By krsna Khandelwal – A veteran market analyst
Friends,
Wealth amassed by Indian billionaires is estimated to be at $340.9 bn according to Forbes and is nearly 31% of GDP of India. The worth of billionaires in China is just 3% of GDP . The USA’s billionaires hold an equivalent of 11% of GDP of USA. On macro level the world has 1125 billionaires who posses wealth of $4.4 trillion which is about 7% of world’s GDP.
Do you not feel that India’s leftists who hold the key to government’s survival at center, have in fact allowed the above to happen during last four years without a whimper. The wealth of Indian billionaires has gone up may fold during last four years. They only kept crying foul of Nuke Deal and just insisted on higher interest rate on PF funds earlier which , by the way , is lower than the yield on gilt edged securities now. One can simply see the pseudo nature of their political behavior. Do they realize that most of their stand have helped the rich in getting richer . The Congress deserves no better marks on this score and is more to blame. Their latest concern for the high steel and cement prices is also with the intention of helping the rich who actually require these material for building palatial houses. The Indian poor villager builds his hut with locally available material with his own hands but suffers for lack of availability of food grain locally as the govt.’s long arm takes away all stocks by offering support pries to the rich farmers who have surplus to sell.
The marginal farmer actually requires to buy some part of the total need for the food grains. The govt. than designs in his name to offer the rotten stuff at cheaper rates through distribution mechanism meant for BPL (below poverty line ) house holds but after adding the transportation , administrative , storage and pilferage costs and fails o deliver in the end. Isn’t a great mockery of matters when the world has many more highly rated business, political and economic schools. How can an exercise of this nature which takes away some thing locally consumable to long distances first and brought back be useful for any body. Procurement at support prices is never an answer. This in fact distort many a things and put the land to irrational use. The benefits to the poor and the needy farmers should be coming directly.
By direct I mean that the revenue collected through income tax and excise duty on luxury items should come to be spent for direct benefit of the target section of society , with least cost involved. Incurring insurance expenditure for coverage of the standing crops and live stock, for the coverage of the life risk of income earner of the poor families and for such other matters should be from the exchequer . This will leave an accounting trail and a record of payment made towards relief. The natural and man made calamities are the real things that hurt an house hold the most.
Hari Om
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