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NEW DELHI: Billionaire commodities investor Jim Rogers is pulling out of India after becoming frustrated with the pace of reforms being carried out by Prime Minister Narendra Modi, he told Indian financial newspaper Mint.
The Singapore-based hedge fund manager said he had sold his India stock over the right-wing government’s lack of progress on a promised policy overhaul to attract foreign investment and revive the economy.
“I have sold all my India shares... I don’t see anything happening,” Rogers, chairman of Rogers Holdings, said in an interview with the business daily on Wednesday.
“I am sure Modi is a smart guy, he enjoys good press, and he makes a lot of friends for India. But I, as an investor, after almost a year and a half, have decided to move on to other places.” Despite being elected with a huge mandate in May last year, Modi’s hoped-for shake-up had yet to materialise, Rogers said, attacking the country’s notorious red tape, business restrictions and labyrinthine investment rules.
“I, as well as others, thought that Modi was going to change all this. With all these crazy laws and regulations, you make it difficult for foreigners to invest in India,” he said.
Published in Dawn, September 4th, 2015
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Comments (34) Closed
Sep 04, 2015 11:16am
Good for India; Mody like any other politician shall show right and use left especially when his following comes from extremists religious nationalists
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Sep 04, 2015 11:49am
What he thinks that there would be no opposition to Modi because Modi has came up with clear mandate.India is democracy .no leader can do its monopoly without taking opposition in confidence.surely congress is playing a destructive politics in this area.I am sure voters of India are taking notes.so Mr have some pateint.All is well.
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Sep 04, 2015 11:58am
This guy is money oriented. For doing business in India you need patience. In business language his point might be valid,but there is democracy and functioning parliament in India. It's not like China where everything is government controlled.
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Sep 04, 2015 12:20pm
Invest in Pakistan. You will certainly get good returns.
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Sep 04, 2015 12:22pm
...but he is still heavily invested in China.
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Sep 04, 2015 12:36pm
Commodity is going down so its common sense not to investment in Commodity sector. Equity is booming in India.
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Sep 04, 2015 12:44pm
Modi is busy in taking selfies :)
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Sep 04, 2015 01:06pm
Looks like foreigners do not have faith in BJP/RSS government.
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Sep 04, 2015 01:29pm
Even though India is the largest democracy, we are still a learning democracy. We have to face a lot of opposition on so many ventures because the fundamentals of democracy are valued and safeguarded by the Constitution. We are the biggest social experiment that the world has ever seen. It will take some time for us to tackle regulations reform issues at a faster rate.
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Sep 04, 2015 01:35pm
Dont worry,the guy is bit angry but he will definitely return after he cools down a bit.
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Sep 04, 2015 01:36pm
I am agree with Jim. Reform in India is in slow pace. It is almost two year and India is still waiting for its land acquisition and GST bill. Our parliament really needs to work on it. It we want to take our growth rate to two digit then we need to push reform.
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Sep 04, 2015 02:51pm
@Abhishek - In the West they have democracies too but they don't move at snail's pace. No good evading every criticism...one should have the courage to accept own blemishes and faults without getting touchy about democracy!
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Sep 04, 2015 02:58pm
@Abhishek Trust me any investor knows that. He started investing in China in the 1980s.
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Sep 04, 2015 03:28pm
@Abhishek You mean there is no democratic govt in UK, USA or western countries. Now Mr. Modi will teach new brand of democracy to western smart guys. I appreciate your nationalist feelings but come on human values are fast depleting from this planet.
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Sep 04, 2015 03:41pm
@Harmony-1 well west economy was developing since long back but Indian economy started taking pace since 1991. For doing business in developing nation even say Pakistan you need PATIENCE. Mark my words whatever he says now, he will once again return to India because wherever he goes in developing nation situation almost the same and he always cant rely only on China and Usa for business.
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Sep 04, 2015 03:48pm
Modi is much better than his predecessors and forced bureaucrats to fall in line to a great extent. But is is difficult to have a sea change so fast. It will take time. Gujarat is much more business friendly than rest of India. You can obtain required approval within 30 days to start your business or factory which is much faster than any other state of India.
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Sep 04, 2015 04:08pm
India looks an attractive market to invest but the market structure is too complex and local buying power is overly variable. And on top of that is old, tired, lethargic and old fashioned bureaucracy who is outdated in its functions. Rogers made the right decision as businessman to pull out of India. Why waste money and time.
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Sep 04, 2015 05:45pm
Modi is a smart guy when it comes to business, but He is also a politician . India is also a low-middle income country and we respect socialism and capitalism both .
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Sep 04, 2015 06:15pm
@Abhishek - Yes, such problems in Pakistan as well but the difference is when something like that happens here we really berate our government and don't simply deflect issues. The guy gave up after a year and a half and that says something about red tape and bottlenecks. Singapore, where this guy is based, is a democracy too and gained independence in 1965; it’s a global financial centre now. They achieved it without “West like economy developing since long back”. So, there are such examples without making excuses but the fact is most of you guys are just criticism averse!
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Sep 04, 2015 06:26pm
@Harmony-1 We are not touchy at this guy fleeing from our country.It is his money and he is entitled to have have a view on where to invest.We have never said that we are as vibrant democracy or as modern as the Europe or the US is.We have our shortcomings which we trying to improve upon.A huge and heterogenous country that we are and from the pit that we started with,we are proud at where we have come regardless of the joy you feel at such incidents.A thousand investers come and a few investors go. It is a minor issue.I am surprised at your rejoicing at the frailties of others. Catch up with Bangladesh if not with korea.
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Sep 04, 2015 06:39pm
@Abhishek = brother all businessmen whether Foreign or local invest to make money. They also create lot of jobs in the country.
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Sep 04, 2015 06:42pm
India is hyped too much they have nothing to offer..
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Sep 04, 2015 06:49pm
@Harmony-1 this guys is just one of many investment gurus out there.
For eg. Jim chanos short selling in China.
The problem is not Modi but the inherent to democractic governance model as othwr posters have pointed out . The Modi government has clear majority in lower house but not in Upper house. So no help in approving bills. Unless the upcoming legislative elections are in BJP's favour.
Well you might be inclined to berate your government for problems that is not some thing we may want to do.
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Sep 04, 2015 07:17pm
This is the real problem behind continuous LOC firing drama.....as Modi's so called shining is not so shining and he is facing the music slowly so he diverts the attention of his people towards their fav Pakistan in front of which they dont really see anything...
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Sep 04, 2015 07:28pm
Jim Rogers never looked at India too highly. Too much gov't intervention and red tape was always that bothered him, yet in case of India there was something else. According to him and the school of thought he follows, the debt in India is very high. This usually leads to serious problems down the road and stifles growth.
In case of China there's quite a bit of gov't control still but the country on the whole is a creditor nation and not a debtor. Pakistan is not even on the radar for this guy if it makes anyone feel better.
Also keep in mind that the economies are weakening across the globe and a recession may ensue. This may be an attempt by Jim Rogers to go in cash and wait for crash to come and then buy cheaper.
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Sep 04, 2015 08:00pm
@Harmony-1 this guy is smart
, sold his shares in India and invested heavily in China after yaun devaluation as buying stock is cheaper and knows that after 1-2 years china stock market will rise again and invest again here in here as India will be 4th largest economy by 2020 and he cant ignore by that time. So it just part of the game. About Singapore corcern you are right as Singapore is planned city. So thats why India is gearing up to build smart cities
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Sep 04, 2015 08:01pm
Good move Jim!! Invest in Pakistan.. The upcoming Asian Giant!!
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Sep 04, 2015 08:32pm
@Abhishek - What you say about buying in China when stocks are down may well be right. Most fund managers follow that principle.
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Sep 04, 2015 08:40pm
@G Umesh – No, no you didn’t get it either. Where is the "joy" that you felt from my comment??? See, exactly my point, just feeling touchy and criticism averse after the criticism that the guy did about slow progress.
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Sep 04, 2015 09:07pm
Policies are made for benefit to both public & investor not only to investor need. Indian politician don't sell their motherland to greedy investors. If you don't need huge democracy , consumers , cheap labours . only place on this planet . whole US , European , Japanese can't be compared to India in huge amount of labour & consumer market. India beat China in cheaper labour , maximum English speaking peoples in globe and last big democracy with no powerful enemy around the globe. If any greedy investors leave India don't die . so don't cry in media , leave silently. Invest in Pakistan and become trillionor from billionor.
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Sep 05, 2015 12:36am
Crazy laws and regulations,forced the big investor to invest elsewhere rather than India,identical case is with Pakistan here too the investors are shying to invest and gradually pulling out.It's simple if you impose laws which investor just can't afford he will pull back.Look at Dubai investors are investing huge amounts in real estate business,only due to easy affordable laws and regulations.
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Sep 05, 2015 08:10am
@Atif
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Sep 05, 2015 04:03pm
Congress is damaging country without being in power.
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Sep 05, 2015 08:59pm
It happens, some will go some will come. This is business. Ericsson just announced 5G mobile tech in India which will become a hub for exports from India to all 180 countries Ericsson operates in.
http://www.business-standard.com/article/companies/ericsson-introduces-5g-mobile-tech-in-india-115090300020_1.html
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