"There is no capital account convertibility. Thanks to the Left, the brakes put on liberalisation by the Government have saved the country," he said at Jamanalal Bajaj Foundation's Award function here.
"The global recession has hit developed countries. India has also been affected but not so severely. Our GDP growth stood at 6.7 per cent last year and is expected at 6-6.5 per cent this year.
"But for 9 per cent growth, we need 3.5-4 per cent growth in agriculture. GDP cannot grow by nine per cent based on service and industrial sector only," Bajaj said.
Had there been capital account convertibility, there would had been exodus of capital flowing out of the country, hitting the economy badly.
While the rupee could be converted into other currencies fully for trade purposes like exports and imports, there are still restrictions on its conversion for investing in stock and other things.
Pro-reformist have been pushing for fuller convertibility, but Left parties which were supporting the UPA 1 government from outside vehemently opposed it.
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by Krishnan on 2009-11-08 00:00:00
Having enjoyed monopoly over fifty years, he is jittery.These people with 3-4% shares ruled companies( exposed by Swaraj Paul - Escorts and Nanda family) , He oposes NANO as he could not do a Rattan Tata. Now Paraising Communist - understandable as he is has nothing new to offer. He has nothing new to offer.
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by basu on 2009-11-07 00:00:00
Indian industrialists enjoyed long time with old tecnologies and without competetions and never bothered to improve and politicians allowed this at the expense of consumers choice and high prices as buisnesses were monopolised by few families who were looting the country. Will you find any indian industrialists are doing anything for the poor of our country or abroad? Will you find anyone like Bill Gates who contributes for poors all over the world.Close nexus bet buisness house and politicians has deprived our country a great deal. Our prime minister knows it and now Indian products are much better quality
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by Andrew on 2009-11-07 00:00:00
This guy was successful only on the basis of selling old technologies in a protected environment, that did not allow real competition and benefited only him. Remember Bajaj Chetak did not change model for a decade. Even now they think of bringing technology that is decades old. Such guys will only be reminiscent about the old times.
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