Re: Government scraps Rs 500 and Rs 1000 notes! I have stayed away from writing on this thread because from a discussion on demonetization it has morphed into a general and constant criticism of the present Govt and the habitual 'nothing works in India' rant. I am no economist nor do I understand the complexities of economic numbers. But as a businessman who has had the privilege (and curse) of dealing with Govt officers and ministers for years and years I can say two things with hand on heart - (1) Corruption, at least in the ministries I have to deal with, at the minister's level and the top senior two layers of the IAS has virtually halted in Delhi. Do not equate stoppage of corruption with increase in quality of work but it is, in my opinion, a big big step that I never thought I would ever see in my lifetime. (2) The IAS in Delhi are genuinely concerned about their work output, speed and a written complaint - for the first time in my working life I see these folks who consider themselves above all else being conscious of delivery - it is a first step. Visible achievement is still rather patchy but the movement and direction is true.
We are a nation with a population greater than North & South America combined. The complexity and depth of our problems cannot be solved in a hurry or by educated people ranting or by Raghuram Raju preaching from a pedestal. Quote:
Originally Posted by tbppjpr You are free to be agree or disagree, but not before listening to him: |
Thank you for sharing this. He has tried to give a balanced view. Though it doesn't seem like a comprehensive one. Quote:
Originally Posted by tbppjpr In our country, we are killing the 'Make in India' before it takes off becasue of the day by day increasing manufacturing cost of production due to higher taxation. This results into price incompetency against cheap imports from countries like China. |
Weakening of our ability to manufacture at the right price or quality did not start in 2014 but in 1948 & 1952 when the license Raj was introduced in two steps. So lets not blame the immediate past. Though I agree with you that real progress on 'Make in India' in removing petty hurdles has been too slow and too little. So far more hype than action. It is not the politician but the middle bureaucrat who is digging his heels for it is his power turf that will be affected. Quote:
Originally Posted by .sushilkumar [*] Above proves my biggest fears of banks recapitalization using demonetization as a means. More cheap loans to big corporate without due diligence means more bad loans. ultimately we tax payer end up paying for them all. |
What's wrong with recapitalizing the banks? The bad loan circus was the doing of the previous Govt. Quote:
[*]A certain privately held telecom company have invested almost 85 k crores without generating single rupee in revenue till early 2016. We all know who it is but question is where did this 85 K crores came from suddenly. They have a target of investing 1.5 L crores as on March 2016. Said company continue to doll out freebies to users like us happily until 6 month ago.
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Read their balance sheet. By the way I am no admirer of that group. Quote:
[*]I am not digging into another big business house in Gujarat into ports et all who got a big mining contract in Australia post take over of current govt. Funny thing, the said project was mirrored in environmental concerns earlier and all suddenly went into air.
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Did the project create jobs, did it add to the GDP, did it add to taxes paid to the Govt, did it help the power supply position. Those I believe are the relevant questions. Quote:
[*]The famous fighter plane deal which was tweaked to suit a business house who is struggling to survive & is a new entrant in defense space. Despite lack of experience that company went ahead into a joint venture with this house.
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No fighter deal has been signed yet to assemble/build in India. If Reliance gets into a tie up with Dassault it is no skin off any one's nose. Not sure how this all is related to de-monetization. Quote:
Originally Posted by R2D2 So, after reading the press and reactions from most politicians, the Press and some individuals, I assume they'd have preferred NOTHING was done to increase tax compliance and reduce unaccounted wealth. No wonder the country takes two steps forward and one step back!! |
Bravo. Well said R2D2. Thank you for bringing balance back to this thread. Quote:
Originally Posted by tbppjpr |
Nothing new in this. How is it related to demonetization. This malaise has developed over 70 years. For the first time we are seeing a Govt try to seriously do something about it. Why do we expect it to be easy or smooth. There are no efficient solutions in a society as complex as ours both socially and economically. The problem with us middle class educated Indians is that we love to rant without offering a workable implementable alternative. Would you rather we go back to the previous regime? Graft is not a Govt or politician matter alone. Graft is alive and well in the private sector too. Everytime we do a property deal which is not all cheque - that is corruption too.
Coming back to the title of this thread - I think we need to wait two or three more quarters to judge the full benefit and damage of de-monetization - both have happened good and bad. Lets see if tax collections in direct taxes are higher especially from individuals in March'18 and how the informal sector gets back by then.
Last edited by V.Narayan : 2nd September 2017 at 23:31.
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