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Reliance votes for Indian agriculture July 16, 2006

Posted by Sharath Rao in economics, india.
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Among the Indian middle class atleast ( where I come from), agriculture is synonymous with the ancient, anti-modernity and backwardness and consequently – idyll romaniticism. This is primarily because our interface with this sector of the economy is with poor laborers and farmers and rarely, unless you live in the Northwest, with the rich farmers of Punjab and Haryana.

The truth though is that a bad year in the monsoons spells doom for our GDP growth and not to mention bad year for stock market investors that very much includes the middle class itself. No wonder, everytime in March-April when the Indian meteriological department makes predictions for the coming monsoons, the stock markets wait with a bated breath.

Finally, Reliance has come up with some great plans for the Indian agriculture and food retailing. Read more on that here.

I really wouldnt care that the private sector is motivated by profits – they better be !! When we make such cliched statements, we forget that firstly, publicly held companies like reliance bring profits to their stock holders ( expands the middle class, creates jobs and propels economic growth ) and secondly, consensual economic transactions most often leave both parties better off when conducted in an free society.

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