Showing posts with label FM. Show all posts
Showing posts with label FM. Show all posts

Saturday, October 17, 2020

Aapda mein Afsar


There are many qualities of great leaders with which normal people cannot relate and a large number of their personality traits are debatable. The one thing, that makes a leader great is his power within himself to deliver speeches, to deliver speeches which moves people, which inspires people. For some, it is the words they use, for others, it is their sheer voice, which delivers. Modi, as a great leader, chooses his words for his speeches wisely and mostly his power to connect with his audience. I am in awe of those speeches, when he is so controlled even with his tears, how much heaviness, should be laced in his voice.

 

Just when he realized there is not much for Govt. to do, there is not much Govt. can do, in a lockdown. People were getting tired and restless of sitting at home, PM Modi addresses the nation to inspire the people, that what lies for the country on the other side of lockdown, looking at the positive, with what we can build for our future. Let past be in the past.

 

To all the media people or some citizens like me, who feel PM does not address the Press Conference, this is the reason why PM chooses teleprompter instead of Press Conference. Media would have barraged him with the range of questions and would have killed all the excitement and energy from his uplifting message.

 

As PM, he is aware of the circumstances, he understands the problems, but as a politician, he knows his limitations to deliver on ground, yet he provides the words, which can offer comfort to his voters. PM Modi knew the economy will definitely go for a toss with lockdown, but he was determined to extract the health dividend from this investment, yet the economics tells us, there can never be dividend from the loss in investments. Initially the battle was projected to be won in 21 days but the war took 68 days to be fought with everything and everybody emerging out as a loser or everything was ravaged in the process.

 

When the pandemic gathers momentum and how, will be taken up when the time comes. But in the meantime, let’s try to seek direction for the economy. Everybody was demanding from Govt. to deliver package for the industry and the economy. The Govt. of India was already jostling with GDP growth contraction for last 7 quarters, the Govt. is totally unaware for how to make up (because it has been dwindling because of Govt.) the increase in GDP or its own income. All the opportunity that was hoped and hyped to be encashed with GST was the loss of the Govt., industry, economy and the nation. The complexity of paperwork of GST meant GST is also a tribute to its previous legacy, which it wore in the garb of 16 different tax laws.

 

Modiji, like the greatest leaders, had to deliver an impeccable speech to bolster the morale of the people. Gave the thunderous and eye popping figure of Rs. 20 Lakh Crores for the economic package for India. Most of the Indian population was displaced even to know, the number of zeros, which make this figure. For the large poor population, who have never even seen Rs. 20 Lakhs, couldn’t even comprehend this figure. Naturally the expectation of every Indian is fulfilled with such large figure, which they have never ever heard before and nor will in the future.

 

Aapda ko avsar, crisis as an opportunity, was what PM quoted, especially in terms of building on inclusive economy in terms of production for domestic consumption. The reality is not lost on PM; PM knows all the big bang reforms in their previous budget or first budget of Modi 2.0, were rolled back within 90 days of announcement. Second Budget of his tenure was also lackluster. Before the onset of the Budget, the ground realities have shifted like tectonic movements, so Govt. has to re-allocate all the resources, meant for development to be reallocated in the pandemic world.

 

Aapda ko avsar for our Govt. was reallocation of the Budget. Rs. 20 Lakh Crores was not optimistic or great or thunderous, but it was realistic, the Govt. knew, the economy will shrink, the Govt.’s income will shrink. This figure is simply the Govt.’s figure available from earnings for expenditure. The Govt. just negated the whole Budget, its such a gargantuan exercise on its own. Modiji, as a great leader, just announced the total earnings of Govt. as economic package and also re-adjusted the whole Budget of the Govt. of India. Which global leader can deliver with such poise and elan, and the public does not even realize, they have been fooled at en masse in broad day light.

 

In Budget 2020, the Govt. was planning to spend Rs. 30.42 Lakh Crores ($ 430 Billion) after taking debt of Rs. 8 Lakh Crores ($110 billion). Barely 2nd month into the financial year, the Govt. knows its compulsions and its weaknesses and the loss of revenue, which hampers the glaring development of India. The Income Tax from Corporates, the biggest source of revenue will take maximum hit, not to mention the flat GST collection of 2 months. PM is far sighted, he can visualize the problems after announcement of decision, hence Aapda mein Avsar is called Atmanirbhar Bharat.

 

The reality of all the schemes is never lost on the politician Modi is. He knows, he has to blow his own trumpet at elections, so he needs one word to market his schemes. Always the inspiring slogan with the catchy rustic name, which especially communicates with the poor and the illiterate. Aapda ko Avsar was the caption, of the great scheme that PM announced as Atamnirbhar Bharat (Self Reliant India).

 

From the nationalistic point of view, without using the words, PM was inspiring Indians to produce as much as possible at least for India and look at covering the areas, product and components, which we were importing. May be it is his way of laal aankh (red eye) to Chinese.

 

Atmanirbhar Bharat, is in itself an Aapda mein avsar; wherein the Govt. is trying to relaunch the Make in India scheme, which again PM had launched with much fanfare, addressing business Conferences across the country, with the lion as logo built from mechanized components of machines to indicate the lion is ready to unleash under the new PM with new policies.

 

The Govt. of India knows they have unleased the lion but it went back to the jungles where he is comfortable in his surroundings, which recognizes which belong to him.. I mean there were stray incidents of investment here and there, which is more or less in line with his predecessor, or may be always better but certainly the results were not worth the hype. Atamnnirbhar Bharat, just spread the earlier version, from Make in India to Make in India, Make for the World.

 

Make in India can be launched in India every quarter with a different name, but when the whole world has been questioned for how it shaped itself under WTO for last 3 decades is put to test. We know for the fact, PM himself is aware, we cannot take away the piece of pie, which is seen as advantage, due to negative sentiment against China, globally.

 

The Govt. of India has demonstrated to the world, that we change any law arbitrarily without any thought, without consultation, without warning, the thinking and changing of rules every day is how the Govt. of India functions. There is no predictability in our words or our actions. Demonetisation can be the example, when businesses didn’t know, how to run their business for more than a month. A month’s disruption in business without planning, without notice can be the recipe for disaster.

 

GST, the lopsided quandary of paperwork, which gave a fitting nightmare to the whole of business community of India. All the businesses which were dealing in cash, are still operating in cash, the difference, earlier they were part of the system, now they are totally out of the system. The black market for purchasing and selling GST bills is thriving more and is more open and transparent in its operations.

 

Now the lockdown, again pet peeve of Modi administration of announcing a decision with zero planning, zero warning, zero consultation. Modi hugging the world business leaders is good for the country’s image or perfect posse for him to be used in elections. What is the signal, the Govt. is sending to the world with the new play book, they have invented of making rules, which change every hour. The laws and the rules are subject to change, when the need arises, not when the industry wants it.

 

Atamnirbhar Bharat is inspiring, it is Aapda mein Avsar, especially for the political career of our PM, to bolster his image in a pandemic. What is different this time from the previous time? The industry wanted to know, the package or the support, the Govt. of India is willing to offer to the industry, for which everybody was returned empty handed. MSMEs with existing banking exposure were given more money in their hands, which again comes from the books of the Banks and not from Govt.

 

What is Atamnirbhar Bharat, trying to do, to ensure that the factory, industry, which are facing closure, due to lockdown (not due to pandemic) can survive? Atamnirbhar Bharat is an Govt.’s message for them to strike it out on their own from this crisis and also remember it for future. Does Atamnirbhar Bharat, ensure the consumption cycle, especially for the poor, which has been cut in the middle with the little that they had, will start or be tied together. What is Govt. doing in the process for poor to sew it together?

 

Standing ovation for our PM to deliver an aspiring message amidst the pandemic for the people, also Aapda mein Avsar to remind the citizens of their duty towards themselves and the nation. Though I was expecting a line from his side on the migrant workers walking back home or dying on the roads/railway tracks. Perhaps the reality of the Atmanirbhar Bharat is lost on people, where it is the warning of the Govt. for the people to strike our on its own to earn their livelihood by whatever means.

Monday, November 18, 2019

5 is just a number


P. Chidambaram was waving to the media an open palm during transfers from CBI Headquarters to Court. I thought he was saying, 5 years, the prison  time he expects to be rewarded or perhaps, he will be out of jail in 5 months. Like a good politician, he was talking about the GDP of the economy, which stands at 5%, instead of talking about the case for which he is under investigation. Criminals make for best politicians. Chidambaram is finest and stands tall with our Home Minister.

Is GDP number a big deal?? It is to the economists, it is to our PM as well. He changed the role play of numbers and figures in GDP calculation to show a strong growing economy from 2014 to 2019. But again does GDP matter, when people are happy and so hopeful that our PM will change the fortune and the future of our great nation, even though they say, his efforts in last 5 years have borne little fruit. All of us should stand with the ideas of our honest PM.

But 5% or $ 5 trillion?? $ 5 trillion is the figure, which our PM has given to the people of India as they gave him huge numbers in terms of votes in May 2019. The PM gave himself the target and support of the people, to help India become $5 trillion economy in next 5 years, before his next term. Modiji is always thinking ahead in terms of elections. And doubling it again by 2030 to $10 trillion economy.

When did we have a PM, who challenges himself in the open for the exact number on the size, never before Mr. Modi. Since the Govt. has numbers, so Govt. can push reforms and build strong policy for enabling growth in the economy, for bringing more investment in the economy. At time, I wonder, do we Indians actually deserve such a hard working PM for elections?

Fortunately or unfortunately, instead of GDP rate going up, it is going down. But understanding from where $ 5 trillion figure came, we will know where we are headed. India’s economy in terms of size is $2.7 trillion in March 2019. To get to $5 trillion, even if we grow at 8% annually every year, it will take 8 years to reach that number.

If India grows at 10%, year on year, then also, it will take around 6 years to reach the figure of 5 (trillion in dollars). No economy in the world has ever grown in double digits. China may have pulled off that spoof but then the world wonders about the integrity of their data. I guess Modiji knows, we cannot achieve $ 5 trillion in 5 years, even if whatever level of creativity is fed into statistical data.

But I believe we are heading for double digit growth in FY 2021, for the first time in the history of this country. Though the similar formula will be replicated over next years will remain a challenge. First the Govt. is working on the data, to make the base look of FY 2020 smaller, paving the way for double digit growth in FY 2021.

The PM understands there is some good news, he has to feed people so that they keep voting for him. There could be some landmarks in the mean time, like RCEP, though this failed, but there can be other initiatives from the Govt. to pull India out of its rabbit hole but it is easier said than done. Delivering GDP growth of closer to 10% as predicted by IMF numbers will be the test, on which we are already floundering to match the dismal growth rate of under 7% averaged for last five years. Mind you, this 7% is also worked out by reworking the statistical data over and over again with different permutations and combinations, which remains confidential.

The larger point comes to the fore, today in first week of November 2019, when the PM is hard selling India to Thailand to invest in India; with the assumption, India is the best place to invest in the world. Even if we achieve GDP size of $5 trillion by 2024, when the people want to protest for clean air in the national capital region of India, they cannot go out to protest in the open. Instead they are hunched at their homes and tweeting about the poor air quality; Philips is laughing its way to the bank as they are selling air purifiers in between season of coolers and heaters.

There have been floods in the city of Chennai or the latest one in Bihar, when the state capital is filled with water that people are not safe, even on first floor of their houses and the Deputy CM had to be evacuated by the Disaster Agency. Water crisis for daily needs is an issue, from which such a large population of India is grappling.

Maybe the PM believes the full effect of demonetization and GST will reap its benefits to the GDP to help us achieve $5 trillion GDP. Apparently, we are yet to hear a road map for becoming $5 trillion economy from any member of the Govt. Our dearest FM, Nirmala Tai, smokes fire when its comes to questions related to the economy. Analysts and Reporters leave the FM with the final question of how Congress is skeptical about Govt.’s words and target? She justifies her position to her party with only fire to this question. At times, I feel, FM is always irritated, is it for the Press Conferences or is that her basic nature in the Finance Ministry meetings as well; as if she hates all human beings.

Govt. did make genuine effort to reach to that point to ensure we are closer to number 5 but instead of keeping $5 trillion in sight, they hugged the 5% GDP growth rate, which is very close to half to IMF Projections of 9.8% average growth in economy for next 5 years. PM will be shouting at his campaigns with his punja (open hand display of 5), we promised 5, we delivered 5.

The poor people of India wouldn’t know, Modiji promised us $5 trillion (which would have come at 10%), instead he gave us 5%. Modiji promises and he delivers in his speeches. The honest PM, who delivers with honesty and his hard work for the elections.