How the rich became super rich since liberalisation? Subsidies in Excise duty (141%) and Customs (146%) are more than the actual amounts collected by the Govt. Excise and Customs subsidies individually are more than the Total subsidies for individuals (Food, Fertiliser, Oil&others).
Govts give these benefits to Corporates in two phases; before & after sales. Before sales massively in Excise & Customs subsidy; after sales, in form of Accelerated Depreciation that covers the sales from Income Tax. Business houses pass only a fraction of it to end customers and huge chunk is swallowed by them and the increase in sales turnover is an indication of it. With those funds they buy more assets i.e. more depreciation i.e.more tax free
Re: HOW RICH BECAME SUPER RICH AND POOR POORER SINCE LIBERALISATI
by Kabeer on Oct 03, 2012 12:33 PM
Contd.....
Now there is a strategy on why the Business houses and their sponsored cronies media houses are clamouring to do away with subsidies. With fiscal deficit going out of hand, the Govt has to take funds away either from subsidies to individuals or cut down subsidies for corporates in Excise and customs duties.
Business houses anticipate this eventuality and are forcing the Govt to do away with subsidies so that their interests are protected at the cost of average citizens.
The Govt can do away with all those subsidies in excise and customs and invest those funds in enriching the poor. When the poor are enriched they will have more disposable income in their hands and that triggers demand for goods.
But the business houses dont want that; they want to be enriched first which is going on now.
The economists instead of pushing for a demand based economy are pushing for supply based economy.
The biggest industry in Customs subsidy is the Diamond industry that accounts for nearly 50%. It is also a well known fact that most of the black money stashed abroad belongs to the diamond industry.
It is the business houses that are funding the political parties like the BJP and Congress and both these parties are catering to the interests of business houses.
Sadly there is no mechanism that confirms that the 90% of excise and customs subsidy is pocketed by business houses.
Govt buys goods from industry and pays more instead of getting the excise, customs subsidies back
Even a Smallest Walmarts store requires minimum 100,000 sq ft to over 150,000 sq. ft of space and 3000 - 5000 Employes. Such big space only avilable outside the city so small MOM and POP shops inside the city has no need worry.
Re: Even a Smallest Walmarts store requires minimum 100,000 sq ft
by Subhrangsu Maitra on Oct 03, 2012 02:11 PM
Yes. Then calculate the overheads required for these assets and tell us how can Wal-Mart give cheaper than a kirana???
It is not misguided, it is the fact. and just stop singing the song that india lives in her villeges. that was in 1940s. now there are malls, like food bazar, big bazare, reliance fresh, vishal mega mart, mega mart ect are in all small and big towns of india. all of them are giving some or other discount to the customer. the number of people going to small shops being reduced drastically due to the mall culture. please think for the future of these small shop owners then think of FDI!!!!!!!!
Re: Fear that FDI will hurt small shops is misguided
by Chatur on Oct 03, 2012 12:52 PM
Why dont you spare a thought when tactics like black marketing, tampering and hoarding are applied to consumers and paying less to the poor farmers produce are resorted to middlemen and kirana guys
Why we hanker for FDI in retail? Because, we do not have capitalism but copytalism in India. We merely copy the west, without thinking the long term consequences. Welcome computer chip makers but not potato chip makers and do not equate two. We have enough technical experstise in India to build cold chains and food processing units and supermarkets. By the way, many supermarkets in UK and Europe are run by cooperatives and not by Wal-mart. Why not copy that ?Let farmers co-operatives run supermarket and eliminate the middleman
Re: Market fundamentalism as bad as commint dogma
by Satyajit Padhi on Oct 03, 2012 11:40 AM
You are very very wrong, the politician will not get huge money from corporates if they go for indigenous solution.!!!!!!!
Why we hanker for FDI? Because we do not have capitalism but 'copytalism' in India. We merely copy what has been done in the West. Welcome computer chip makers but not potato chip makers. Do not equate two.Enough indigenous expertise in building cold chain and food processing and retail in India
Create Cold Storage fecilities at point of produce Refigerated trucks to bring produce to consumption points Increase VAT net Increase I Tax Net Correct Quantity and Quality to consumers Eliminate Middlemen Increase Employment to youth Better working conditions Improve shopping experience to the customer
The article is misleading, we only know that number of poors have increased to 3-4 times comparing to 1950. Why their population is not restricted, why tax payers should bear their cost for such a long time. What Govt. is doing, why a very very big gap is kept in between lowest paid govt. servants and minimum wages one gets(20 times). How long people will be befooled.
Divisiveness is ingrained in Indian psyche which did not allow the subcontinent to become a country like China or Persia or Egypt. Aryans came to India in around 1800 BC and yet in 600 BC, North India was divided into 16 nos of small tribal states whose only concern was their own state. Same thing is happening today – states have been replaced by political parties whose only concern is to take care of their vote banks. They are not concerned about India. If we analyze this, we have to conclude that indirectly all political parties are indulging in anti national activities. In such behavior, BJP is no 1 followed by the left. Left parties supported China during Indo-Chinese war and yet both Congress and BJP went to bed with them to suit their convenience.
These professors are just giving lectures to us from US with out taking the ground reality in to consideration. FDI- Food Deficiency in India. we donot have food these people are taking about FDI. these politicians has looted india and there is nothing left hence want foreign money to india to loot.
