Tag Archives: economics

Indian Politics – Finally the pussycat roars!!

After more than three years of dithering and hiding behind the saree of “Madam”, our honorable prime minister finally proved why he is noted as the worlds best economist…while disapproving the popular claim as India’s worst Prime Minister.

Policies which were in lock jam for the last 2 years were finally passed much to the chagrin of dissenters like Mamta Benarjee and other BJP so called leaders.

With direct foreign investment being allowed, India has opened a Pandora’s box for the world and I feel that while it is definitely going to give a much needed boost to India’s economy, It will also play a small hand in giving direction to world investors, who are hungry for growth markets in an otherwise floundering world financial system. Having brands like Walmart entering in, might in the short run be detrimental to the unorganised home business sector. However, one must argue that to grow in the long run, some sacrifices are a must, and if organising these units into larger ones, gives end users economies of scale as well as quality products, then it can only benefit everyone in the long run. Very cleverly the law has been very clear in laying emphasis on the fact that while large international brands can open shops in India, 30% of its sourcing needs to be done within the country itself. This will again provide more employment opportunities and industrial and agricultural growth.

When the entire country grows, the people grow with it as there is a plethora of jobs and new businesses. Competition from these companies will force a large number of the local complacent companies to pull up their socks.

Another brilliant arrow from the PM’s archery is the increase in diesel and LPG rates. I have never been able to understand how we can keep subsidizing LPG to 50% and pay from the government treasury. The increase though a big jump has been long overdue. It is not going to impact the general user for more than Rs. 1200 a YEAR, but will be a huge relief for our stretched budgets. Anyways, a large percentage of the LPG cylinders are booked by commercial establishments, and there is no reason why this should be subsidized.

While Petrol has been increasing multiple times a year for many years, disel prices have been almost constant. This disparity had to stop at some point. A lot of the disel is consumed by the rich luxury car owners and transport industries, who can very well afford to pay for the same.

Giving connectional rates for necessary goods is needed, but it cannot be at the cost of the tax payers money. There are barely 3% (I being in this percentage) who pay taxes in India. Why is it that these 3% people who pay the tax, need to bare the burden of 97% of the population. It is about time everyone moved and took onus of their own lives, instead of demanding rights without doing their duties.

Politicians who oppose these laws are extremely digressive, self centered and corrupt. Their aim is to keep India poor by keeping its people poor.

Prime Minister Manmohan Singh’s resolve to go down fighting is what the Sikhs of this country are known for. It will take a lot of courage to stand up against the monkeys in the circus, but my sincere prayer is that there are no roll backs.

Now if we could take some calls on our education system and infrastructure, India would be heaven. But I guess I am asking for too much at this point…Lets take one step at a time…As long as they are giant steps

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Posted by on September 15, 2012 in India, lifestyle, Politics


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What is economic growth?

I recently came across this article, which is actually a response to another post by economist ALEX TABARROK, who is of the rather strong opinion “Most importantly, graduates in the arts, psychology and journalism are less likely to create the kinds of innovations that drive economic growth. Economic growth is not a magic totem to which all else must bow, but it is one of the main reasons we subsidize higher education.”

I must say that I strongly agree with the argument against this. If we look at the start of the industrial revolution, education, which gave birth to future doctors, engineers, and yes also economists, was becoming more and more popular. Money started becoming the path to eternal happiness.

As time went by and world economies grew, monetary wealth grew and people started getting “richer” realisation also struck – “Well ! am I really happy” Most people will tell you that they are happiest when amongst nature, or music or art or maybe spending family time.

While I agree with the theory, that if there is a drop in the number of doctors and engineers, it might stall innovation. But I also believe that an education in arts or creativity opens a your mind to many other areas and you would be able to think up of more innovative ideas, which might in a way help growth. I feel that all science and math colleges should have some subjects dedicated to the arts, which will help the future generations appreciate and view the world less clinically. This is proven by the fact that Leonardo Da Vinci is till today known and respected not only as an artist but also a man of science and math.

What is the point of economic growth statistics which is single dimensional. True growth can be achieved only when a person grows spiritually, mentally and monetarily. What is really needed is a balanced approach to learning, where people at least appreciate all areas which make up society today. While the musicians, painters and artists of our century cannot escape the fact that money is important to one’s growth, the scientists, economists, doctors etc also need to understand, that after they have made the huge salaries, it is the arts which help them relax and enjoy that money. This can be an ongoing debate, and I would love to hear your opinion.

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Posted by on November 4, 2011 in Uncategorized


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