Anand Sharma:Goldman Sachs is ignorant,incompetent and suspect

“I will talk about the renewed global optimism in the Indian economy. But before that, let me first deal with what Goldman Sachs has said. I think banks like Goldman Sachs should stay focused only on doing what they claim to specialise in.

Goldman’s latest report on Indian economy and its eagerness to push the case of a particular political leader and his party exposes two things—Goldman is parading its ignorance about the basic facts of Indian economy; and it also exposes its eagerness to mess around with India’s domestic politics. It only makes Goldman’s credibility and motives highly suspect.

It is time banks like Goldman realise that over 800 million Indian voters alone shall decide the future of Indian politics. And these Indians will not be influenced by the motivated campaign by agencies like Goldman.

Did Goldman or rating agencies have any clue or make any correct readings about the kind of financial crisis that hit the world?
Did Goldman predict many insurance companies, banks and firms, companies like Lehman Brothers, were about to collapse? So everybody knows what kind of credibility the likes of Goldman Sachs have. They will only expose themselves further by trying to mess around with Indian politics.

Modi has been making a song and dance about the so-called Vibrant Gujarat Summit but look at the FDI inflow into Gujarat. From 2000 to 2013, if we look at the cumulative flow of equity capital of $196 billion, Modi’s Gujarat attracted just $8.7 billion, whereas Maharashtra topped the states with $63.5 billion, followed by Delhi-NCR with over $36.6 billion. That is the disconnect between the data and Modi’s projected claims.

Gujarat is also one of the most indebted states of the country, ranking third with a debt of Rs 1,39,000 crore.

Let me add, that is the real story behind Modi’s mathematics and his boasts before the nation, and for his fans like Goldman Sachs and others.”-said India’s Commerce Minister Anand Sharma in an interview to ET