Thursday, January 22, 2015

Developmental Issues of India: Should We Do the Root Cause Analysis or Should We Pray for Getting Back Our Senses?

Let us pray for getting back our senses!

Here are some interesting news that are online today which tells about the Indian economic projections:

1. In a global survey 62 % Indian CEOs are reportedly optimistic about the future of their companies for the next 12 months. ( Don't ask why only 12 months!) 

2. India poised to become the fastest growing economy in the world in the next two years- says IMF, the Economic Times report.

Yes, the above reports are very optimistic, but apparently look like vision statements of people who operate from air-conditioned coziness rather than knowing the grass root realities.

The problem is that we hardly understand the dynamics of money and physical work. 

For example, how do we compare the worth of two companies doing business? 

Company-A  has a turn-over of 2000 million rupees and is consistently showing profit for the past few years. Undoubtedly, its stocks are in high demand and are traded many times above the issue price.

Company-B on the other hand has a turn-over 5000 million rupees and is barely showing any profit or at times reporting losses in the balance sheet. Its stocks are not much favored and has a low value.

By simple common sense of present day economic macro analysis, company-A would be the preferred one. 

Now, let us examine these two companies a bit more closely. 

Company-A , though has a good looking and posh air conditioned office with modern office gadgets and decor, the office space is on lease. The company's 200 odd employees do jobs connected with some financial services online. The economic activity the company does arises out of some policy guidelines and special economic situation. There is no guarantee of the situation remaining the same for ever. But if the company goes without work, they have not much to lose.

Company-B on the other hand is a manufacturer of physical goods. It has more than 2000 employees having various skills belonging to various professional disciplines. The raw materials to the company are produced by several ancillary industries. The products of the company also go for industrial consumption. The company has its own land, factory, machinery and such infrastructure. Thus this company can be considered as a core industry and an economic activity booster.

Often, company-B would be seen to move towards more and more unfavorable conditions including getting an incompetent management team that would eventually make it to close down its operations. That causes painful miseries to the 2000 families directly and a dent in the country's economy indirectly.

In olden days, governmental authorities used to be more sensitive to such issues and would have intervened at the right time to prevent such economic mishaps. Of late, in the so-called liberalized economy, governmental authorities are seen as shying away from executing their responsibilities lest they may be accused as partisan.

As I have written in this forum many times, government has a right and a responsibility to intervene in the affairs of any corporate business entity when it is faced with situations where employment and governmental income by way of taxes are affected or likely to be affected.

The ultimate aim for any government is to ensure welfare of its people and employment should be one of the first priorities under citizens' welfare. If the citizens do not have income, no country could progress. So, income of citizens should be the first priority of any progressive nation and its leadership.

Leader of a massive BPL population is nothing of a big achievement! Power and prosperity of the nation vest with the people. If the people are poor and pathetic, the nation as a whole too would be of that type. Strikingly rich individuals of such nations should not be in a position to raise their heads in pride if they have any consciousness left within them!

India is a nation of predominantly income-less people, with only about 3 % of the people officially paying direct income tax as per government reports. Even in this nearly 90% are in the income range of  $ 3000-8000 per year. A little over 42000 people in the whole of India are officially reported with an income exceeding $ 160,000/- in a year. But people having wealth in millions may be much more considering the high levels of black money, corruption and under reporting of wealth.

But yet it is a shameful condition. There is nothing that common Indians could take pride of in such a situation. The unemployment and under employment situations are alarmingly growing with no one having any solutions. Even those employed are hardly with any decent income that could cause any boost in the Indian market to generate more employment.

In India no one seems to be bothered about the situation. All seem to be pretty well satisfied with all the problems. They move as if in good sedation that they feel no pains ever!

A young man sent this famous Napoleon quote to me that reflected the anguish and anxiety that only a negligible number of people in India realize:

" The world suffers a lot not because of the violence of the bad people, but because of the silence of the good people!"

Is India listening? I doubt. 

Should we worry about the walking dead bodies of India any more? I do not know. I too am becoming one of that!

So how to do the root cause analysis of India when the majority feel no pains?

I could have done it to some extent. But there is no one to see and act on my analysis.

All around me appear as senseless. 

Soon, my own ability would vanish.

I too would become a walking dead body, sedated , senseless and feeling no pains!

Perhaps in the bliss of ignorance!

See how infectious this sedation is!

I started with something and ended with this sedated philosophy!

But it's okay because no one is going to read this and react.

If possible, let us pray to God for giving back our senses!

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