India’s biggest mistake of millennium - India’s PM focuses on second wave of development in service sector and rapid industrialization
Kiran Chaube
Sep. 25, 2005

As the world plunges into stagflation and eventual global depression, India plans for the second wave of development in service sector and rapid industrialization. The focus is on exports, imported jobs at the cost of millions losing jobs in the West and in flow of Foreign Direct Investments (FDI).

It is a mistake. The biggest mistake of the millennium for which many generations of Indians will pay for it. When your forecasting model in operations management is wrong, you can get into deep trouble.

The inflow of capitals in form of Foreign exchange are investment, these are not revenues. Indian politicians have forgotten that. They complain about high oil price. They forget they are the one who did nothing to harness alternative fuel for a country that Imports 80% of oil and gas and has a billion in population.

The biggest mistake in forecasting that global growth will be linear during decades of coming stagflation. The mistake is in assuming that America and Western Europe will be able provide easy money to India and China for ever. The mistake is thinking America will keep absorbing all the talented people coming out of Indian Universities with jobs and immigration. The mistake is that India’s Information Technology and call center outsourcing will continue to boom for ever.

The FDI will be now used to build infrastructure that will never be used due to lack of demand from the West. In business you must be able to estimate the depth of your customer. America and Western Europe has economic troubles. They cannot and will not keep providing India and China fuel and dynamics for growth. It is time for India to consolidate not allow the Sensex to cross the moon into 10,000.

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Kiran Chaube
It is a mistake. The biggest mistake of the millennium for which many generations of Indians will pay for it.
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