Technoglitch
Core Member
Commodities trading guru and hedge fund manager Jim Rogers says he is getting disillusioned by India because the Narendra Modigovernment has been all about talk and no action. Rogers, chairman ofRogers Holdings Ltd, said he bought into India last year after the Bharatiya Janata Party (BJP)’s victory under Modi, and so far, the government has done little to impress foreign investors.
The Singapore-based Rogers said the Indian stock market’s performance cannot be a gauge of the government’s performance, pointing out that many markets had been doing well, buoyed by a massive amount of liquidity sloshing around the world. Edited excerpts:
You had been heavily critical of India’s United Progressive Alliance (UPA) regime. You had earlier said you were shorting India and blamed the then Congress-led government’s lack of reforms and policy paralysis for that. It has been close to a year since the Modi-led government came to power. Has the situation on the ground changed?
I had bought shares in India—it was one of the few times I’ve done that in my life, and it was because of the new government. So far, the new government has done nothing but talk, and it is a shame because Modi had experience; he said he knew what needs to be done. He campaigned for many months saying he knows how to fix India, but he has done very little. Cleaning toilets is wonderful, but as far as building the economy or changing India (goes), he has not done very much. I still own Indian shares, and I wonder if I should continue holding, because, after a year of no action, you begin to wonder if anything is going to happen. One might say he is getting ready to act, but Modi had run a provincial government for a long time and he knows what to do. So what is all this talk about? I am getting disillusioned about India, but I’ve not acted yet.
But running a state government is different from being the Prime Minister of India. The Modi-led government has undertaken reforms and the economy is witnessing a turnaround. He also needs consensus from the states on some critical reforms. Modi does not have a majority in the Upper House to pass key reforms.
That is one reason why I have always been negative on India, because it is an impossible place. But Modi has a very large majority, he has experience, he has the contacts, and if anybody could do something, it has to be him. If he can’t do it, then I don’t want to remain invested in India. If he can’t save India, no one else can. So I would want to sell.
Global investors don’t share your outlook on India. Rather, they have been very positive on India over the last 12 months. India was among the best performing markets last year, and has done very well this year, too. India’s image has seen a turnaround over the last 10
So far, the Modi government has done nothing but talk: Jim Rogers - Livemint
The Singapore-based Rogers said the Indian stock market’s performance cannot be a gauge of the government’s performance, pointing out that many markets had been doing well, buoyed by a massive amount of liquidity sloshing around the world. Edited excerpts:
You had been heavily critical of India’s United Progressive Alliance (UPA) regime. You had earlier said you were shorting India and blamed the then Congress-led government’s lack of reforms and policy paralysis for that. It has been close to a year since the Modi-led government came to power. Has the situation on the ground changed?
I had bought shares in India—it was one of the few times I’ve done that in my life, and it was because of the new government. So far, the new government has done nothing but talk, and it is a shame because Modi had experience; he said he knew what needs to be done. He campaigned for many months saying he knows how to fix India, but he has done very little. Cleaning toilets is wonderful, but as far as building the economy or changing India (goes), he has not done very much. I still own Indian shares, and I wonder if I should continue holding, because, after a year of no action, you begin to wonder if anything is going to happen. One might say he is getting ready to act, but Modi had run a provincial government for a long time and he knows what to do. So what is all this talk about? I am getting disillusioned about India, but I’ve not acted yet.
But running a state government is different from being the Prime Minister of India. The Modi-led government has undertaken reforms and the economy is witnessing a turnaround. He also needs consensus from the states on some critical reforms. Modi does not have a majority in the Upper House to pass key reforms.
That is one reason why I have always been negative on India, because it is an impossible place. But Modi has a very large majority, he has experience, he has the contacts, and if anybody could do something, it has to be him. If he can’t do it, then I don’t want to remain invested in India. If he can’t save India, no one else can. So I would want to sell.
Global investors don’t share your outlook on India. Rather, they have been very positive on India over the last 12 months. India was among the best performing markets last year, and has done very well this year, too. India’s image has seen a turnaround over the last 10
So far, the Modi government has done nothing but talk: Jim Rogers - Livemint
