Reduction of #CRR by another 0.25 % with Banks would increase liquidity to the tune of Rs. 17,000 crores. All this money will be drained out of the country as this would be used to buy goods from Abroad leaving Indians debt ridden.
Corollary to this is that this extra money would be used for unproductive activities such as Stock/Share purchasings. And there will be spurt in Land rates and increase in inflation.
I think these statements are addressed to the US companies. This pleases them because the act of the Indian Government would increase purchasing power of Indians so that Foreign Brands can sell more goods.
I am a Nationalist. Communists in India are not Nationalists. They look to Either Russia or China for inspiration. They fail here because Communists do not learn from the Society / masses. They try teaching the masses who live in Traditional Communes/Castes, so Indians do not require Communism as such!
Indians expect other Nations / Nationals to do favours to them. Either America or Russia or China or any other country are filled up with Nationalists not traitors. Communism or Capitalism serve their National interests.
They switch isms when it comes to National interests. For example, Theoder Roosewelt conducted Socialistic solution to recession of 1930s under the caption " New Deal".
And An Economist always try to prove that the Theory he learnt is true and blind to the needs of the people or the country. He lacks flexibility. That is why Manmohan fails. Not only this, Bureaucrats in India have no responsibility but authority so they do not perform. I would like to quote Gopal Krishna Gokhale here, " Bureaucracy if frankly selfish and they are against National aspirations ".
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