
India Will Muddle Along Until The Debt Crisis Hits
After all the budget euphoria, it is time for a reality check. Investor and venture capitalist Jim Rogers remains deeply skeptical of India's future. In an interview with S. Srinivasan, he argues that the country is sitting on a fiscal time bomb.
Forbes: The finance minister has changed the direction of India’s budget deficit by reducing the target for 2010-11 to 5.5%.
Jim Rogers: You really believe it will happen? Go back over the years and see their previous claims.
He has got a lot of praise for that in India. Still you are not impressed. Why?
Jim Rogers : Even if it happens, it is not being done by sound budgeting. It is from selling off the family jewels, if it happens
Don’t you think a high deficit was justified last year when the government had to spend and help the economy revive?
Jim Rogers : No. They are just trying to push the problems out into the future rather than solving the underlying problems. Do you really think the solution for a problem of too much debt and too much consumption is more debt and more consumption?
read full interview
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