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Old 3rd March 2008, 11:59   #106
rkg
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Default Opportunity Cost Subsidy to IT and Other companies

All of you guys know how IT companies started reducing the variable component of the pay and pink slips etc etc fir IT guys due to appreciating rupee.

If a 20% appreciation results in such scenario imagine the scene if GOI does not intervene in the currency markets and allow rupee to appreciate.

Different experts have stated that Rupee will easily reach 30-35 per dollar mark, if not for GOI intervention

If GOI allows this what will happen to great IT story and the profits?

Why GOI is not allowing it to happen? How much is the opportunity cost of this exercise?

Is this not a subsidy to keep afloat IT and other export companies from going bust?

Because GOI does not want 1990 BOP crisis to repeat. That implies for a larger cause GOI is suffering huge opportunity cost.

More info on this can be given by economic experts in this forum

Similarly to keep countryís freedom with respect to food security, farm loan waiver is one of the tools.

How far it is effective is another question.

Because as can be seen from budget documents, it is the small companies are paying more corporate tax than large companies. where as all GOI policies say subsidies to small scale industries. In effect it is just the opposite. so this may also be the same.

it shows there are lacunae in implementation of GOI policies and they are not specific to agriculture alone

Hence I feel farm loan waiver alone can not be faulted.

Those who live in glass house can not afford throw stone on others
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Old 6th March 2008, 13:14   #107
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Guys
No replies. would like to see the other side of the discussion on this topic
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Old 6th March 2008, 13:23   #108
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Quote:
Originally Posted by rkg View Post
Guys
No replies. would like to see the other side of the discussion on this topic
Reason i stopped responding to you is you fail to see the others point behind farm waivers. You just continue to say that since govt gives incentives to IT industry, farm waiver is justified.

This is like saying that two wrongs make a right.

e.g.
Quote:
Different experts have stated that Rupee will easily reach 30-35 per dollar mark, if not for GOI intervention
e.g
you compare govt's control of rupee exchange rate to justify farm waiver.

this is to protect exporters and discourage importers. this has a benefit to IT cos as well as manufacturing & agriculture industry. Imports will become cheaper and domestic produce will suffer. Also exports will become devalued, reducing foreign exchange inflows. Govt's BoP & foreign exchange reserves will also dwindle. So it has much bigger ramifications than a simple farm waiver.
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Old 6th March 2008, 14:24   #109
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LLL

I have already answered each of your queries like

IT guys are the highest tax payers- this is totally false. all pay tax according the IT slabs which are common to all. the more one earns the more he pays.

Govt benefited from IT more :- i have given you the actual budget figures with the amount of doll out IT sector got and is still getting inspite of it is one of the well developed industry. IT companies are the paying the least tax among all companies.

Imagine if they are paying tax like other companies do they still afford to pay IT guys same salaries?

You do not know the ground realities. you have said govt should do other things to farmers than loan waiver. can you please give some workable ideas?

You have said farmers get subsidy in fertilizers:- It is well known fact that the subsidy is actually for inefficient production of Indian fertilizer industry. farmers are asking for imported fertilizers as they are cheaper. Indian is sitting on huge forex reserves . why not allow import of fertilizer? It will kill indian industry. so not allowed. that is fine.

But don't give any subsidy to farmer directly? it is bad

whose argument is misplaced?

who is refusing to see the other side?

You have said govt is maintaining exchange rate to keep export oriented industry from suffering. that is fine. because it is done in national interest.

but don't give succor to farmer in any way. only give it through middle man industry. where none pases to farmer. this is your argument.

guys like you face the music one agriculture is killed completely by this kind of attitude

i have asked you a question :

can you show me what is investment done by govt in the last 15-20 years in Irrigation, Agri Research, Extension, you did not answer that.

when govt can loose about 2.7 lakh crores as dole out to industry it is fine. but not 60K

i have repeatedly said iam not defending farm loan waiver. i have only said if it is to be criticized, lets be fair and criticize all kinds of dole out.

iam not the kind who says it is fine as long i get the benefit and bad if some one else gets the benefit.

if you have good ideas as to how to mitigate farming crisis india is facing you are more than welcome.

go through all my posts and give proper replies. don't give blanket statements.
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Old 20th May 2008, 21:16   #110
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To all who thought that farm waiver was a good move...
Defaults force SBI to put farm loans on hold- Finance-Economy-News-The Economic Times
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Old 21st May 2008, 00:59   #111
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Default "IT guys!!"

Rkg,

What is the meaning of "IT guysĒ? Just because one got a job in an IT company does not change his character. You cannot stereotype them by saying things like ďIT Guys don't know outside reality".

Most of the "IT guys" come from middle class background and worked hard to get their way through. While others were enjoying we have burned the midnight oil to get into colleges and again for jobs. It was not easy anywhere. Itís not as easy as getting job in a call center "just because you are good in English". Believe me "IT guys" know whatís going on around. Most of them are well aware of whatís happening in the country and outside also. But the nature of the job usually demands 12-15 hours of work daily, so you might think that they are just dumb and not interested in things around. Many times you may seen them going to office early in the morning and come back very late at odd hours, not because "IT guys" get to party everyday, the work pressure demands it.

After the call center\BPO revolution a lot of people started getting confused between IT and ITES employees. You are one of them I guess. ITES employees do have lot of fun there at workplace, not "IT guys".

Itís that work culture that took INDIA to be considered and IT super power. Otherwise like our immediate Post independent generation (Aged 40-60 Now), working 9-5 and believing in bundhs, protests we would have reached nowhere.

I agree with only one point of yours. After the liberalization and globalization many MNCs came to India and started operations. Many of us were lucky to be out of college after that time. For many of us who tried hard could get a good job without bothering reservations, quotas etc in private companies. Its not just Nehru's English (for BPOs it really helped I agree), but our technical knowledge is that counts here. Majority of IT employees are from smaller cities where they have got educated in their state language than English. Indian "IT guys" are notorious for their bad language handling skills also; many of them just manage to handle English.

Now, the discussion about farmerís subsidy did not look like that or about budget. It sounded like a disillusioned middle aged manís rumblings, who missed the IT bus.

\\hkp
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Old 21st May 2008, 22:43   #112
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Quote:
Originally Posted by rkg View Post
i have asked you a question :

can you show me what is investment done by govt in the last 15-20 years in Irrigation, Agri Research, Extension, you did not answer that.
reply

There are dozens. A good load of the budget goes into Irrigation. Agri research done in several universites EG) the CCHAU-Haryana, univ of Hyderabad.
Infact, if you should look into the STATE budet for government's heavy investment on the farming sector. No one sector can get every damn thing from the central budget, even if it gets there are more wants cropping up. look at whats been alloted first.

And other things are nothing more than mere assumptions.
Which ever career one is in, one has WORKED TOWARDS it, none been gifted that(nowadays graduate level studies are being gifted though, but not the jobs) point being, everyone is as normal, aware of the world around, you CAN NOT generalise.
You'r either trying to insult you'r generalised kind or its just your inferiority complex.

Last edited by gendarmee : 21st May 2008 at 22:45. Reason: ty
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