problem.
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Delhi blasts, US financial crisis
Brian Menezes | Wed Sep 17 12:11:09 2008
When security cannot be mantained in a country, biz will be stifled as in Srilanka, Pakistan... The Delhi blasts & the recent Orissa disturbances are proof that India is not able to take it's place on the world stage because basic security is not guaranteed. The people should pin responsibility on the concerned Ministers (Provincial as well as Federal), if they cannot handle a job, let them make way, there is plenty of talent in India to replace them.
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Re: Delhi blasts, US financial crisis
C R Gopinath | Wed Sep 17 12:33:30 2008
Dear Khoslaji,
Every citizen should be aware and alert if we have to successfully smother the wave of terrorism that has been unleashed. No Govt can do it on its own. A strict law in itself is not adequate; the will to implement it in letter and spirit is needed.
Each of us have a duty by our country and society to rise to the occasion; or else, we do not deserve to be free!
Gopinath.
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US Financial crisis.
NAINESHKUMAR | Wed Sep 17 05:15:54 2008
The editorial is good but I would like to point out one thing. The problem which have surfaced is possibley the tip of iceberg. The bigger may be lying below the surface. Like when Oil prices increased from 35 to 45 it was forcasted that if it reaches $70 it will be impossible to absorb. It went all the way to $150 & back to below $100 but not to level of $35-$50 a barrel. Still every one have accepted as good sign. Like this the force with which the recession was expected with bubble being growing extra ordinary size even afetr Iraq war. The impact was bound to come. Any country at war will be having such huge losses due to high cost of weapans some of the entire countries have gone bankrupt even due to their civil war. But
positive thing is US is much stronger country & can recover faster than expected. So this may be very short period.
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Re: US Financial crisis.
vini | Wed Sep 17 19:43:41 2008
This is well thought of and well written article but as one of the readers pointed out it is just the tip of the ice berg.
There has to be strong effort to show that India will not stand for this and will have to show positive action.
See what USA did take a giant step go to the root and wipe it out, there might be some collateral damage which is unavoidabl;ebut that is the only way
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