India UnInc - The Small People

In the past I have recommended a few books I considered a good read. Beginning now I will sometimes write about good books that I come across that have concerns of India at heart. India UnInc is one such book.

Santa Claus is a much celebrated figure. He is the one who is dressed up and is seen all around during Christmas. But in his hometown somewhere in the North Pole, it’s the little ‘Elves’ who keep the wheels turning at his gift-factory. They’re the ones who also maintain his sled and reindeer. The story of elves is not going to be told as often. The story of Indian economy is somewhat similar. I believe there are two economies; one is the political economy and the other is the “real” economy. The political-economy pays a lot of attention to the corporate sector but the real economy comprises both the corporate and the unorganised sector as also the “unincorporated” sector. This is the story that “India UnInc” looks at in the just-released book by Prof R. Vaidyanathan (RV). The book looks at the whole UnInc industry with facts and figures and a narrative that is enjoyable to read.

There are organised and unorganised sectors in our economy which are recognised. Both sectors are usually registered under some Central or State legislations and maintain regular books of accounts and file returns. The UnInc constitutes all the other “small people”, partnerships or proprietors (P&P as RV calls it). This sector can include your corner-pan-shop, barbers, carpenters, plumbers, rickshaw-pullers and even CAs, architects, lawyers and so on. These are non-agricultural and non-governmental in nature. To give you an idea of how this sector keeps the wheels of Indian economy turning let me quote from the book:

The Unincorporated sector in India contributes about 45% of the national income, which, by far, surpasses the corporate sector’s contribution of about 15% and yet its contribution remains unacknowledged. Also, it is important to note that the estimates of this sector in manufacturing and services need to be more accurate.

RV hilariously tells us how national planners and economy-analysers sometimes use POTA in their studies or analysis of this sector and economy in general. No, this is not that POTA, this POTA is data “Pulled out of Thin Air”. He states: “We observe that the non-corporate service activities, which, in turn, constitutes nearly two thirds of our economy. These are also the fastest growing activities. So justifiably, it is the non-corporate sector that should be termed ‘the engine of our economic growth’ and the Indian economy be called the partnership and proprietorship economy (P&P economy)”.

Thus RV deals with some myths about our economy that have always surrounded us and led us to believe that the corporate sector is the great backbone of the Indian economy. The truth, as with all myths, is quite different. This is not in any way to dismiss the corporate sector or its deserved place, but to indicate that they get more attention than due. Known for his wit and research RV also makes some stunning points with a good sense of humour: “There is a witty saying in the Army, that to move up in the ranks what needs to be done is “Salute all things moving and paint all things standing”. In the same vein, governments attempt to control and regulate an economic activity if it does not understand it and tax it if it is growing fast”. 

RV also touches upon education concerns of these small people and also how they contribute to many causes; both social and religious for their own community. That they also make a great contribution to savings while managing their own expenses. He writes: “What is really important is that the educational expenses are, in a perverse way, inversely related to the level of education, like KG being more expensive than post-graduation”… Banks do not provide loans for school education but provide for IIM/IIT education”. This is an absurdity in our system. Narendra Modi in his last speech at a BJP meet outlined primary education in his vision statement. RV explains it as giving loans for constructing the second and third floor of a building but not the foundation. I would go further and suggest primary education should be free for all children no matter private or public schools. This freebie or burden is one that we should gladly bear.

Public and media discussions largely centre around macro-economics. This is a reason why you’ll find “eminent economists” like Sagarika Ghose quizzing Modi on US business interests or fiscal deficits. Our lives are related to micro-economics. Even on the issue of reservation in private sector, RV logically explains why SCs/STs would be better served by developing their skills to be entrepreneurs. Indians are gifted at enterprise. This is where govts should be investing energy instead of more and more doles and reservation.

I have met RV a few times and he is a keen observer of the economy and political policies. Apart from being a popular teacher at IIM Bangalore he conveys his messages with a lot of facts and figures and analogies. His articles feature in many newspapers and he often appears on TV as a panellist. We tend to discuss economics in casual conversations with issues that directly affect our everyday lives. This book takes it further for the country and will inevitably become a tool and resource for anyone seeking a deeper understanding and learning of Indian economics of the small people. You can get it as paperback or a Kindle version.

PS: Please vote on the India’s worst journalists poll -2014 (Right margin of this page).

  

Don't Mess With Hindus

One of the greatest modern-day astronomers, the late Carl Sagan stated: "Vedic Cosmology is the only one in which the time scales correspond to those of modern scientific cosmology”. Sagan was an atheist, so religion didn’t influence his findings. Another astronomer corroborated the accuracy of the Vedas by stating that the movements of the stars calculated 4,500 years ago, does not differ by a minute from the tables of today. While scientists have growingly come to acknowledge the Vedas, the basis of Hinduism and Hindu culture, it is our own ‘Fiberal’ Social Scientologists and the ‘Fiberals’ in the media who often heap the most abuse on Hindus and Hindu culture. Some are even ignorant which “invented” religions started the concept of killing for their faith.

Rajdeep Sardesai is a family-man. Like any parent he wants his kids to grow up in an India where no one kills in the name of religion. It’s a nice thought. John Lennon did ask to “Imagine no religion”. But what does Rajdeep have to say to parents who often shower abuse in public with statements like calling Lord Ram a “Divine Encroacher”? What does it teach children when someone calls “Indian males ugly”? What does Rajdeep say when a fellow media crook calls Ram a D***? What does it say about an Editorialist who runs an anti-Hindu channel? What does it say about Editorialists who didn’t report a single communal riot of the NINE in UP in the last 6 months? If Rajdeep wants an India free of religious violence he and his friends in the media must acknowledge that religious-violence wasn’t invented in India. It came from foreign deserts. Rajdeep’s deputy called people on SM “Internet Hindus” as a derogatory term. What does Rajdeep have to say? Well, far from feeling offended Hindus now wear that term as a proud badge much to her annoyance.

This post is not directed at Rajdeep but draws his attention to what he can correct without any help from anywhere. And now Hindus on the net and on the ground are starting to say “enough is enough”. People on Twitter, often called ‘Tweeple’ are now frequently gathering to discuss the media and other social and economic issues. One such meet was held in Bangalore on December 2, 2012 and promoted under the tag #SouthPTC. Prominent speakers were Subramanian Swamy (SS), S. Gurumurty (SG), Prof. R. Vaidyanathan (RV) and MR Venkatesh (MRV). These gentlemen are well-known, well-respected and frequently appear on TV panel discussions. They were also joined by many Tweeple in making presentations. Here’s a report on the meet sent in by N. Suresh (@Surnell). The report is in Suresh’s own words and I have only edited it for length. Invite you to read:

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Gurumurthy (speaking), Seated: R.Vaidyanathan, S.Swamy

SS delivered the opening address (full speech on Youtube). Reclaiming and revival of the empowerment of educated classes made possible by the power and reach of Internet was the dominant theme of the address. An important point made was about the value system of India that everyone aspires and subscribes to, to be known as “Educated Class” He further acknowledged the power of this educated intellectual class who are quite knowledgeable and data hungry. With this knowledgeable crowd, India can progress enormously if right policies are in place. He emphasized that it is wrong to refer India’s Growth rate as Hindu rate of growth whereas it actually should be called Communist rate of Growth since we followed Soviet model. He added that when they said 3.5% is the best we can achieve, a policy change through economic reforms resulted in 9.5% growth. It is not enough to be educated, we need to have spine too. It is not about numbers, not about being strong, “It is all an issue of Mindset, which is the whole idea of this Conference – The Mindset, the Mindset required to make India Great once again”.

The main part of the address focussed on various dimensions of Politics viz Votebank issues, Religion, Law and Order, Economic issues, International Issues and others. He dwelt in detail on the threat to National Security due to Influx of Bangladeshis which is changing religious composition in districts of Assam.  Dr Swamy then dealt with issues facing the Nation starting with Corruption – the overriding issue today. Every problem India faces today can be traced to corruption and then other issues like National Security and Lopsided Investment priorities

SG (Full speech on Youtube) then addressed the gathering on Culture, Values and Development where he focussed on how India and China were the leading economy in 1750s (together >50% of Global output) and US was just 0.1% of the Global GDP. India’s share crashed from around 25% to 1.8 and China’s to 6%  Even Japan then fastest growing economy had to import spinning technology from India as late as 1880s. During peak economic crisis when Government almost lost hopes on the economy, banks lost hopes, travelling across various Industrial clusters of India – it was realized that our economic strength was not in Mumbai, Delhi, Kolkatta or other big cities. Highest per capita income was not in these places including Bangalore (which has recently caught up with Global economic forces). It was in Gujarat which has achieved it year after year for last 2 decades. He says “In 10 years my economic ideas, social idea, relation between Society-Economics, Culture-Economics and People-Economics underwent complete change”. In reference to a speech in IIT-Mumbai, he expressed regret that Institutes of Higher Learning that produces these Intellectual leadership of India who interface with the world has minimal understanding of India and Indian Society which has impacted our Economic, social, political and academic thinking which calls for a shift in our mindset. 

He quoted reputed rating agencies criteria for India’s growth potential – Family Savings which accounts for 18-20% of our GDP. Dr Jagadish Bhagawati a reputed Economist advised Dr Manmohan Singh, FM during 1992-93 crises that the only way to emerge out of this crisis is to dip into this Family savings and get families to spend more – in short convert miserly women in the families into spenders instead of savers. Though Government obliged the real India did not oblige, they maintained the culture of saving, traditions, morals and values because that is how for centuries we have been trained, that is how our literature, culture and spirituality are.

Prof RV (full speech on Youtube) then addressed the Tweeple on the Way forward and actions thereof post Conference. He broadly touched upon 3 areas – Academic Institutions, Media and Global Finance for immediate focus. The Academic Institutions have lost out due to influence of a Left leaning Minister for HRD during 1973 period set up 14 Research Centres across India to serve as feeder centre for all major universities of the country.  The effect of that action is being felt today in the Universities where a close knit group of left liberal thinkers – a no-entry to outsiders kind of a mutual admiration society dictate the sociology and history of what forms academics of University (for instance Historian Ramachandra Guha’s India after Gandhi doesn’t even mention Sardar Patel and similarly in his latest book says SP Mukherjee is solely responsible for Kashmir issue).

It is essential to create think-tanks across the country on various specialized topics like Defence, Foreign Affairs who can then become thought leaders and pressure groups in due course. Unlike other professional bodies like Medicine, Accountancy etc there are no regulatory bodies to regulate Social Scientists.  Retrieving Social Science studies to reflect the right history, culture and tradition is the first focus task. Coming to next focus point which is Media that includes Visual, Print and Social Media. Social media has a fairly significant presence of Patriots, reason why the Main Stream Media is jittery and feeling insecure by these 140 character assault from Social media. In order to make a presence and impact, RV stated Gurumurthy is working towards establishment of a Visual Media. The other focus area is to compel the Government to open up Radio Medium. The final focus is on recreating Global Financial Architecture.

There were presentations from Tweeple groups on various Subjects. 1) “What ails Indian Media” 2) Women-Right or Respect 3) Section 66A of IT Act – Its implications and 4) Dharma/Spirituality. Q&A followed every presentation. See Tweeple’s presentation here

The Tweeple team, Bangalore, December 2, 2012

MRV (full speech on Youtube) then took the podium to address on FDI/FII – Implications for India. He demonstrated how the whole investment was not from foreign sources from our 36% household savings which is also drove the Macro-level Economic growth. The FDI/FII that has come so far is less than 2% and Goldman Sachs studies say Indian Investments in infrastructure predominantly comes from Indians. In the list leaked by the Ex-Employees of HSBC, Zurich - 700 are Indians which most probably would have got settled in Settlement Commissions of IT Department.  Agreeing with Kerjiwal who said it is easier to transact in HSBC, Zurich than Operating in SBI. Despite HSBC being considered a rogue bank by every country, RBI Governor’s silence is baffling. More damning was the complicity of Mauritius route for money laundering where a residence certificate or registering a company is possible with low investment on paper.

When Politicians, Ministers and reputed Banks indulge in such acts silence of finance ministry is worrisome. Drawing a parallel to a verse in Bhagavad Gita where Lord Krishna describes the immortal soul says, Weapons cannot cut me, Fire cannot burn me, Water cannot drench me and Wind cannot dry me – the same is the case with Hawala money– IT Commissioner cannot touch me, ED cannot issue notice to me, RBI cannot question me,  SEBI will not know anything about me. Money laundering is canonised by Media and the FDI proponents as item of huge reverence. On the ruins of the West India will rise. World crumbling is an opportunity, India not rising enough is the challenge. We have a challenge and responsibility to educate and ensure that discourse and debate on FDI/FII is based on facts.

Prof Vaidyanthan stated the Abrahamic faiths have originated from desert whereas our culture is River-bank based. He continues “from being a reactive to agenda set by others, we should set the agenda and get MSM to respond to us”. He concluded by saying “These Internet Hindus or Cyber Hindus are united by a larger national concern and not paid groups” and hence they are unstoppable, will multiply and flourish and send a clear message: Don’t Mess With Hindus”

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No entity less than the Supreme Court, in February 2011, observed the prejudice and discrimination by the so-called “sickular” govts when it said: “…Government's attempts to reform personal laws don't go beyond Hindus who have been more tolerant of such initiatives”. (Read the full report)

“Don’t mess with Hindus” is not a call to arms. It’s not a “3rd wave” call like that of Owaisi’s. It just warns the social scientologists, anti-Hindu media, Eminent Historians who faked and lied about Indian history and the Macaulay Putras and Putris to stop abusing Hindus and Hinduism. It’s a message not to take the ‘tolerance’ that the SC observes for granted.