The Bus Journey and MODIfication..

There is a scene in the movie, Rajanikanth starrer,  Shivaji. Rajanikanth calls up all the Chartered accountants of the business firms across Tamil Nadu (or India..i don't remember)  for a deal and asks them to reveal all the details of  black money stacked up by the firms. Majority of them refuse and Rajanikanth , in response, offers them a discussion in an adjacent room, where he unleashes his hired goons to beat them all up and agree to his demands. Finally, we see all the CA professionals lining up to help Rajanikanth…

Recently, our PM, proabably inspired by this movie, have asked the bank chiefs to travel in a Volvo bus from Mumbai to Pune where the PM will meet them at a retreat to brainstorm and prepare a blueprint for an action plan to reform the banking sector. This comes shortly after RBI governor Raghuram’s word of caution on Modiji’s “Make In India” policy. Dr Rajan said that 'Make in India' assumes an export-led growth path similar to that of China and it should rather be largely 'for India'. This actually equates to increase in absorption of goods by the domestic population and make possible larger supplies of goods, which in fact requires an increase in the purchasing power of the domestic population, which can only be attained by efficient redistribution of income. Although, Raghuram Rajan did not exactly opend the doors for a socialist thought, but clearly the word of caution contained to avoid an export led growth pattern.

Now, our PM must interfere for all his business adversaries are awaiting the real estate plan of “Make In India” to go on floors along with the overseas financial support. But such a statement from the RBI governor would send wrong signals in the market and fruition of the project would be a distant dream.  Thus the bus ride has come into picture and participants for the bus ride are none other than Raghuram Rajan, and major commercial banking chiefs , who are lend sharks to the hidden real estate plan of “Make In India” campaign. By the end of the journey and when they reach Pune, I am sure they all would have been MODIfied..

Deregulation of diesel price

I was surprised to read about people supporting deregulation of diesel prices. One gentleman (or woman) was saying that de- regulation is essential due to massive use of Diesel for powering private generators, telecom towers and SUVs of rich etc. According to him, de-regulation will ultimately eliminate the imponderable effect of subsidy on the economy like high inflation, tight monetary policy etc. Well, I need to explain one small thing to him and to all who believe in supporting de-regulation.

First, diesel is not just an ordinary tradeable commodity. It is absolutely critical for agricultural production and for transport of both goods and people. So do not even dare to consider diesel as an ordinary commodity considering its utilization by the vast majority of the indian population. The only thing the government would need to interpret, would be any utilization of this commodity for extravagant purposes, which would include the category mentioned above by the proponents of de-regulation. Less the disposable income on basic food materials and transportation, more would be the purchasing capacity which would ultimately thrive consumption and more money to the government.

The second thing is actually how could a country ,with a sequestered statistical calculations showing earnings of 32 rupees per day to be considered not poor and  in spite had 28% below poverty line, be considered par with the international trading rules? Are our wages the same as global wages and per capita income or standard of living equivalent to global standards. Regarding the minimum wages act, India has not officially ratified the ILO Conventions 87 and 98, which deal with the right to organization and collective bargaining. We close our eyes on such important aspects to be put in par with world standards but regarding trading a commodity that’s useful for the common man, we bring up unwarranted claims.

The simple truth is our government is OF the market, For the market and BY the market. When forced to go to the “market” for its borrowing needs, and to borrow from the “market”, it must remain creditworthy in the eyes of the “market”, for which it must pursue such policies as are approved of by the “market. This is the only Modi government agenda . 

Politics always takes a new divertion..

Let me tell you a story..The story is taking place in Mumbai in the beginning of the 70's.. There was a Communist legislator from Mumbai , Krishna Desai.. I cannot explain about him for his name , his activities, his deeds has been completely removed from the minds of the people there, even people are scared to share their views on him..

But as a narrator, i begin like this.. A man, with a towering personality to lead the working class. There were the working class locality in Mumbai, comprising of the railway workers, the cotton mill workers, and they all rallied behind him. The congress , could not get hold of this community as Mumbai's rich who were congress stronghold and who believed in an economic expansion , at the expense of the poor, where left mired in the voices raised by the workers unions led by Desai.

A few years back, in 1966, a political cartoonist made a foray into politics by voicing specific treatment for the maharashtrians in Mumbai but as years moved by the voice seemed to dwindle. Shiv sena, thus, could not even get into the workers heart because the ideology  had its boundaries. When there is a common enemy, its not a new thing that all unite and thus a wretched political conspiracy was planned. In 1970, Krishna desai was muredered by the henchmen of sena, while the congress remained a mute spectator.

With his murder, Sena was able to breakhold the communist domination of the working class community in Mumbai and the entire scenario changed. Sena , fexing their muscles in Mumbai, went onto to capture the Maharahsta assembly in the future, while communist party was completely wiped out of Mumbai.

Its not true in the episode above that the people rejected communist ideology in Mumbai after 1970, but the tide of events that preceded after the death of Desai, that included even  burning his office down, changed the mind set of the people in Mumbai. Now in 2014, i read in all major news editions that  with communists ceding power in bengal, the poeple have rejected the communist ideology.  Its not true because if there was a failure in Mumbai in 1970, in another part of the same nation the communists had resiurfaced as the most succesful party.. So i guess political divertions are always there but the ideology will always remain..
  

Banglore to bengaluru

With the supreme court order to shift banglore name to Bengaluru after 68 years of the state’s formation, the IT city dwellers have a mixed opinion ranging from losing an internationally acquired repute of city to IT ians moving away from the city because of its name. Many are giving a communal element to the change in name promoting awareness of swadeshi.

Well Madras has become Chennai, Bombay has changed to Mumbai and Trivandrum has changed its name to Thiruvananthapuram. So there is no need of a concern for the city dwellers for business will resume as usual.  However, I would like to ask the politicians who campaigned for the change in name one question.

If our indian president can still stay in a mansion designed by britisher, indian passengers still use the railways left by the british rule and even our indian laws are still british in nature which we all depend on, then what lies in a name which the british has left behind. What is important is developing and repealing the exisitng system and the name of the city is not at all a matter of prime importance. 

BJP Promises..

Quite natural for a new government in power to have a chalk-and -cheese approach in their program as compared to the previous government. But looking a bit deeper into the policies, its would be easy to undrape the policies of another capitalist government, that rode to power on fanaticism and incompetancy by the erstwhile government.

The first one in the list is commitment towards foreign direct investment and implementation of goods and services tax. Increasing service tax and excise duty on commodities would directly impinge on the cost of living of common people and only further strengthen the rich. The government needs to concentrate on varying the tax as per the type of commodity and the type of consumers.

The government terms the FDI as a potential revenue inducing monetary transformation. For eq: , the government says 100 % FDI to defense sector. What is the repurcussion? India remains the largest importer of weapons in the world. Opening this sector to Foreign investment, means a situation that could directly spin out of control with the huge amount that would be unleashed on in this sector. The defense research and dcevelopment would come to a standstill and the country would further see a decline in the Developmental production, which actually could generate jobs to millions. The Government should have restricted the FDI only for tecnhology transfer, which means potential to buy new technology from developed countries and further continue with the research in India.. However, there was a relief when it was announced to increase domestic industries..

Demand can only be stimulated through fiscal policy. Indian public is parking their hopes on gold rather than financial instruments , which is as a result of the traditional Indian thought and government irresponsibility in stimulating demand. The demand can be stimulated if the government takes corrective measures to keep the stock market under scanner , avoid spurious Market capitalization and issuing financial instruments with proper return on investment. The latter two could be entrusted by a proper Public private participation similar to the Kochi International Airport, a pattern implemented by then left government.

All in private hands will only spell doom to Indian economy and the BJP government will go down in history as another failure like the academic intelligentsia of the Congress.. 

What a mess Congress had made!!

Nandan Nilekani, ex CEO of Infosys, was made in charge of the Unique Identification Authority of India (UIDA), responsible for implementing the Aadhaar Scheme, a unique identification project. The investment on this project was 35000 crore from the Indian exchequer. This was in spite of formation of identity database under National Population Registrar (NPR), maintained by the census commissioner of India. One of the responsibility of NPR was to monitor the Aadhar Scheme Implementation and avoid duplication of Identification numbers by UIDA. But the best part was the chairman of UIDA, which had to report to Panning Commission of India, was given a cabinet rank. Thus the position and the department was clearly intended with Nandan Nilekani in mind and assure him a portfolio or else the departments, which his department was reporting to was cut short of such privileges and his department enjoyed more. The NPR had its own budget allotted by the central government amounting up to another huge draining of the exchequer.

It’s fine that when a competent professional as Nandan Nilekani had joined Congress, it remains the responsibility of the congress’s top brass to entangle him a reputable position. Personally, I feel, a man of such caliber should be given the responsibility to formulate ideas that could prosper the nation such as enhancement of the National Data Center or utilizing IT technology in equipping India’s traditional industries that accounts for bulk of working class of India. But such activities needs a government machinery and foremostly leaders with vision. This could be seen when the central government , in addition to keeping aside the budget from a reeling economy to UIDA, decided to segregate Indian states as NPR states and non –NPR states. Though the NPR process covers the entire country, it is more intensive in 14 States and two Union Territories, which are called ‘NPR States,’ which means that people in these States and Union Territories can get Aadhaar numbers only through the NPR. For 14 other States, four Union Territories and the National Capital Territory of Delhi, one gets an Aadhaar number through the Unique Identification Authority of India (UIDAI). This has confused the bureacrats, who were assigned to implement the scheme.

Now at present the situation in India is such that, one has registered with NPR and UIDA and have received an identification number. The number needs to be validated by NPR to ensure no duplication. Afetr validity an Aadhar card is issued. One has to know whether he belongs to an NPR or non NPR state to get the number and subsequently all the subsidies enrolled to the individual shall be enlisted under the Aadhar card. Millions of rupees to work out both the two schemes, cabinet rank portfolios, land acquisition to set up new offices , and finally the supreme court says” You don’t need to have an Aadhar number to get your subsidies and benefits”!!!!

10 year gone waste.. 

I have my reservations against the congress government but if I step out of my shoes and look back at a government, helmed by an academic, intellectual for 10 years, my question would be: where was Manmohan singh all this years?

Where were You Mr. Singh, when the chairman of the planning commission Montek Singh Ahluwalia , made the most blunt statement of the century, that the level of poverty in India was 22% based on per capita spending of Rs. 33 a day in cities and Rs 27 a day in rural areas. Mr Singh, aren’t you an economist or a common man like me has to tell you that the measurement of poverty is not based on some formulas but linked to a decent and dignified life style.

Where were you Mr Singh, when P.J Thomas was appointed the Chief Vigilance commissioner of India, a decision invoked on partisanship; For as a commoner, I am aware  that this post has been all this years selected based on a consensus of political parties, and success of democracy is the bipartisanship attitude practiced at the helm of affairs. Mr Singh, by supporting this decision, you have discoursed from the democratic norms set forth by your ancestors.

Where were you Mr Singh, when scandals were galore in this country —2G, Coalgate, Adarsh Housing Society, Commonwealth, S-band, gas pricing and so on such that even files attributing to the various  scandals were replaced from your own office. In spite of being a renowned economist with a global rapport, India was reeling under the worst inflation under your tenure