It's much easier for a middle class Indian entrepreneur to start up a computer company than it is for an Indian company to build roads and transportation systems suitable for a population that is getting wealthier and demanding more basic services.
In many cases, the Treasury will get preferred or convertible preferred stock for the money it gives to banks. These shares typically don't have voting rights, possibly to give more of a hands-off appearance to the government.
So much of what happened to India late last year and early into 2011 is the same story we've seen with other big emerging markets, and that is that investors started to realize that the growth trajectory in India would have to get moderated by tightening policy.
The Greek debt issue, for example, is such a threat because if that country ever defaulted, it might cause some bank that's 'too big to fail' to actually fail.
The political ramifications of our festering financial and economic crisis have reached the sidewalks of New York, as well as other large and small cities across the US.
