It could be intimidating for some to start an enterprise what more a real estate company, right at a time when the Philippines is experiencing its property boom of
With even BJP ex- Finance Minister Yashwant Sinha speaking about the economy being on a downward spiral due to Jaitley’s actions, who would be suitable as the new Finance Minister for India?
I don’t think so, because that’s not what I read from all the data presented, and the information I am able to gather and process.
The judgments are all just judgments, and have no real bearing on facts.
However, the boom period was over a long time ago, when the IT bubble burst, along with the world’s economic growth downturn, which impacted India way back in 2013. It’s been slowing down since then.
What we’re seeing now under Modi and Jaitley is the inevitable – course correction. Manmohan Singh, who by the way did a fantastic job after the Congress had allowed India’s foreign exchange reserves to come down to a mere 4 billion, did so with our backs against the wall. That was the dungeons, not a downward spiral.
Nobody called out any major danger in the 90s, but it was looming over us, when Manmohan Singh clearly told Rajiv Ghandy to leave him alone, and let him work without interference, and he was the original turnaround architect. Much respect is due to him, even though he could hardly function like that as a Prime Minister.
4 billion dollars, and India was not a net oil exporter then. Today we’re sitting on 400 billion USD in reserves, and India’s a net oil exporter. The shining beacon in that boom period was the IT industry, which became very dependent on external factors. Unfortunately, India went down the path of ignoring manufacturing, conceding all advantage to China, despite having a large pool of young people who could have taken up manufacturing, and inevitably, when the global slowdown came about, we went down with it.
Manmohan Singh had helped us escape the paper tiger syndromes by opening the Indian economy slowly, and the world later appreciated us for it, but every idea has its time, beyond which we need to reinvent, unless we’re an innovation super power like the USA, which can operate across several new paradigms and be a winner often simply by first mover advantage. Amazon today is an example of that kind of success.
What India is doing now is a gigantic course correction. Make no mistake about it. High levels of illegality have been checked by demonetization, scaring the pants out of a parallel government, no less, not just a parallel economy. Hence the slump in various industries like real estate. All the bitching and moaning is coming from the side effects of the medicine, while the disease is being cured rather well. If you’re in the market for buying real estate, with white money, go see how much simpler it is, and how welcomed you will feel.
With the rollout of the GST, hasty being the only way to do it in a lethargic, inertia loving nation like India, transparency is the norm, and is being resisted in every possible way. This is the government that is biting the bullet, no matter how hard it may be to get people to comply, and now the formal economy has finally asserted itself.
Growth is still growth, and we’re not under a recession of any kind, so the word ‘spiral’ is incredibly false. Yashwant Sinha may have his own views, but he hasn’t presented any real insights or wisdom to his sudden claims. Let that lie.
For a long time, the Indian economy has functioned with a lot of illegality. Now, with the Benami Act, it is getting impossible to own anything without the government knowing. Even politicians and their offspring are not being spared. With a lot of assets coming into the open market for auctions, there is every incentive to be open and not hoard illegally.
These are all systemic changes that no system will imbibe without a little pain. It’s like a fat slob trying to get into competitive sport fitness. It’s going to hurt. If we ask for medals and trophies, right now, we will have to be content with weight loss and better health, nothing more. The rewards of making India’s diverse economy formal and transparent, with the banking system, already burdened by NPAs is not going to be easy, but it is the only way.
In a strange way, we’re up against our own challenges, which the Modi government was smart enough to recognize. This isn’t the reform that external forces would like us to bring about entirely, but this is setting the house in order reform. This is deep tissue massage, and the toxins are going to cause pain. But we will benefit immensely.
What Manmohan Singh did in the 1990s was what was needed then, but was with no other go. We had a choice now, to continue in the old merry ways, and deny ourselves the chance of growing to our true potential, or make the changes when we don’t have any real serious problems, and Modi and Jaitley, have bravely taken the plunge to make major corrections, no matter what the political cost.
As for us ordinary citizens, it’s time to change our ways, think way beyond ‘securing’ a job, and become entrepreneurial. That’s how the greatest countries in the world have built their wealth. Let’s not be stuck in old rhetoric, when even Tier 2 and Tier 3 cities these days have investment meetings, and angel investors, and startups mushrooming.
We must have a highly unreal, delusional, and negative image of India in 2017 to espouse so much pessimism.
I suggest taking a trip and finding out for real. Start with truckers. Go ahead, call one of them, and ask them how life has changed after the implementation of GST. Do the work if you’re curious. Do the work if you want to be convinced. Visit any of the Skill India authorised training centres, under the National Skill Development programmes, and find out how many opportunities wait for those who are not functioning through delusions of grand jobs unsuited for the degrees they hold.
Call someone in manufacturing. Find out how being able to claim Input Tax Credits are working for their profitability already. Find out how the leeching of state government Sales Tax officers has stopped completely.
Ask how Amazon is growing with the economy in a downward spiral.Ask how Amazon pays taxes properly and is still profitable.
Ask how we are sitting safe on record foreign exchange reserves, very low inflation, and low CA deficit. If you have questions about the GST, read up:
If you want to be humoured, call up Shri Kamal Haasan and asked him what happened to the ten thousand skilled technicians he would deliver through the Skill India program, despite an advertised demand of 100,000 jobs in the Media industry alone that have no takers now – despite umpteen questions right here on Quora on how to get into the film industry! ( )
Until you get to know the facts, please don’t waste your time and others’, getting lost in wrong information, rumours, innuendo, allusions, and smear campaigns. The fact that you have time for all those things indicates there’s nothing wrong with your economy. For all others, there is work to do.
Lastly, get into the habit of thinking, and get out of the lazy, moronic habit of copying and pasting. If you can afford laziness, the economy is doing great!
PS: Not taking a jibe at the questioner here, only at mindless detractors.