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India the disapointed among bric nation
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  • 1. India, the Most Disappointing Nation Among BRICIf you ask Jim ONeill of Goldman Sachs what was the most appropriate word for Indiasperformance in the last decade on productivity, FDI and reforms, "Disappointment" is whathe will say. ONeill who coined the existence of the Big Four, Brazil, Russia, India andChina terming them as the BRIC nations said that India was the most disappointing amongthe four when they considered the 10 year landmark.Speaking at the London leg of the Reuters 2012 Investment Outlook Summit, ONeill said,"All four countries have become bigger (economies) than I said they were going to be, evenRussia. However there are important structural issues about all four and as we go into the 10-year anniversary, in some ways India is the most disappointing," as quoted by Reuters. JimONeill is the chairman of Goldman Sachs Asset Management."The current economic deterioration of India is the single most important under-reportedstory these days," tweeted Tyler Cowen, economics professor at George Mason University inthe U.S. The tweet was highlighted by Business Insider."India has the risk of ... if theyre not careful, a balance of payments crisis. They shouldntraise peoples hopes of FDI and then in a week say, were only joking," ONeill said. "Indiasinability to raise its share of global FDI is very disappointing," he said.United Nations data shows that India received less than $20 billion in FDI in the first sixmonths of 2011, compared to more than $60 billion in China while Brazil and Russia took in$23 billion and $33 billion respectively.The glacial reform pace has hit Indias hopes for double-digit economic growth, ONeill said,adding: "India is as bad as Russia is on governance and corruption and, in terms of use oftechnology, Russia is in fact much higher than India."On the other BRICs, ONeill said Brazils main problem was an overvalued currency whichputs the country in danger of "Dutch disease" - a term first used to describe how North Seaoil discoveries in the 1960s triggered a surge in Dutch energy exports but also in the Dutchcurrency, pummelling much of the countrys manufacturing. Chinas challenge was to
  • 2. effectively manage a transition to a higher-consumption economy with slower growth, asquoted by Reuters.