keya_shukla said:
Dear JDM
I understand the importance of regulations for any industry. But we need to assure that who the regulators are. In cases where national security is concerned the government always has a major role to play and it should! But the Government here can not entirely be trusted. U c the move of US to sign the nuke deal with India was to thwart or rather put a stay on the oil pipe line which was on cards of Indian govt.This nuke deal took the attention of the govt away from pipeline issue(now no points for guessing why US wanted to thwart the attempts to make the oil pipeline operational)
If govt really cared abt the industry i wud ve gone ahead n done smthing in this regard...
well its perfect for the US to stop the iran-India pipeline. its suit their national interest. as for India, well it has two options. either to get her nuclear program ratified by the world body or go ahead with the pipeline and save some green-bucks. India choose the former and if you ask my opinion, i would have done the same.
keya_shukla said:
Considering the Indian scenario, here indusrty and government do not necessarily go hand in hand....unlike US or Europe where the scenario is is entirely different the policies of the government r actually driven by the industry leaders...say the heads of US major MNCs..
i always believe the job of the government is to run the country and not hotels or bank. buts its a pity thats exactly whats the government is doing. running hotels and banks. the job of the govt. it to regulate. instead of running banks and hotel. the govt. should regulate those industries. just look at the chaos when one speaks of the cable tv industry. the govt. does not knows what to do. the force of globalization is so strong, that it gives only one message - change or perish. china has recognised the fact 25 years back. India may be late in realizing this simple fact. but better late than never.
keya_shukla said:
The point I am trying to make is that the profitability of any defense company will have little share in the eyes of Indian govt. ,while it ll be of prime importance to the investors.
the job of the govt. is not to make profit but what really should be the govt. worry is about the social well being of its citizen. just think how many job a sector like defense (India spends 14 billion US dollar annually on defense) will create. and if it helps the investors, as long as the investor is Indian I'm happy. theres acute dearth of good script in the Indian market. as i already mentioned early in this thread, 2500 scripts are traded in BSE on a daily basis. 80-90% are jhumrutalaya & co. any good company will be welcomed by all.
keya_shukla said:
Well i understand ur concern that we are at the mercy of foreigners...but analysisng the sector potential from the point of view of an investor and as an Indian citizen r different.
if the investor is an Indian, well thats a bonus. but even if the ownership lies in foreign hand, look at the jobs they are creating. and above all the the govt. has an access over the plants. just imagine a situation, India in a midst of a war and its foreign suppliers refuses to supply crucial defense materials. remember during Kargil India has to buy coffins each costing more than ten thousand US Doller. well a nation in the midst of war have no choice.
keya_shukla said:
No doubt we need defense companies but... but profitability can't be assured.These companies face the fear of nationalization and bans (many cos in Russia have had a similar fate..they wer accused of possessing deadly weapons and nukes...Nothing is certain if they wer really into this or just uncle Sam was not happy with them)
profitability of any company in any sector cannot be guaranteed. we wont set up companies because it may not make profit is certainly not the perspective in which we should really be interested in.
ok bolivia is nationalizing its gas reserves. but then its a step backward. any country which eying tomorrow and i believe India is one of them will never take such drastic steps unless as i said if you want to go back.
keya_shukla said:
Defense cos have always been under the speculative eye of when Uncle Sam always.
SO!, India is a sovereign country. and as for Uncle Sam well don't you think its normal for them to do so. any defense company of Indian origin not only mean competition for Uncle Sam but also a shrinking market for its goods.
keya_shukla said:
( Guys...my writing may not have a proper flow...just learning to write ...)
no need to be modest. you are doing fine.
keya_shukla said:
I hope i could make my point clear. Pl correct me if I got the understanding of the subject wrong.
Regards
Keya
on the learning curve..
cheers,
jdm.