Small landholdings make acquisitions costlier
If recent numbers about the state of the Indian economy are any indication, then all is not well. Growth of Indian economy slowed down to 5.3% in the third quarter of 2012, a nine-year low. Savings are falling, and so is investment. In September, the index of industrial production (IIP) fell by 0.4% from a year earlier. Exports fell for the sixth months in row, taking the October trade deficit to a 12-month high. In November, foreign exchange reserves dipped to $293.6 billion, down by $20.32 billion compared to a year earlier.
Gauging in terms of these base indicators, there is a clear indication about the economy slowing down and there is a dearth of private investment. In 2011-12, out of the targeted budgeted receipt of R40,000 crore from PSU disinvestments, the government was able to garner only R13,894 crore. This financial year, the target is R30,000 crore and we are yet to cross the R10,000 crore mark, and this includes the receipt from the 2G auction where the government has managed to sell only 22 out of the 122 licenses. Even with FDI in multi-brand retail sailing through the winter session of Parliament, it will be interesting to see how many eventual takers emerge. The euphoria surrounding the big-bang reforms announced in October seems to have been
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