A View From the eco

8/4/2019 A View From the eco

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A VIEW FROM THE OUTSIDEWHY GOOD ECONOMICS WORKSFOR EVERYONE

P. CHIDAMBARAM

review by,THIRTHA(10055)

VIBHU TYAGI(10056) VIKRAM ARORA(10057)

VIRINCHI KASHYAP(10058)

VISWANATHAN(10060)


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INDIA EMPOWERED IS A common tide of economic growth that lifts allboats

Empowerment must be seen throughthe eyes of the disempowered.

An empowered India is a nation where

everyone in the working age group hasworka job or a business or a profession.


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F ARMERS DESERVE A BETTER DEALW e need to change our attitude to food prices

700 million out of 1 000 million people in Indiadepend on agriculture for their livelihood.70 per cent of the total work force is engaged in

agriculture. Agriculture - only 3 0 per cent of Indias grossdomestic product (GDP)The key to removal of rural poverty is

agricultural prices A mature and civilized nation must cherish itsagriculture and protect its farmers


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C ROP O F GLOOM: A RURAL TALES

tate provides amenities, but who will providethe income

The roots of rural poverty can be traced to the

low per capita incomes that accrue to thissection of our population

A better-governed State may provide roads,

schools, drinking water and healthcare.But who will provide the income necessary for alife of dignity?


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WHY INVESTORS STAY AWAY F ROM INDIA I t is all about risks and how to mitigate them

Political risk the most obvious risk

Security risk

Policy risk - investors like stable taxation policies

Legislative risk

Regulatory risk


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DESTINATION JOBSVILLE

M assive under-employment in India

One lesson is that Government must promote

investment public and private in areaswhere the potential for job creation is thehighest

Software companies and tourism can generatemillions of jobs, and these jobs will cover theentire range of skills


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T HE F INAN C E M INISTER T HE P LAYMAKER

J aswant Singh was appointed The FinanceM inster in 1996

Reluctant Finance minister

Without proper reforms the dream of 8% GDPwill remain a dream


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T HE S TATISTI C AL ILLUSION

H igh growth is relative to previous yearsabysmally low growth

The M onsoon effect

M ajor negativesy H igh Fiscal deficily Lack of Investmenty Inflation


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B UDGET

Budget An empty Bag of Tricks

Fields of Improvement Textiles, Agriculture,SSI, Roadways, FDI

Fields F M failed to consider Income tax,Power sector, Defence, Steel,


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M ONETARY POLI C Y

Inflation A tax by another name

Trade off between unemployment n inflationnot advisable

Negative Real Interest Rate


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E THI C S A ND G OVERNAN C E

H ighlights misappropriation of funds by NDA government

Root cause of all corruption and cheating ispoverty

Govt. using its power to influence PVT. Company

acivities in economic activity

Tries to prove M r Rajiv BOFORS scandal.


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D ISINVESTMENT

Criticizes M r.George Fernandes on his standCrown jewels should not be disinvestedShould not create private monopoly

General mass should inherit the govt. property soraise share and give masses there right

H e next article he highlights how just for sake of

disinvestment M r. Arun Shorrie wanted todisinvest IOC which is a profit making PSU andhas an opportunity to be a global company infuture representing India


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P OLI C IES A ND G OVERNAN C E

Asks govt. to work for upliftment of Indianvillages

Says when inflation was around 4-5 % stillinterest rate were as high as 12 %

Fiscal deficit increased to 5.5 %

Said neither govt. nor civil servants working forpeople H DI ranked India 12 7 .


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4 imperative to growth areInvestment in rail-roadDevelopment of IT

International tradeInvestment

Law and commerce together can do true justice

Pathetic reality of india shining

Are we truly civilized????


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TAXATION

OB J ECTIVE OF KELKAR CO MM ITTEE :

Identify measures to increase tax revenue to GDP

ratio not by increasing tax rates but by

simplifying tax structures , widening the tax base

and improving administration


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RE C OMMENDATIONS GIVEN BYC OMMITTEE

Do away with dividend distribution tax and longterm capital gains tax.Impact : Proliferation of zero tax companies

All exemptions or rebates on savings forindividual taxpayers should be eliminatedImpact : No savings mean no investments . Sohow to achieve 8 % growth rate target

No exemption should be given to senior citizensand handicap people.Impact : We dont have any social security forthem in India unlike USA.


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4) Deduction of interest on housing loan shouldbe eliminated .Impact : A blow to industries such as steel ,cement , brick making , tile , wood etc.

5) There should be no deduction of interest onborrowed capital for business.Impact : No business start ups and venturesbecause we dont have vibrant capital marketslike USA. Even for that matter agriculture ,services are also heavily dependent on borrowedcapital


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GOVERNAN C E

9/11 ( World Trade Centre attack) VS 12/13 (Indian Parliament Attack )Wanted Sreedharans ( DTC M etro chief ) not

Togadias ( Bajrang Dal Chief ).What is binding current NDA coalition govt

which is comprised of so many regional parties ?The state of states : India Today Ranking of

states.India missed the bus at a critical time when

China caught it.


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POLITI C S

Enormous power of Governments is the enemy of good governance

No more B J P clones please , we are Indians

Bush and NDA GOVERN M ENT : Two sides of same coin

Politics catches up,India lags behind


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T HE G REAT I NDIAN T AMASHA -E LE C TIONS

o Advocates 2 Party system- for key issues,youth and stability of India & says it is best thingthat could happen to India

o Criticizes B J Ps India Shining campaign &manifesto( H indutva, ignoring villages, poor,)

o Advocates- Disinvestment/Privatization,agriculture*, anit-inflatation acts

o Branding in Politics- Brand B J P? or BrandCongress?- Vote for your brand.


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M yopic view of congressyou cans seize

power from BJ

Pwithout allies-Congresslearning

Vajpayee &M odi are maskor marketingstrategies of

Adavani to coverhis Inability to

peak

SurprisinglyM anmohan orSonia Gandhiarent!!!!


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D UNIYA - I NTERNATIONAL

RELATIONS

Iraq, Nepal & Sri Lanka in chaos, and alsoJ ammu & KashmirM onopoly in Kashmir / M onarchy in Nepal/

Dictatorship in Iraq over years have lead to lossof heritage, lack of options, outrage only chaosRajiv Gandhi tried helping SriLanka but

asinine & I ncautious govt. and cunning Prabhakaran abandoned America thinks its the I nvisible hand of worldbut its more of a watch dog or self appointedglobal police!! Leave us alone


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Coun try/State Type(acc. t o me) Reacti on of a u th o r

Iraq Dictatorship(Saddam) Not end he deserved

Nepal M onarchy(poor war zone) B J P stopped helping

J & K Democratic( M onopoly-DrFarooq Abdullah )

Neutral(potential ally)

U.P/Bihar/T.N Democratic??? Similar to Iraq(BSP laterwith UPA!!)


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S OMETHING NON POLITI C AL

AIDS, Poverty, Child labor, Social Crime- close toauthorPathetic to say whats new about rape? Urges readers to act against these- leaves the

choice of methods to readers (I advise but not to usesocialistic methods)Reviews these critical problems as a typical

politician, presents some facts but no reasons,solutions or rootFinally politics again on B J P not introducing

Womens reservation bill A B Vajpyee traded off his beliefs for survivalSometimes it is necessary to exercise a part of

body politics to save the whole

A View From the eco

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