July 2020 News Highlights India

finally the government of india at least made some solid move in the railway privatisation aspect.

however it is frustrating to see that so little has been done about it. just a minute number of routes and that too only allowed for operation.

and that too allowable only after three years ?

the right way (even if the government is stubborn enough not to sell the railway sector) is to allow the corporates to buy land, track, entire infrastructure including rail stations and compete with the currently owned indian railway.

then we will see who is doing social service.

this is so irritating.

because in reality it is the private sector which is doing social service to the nation as they are giving employment, paying taxes, gst, increasing foreign exchange earnings, lessening the burden of fiscal deficit and reducing the need for the government to beg and borrow and overprint.

whereas due to two reasons - inefficiency of psu's and expenditure on the poor, in reality it is the governments which exploit the poor and it is the governments which are selfish in thinking about themselves instead of the masses.

spending on welfare gives you popularity. and since you are not as capable as the businessman you need some avenue or the other to wipe out your jealousy. its the same situation all over globally with all governments.

and you are able to do that because you have the licence to arrest and imprison and kill whereas the businessman does not have that licence.

in reality it is the tatas and the airtels and the kotaks and lots more etc. etc. of india which are running the indian economy.

whereas just because the governments have the gun in their hands, have the right to say that they are running the economy and will help the private sector.

help the private sector ?

on the contrary it is they who are helping you sir. they produce and slog and sweat and develop health problems due to tension. and you consume lavishly and laugh as if one is shopping inside the dlf emporio mall.

if you mean to say that after tying both of my hands (at the point of a gun) you have helped me by slightly loosening the noose then you have done a favor to me - then thanks.

please dont do that. tighten it further so that my hands become permanently fractured and then let's see how you will survive on the taxes paid by your psu's and the almost zero fdi inflow and export income they generate.

sir, neither you are surviving on psu's. nor are the psu's surviving on you. basically you both are surviving on the private sector since decades.

basically the room for mental tension and painstaking worries is closed for you because it is not your money youre spending.

its just coming in automatically and relentlessly and non-stop day and night without the need for you to make an iota of effort into thinking.

so the governments world over are creating poverty, unemployment, social sadness, economic slowdown, inflation, currency devaluation and more debt just to overshadow their inferiority complex.

you spend on education, subsidies, welfare, food programs and healthcare and end-up begging either internally or externally to meet the requirement which leads to an economic slowdown and a reduced gdp growth.

in addition you are unable to reduce tax and gst too due to the same problem. which in turn is making it difficult for the private sector to increase production which in turn leads to inflation and lesser employment opportunities which in turn lead to public misery.

the bureaucrat does not care about excellence because no one can fire him. at the most a suspension order for 3 to 12 months. or a transfer. nothing more than that.

and how can you reduce unemployment and fiscal deficit and inflation and currency devaluation until and unless you produce big-time and of the best quality ?

you want to feed the poor. but from where will that money come from ? from the psu's which are producing less than half of their potential in terms of capital invested ? they are noble ? despite producing such a low quality product or service which even the local public is accepting because they have no other choice ? forget about exports.

and the businessman producing double on the same amount of capital and paying double tax and producing of export quality too is the exploiter ? he is the selfish one ?

so please stop feeding the poor and stop expenditure on infrastructure because your feeding the poor and investments into non-profit ventures are in reality creating more and more poverty day by day.

the psu's are not expanding due to low profit margins or losses or the principle of working for the masses (not profits).

this in turn is creating unemployment as the population is rising and creating inflation too because the natural resources are drying up.

on top of that there is no move to enforce the zero child policy. and it is becoming impossible to control covid in india due to density of poor population living in the slums or lal-dora areas. and even the demolition drive has been halted to make things worse.

one may argue that usa is worse in controlling covid. but the reason out there is different. they are non immune to viruses like we are. then of course overconfidence also proved to be their nemesis.

we despite being having all kinds of anti-bodies within our system and an appropriate shut down are at number 3.

then one may again quarrel that why is brazil going up.

brazil is going up partly despite having an overall lower density of population, because it has large pockets of land where the poor live in congested areas. another reason there is partly due to a zero level of shut down.

in any case im sure india and brazil are way up than usa. its just that usa is reporting almost accurate numbers. not fully accurate though, maybe half of the actual fatality figure.

whereas india and brazil are displaying less than one-third of the total deaths it seems.

coming back to economy.

as the private sector cannot find mediums for expansion in things like electricity generation, owning an entire rail system and few other reserved sectors, the opportunity for them to export and bring in fdi are drastically lesser than potential.

on top of that whatever sectors are open for the private sector also come with a plethora of restrictions and regulations.

finally, the tax rates are still very high. just imagine a gst of 18% on services.

this is a catastrophe. is it possible to any country to progress only through factories ?

what about services ? even service is production. someone produces a software so he is manufacturing a service.

the service sector should have been given an equal priority due to potential in exports, fdi inflows and white collar jobs and to bring in an overall educated and sophisticated society.

a country with a blue collar workforce will always get smashed by a country with the white collar executive.

that is why china is finding it tough to beat usa. but they are on the right track. slowly they are now expanding their service sector and who knows - maybe at double the pace of usa.

but bringing an governmental education policy to try and bring civic sense in people will do more harm than good.

having said that it all boils down to push and pull.

the government has no moral right to impose restrictions or high taxes on businesses.

likewise there is no need for the government to promote anything like make in india program or special packages for service sector etc.

when there are no regulations then the need for stimulus becomes non-existent.

and that is the key. that is what you call a moral government.

then funny contradictory rules are laughable too. on one hand there is no need to apply for gst if your turnover is low. on the other hand you cannot open a current bank account without a gst number.

in addition, on one hand the indian government has been talking about pushing exports since decades.

on the other hand it is compulsory to get a gst registration for a non-gst registered firm even if it raises a bill for 10 dollars for a solution provided to a foreign services importer.

i stand corrected here. but thats what my understanding is.

world over more or less, all politicians are the same. and apart from exceptional cases like china everyone is following the same immoral policy broadly speaking.

its not that china is perfect. they are making a big mistake in running the banks. but comparatively, the it is only government in the entire world which is on the right track from an overall perspective.

usa is good but whatever dollar comes out of a privatised industry out there is fully burnt by the government being adamant on spending on education and healthcare and social security and what not. so back to square one.

anyway if one looks at the whole blog post then whatever i said is not in context of our government only. it is more in context of the global economic ideology.

this article was more in context of world economics and lesser pointed towards the current indian government, so one must thank them for at least making some effort in privatisation of railways.

something is better than nothing.

finally, the encounter of vikas dubey is a good sign.

it sends a signal that the government is at least to some extent aware that it has a duty to maintain law and order.

running an economy is not what a government is supposed to do however.