Do it yourself

The dismal GDP growth data for 1QFY20 released last Friday has fueled a multitude of debates in the country. Most of these debates could be classified in three categories, viz., 1.     Political Debate: Whether the incumbent NDA government led by PM Modi has failed in handling the economy properly? The debate encompasses a variety of issues, e.g., (i) whether demonetization and GST have impacted the growth momentum so severely that it may take many years to recuperate from the side effects; (ii) whether the government is focusing on too much on political issues ignoring the evident socio-economic concerns; (iii) whether the Narendra Modi administration has adequate talent to manage a economy in serious crisis; and (iv) whether UPA government led by Dr Manmohan Singh managed the economy well or is it due to the vacuum created by that government that the current government is trying hard to fill? The former Prime Minister Dr Manmohan Singh has acti...

Suggestions for stimulating the economy The number of people cautioning about a deeper and longer economic slowdown in India is rising by the hour. Tata Motor's management has guided for double digit fall in automobile sales in FY20 ( see here ). Most auto companies have announced shut downs; some have also announced significant reduction in the employed workforce. SBI chairman is insisting on urgent need for some stimulus in almost each of his public presentations ( see here ). Most other senior banks and industrialists have also sounded the caution begul ( see here ) The stock markets have corrected sharply in past one year; though the benchmark indices may not be reflecting the correction as yet. The wealth erosion for investors has been material. The market participants are clamoring hard for a stimulus package to bring the economy and market back on path of high growth. Whereas, most businessmen and market participants have echoed the demand for stimulus...

Some food for thought "When my cats aren't happy, I'm not happy. Not because I care about their mood but because I know they're just sitting there thinking up ways to get even." —Percy Bysshe Shelley (English Poet, 1792-1822) Word for the day Intellection The action or process of understanding; the exercise of the intellect; reasoning.   First thought this morning Home Minister Shri Amit Shah made an emphatic speech in the Parliament in support of government's decision to change the constitutional status of the state of Jammu & Kashmir. It sure is a historic and very brave step. The government, especially the prime minister and the home minister must be commended for this unconditionally. I am sure with this determination, the government will be able to execute this decision as planned paving the way for overall development and growth the region. The reply of the home minister to the debate...