Budget 2016: Open up your markets, and I'll dial India

By Jim Rogers, Global Investment Guru

(As told to TOI)

I have been hearing Indian governments talk of solving the fiscal deficit for years, and they never ever achieved those targets. It is basically politicians talking for the benefit of the public, voters, investors and the press. It is not going to happen. Two years from now I can assure you the deficit is going to be higher than what the FM said.

As far as agriculture is concerned, measures to deregulate this sector should be welcomed. India has been one of the great agricultural nations of the world and will hopefully attain the same heights again some day. The proposal to allow 100 per cent FDI in retailing of domestic food products is a good start.

Welcoming foreigners is always good for the economy. However, India has the worst bureaucracy in the world. And it can take months and years for investments to be actually made. We will have to see if it is really going to happen.

I hope he will do more things to help farmers. I would like to see the FM eliminate the restrictions on agriculture. For instance, it is illegal for Indian farmers to own more than five hectares. The government says they are protecting Indian farmers. No, they are not. They are hurting Indian farmers.

Australian farmers can hold 50,000 hectares of land. How can an Indian farmer ever compete? You need to open up the market. You need radical steps - get rid of the agriculture department maybe - to circumvent the entrenched interests in Delhi.

The finance minister has laid out a road map for reforms in tax administration. Everyone knows there is a gigantic need for a clean-up in his area. Everyone remembers the absurd situation a few months ago when all of a sudden India was imposing retrospective taxes. I don't think Mr Modi did that. But that doesn't matter.

If Jaitley can straighten up the tax department in India and have a coherent, rational, simple tax structure, India could be a ve ry exciting place.

Am I investing in India? No. This Budget is not enough to make me invest in India. I am not investing in most parts of the world right now because I am worried about what's coming. What would attract my attention is an open and free market so that anybody could just pick up the phone and buy Indian shares, like I can buy German or Australian shares. If Modi ever opens up the capital markets, I would be the first man on the phone.