Emerging Money notable quote: “If you work hard, you can steal a little, but don’t behave like dacoits.”
The government of India’s decision to delay a controversial tax law Monday sent markets higher, even as other Asian markets fell due to concerns over Europe. However, while the tax law postponement may boost markets in the short term, this outcome is indicative of a lack of resolve by the Indian government that will hurt the Indian economy (EPI, quote) in the long run.
The Indian telecom industry is known for being both scandal-ridden and expensive, but the latest license fee hike plan proves once and for all that this business — and the market around it — is not built for amateurs.
Indian budget legislation expected to be voted on soon by Parliament will likely be quite negative for the country, despite analysis which suggests emerging markets are on the verge of a strong period of leadership relative to developed economies.
Recently India’s economy has suffered as the result of ill-advised government meddling and blatant corruption reminiscent of its inept, inefficient economic policy during the Cold War-era.