-- Posted Wednesday, 3 August 2011 | | Disqus

India is set to fund bailouts in financially-stricken Europe, marking a dramatic role reversal from 20 years ago when it went knocking on the doors of the International Monetary Fund (IMF) to avert a balance of payments crisis. 

The government has sought parliamentary approval to provide over Rs 9,003 crore (over $2 billion) in loans to the multilateral agency's New Arrangements to Borrow (NAB), a fund whose corpus was raised to over $500 billion in March when the debt crisis in Europe showed no signs of abating. 

Our View: India could be playing a part in the international rescue operations. This is a right step on the way to become a global super power. Helping other nations in times of need will result in a renewed bond of friendship and also help India to fight terrorism. This is the political aspect.

On the financial front, the Indian government is grappling with huge scams never witnessed in history, food price inflation is eroding incomes of households in India, there is a widening of income gap between rich and poor, urban poverty is on the rise, healthcare cost in India are on the rise and so are the diseases. With the advent on monsoon dengue, chickengunia, malaria etc will be the rise in cities in India. Most of these diseases are due to lack of cleanliness in Indian cities and the municipal boards act only when the death count rises. They do not act to prevent any diseases. Only credit card debt and personal loan debt will increase for the Urban Indians.

This is relevant as the government could use the funds given for International bailouts for better living conditions in cities and reducing urban poverty. Ever since Independence there are the policies and funds in India but most of the funds never reach the end needy and are lost mid way among politicians and civil servants. The UPA government and all state governments should now implement. Before 2000 the people of India needed, “Food, Shelter and Clothing” but now Indians need “Food, Shelter and low cost medical treatment”. I am against bailout of any nation. Urban Indians could need a bailout soon and the Indian government should help them.

The views expressed are my own and are not intended to harm anybody or defame anybody.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in, mail chintan@insigniaindia.com

-- Posted Wednesday, 3 August 2011 | Digg This Article | Source: GoldSeek.com

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