Dear
Amitabh,
Find
below my today's blog
with
regards ,
hemen
parekh
--------------------------------------------------------------------------------------------------------------------------
Will Someone
Explain ?
Media is full of stories of $ 22 Billion worth " deals " signed between the Indian and the Chinese Companies , last week
What remains unanswered is :
> How much of this amount is for actual " Investment " to set-up factories
in India , thereby generating ( how many ) jobs and raising ( how much )
exports ?
> And , how much of this amount is loans from the Chinese Banks to Indian
Importers , to buy ( only ) Chinese goods , thereby keeping the Chinese
factories humming and protecting Chinese jobs ?
I suspect this could be a substantial figure !
> Will these deals help reduce our negative trade balance ( with China ) ,
which is currently around $ 45 Billion ( $ 56 B - $ 11 B ) ? By how much ?
> Over what period will these " investments " get spread out ? 5 to 10 yrs ?
> Will any of these investments lead to local manufacture of goods which
India currently imports from China ?
I am sure there must be other questions too in respect of $ 22 billion
I hope such deals do not become a case of ,
" Don't Ask - Don't Tell "
with regards ,
hemen parekh
18 May 2015
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