Would You Still Take Your Investment to India?
Today’s judgement by the supreme court of India cancelling licences issued by its government to 122 corporations including Telenor of Norway, Abu Dhabi's Etisalat and Russia's Sistema raise the question if India is, after all, the safe heaven and promised land of growth and prosperity. India’s credibility badly battered by recent events is further in trouble.
"For foreign investors, it is very bad news. What mistake did they do? They partnered with Indian companies, invested lots of money and followed the process of that time," said Rishi Sahai, director at consultancy Cogence Advisors.
“Norwegian telecom firm Telenor could quit India now after the Supreme Court revoked its mobile licenses and not wait for new market rules to be introduced, the company's chief executive told Reuters.”
If you are in the army and shoot down someone it will be considered a patriotic act and not a cold blooded murder like if you have done the same thing under different circumstances. What will you do if, years after your retirement, you are pulled up for murder by a judge who chose to ignore the context?
The judgement by the Indian judges totally ignore the evolution and reasoning behind a collective decision of successive governments, of different political parties, who pursued policies which were deemed necessary at that time for the growth and development of the industry, which of course has resulted in the perception of phenomenal losses, instead of massive benefits to 900 million subscribers who enjoy the lowest phone bills in the world.
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