We need to worry about the dishonesty factor
And must define it also.
The word corruption has become so common that it has come to be accepted as a ‘government thing’! Analytics has said the cash flow in circulation is now more than the predemonetisation days. It is Rs.17.97 lakh crore, which a leading newspaper claims is 1.9%, is more in circulation than before the note ban. If this is going to be the net result of the note ban, why did the nation have to suffer the process? Why was this ill-effective move given such great priority at such short notice? It took the nation by surprise. There is a thin line between parallel economy, in the country, which has been growing, and the many legit businesses that rely on no banking policy.
How many retirement policies or life insurance policies are issued in a year and the consecutive years after that? What is the ratio between people who have these great plans and those who do not? I cannot give you the ratio as I don’t have it. But perception tells me it is dismal. Perhaps the truth is the majority Indians cannot afford a life insurance policy it seems like a contrary to existential realities. What is the employment ratio between organised sectors and unorganised sectors? This is more to do with dynamic economics and the analytics can do their job. The difference we know is huge. From the 487 million workers, over 90% work in unorganised sectors. The organised sector employs 27.5 million people, of which about 10.7 million people work in government sectors. The truth is for a common man planning his retirement is, producing a son and hopes, he will be that benefit. In a nutshell, a shaky investment. With a large part of the population left lacking in qualitative education, learning has not permeated into plannable cognition as to foreseeing a future. The unorganised sector’s payouts are in cash. This is legitimate earning, without the comfort of an auditor, computer, cybercafé, and the adroitness to use the phone to file taxes.
The National Rural Employment Guarantee Act 2005, provides 100 days of guaranteed employment. This is disruptive in many ways. People from the village seek jobs in cities to augment their earnings from agricultural processes. They come to the cities for employment, stay in employment for six months and return to their villages, to use the benefit of the 2005 Act, so they can stay in their villages amongst near and dear ones and still get paid. This causes disruption in the cities, which employ migratory labour. We need a more sustaining generation of jobs in the villages.
When the majority population is in sufferance of such an inability, why scream personal income tax? Let us study the liability of such a yell.
The government expects every individual to file taxes, immaterial that they come under the taxable ambit.
Can the income tax department process the non-taxable returns of the number of Indians who should be filing it? Conceding that the number is too vast for such an exercise, and recognising the fact that the majority does not have the wherewithal, do you allow them not to file? Is the rule not applicable to all?
Is the government not imputing a double standard here? Does this not lead to moral deprivation?
There is the process of duality, in the way the population is treated, and the law is applied. The poor, middle-class, bureaucracy, politicians and the rich, are the segments of the demographic break-up of the country.
We need to rid the social ills which arise from duality in the nature of law and thereby breed dishonesty and corruption.
Illiteracy is so high, there is little chance of a perceived and planned life. Unfortunately, the politicians make use of Indian illiteracy to their benefit. Every election the citizenry is told, they are going to see a miracle. The proposed candidate is going to create Utopian happiness in India. The promises they make are right for employment. The National Rural Employment Guarantee Act 2005, provides 100 days of guaranteed employment. This is disruptive in many ways. People from the village seek jobs in cities to augment their earnings from agricultural processes. They come to the cities for employment, stay in employment for six months and return to their villages, to use the benefit of the 2005 Act, so they can stay in their villages amongst near and dear ones and still get paid. This causes disruption in the cities, which employ migratory labour. We need a more sustaining generation of jobs in the villages.
Food processing industry Nobody understands produce better than a farmer. The government rather than passing bills which are populist should ideally partner with private enterprise and initiate certain industries, which will absorb the vagaries of farming.
The fear here will be, there will be expansive industrialisation of farmlands. Nothing can be more ridiculous! Industries that rely on farm produce are not likely to destroy that. On the contrary, they may bring in expertise in plant physiology and subsistence in arid situations. There could be enhanced biotechnology put to good use.
Subsidising seed prices and the loans given to farmers will not fructify unless there is sufficient water for irrigation. If food canning industries evolve in the villages, then private enterprise will find a way to irrigate those farms. Nothing can sustain without water. Irrigation has been the bane of farming life, which has been addressed in a less than partially efficient manner.
India is the ninth largest producer of agricultural produce in the world. The community which has helped India reach here is not a rich community as a
majority. There may be a rich farmer here and there. We all know the farming community has not grown in the way it should have. The evolution of the farmer has not seen the growth as that of the produce. The farmer has not been cognitively educated, a few farming apps only make him rely on technology afar, and not independent decisions. Food packaging is an industry that needs to be looked at. It will give them alternative jobs when the season’s agricultural produce is unfavourable to an individual. The running of the factory and labour requirement can be met. Decongesting cities and industrial areas
There is a reason why the government earmarks industrial areas and towns. The fact is not all lands are arable. Therefore, a nonarable piece of land can be converted into an allied industry to the farming process. It will create jobs. It will create auxiliary jobs. Around an industry, a few feeding enterprises will grow. Like a clothing shop, tailoring unit, shoe-shops, hotels etc. All these ventures will produce jobs and secure jobs. Self-sufficiency will grow in the villages, thereby their economy will be less immune to market fluctuations that may sweep across the country. What we may build are strong economic cells which sustain even during a global meltdown.
Though in government hospitals primary health care is supposed to be free, it only comes with heavy bribes. Free education in government schools come with indifferent teaching. The list continues. Government policies and of incentivising lowers productivity. The uneducated populace believes in election promises of populist measures. Nothing good comes from freebies and torpid incentives. These incentives are making the people non-productive and reliant on dole-outs. Free distribution of rice makes men work for two weeks to earn enough money to buy liquor. Two weeks of work in a month covers the liquor expenses. The other two weeks can be spent in drunken brawls, child and wife abuse. His wages are paid in cash. The liquor shop accepts cash There is no problem here. We need to understand how cash transactions are initiated. With labour on a daily wages contract not reporting to work regularly, involves alternative hiring. This makes payment via the banks, either online or phone cumbersome, deleting old entries adding new ones. Hence the employers prefer to pay by cash.
The cash-abundant employee will spend the cash at hand, whether he
Street hawkers have a large presence in the Indian economy. They trade in cash. Where is the surprise that cash flow surge has returned to the market? The surge probably indicates robust vending rather than hoarding. Though street vendors do good and steady business they hardly bank their money because they suffer from unplanned expenditure.
buys groceries, liquor or makes payments to the mobile service provider. This migratory labour will impede banking money. These are legit transactions and has nothing to do with black money or money hoarding.
Street hawkers have a large presence in the Indian economy. They trade in cash. Where is the surprise that cash flow surge has returned to the market? The surge probably indicates robust vending rather than hoarding. Though street vendors do good and steady business they hardly bank their money because they suffer from unplanned expenditure. Their economic infrastructure being weak, one illness can render them without buffer money. Though business is always steady, the cash outflow is unpredictable. Hence, they fall into a debt trap. There is no money to be banked.
While Indians may be the largest market for cellphone data users, the users can talk unlimited hours. But they are not talented and learned enough to use their mobile phones to bank their money. They are not literate enough to write out a cheque or a challan. The banks are not able to cope with people who cannot fill out their own cheques. The banking process becomes uncomfortable. They are going to return to the comfort of cash handling, not because they are blackmarketeers or hoarders, but because they are the majority Indians who are challenged by technology and not educated more than to just sign their names, which India proudly labels as literacy. It's time we understood the difference between factuality and ideality.
India is the second largest producer of rice (120 million tons) and wheat (80.7 million tons) according to Investopedia. I have a simple question.
Why are the majority of farmers poor and appear clueless?
There is a discrepancy here. The community which contributes to India being the ninth largest exporter (USD 35 billion) should have on their person to attest that they are a part process of the acclaim. There is dishonesty here, the farming community is not getting their due. Indians are not generally getting their due. Unless we as citizens do not awaken to facts that we are ruled by the dishonest, we may be overshadowed and overpowered by our neighbour China, which has overcome the negatives of a population problem. It has grown into an economy which commands global attention. We cannot be taken for granted by selfserving politicians who will eventually wreck the nation. They will have amassed wealth and will be able to afford an offshore residence. The rest of us will be staring at a dismal life of stagnation. We need to see corruption not as government process, but as dishonesty. We need to waken to reality.
Organised sector employs 27.5 million people, of which about 10.7 million work in government sectors.
People from villages seek jobs in cities to augment their earnings from agricultural processes.
Politicians misuse use of illiteracy to their benefit.