Speaking to mediapersons on the sidelines of the convocation ceremony of Tata Institute of Social Sciences, he said, "It will take time for India to repair the damage it has suffered due to this episode," he added.
He said it was tragic that the United Progressive Alliance (UPA) government lost its calm and nerve to "disgraceful pressure tactics by the Left."
"The Left has no qualms about having the treaty with a foreign power if it is China but when it comes to America, it tries to find all the loopholes in the deal", he said.
Replying to a question on rising food prices, Desai said, "I am amused by the hue and cry over US President George Bush's statement that prices of food in the world are increasing because of consumption in India and China. This shows the defeatist mentality of the Indians".
Indians should learn to take such statements in stride and understand that this is, in fact, a recognition of India's growing economic stature in the world, he added.
This (rising food prices) is a temporary phenomenan as currently the supply side is weak and demand is constantly increasing, he said. However, this phase will be over soon, he added.
Desai said that if prices were to stabilise, the responsibility of food storage and distribution should be taken away from a "third-rate body like Food Corporation of India (FCI)".
"Because of its run-down storage facilities, the country loses 15-20 per cent of precious food stock annually and if this food comes to the market, it will ease the pressure on prices of food items," he said.
Contrary to popular belief, the government's policy of keeping oil prices artificially low was causing inflation, he said. The government was subsidising middle-class motorists at the cost of the poor, he said.
