Kotak Securities known for investigative research on Indian Companies and Economy pin-pointing the wrong doings ir-respective of his stature – Prime Minister or RBI or Mukesh Ambani is commendable, in out opinion.
Kotak Analysts are unable to tally the data of Exports and the sudden surge ahead of the Government signing treaties with various nations to prevent Black Money and Laundering. Here are some of the obvious questions which RBI as banking Regulator must investigate and explain.
Engineering goods exports accounted for 55% of incremental exports of manufactured goods in FY2006-11 and 33% of total incremental exports (merchandise trade only) over the same period and the value is $68 Bn in FY 2011. However, Export data of engineering companies in BSE-500 Index, March fiscal year-ends, 2006-11 is mere $13 Bn.
What Goods Were Exported ? Who are Exporting ?
Exports of metals and metal products increased to US$29 bn in FY2011 from US$13 bn in FY2010, an increase of US$16 bn. Compare this to BSE-500 companies which shows an increase in exports of Rs37 bn only to Rs340 bn in FY2011 from Rs303 bn in FY2010. We don’t believe these UNLISTED Companies indeed have exported so much. Why doesn’t the RBI come and investigate this issue ?
Now if indeed everything is correct then it is matter of celebration as strong growth in exports will result in rapid economic growth and provide investment opportunities for investors outside the over-researched top-200 companies. If not, India’s GDP growth may be questionable and more importantly, it will raise questions about the nature of exports and source of related ‘foreign’ flows into India.
What say ? Are our Politicians / Bureaucrats and Power brokers laundering money through shell companies and taking cover under Exports ?
Sir,
You are so right. Business line Wrote exactly what you wrote
http://www.thehindubusinessline.com/opinion/columns/s-murlidharan/article2568211.ece