The Way Ahead #Economy #India

We in India have an uneasy feeling regarding as to what has gone wrong with the upbeat mood of all sections of society suddenly. The poor have no means to convey their discomfiture in a manner that would be taken notice of by the govt or the politicians and may be that they don’t have any particular recent development which affects their generally poor condition. However, the middle classes in urban centers and the affluent (who had  doubling of incomes year after year as a reward for taking the economy to higher levels but not now) have suddenly found themselves between rock and hard place.

 

There is yet another class in India that thrives on being middleman for the corrupt and the corrupt themselves. This class also is worried on account of Babas and Annas . The established politicians also are seeing their bastions and areas of influence being eroded. The doctors have seen their reputations badly hit for exposure of their malpractices. The teachers have lost respect. The lawyers never had any goodwill for being helpful to society. The sportsman have their images tarnished although they have some thing to be more satisfied than earlier.

 

The govt employees fear public back-lash as the public mood is getting bad by the day. The farmers are not able to realize full price due to defective govt policies. The depositor are seeing value of money going down faster than the amount of interest they get. The borrower finds the returns poorer than the interest he is having to pay.  The equity investors have not had any appreciation for past five years.So almost all sections of society are a worried lot for one thing or the other.

 

How can the better times be ensured now or at least the further spoiling of mood be stopped, is the question everyone wants an answer to. I think wait may be longer than we expect for the good times to return but India has a unique position compared to rest of the world and that is that it has many pockets where only a logical approach may bear fruit without any substantial input in form of big capital or other resources.

 

We can develop tourism, we may connect some remote areas to main arteries, build a few small bridges on rivers, improve railways working, push for reform in eduction sector, stop few social malpractices and say good buy to corruption. In all these areas the govt ‘s will is lacking. There is one more thing that can ensure the welfare of commoners is that all subsidies should be scrapped and the items used by the lower income classes should be identified and excise or sales tax on them be either removed or lowered.

 

The whole point is to make budget of the poor less strained , it can be done by subsidizing some goods or making most items consumed by poor tax exempt. this will ensure two things  i e the leakages due to subsidy will be finished and the evasion of taxes will be stopped. The revenue loss will be automatically matched by nil subsidy bill and whatever is still there can be made up by raising excise on luxury items. The bottom of pyramid logic will work fine as mass production of goods for consumption by poor will ensure lower of costs further along with distribution costs.

 

We may also than emerge as competitive exporters of number of items for the rest of the world. But I know the high and mighty will not listen and uniform rate of tax under GST regime will be advocated. The people with say will always find ways to their advantage. That’s why I say the parliament is no more manned by people with love for poor at heart, they would have it in abundance on lips.

 

HariOm,

krsnaKhandelwal

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