for a change i agree with the economist. the reds are screwing india, again, along with the nehruvian stalinists.
and he is right about manmohan singh, whose 'reactions are often depressingly bureaucratic'. he is a sarkari economist and was a dirigiste statist for most of his life. i think he gets too much credit for the 1991 liberalization, he was probably just taking orders from pv narasimha rao. rao was by far the cleverest of india's leaders, but he committed the unforgiveable sin of not being born into the dynasty, so he is being written out of india's history even as we speak. (shades of what was done to trotsky et al by the soviet writers of the history-du-jour).
but simon long's views on fdi are conventional wisdom. first, the chinese exaggerate their fdi flow, and quite a bit of it is round-tripping. second, india undercounts its fdi. but still, the fact is that investment flows into india are low.
the reds want investment in bengal, after having screwed it so badly it'll take a hundred years to recover even if all the reds magically disappeared today. remember that bengal (the brahmaputra delta) and tamil nadu (the kaveri delta) used to account for almost 25% of the *ENTIRE WORLD'S* manufacturing output as recently at 1750!
the other thing i have a serious disagreement with all these experts is the insistence that there needs to be factory jobs to take care of the unemployed. i think agricultural jobs -- in particular agro-based food processing industries -- are india's best bet, not nasty, polluting heavy industry. just look at the industrial belt around cochin: the once-pristine periyar is a sewage dump now.
finally, simon long is being a little coy when he says the infrastructure improvements are on track. no, the golden quadrilateral project has ground to a halt. after all, it was not named the 'rajiv gandhi national highway network'. since it was an NDA initiative, it has to be killed off.
i was amazed by the picture of palm meadows in bangalore. yes, it does look like an upscale silicon valley neighborhood. i wonder what those houses go for. i suppose it is a gated community. any ideas on pricing? bangalore house prices have gone through the roof, so i suspect these little beauties go for like rs 1.5 crore. that is a lot of money in dollars too!