When India Bought Gold

The following is reproduction of a post that appeared on 4th November 2009 on http://www.birdinfo.net . The observation that reforms will be the real pusher of growth in India can still be said to be true but other matters have kept Indian govt from doing it. This is very sad:

India has bought 200 tonnes of gold from IMF


India has bought 200 tonnes of gold from IMF and gold will now form about 6% of Foreign Exchange (forex) reserves of $285.5 billion with India. IMF is to sell total 403.3 tonnes of gold to extend help to poor nations. About 18 years back RBI had to pledge its gold holding to meet urgent forex requirement. India has really come a long way ahead since then. Now you may well assess what the half way reforms have done and how much more India can achieve with full scale reforms. The real reform required is in field of labor and employment laws which have made some workers too sheltered and some too exposed. The corporates now have contractual arrangements where the contractors exploit the labor while the employee with the companies deliver one third of what they should. The saving grace has been that the change in atmosphere has made even the too protected to perform reasonably seeing the approaching times. This can be seen in central govt enterprises. The govt offices however have not seen much change in attitude.

Hari Om,
Krsna Khandelwal

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