From PLI to one of the lowest corporate tax what more pvt sector need to invest in economy, if they don't invest govt should roll back benefit from some of these industries and focus more on those who are contributing to manufacturing
Excellent point it seems every part of the Indian society has an unending hunger for government support. The only support government should provide after this should be institutional change not financial help.
Watch the ending again. The last 3 minutes. In past whenever someone from industry has said anything there is a huge fight back by govt. And trolling on the internet comes additional. I don't remember the name but once a big corporate leader, I think from Bajaj(not sure) said something in a meet, and all ministers started giving out statements.. Now Asian paints in its last con call said something regarding growth in consumption and the company had to immediately taken the words back and give out a explanation. Also PLI schemes are designed in away that you have to reach a production level too high in a small time and companies who can game the system. To be eligible and so the big corporates can avail the benefits by using their deep pockets. But smaller manufacturer can't. A good example is EV manufacturing. Bajaj, ola got PLI subsidy but ather can't. Bajaj has deep pockets and ola let's quality forgotten and only focus on increasing capacity... Ather on the other hand focus on quality and doesn't have deep pockets to enhance production at the rate govt wants them.. so they are not eligible.. Companies but foreign parts in pieces and sell them to another and than to another and then to another and do it 3-4 times and then the original customer will buy it and call it local sourcing and assemble it and collects PLI cheques..
To clarify, PLI is a great scheme... But needs some tweeks... Electronics industry was the best example that PLI is working... Not only mobiles but other electronics includings routers, switches, telecom items, etc.
@@hindeshrai8787 Creating the environment in the nation, for investors to invest in new businesses without fear of agencies, & reducing the cost of living and increasing the quality of life, are literally the job of govt. Why do we elect leaders to highest seat to give them all the power , if they can't do their job? If they can't even help the hard working citizens of the nation who asking for help instead of heavy taxes on everything
PLI scheme was always a bandaid solution to the problems ailing Indian Manufacturing sector. The real solution was to fix the underlying structural issues like complicated Tax and Land laws, poor Judiciary, poor enforcement of legal contracts, high costs of basic necessities like Electricity, Water, Transport etc. GOI has not fixed any of them yet 🤷
I am a pessimist. Indian capital will not invest in India. I hope Atmanirbhar is a government's way of getting the naysayers along or keeping those against foreign capital at bay. The private sector will not allow foreign capital to come to India. We will have to learn from Japan and the US. Unfortunately, both these countries responded to crises (WW2 and The Great Depression). South Korea has not succeeded perhaps it probably did. not undergo such an extreme event. The Dutch or the UK worked their problems out of engaging the private capital - the end result is a more prosperous population. I hope we do not end up like - Malaysia, Thailand, Indonesia, Brazil, Turkey, Iran, France, Italy, Greece, and Mexico. These countries though richer than India, have been perennially developing or emerging (except France and Italy) for the last 100 years. How can India lead itself?
With the kind of welfarism we have, expect us to become ASEAN's poorer cousin. Only impacts with giant geopolitical icebergs can make us change course.
According to me, The bad marriage started when the Modi government gave 1.5 Lakh crores tax benefits per year to corporate India. And that was a bad decision by Modi government when demand was less. This money should have been given to people which could have raised demands and even big companies could have got more demands and more revenue.
That would have caused inflation and brought the govt down. Look at what happened in UK. Rushi Sunak gave out cash through his furlough scheme, and they ended up with a cost of living crisis India has supply-chain bottlenecks, that have to be addressed. Without that, cash stimulus will only cause inflation. And jobs will get created in China where the factories exist.
Though government has decreased corporate Tax rate, it has increased dividend tax. From earlier 20% to now 39% (MMR). Please bring down dividend tax to 20%. With surcharge and cess it will be tax of 51.168% down from 64.168%
Nice analysis. As you said in 2021, the corporate debt decreasing while the fiscal deficit increasing presented an interesting paradox. Wouldn't it be wise of GOI to save the kids with the help of its spouse? GOI announced a moratorium on personal loans. Wasn't it possible for the government to extend the same benefit to the corporate sector in exchange to save jobs. FM said in the parliament that they had to choose between lives & livelihoods and they chose the former. What the government failed to understand is even that choice is a luxury which many people in India didn't have
With globalisation coming to a halt worldwide, capital will be at a premium everywhere. We need to loosen regulations and reduce roles of babus and judges for business for the time being.
Instead of govt spending on free ration,free electricity,ladki bahen scheme, if spending is done on building skill,i mproving education standard, helping MSMEs,incentivise investment and curbing corruption, lit more can be achieved.
Union govt have increased & increased prices at the pump for a decade, even after years of getting cheap Russian oil & fm said oil corporations are making record profits, but why has that not tickling down to consumers? It would be best for union govt to invest in R&D in agriculture in state universities to overcome effects of climate changes. It also means better equipments for farming (which has the side benefit of also helping in defence). Create modern IPs & help private sector, who can't/won't do these things. However, Union govt budget has reduced r&d to 0.6% of gdp. Nothing but slogans.
The cost of living is increasing. Price of vegetables are going up. In last 10 years, many projects have got delayed, because Govt corruption is rampant, while private businesses are facing harassment & extortion from Govt agencies. Informal sector suffered heavily due to note ban, new gst, covid pandemic lockdown etc. The ruling Party said UP would become Kyoto in 5 years. Instead, there are big rail accidents & infrastructure failures every day. If India has to beat China, make UP more like Karnataka instead of making rest of India like UP raj. Our current is expert in appearing in the media to make big claims or steal credit from others. Increasing taxes on common people lead to low demand. Some signs are fall in two wheeler purchases & cars aimed for masses, not being sold. So there is reduced investments. While lowering taxes puts more money in people's pockets & increases consumer confidence. This increases consumer demand, allowing businesses to expand capacity, create jobs, & stimulate growth. This creates a positive cycle of economic growth & gov's revenue also increases, allows them to invest in the future. If govt or fm makes wise choices, then we can create a positive future.
The key is this govt is run by 2-3 ministers and by bureaucrats only who have no hold of ground realities..... And bureaucrats are mirred in corruption and enjoying unprecedented power by pressing down private sector.... This government doesn't listen to any critisicm or reality....
Private sector wants corruption -- They want quick clearances without inspection -- Pollution control should close their eyes , Labor department should say ALL IS WELl etc.. Private sector is ready to bribe and get the work done easily -- This doing right things Private sector is not use to
I think govt should first crack down on coaching institutes and levy some retrospective taxes to raise money. Because this whole thing is a scam, that's looting people. Maybe, apply 28% GST to such coaching institutes. And give tax cuts to help increase demand.
to carry on with this quaint analogy - the govt. agencies are playing the role of in laws as no alliance has their blessings. There is no confidence in the executive and their erratic behaviour and overreach
He has a habit of taking potshots and making a mountain of moles of recent problems. The private sector will follow by giving him some time. However, I agree that the services sector is not doing enough to build skills and more jobs. Services companies must diversify and foray into high-end design and consulting for manufacturing products. Manufacturing is doing it bits but can do more.
You conveniently forgot Telangana. The filter is not the state, it is anyone who does things at a scale and most are hesitant to disturb their political balance, even BJP led states.
Bad analogy ... corporate india is more of a groom's family , they want everything perfect ... without investing a zilch. The people of india are the bride's rishtedaar , u just have to be there because the groom's side wants to enjoy and show who is the boss here
In 10 years, Indian corporations got a lower tax rate of 22% & foreign corporations is 35%, resulting in higher income tax for individuals, further burdening the middle class. Being poor is not an attitude problem. India is the only nation where, poorest & middle-class pay 64% & 33% of gst, while industrialists only pay 3% of gst. Some signs are fall in two wheeler purchases & cars not being sold. I remember the ruling Party said, UP would become Kyoto in 5 years. Instead, everyone sees there are big rail accidents & infrastructure failures every day. According to CAG report, 20,000 crores was to be invested, as per last budget, to increase the safety of Indian railways, but only 4,225 crores were released for rail safety. Our current leadership is expert in appearing in the media to make big claims or steal credit from others. The union govt is unwilling to listen to concerns or criticisms. They appear to be disconnected from reality. After all, they have direct access to divine knowledge. Instead of addressing these issues, they are expert in burying their heads in the sand. According to them, everything is fine, Manipur is peaceful, there's no infiltration in J&K, China didn't attack in Ladakh, exam papers aren't leaked, rail accidents don't happen, farmers aren't struggling, & students aren't protesting. Essentially, they never take accountability as they love to lie. If the leader or party in power seat, wants to spread fear, they plants seeds like draconian criminal laws, mocking artists as elite, silencing journalists & legalize abuses by police (to pick people up & merciless beat protestors). The Bangladesh crisis has lessons for us. As a result, the grass begins to live in the post-truth reality that it's the tallest coz there are no trees around. You can't expect to grow happy in such environments. Talented individuals will just go to west with far better pay & many jobs. However, if the top leader, wants peace, then plant those seeds. China transformed their country from a developing nation into a developed one when they had highest youth population. While will blame our highest youth population. Fm said that corporations in India, are making record profits, but not investing & hiring; because they see no demand. There no rise in consumption as people have less & less money in their pockets.
India is the only country where the poor & middle class pay more in total collected taxes to the govt. Why is union govt, giving low tax to corporations? meanwhile for poor & middle class there is taxes on everything.
@@xxyz2023 India is not the only country in usa it's the same story. In india it's different because we have a huge poor population which needs khata-khat scheme which needs money. It will be same in the congress regime also.
@@satviksingh8426In 10 years, Indian corporations got a lower tax rate of 22% & foreign corporations is 35%, resulting in higher income tax for individuals, further burdening the middle class. Being poor is not an attitude problem. India is the only nation where, poorest & middle-class pay 64% & 33% of gst, while industrialists only pay 3% of gst. Some signs are fall in two wheeler purchases & cars not being sold.
@@satviksingh8426 Our union govt is unwilling to listen to concerns or criticisms. They appear to be disconnected from reality. After all, they have direct access to divine knowledge. Instead of addressing these issues, they are expert in burying their heads in the sand.
![ตีสิบเดย์ [FULL] | เปิดใจ "อาจารย์ เบียร์ ฅนตื่นธรรม" นักสนทนาธรรมสายดุดัน!](http://i.ytimg.com/vi/vqaBI_mnoDk/mqdefault.jpg)
Lack of investment by Private Sector is a major issue. I am seeing that India is definitely going to sign more and more FTAs
There is no demand from consumers. Hence private investment low
From PLI to one of the lowest corporate tax what more pvt sector need to invest in economy, if they don't invest govt should roll back benefit from some of these industries and focus more on those who are contributing to manufacturing
Excellent point it seems every part of the Indian society has an unending hunger for government support. The only support government should provide after this should be institutional change not financial help.
Watch the ending again. The last 3 minutes.
In past whenever someone from industry has said anything there is a huge fight back by govt. And trolling on the internet comes additional.
I don't remember the name but once a big corporate leader, I think from Bajaj(not sure) said something in a meet, and all ministers started giving out statements..
Now Asian paints in its last con call said something regarding growth in consumption and the company had to immediately taken the words back and give out a explanation.
Also PLI schemes are designed in away that you have to reach a production level too high in a small time and companies who can game the system. To be eligible and so the big corporates can avail the benefits by using their deep pockets.
But smaller manufacturer can't. A good example is EV manufacturing. Bajaj, ola got PLI subsidy but ather can't. Bajaj has deep pockets and ola let's quality forgotten and only focus on increasing capacity...
Ather on the other hand focus on quality and doesn't have deep pockets to enhance production at the rate govt wants them.. so they are not eligible..
Companies but foreign parts in pieces and sell them to another and than to another and then to another and do it 3-4 times and then the original customer will buy it and call it local sourcing and assemble it and collects PLI cheques..
To clarify, PLI is a great scheme...
But needs some tweeks...
Electronics industry was the best example that PLI is working...
Not only mobiles but other electronics includings routers, switches, telecom items, etc.
@@hindeshrai8787 Creating the environment in the nation, for investors to invest in new businesses without fear of agencies, & reducing the cost of living and increasing the quality of life, are literally the job of govt.
Why do we elect leaders to highest seat to give them all the power , if they can't do their job? If they can't even help the hard working citizens of the nation who asking for help instead of heavy taxes on everything
PLI scheme was always a bandaid solution to the problems ailing Indian Manufacturing sector. The real solution was to fix the underlying structural issues like complicated Tax and Land laws, poor Judiciary, poor enforcement of legal contracts, high costs of basic necessities like Electricity, Water, Transport etc. GOI has not fixed any of them yet 🤷
I am a pessimist. Indian capital will not invest in India. I hope Atmanirbhar is a government's way of getting the naysayers along or keeping those against foreign capital at bay. The private sector will not allow foreign capital to come to India. We will have to learn from Japan and the US. Unfortunately, both these countries responded to crises (WW2 and The Great Depression). South Korea has not succeeded perhaps it probably did. not undergo such an extreme event. The Dutch or the UK worked their problems out of engaging the private capital - the end result is a more prosperous population. I hope we do not end up like - Malaysia, Thailand, Indonesia, Brazil, Turkey, Iran, France, Italy, Greece, and Mexico. These countries though richer than India, have been perennially developing or emerging (except France and Italy) for the last 100 years. How can India lead itself?
With the kind of welfarism we have, expect us to become ASEAN's poorer cousin. Only impacts with giant geopolitical icebergs can make us change course.
Epic explanation!! Please do more of this Sharad. A little theatrics always keeps the listener engaged :)
According to me, The bad marriage started when the Modi government gave 1.5 Lakh crores tax benefits per year to corporate India. And that was a bad decision by Modi government when demand was less.
This money should have been given to people which could have raised demands and even big companies could have got more demands and more revenue.
That would have caused inflation and brought the govt down. Look at what happened in UK. Rushi Sunak gave out cash through his furlough scheme, and they ended up with a cost of living crisis
India has supply-chain bottlenecks, that have to be addressed. Without that, cash stimulus will only cause inflation. And jobs will get created in China where the factories exist.
Interesting analogy. I appreciate you putting so much creativity in bringing out this piece.
Though government has decreased corporate Tax rate, it has increased dividend tax. From earlier 20% to now 39% (MMR). Please bring down dividend tax to 20%. With surcharge and cess it will be tax of 51.168% down from 64.168%
Incisive Analysis, excellent work Mr T.C.A. Raghavan.... The patience is wearing thin.....
Nice analysis. As you said in 2021, the corporate debt decreasing while the fiscal deficit increasing presented an interesting paradox. Wouldn't it be wise of GOI to save the kids with the help of its spouse? GOI announced a moratorium on personal loans. Wasn't it possible for the government to extend the same benefit to the corporate sector in exchange to save jobs. FM said in the parliament that they had to choose between lives & livelihoods and they chose the former. What the government failed to understand is even that choice is a luxury which many people in India didn't have
With globalisation coming to a halt worldwide, capital will be at a premium everywhere. We need to loosen regulations and reduce roles of babus and judges for business for the time being.
Instead of govt spending on free ration,free electricity,ladki bahen scheme, if spending is done on building skill,i mproving education standard, helping MSMEs,incentivise investment and curbing corruption, lit more can be achieved.
Union govt have increased & increased prices at the pump for a decade, even after years of getting cheap Russian oil & fm said oil corporations are making record profits, but why has that not tickling down to consumers? It would be best for union govt to invest in R&D in agriculture in state universities to overcome effects of climate changes. It also means better equipments for farming (which has the side benefit of also helping in defence). Create modern IPs & help private sector, who can't/won't do these things. However, Union govt budget has reduced r&d to 0.6% of gdp. Nothing but slogans.
The cost of living is increasing. Price of vegetables are going up. In last 10 years, many projects have got delayed, because Govt corruption is rampant, while private businesses are facing harassment & extortion from Govt agencies. Informal sector suffered heavily due to note ban, new gst, covid pandemic lockdown etc. The ruling Party said UP would become Kyoto in 5 years. Instead, there are big rail accidents & infrastructure failures every day. If India has to beat China, make UP more like Karnataka instead of making rest of India like UP raj. Our current is expert in appearing in the media to make big claims or steal credit from others.
Increasing taxes on common people lead to low demand. Some signs are fall in two wheeler purchases & cars aimed for masses, not being sold. So there is reduced investments. While lowering taxes puts more money in people's pockets & increases consumer confidence. This increases consumer demand, allowing businesses to expand capacity, create jobs, & stimulate growth. This creates a positive cycle of economic growth & gov's revenue also increases, allows them to invest in the future. If govt or fm makes wise choices, then we can create a positive future.
@@xxyz2023chutiya fake data kiu dikha raha 🤣
The key is this govt is run by 2-3 ministers and by bureaucrats only who have no hold of ground realities..... And bureaucrats are mirred in corruption and enjoying unprecedented power by pressing down private sector.... This government doesn't listen to any critisicm or reality....
Private sector wants corruption -- They want quick clearances without inspection -- Pollution control should close their eyes , Labor department should say ALL IS WELl etc.. Private sector is ready to bribe and get the work done easily -- This doing right things Private sector is not use to
😂😂 Deadly Opening
Agree 💯
Excellent thought, which is so true and relevant. But does the government listen to anyone?
None
Loved the analogy TCA! Feels fresh to hear that from u
I think govt should first crack down on coaching institutes and levy some retrospective taxes to raise money. Because this whole thing is a scam, that's looting people. Maybe, apply 28% GST to such coaching institutes. And give tax cuts to help increase demand.
Nice analogy, I hope both parties will follow this advice
I think private industry is already seeing recession signs and so refuse any serious investments.
Awesome analysis and analogy!
to carry on with this quaint analogy - the govt. agencies are playing the role of in laws as no alliance has their blessings. There is no confidence in the executive and their erratic behaviour and overreach
Good analogy and analysis 😊
He has a habit of taking potshots and making a mountain of moles of recent problems. The private sector will follow by giving him some time. However, I agree that the services sector is not doing enough to build skills and more jobs. Services companies must diversify and foray into high-end design and consulting for manufacturing products. Manufacturing is doing it bits but can do more.
Genuinely the funniest column!
Private sector for this government only includes those incorporated in Swarna state of Gujarat
You conveniently forgot Telangana. The filter is not the state, it is anyone who does things at a scale and most are hesitant to disturb their political balance, even BJP led states.
Who's going to be the councillor?
Its good.
More facts could have been added.
Bad analogy ... corporate india is more of a groom's family , they want everything perfect ... without investing a zilch. The people of india are the bride's rishtedaar , u just have to be there because the groom's side wants to enjoy and show who is the boss here
6:52...Explosive
I mean.. I get the idea... but the marriage/relationship analogies hit too close to home.
INCREASE CORPORATE TAXES
Its not the government, its the babus. They are the in laws in this marriage
In 10 years, Indian corporations got a lower tax rate of 22% & foreign corporations is 35%, resulting in higher income tax for individuals, further burdening the middle class. Being poor is not an attitude problem. India is the only nation where, poorest & middle-class pay 64% & 33% of gst, while industrialists only pay 3% of gst. Some signs are fall in two wheeler purchases & cars not being sold.
I remember the ruling Party said, UP would become Kyoto in 5 years. Instead, everyone sees there are big rail accidents & infrastructure failures every day. According to CAG report, 20,000 crores was to be invested, as per last budget, to increase the safety of Indian railways, but only 4,225 crores were released for rail safety. Our current leadership is expert in appearing in the media to make big claims or steal credit from others.
The union govt is unwilling to listen to concerns or criticisms. They appear to be disconnected from reality. After all, they have direct access to divine knowledge. Instead of addressing these issues, they are expert in burying their heads in the sand.
According to them, everything is fine, Manipur is peaceful, there's no infiltration in J&K, China didn't attack in Ladakh, exam papers aren't leaked, rail accidents don't happen, farmers aren't struggling, & students aren't protesting. Essentially, they never take accountability as they love to lie.
If the leader or party in power seat, wants to spread fear, they plants seeds like draconian criminal laws, mocking artists as elite, silencing journalists & legalize abuses by police (to pick people up & merciless beat protestors). The Bangladesh crisis has lessons for us. As a result, the grass begins to live in the post-truth reality that it's the tallest coz there are no trees around. You can't expect to grow happy in such environments. Talented individuals will just go to west with far better pay & many jobs.
However, if the top leader, wants peace, then plant those seeds. China transformed their country from a developing nation into a developed one when they had highest youth population. While will blame our highest youth population. Fm said that corporations in India, are making record profits, but not investing & hiring; because they see no demand. There no rise in consumption as people have less & less money in their pockets.
@@xxyz2023 agree on all points. Well said
😂 politicians control babu like servants, I am a beaurocrat . Indians just want to save their favourite politicians 😂. Keep living in bubble.
Every weeknone new large factory is coming up in Tamil Nadu
These people will keep crying till 2030, then suddenly start saying that India is the greatest manufacturing now.
Totally shameless.
Nice Explaination😮
Perhaps things might have been kept on a more even keel if Sweden's covid policies had been carefully studied and implemented ?
Fake narrative always. 😢
Lovely analysis ❤
Your real name shud be MDRCD
Rubbish
Bjp shouldn't take huge fund from corporate india
Corporate india shouldn't take benefits from government.
India is the only country where the poor & middle class pay more in total collected taxes to the govt. Why is union govt, giving low tax to corporations? meanwhile for poor & middle class there is taxes on everything.
@@xxyz2023 India is not the only country in usa it's the same story. In india it's different because we have a huge poor population which needs khata-khat scheme which needs money. It will be same in the congress regime also.
@@satviksingh8426In 10 years, Indian corporations got a lower tax rate of 22% & foreign corporations is 35%, resulting in higher income tax for individuals, further burdening the middle class. Being poor is not an attitude problem. India is the only nation where, poorest & middle-class pay 64% & 33% of gst, while industrialists only pay 3% of gst. Some signs are fall in two wheeler purchases & cars not being sold.
@@satviksingh8426 Our union govt is unwilling to listen to concerns or criticisms. They appear to be disconnected from reality. After all, they have direct access to divine knowledge. Instead of addressing these issues, they are expert in burying their heads in the sand.
Non sense narrative 😂