Saturday, December 27, 2008

Jaguar is in trouble, but the Tatas are not in news!

When the Tatas bought Jaguar, the secular media couldn't help itself going "gaga" over it. Column spaces were filled with bouts of swooning over the arrival of India Inc and what not. 

But with the world economy in peril the newly acquired shining knights too seem to be loosing their gloss. 

Gordon Brown, UK Prime Minister, recently announced that the British government will intervene to prevent the collapse of Jaguar:
A state package worth hundreds of millions of pounds will be negotiated in the new year to save a firm claimed by its Indian owner to be of key strategic importance to Britain’s economy.
Of course these are no cheers of an Arundhati-esque anarchist to derive sadistic pleasure from the apparent troubles facing an Indian corporate, but this is big news. And it has consequences much beyond the industry. It should be in headlines. If the Tatas are facing a cash flow issue, surely the incompetent Sonia Congress-led govt. will, sooner or later. From whence are they going to fund the "surgical strikes" or the war with Pakistan then? That is unless they take refuge in the bond market and deliver another deathblow to the Indian economy. 

No comments: