The Modi government has started to get bashing from the western media after India vehemently stalled the FTA process. The press have started hinting that Modi is sending the wrong messages to the world. The prospect of adding $3 trillion to the world economy and 20million jobs is too tempting to ignore for any powerhouse including media.
Will India gain anything?
The infrastructure, power and red tapes ensure that our country persistently languish in the trade deficit side rather than on the surplus. The FTA agreement invariably favors the export oriented nations and therefore at the present movement, India has less to lose or rather gain by pushing the agreement to the year end.
Stable government : Stable views
Modi does understand that by undermining FTA would be risking some serious foreign investments. But the government is not ready to buy that argument. Modi realises that by encouraging domestic market by reducing red tapes and providing cleaner governance, the much needed fund infusion will come from inside the country. The government never showed any hint of double talk on this issue all through the negotiations. After all these years after globalisation, we have a stable government which understands the reality of Indian needs and more importantly acts according to it. The other example is of stockpiling of food for poor which again the government is opposing for any change because of the age old absurd yardsticks used and the irrelevance to out own domestic production.