What they mean.

The Reserve Bank of India has shown real guts today by holding interest rates steady while reducing the Cash Reserve Ratio by 25 basis points to increase liquidity. There has been enormous pressure on the RBI from politicians, business fellows and foreign fund managers to reduce rates despite crippling inflation. Each of these groups has its own profits in mind, let India go to hell. Foreigners want share prices to increase so that they can show large profits when they close their books at year end, earning fat bonuses. Business fellows have borrowed vast sums from banks to build apartment blocks and want people to borrow to buy over priced properties, to multiply their money 10 times. Some have borrowed from foreign investors through Foreign Currency Convertible Bonds and are unable to pay back because of the fall in the value of their shares and the rupee. They would like to borrow cheaply in India to pay back their foreign loans. Politicians want growth because, according to them, that will help the poor. What they actually want is for share prices to rise so that they can make huge amounts of money, through sale of shares in Public Sector Undertakings, and increased tax collections which they will then use as bribes to win the elections in 2014. If they really wanted an end to poverty they would use all their energy in bringing down population, increase quality of education and get rid of black money by bringing down property prices by 80%. That the economy is floating purely on hot air was proved when the share market jumped by more than 1000 points on announcement of so called " big bang " reforms. What reforms? Diesel and cooking gas prices were raised to reduce subsidy adding to inflation. Had petrol price been reduced by the same amount so that diesel and petrol reached parity, like in other countries, that would have been true reform. Allowing 49% foreign ownership in insurance, airlines and in multi brand retail is pure rubbish. Insurance companies already have foreign partners and if they put more money into these companies that will not help the economy except for slightly reducing the Current Account Deficit. Companies like Walmart and Tesco will not be able to establish hyper markets in cities because of unreal land prices. At best they might set up small stores with Indian partners or large stores far away from cities where they will serve more as wholesale shops for small shopkeepers. All airlines in India are poison because of sky high taxes on aviation fuel, passenger tickets and airport charges. Ticket prices have doubled in the last year. This allows the new Railway Minister to announce an increase in rail fares for air conditioned travel while keeping cattle classes and commuter tickets the same. Everything to win the next election to continue looting. The rape of Mother India continues.