India should be one of the world's superpowers when it comes to agricultural production but is limiting itself due to excessive regulations, says commodities guru Jim Rogers.
India is taking measures to address water shortages in the north of the country, which Rogers applauds.
Water shortages and military disputes with neighboring Pakistan affect farmers in the region. And so does the government.
“India should be one of the most productive agriculture nations in the world. You have got the land, you have got the soil, you have got the weather,” Rogers tells The Economic Times, an Indian newspaper.
“Everything is right for India and yet, there are so many regulations and it is almost impossible for Indian farmers to produce much less to compete with the rest of the world.”
According to Rogers, the water issue in India is a bigger concern than is inflation, which Indian monetary policy authorities admit merits watching.
“We never had a fear of deflation although (Wholesale Price Index) inflation was negative for a short period. In fact, inflation has been and continues to be our dominant concern,” says Indian Central Bank Governor Duvvuri Subbarao, according to Reuters.
India's central bank predicts an end-March inflation rate of 8.5 percent and expects inflation to moderate by July, Subbarao has said.
© 2015 Newsmax Finance. All rights reserved.