GDP and Gross "Depression" Product !

We are what we are!

Lot of noise about GDP numbers released yesterday. All TV news in English and vernacular discuss about fall in GDP growth to 4.5% , in ominous tones and words from Economists including former PM,  threatening the people with dire forecasts for the country and the economy. Why should this add to Gross depression, desperation and despondency in the country. And when was the last time we were at 4.5% or thereabouts and that was not too long ago .It was Q3 Fy 12-13. Who were at the helm? our good old Dr.MMS and financial wizard & US educated Mr.PC. Mr.PC suspected CSO numbers and doubted its methodology.link another (link).

There are some methods by which this Growth recession can be tackled.Some of the good measures already brought in by the Govt will kick in with a lag.Many of them like corporate Tax cuts are supply-side and so will not address demand deprivation .
1) "Pump Priming" is a time tested method to boost the demand and consumption.Govt. by pumping money into the economy through building infrastructure is the best route possible since other alternate routes will be highly inflationary. Even though this can cause demand pull inflation temporarily,  in the short run it will follow Phillips curve which will reduce unemployment.

2) another important measure for Govt to do is pay all its Suppliers esp. in infrastructure sector like Power Generating Cos, Road Construction cos. and clear its dues.As an offshoot Govt must also look at indexing all the User charges it collects to inflation.This must include Electricity Tariff also in all the States.

3)Big Infrastructure projects which are stuck and small infra where the last mile completion is a challenge must be taken up to unclog the system. If they are stuck due to land acquisition disputes Govt. should try to invoke emergency powers to bring an ordinance for speed tracking these issues.

4) Also Govt must look at reducing IT for individuals and increase Sec 80C exemption limits for savings and investments or reduce all IT rates to just 10% of incomes earned whether the income is Rs.1 lac or Rs.10 cr.eliminating all exemptions.This will make IT wrinkle-free since all talk about progressive taxation is actually regressive in reality.This will bring demand back to the table in a big way.

5)Central govt should work with GST council to cut GST rates on Autosector. This can start with reducing Cess which is over and above GST at 28%.
Some of the suggestions mentioned above can lead to expansion in fiscal deficit this year and next year but they will have a salutary long term effect beneficial to the economy.

Where the mind is without fear and the head is held high!!

We are what we are!

whenever I read Tagore's great poem "Where the mind is without fear" many times I used to wonder what he meant by "where the clear stream of reason has not lost its way into dreary desert sand of dead habit!" .After seeing the see-saw matches in Maha politics I come to realise that habits die hard and we repeat the same mistakes again and again , thinking that this time it is different.

Beyond politics Tagore is relevant for Swaach Bharat mission also- "Where we tread without fear and the head is held high, where the potholes are filled and the manholes are closed dry, where the citizens do not spit and the litter is not thrown on the way, where the roads are levelled and rules of the traffic people obey, where the corrupt  realise their wicked way,  where the clear stream of future of young indians has not lost its way into the dreary desert sand of unemployed, Into that land of dream GDP and heaven ..."

God's language- Symmetry!

We are what we are!!

My title is symmetrical.It starts with "we are" and ends with "we are". Many of you would have also noticed that almost everything in this Universe is based on Symmetry.

Imagine how humans would look like if you have only your left side and there is no right side of your body. Or imagine if you have one big round eye in the middle instead of two eyes. The holy books say God created man in His form.

Even otherwise God has created everything with Symmetry as His language of expression. Perhaps some may say it is Nature's language.Be it flower or  leaf or a dancing peacock with its feathers panned out in full bloom or anything where nature has expressed itself, it is through the display of Symmetry.Under the microscope even DNA strands display symmetry.Nature simply loves this.Nature not only abhors vacuum but also abhors asymmetry.

Do you think it is mere coincidence. So, I call it the God's language!!

Murphy's Law!!

We are what we are.
There is an Universal law apart from law of karma and that is called Murphy's Law.If things can go wrong they will definitely go wrong. This law is applicable to Indian context more than any other country. Probably our politicians are adept at making this law true each time , every time. Take for example the Maha mess now. Just last year we watched the tamasha in Karnataka where the rank outsider Mr.Kumaraswamy suddenly being catapulted into CM's chair due to holy or unholy alliance with Congress after elections.They made strange bedfellows. Every day routine of Mr.K was to brief the media in the morning that the coalition was working fine, and in the evening media appearance to have his handkerchief handy and shed tears that nothing was alright in coalition and he would not continue as CM.This tamasha went on for nearly 8/9 months and we know what happened after that.

Now we are not learning anything from such past history and we want to repeat that at all costs.The theater is now Maharashtra and the stage actors are different but the screenplay is the same.Another tearjerker is in the offing!!

Even Ram temple will get constructed in Ayodhya and even J&K will return to normalcy but our politicians cannot but enact and repeat the same story line in every state. Is there anybody to disprove Murphy's Law.!!