Reform ! Reform !!
Would it tantamount to being aberrant or its a rather dispersed phenomena – that the protagonist fiscal scribblers, especially when unveiling anticipated fiscal policy reforms, seem a delight, and seeking perpetual perusal – subsequently ;)
Yup! Today scribblers sought perpetual perusal !!
Though, hitherto, entrenched postulations, among perusers of prominent fiscal editions, attributing to scribbler’s pessimism inducing content, have been adverse and pessimism inducing, though, thats not in the affirmative for today !!
Well .. though, perpetually, direct investment route (whether via subsidiary corporate relationship or mergers, buyouts, demerger etc) & its statutory enactment was discernible among pro reform fiscal factions, & though, procrastination seem to be a norm in regulatory framework, however, optimism had prevailed and has eventuated towards aforesaid policy – clad in a statutory profile!
Reflected via DIPP statutory unveiling, India’s fiscal contemplation, of granting absolute direct investment in virtual sector, sans inventory based model, has eventuated in a statutory clad profile.
Though, in current structure, apparently a twin faced offensive !!
Hitherto prevalent optimistic conjectures, pertaining to China’s mammoth Alibaba’s cosmic investment foray into Indian territory, consequently, would attain cessation !! Absolutely dismayed at this !!
Though, the regressive stipulation in the aforesaid notification – attributable to exclusion of ‘inventory model’ from the investment route (whether via subsidiary corporate / merger / buyouts) – is synonymous to institutionalizing impediments – and in defiance of – free market principles – wherein consumers are being mandatorily restrained from access to efficient competitive pricing, and there seems institutional veil – to assist incompetent sectoral extortion from vulnerable consumers !!
As was hitherto postulated, even if Alibaba’s Indian foray – rendered subsequent culmination towards ‘dumping’, self-introspecting view would have been inevitable – towards reflection of our prevailing inefficient, incompetent markets, and consequent directed policy framework.
Towards deterioration, consequent adverse global perception would be detrimental to any anticipated investments, and a perilous characterization as being hostile jurisdiction – averse to free commerce, and rather, defiant custodian of inefficient domestic enterprise.
However, on the other positive shore, bureaucracy has relented to prominent fiscal faction view, and has paved the path for absolute fdi in non-inventory model.
This would most certainly emerge as a protagonist reform towards accomplishment of fundamental objectives of a typical developing economy – of – equitable wealth distribution, conducive to ameliorating resource deprived vulnerable jurisdictions – indulging in crucial value addition processes, access to global markets, exports, trade deficits, consequent foreign exchange, etc.
The caveat, as before, would be eradicating systemic impediments – like federal law impediments – despite constitutional amendments.