December 23, 2019

Tune Composed By Politician’s & Played By The Media – CAA & NRC How Valid Is It? An Economist’s Take

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Tune Composed By Politician’s & Played By The Media.  Who is dancingMiddle Class. Who is EnjoyingUpper middle class, Below Poverty Line – both are getting paid by Middle Class tax payers money.

If you ask me one word question – now that you have read it, would you support it? – Yes, i support it. Why? It addresses the concerns of Hindu & other minorities suffering at the hands of majority, muslim countries. If i were to  describe this process – i would likely call it  as ’accommodative consolidation’.  Everybody should read the amended Citizen ship act – its just 3 pager, there is nothing new in it – it has just relaxed citizenship status for these minorities from earlier 11 years to 5 years that’s all.

I don’t want to comment more on CAA, i have read the bill – understood it & know how it helps connect dots that links cheap vote bank politics of our country.  I am just talking here in the capacity of an economist – Do we really need this at this time when our country is still reeling through such a slowdown – NO, for heavens sake NO. Having understood economic history of India & other developing countries for couple of decades – our country is beautifully divided by politicians & opportunistic businessmen in the name of religion. And this religion agenda is mainly driven not by Affluent Class nor labour class but purely by middle class. This is just a planned tune being played, to distract Indian middle class to take eyes off the ‘cheese’ – which here is our economy.

There is so much of distress across all industry verticals – almost every industry wants the government to give them relief by ways of debt write off’s – AT THE COST OF TAX Payers money. Some businesses are either threatening to shut down operations & eventualities of this is again at the cost of banks going shut. Remember, every established bank in India is exposed to industrial debt portfolio’s as an underlying & this is a huge systemic risk. And period. I don’t want to get into more details. China took Major steps to improve its financial health, US is doing it too.

India has always been a country known across the world for its diversity. The same diversity is being used by opportunist politicians to drive inherent agenda’s. Effectiveness of all merit based ACT’s such as these which touches upon religion, success of these are totally proportional to the economic strength of the country which comes in phases. Every country goes through economic cycles from being neutral, to being good & then prosperity.  Economic cycles of prosperity are reflected by growth in GDP, growth in Industrial production numbers – these numbers can also taken as an indicative mindsets of people living in the country & their sound income levels which are yielding prosperity. This is one reason, timing of such ACT’s are important to determine its effectiveness.

At this point in time, we should all heed our attention towards understanding economic dynamics of our country & raise subjective arguments – how business cases can be solved. If we all keep fighting amongst ourselves, we would be left with no Congress or BJP government to blame & NO Successor’s to these governments either.. all government’s will vanish, if there is no money in the centre. Biggest divide than religion in India – is by class of Population. Upper Class, Middle Class, Below poverty. And it’s only the middle class that is filling the Tax Bucket at the centre.

Remember Everybody will play OPPORTUNISM card at the cost of compromising ethics & at every level of decision making, convincing himself – just one more time & never after that.

–    Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
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