September , 2020
12:05 pm

Dr. H. P. Kanoria

Dear Readers,

Bharat: In the ensuing fortnight Bharatwasis will be celebrating the coming of Mother of Universe – Mother Durga on the Earth with worship and devotion. Despite Covid-19, the festival season signals hope. It is expected that people will be engaged in the purchase of new dresses, jewelleries, durables, decorative items, and others. Mother Durga will be riding on the lion killing Mahisasur, the dreaded asura. Let’s pray this time Mother Durga kills the ‘coronasura’ too.Accompanying Mother Durgawill be Lord Ganesha, Lord Kartikeya, Mother Lakshmi and Mother Saraswati.

Lord Ganesha is worshipped globally to make an enterprise a success and for prosperity Lord Kartikeya is also worshipped as a destroyer of evil. He symbolizes strength, relinquishment, non-attachment and love and unity of the family. Mother Lakshmi, wife of Lord Vishnu, lives in the house of the pure, righteous, those observing austerity and simplicity, engaging in the service of humanity, and are conscious of Lord Vishnu (Narayan) along with Mother Lakshmi. Mother Saraswati is the expeller of ignorance, granter of wisdom, power, talent, intuition, and the creative arts. Remember them not only in calamities but also in happiness and prosperity.

Due to financial constraints, people will still be purchasing merchandise as a matter of auspicious purchases. Due to Covid-19, marketing has been shifting to e-commerce. Giant e-commerce companies like Reliance, Walmart, Flipkart, Amazon, and others are having the major slice of marketing. Retailers have been affected greatly. This has social and economic impact. E-commerce marketing has become convenient, safe, and hygienic.

Bharat Economy: Prime Minister Modi and Finance Minister Nirmala Sitharaman have been taking several measures to revive the economy and save it from further steeper fall. There is a likely erosion of ` 20 trillion of output in a year. India has fallen to the 105th place from the 79th in Global Economic Freedom Index. Government is still continuing to play on overbearing role in many sectors. The institutions of world powers show support for economic freedom. Moody’s & Care ratings have cut the country’s GDP estimates for the financial year 2020-21. Moody’s expects India’s real gross domestic product (GDP) to contract 11.5% in 2020-21. Care Ratings also cut its forecast to a contraction of 8-8.2% compared to its earlier estimate of a 6.4%contraction. This will result in weaker government revenue and the fiscal deficit could be as high as 12% of the GDP.

Jamie Dimon, Chairman and CEO of JPMorgan Chase, the largest of the big four American banks, has said that despite the Covid-19 pandemic, India can aspire for 7% growth soon with consistent policies and fair treatment of international capital. Bharat’s wealth creators have been bearing the brunt of government policies and actions. It is not easy to start and conduct the affairs of a business. Greenfield projects are becoming victims of debt burden due to the time-taking process for multiple approvals. Since several years, investments have stagnated in the private sector.

Among ten large emerging growing markets, India has fallen to the fifth position from the third as a result of the 23.9% contraction in the GDP. China grew by 3%. Exports have fallen. 

Corporate: Corporates have been making efforts to make Bharat Atmanirbhar. They are worried about the low demand. Their revenues have fallen. Profit may not fall due to cost-cutting measures and pruning

of employment.

Most of the wealth creators do not have the financial muscle for investments and are averse to taking debts. Many are selling part of their stakes to overseas investors.

Restructuring and moratorium on the debts with simple interest for 3 years will help in the growth of economic activities and investments, too. Government needs to stretch itself for productive spending, i.e., investment for wealth creation instead of granting doles, which may cost over ` 3.5 trillion or 1.7% of the GDP.  

Finance and banking: Former bankers and bureaucrats have recommended privatisation of public sector banks. Privatisation is not the solution. It will further block the flow of fund for investment. Initial public offerings for certain issues are being oversubscribed by 200 times or more. Government should come for the public issue of the public banks.

The Finance Minister has taken positive steps to further decriminalise several corporate laws giving peace of mind to wealth creators for minor lapses. The Finance Minister is also not so sure about V-shaped recovery as people are spending less and less due to extreme uncertainty. She further said that the companies which have Corporate Social Responsibility (CSR) spending obligations up to ` 50 lakh would not be required to constitute a CSR committee, thereby creating savings to the company and getting a breather, too.

NBFCs: So far large NBFCs have been supported by the government and the banks. Medium and small NBFCs also need support by way of restructuring of their loans as they are not getting payments from the large companies, PSUs, government and others and their works are not in progress. Falling demand has affected them seriously.

Prime Minister Modi has initiated the mission Karmayogi by adopting the bill, National Programme for Civil Services Capacity Building (NPCSCB). The mission is to skill the administrator with adequate knowledge and equip them to meet the challenges and play the role of serving humanity rather than as be a ruler. Ultimate aim of the programme is to guarantee ‘Ease of Living’ for all citizens, ‘Ease of Doing Business’, and ‘Citizen Centricity’. This was the message of Lord Krishna to Arjuna in the battlefield of Kurukshetra, “Be a Karmayogi. Perform duties/ work to the best of ability, selflessly and fearlessly.” To paraphrase what Swami Vivekananda said in 1899: The entire wealth of the world will not alleviate the poverty of a village as people are lazy and lack unity and discipline. With this mission, all Bharatwasis can be Karmayogis; not just the civil servants, but also the policy makers, politicians, and all.

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