Make Kochi the Gateway of Kerala and Commercial capital of the state.

Is it not time to develop Kochi into an Internationally known Commercial Centre and make Kerala an attractive  Tourism state  on par with Kashmir and Switzerland and convince and prove to the  world that Kerala is God’s own Country worth spending a few days in their life time once at least to enjoy the beauty  of nature, best of vegetarian and non vegetarian cuisines and bliss  of both  yoga and ayurveda practices and remain blessed for ever to relish and rejoice? It is high time the state undergoes  a dramatic and drastic change and enter into a different atmosphere of happiness , prosperity, political climate , and exploit its own gift of intelligence, natural resources, art, culture, civilisation  and relish a  different life of thrill of work, discipline, satisfaction and fulfilment of living.  

The place is beautiful beyond imagination but it is doubtful as to whether life in Kerala is so  lovely and beautiful as is expected or made out because of the presence of man made irritations and discomforts unheard of elsewhere. Though, Economic progress and well being of the people are also man made and God has given all opportunities and facilities with blessings of good natural resources including  intelligent human resources, but why the people of Kerala  perennially  suffer or live without optimally enjoying the god given gifts to their full potential is what surprises many who happen to visit Kerala or read about the state these days through media.  What is happening to take away the joy of living and how  the people are deprived of  the best of god given  opportunities and mislead  to lead a life far from satisfaction and chasing the mirage of happiness elsewhere which is often elusive ,evasive and unreal are perhaps the thoughts many Keralites  and Indians may be wondering about? 

Both Hell and  Heaven are all man made and it all depends on the people , their aspirations , attitudes, efforts and hard work as to what they choose and how they achieve what they want. Only Capable people and Capable leaders can  inspire and deliver what the people aspire for is what the history of any successful nation has demonstrated and herein lies the solution for Kerala as well.

The state is very badly in need of a good political party with outstanding and very dynamic leaders with qualities of a Statesman, Good Administrator , Financial Wizard , Judiciary Expert and Business  Entrepreneur. Kochi can be easily developed both as a State and Commercial Capital  perhaps with all its present economic social and commercial infrastructure and locational advantage. Being a port town and having established as an import and export centre Kochi can be  further strengthened as an Entrepot  like Singapore to start with and can be made a role model for the entire state to look forward to.later on..Being a  financial centre with a stock exchange, lots of banks and non banking financial companies and other  commercial establishments , Kochi can be easily developed as a mini Global Financial Center as it has a well run Reserve Bank set up with adequate infrastructure . Kochi has also some Universities and management Institutions and five star hotels and other facilities including an international airport. The presence of High Court is an added advantage .The facilities may require a bit of upgradation and upscaling to meet the international standards. The  RESERVE  BANK can be upgraded to function as a full fledged Financial Leader and Intermediary to develop Kochi first and then the State. The Technology Centric based development with a dynamic special officer exclusively to look after KOCHI development first and then model the same for  the state as a whole can work wonders  for the benefit of the entire humanity as  an end result. The state has anything and  everything but the will power to emerge as a class and the most developed state of the country. However, the absence of  an inspiring ,  dynamic and a visionary  leader to understand the sentiments of the people, the  strengths and weaknesses of the state and carry on developmental activities is felt both in bureaucratic and political areas. This needs to be smartly taken care of .           

 

Any political party which can think  afresh with innovative ideas and  forethoughts on development  for the state  can definitely nurture some new hopes and initiate  steps  factoring in perhaps the potential available in  the state in terms of natural resources, human talents,  the pluses and minuses as of now which are very many in the state . It is better to think of developing the state in terms of trade, commerce, tourism ,art and culture , institutions for social growth and human welfare. Time has come to INTROSPECT and ACT expeditiously. 

KOCHI CAN BE THE EASIEST  GATEWAY OF THE POLITICAL PARTY TO ESTABLISH AND REMAIN IN POWER. KOCHI OFFERS ALL POTENTIAL RESOURCES NEEDED FOR POLITICAL, ECONOMIC SOCIAL AND TECHNOLOGICAL  DEVELOPMENT OF KERALA. TOURISM , FINANCE , IT HUBS, AND CASH CROPS LIKE CASHEW, CARDAMOM,  PEPPER , TAPIOCA, CLOVE, SPICES OF ALL KINDS,  AND HEALTH RELATED HERBAL PRODUCTS CAN BE THE AREAS OF SPECIALISATION TO CONCENTRATE , WORK ON AND TAKE THE STATE FORWARD AS FAST AS POSSIBLE. READINESS IS ALL THAT MATTERS.    

MAY GOD BLESS AND GUIDE TO DEVELOP KERALA AS THE ROLE MODEL AND MAKE THE STATE GODS OWN COUNTRY SOUGHT AFTER PLACE TO ENHANCE QUALITY OF LIFE AND ACHIEVE CONTENTMENT , HAPPINESS WELFARE AND LIFE FULFILMENT TAKING ADVANTAGE OF THE UNEXPLOITED , EDUCATIONAL,  SPIRITUAL , CULTURAL AND SOCIAL ADVANCEMENT THE STATE HAS IN ABUNDANCE. 

                      LOKA SAMASTHA SUKHINO BHAVANTHU.      

TVG Krishnan

               

 Get into the Root Cause of the Bank's problems and fix the Governance failures. 

This refers to the editorial Breaking the Bond ( BL dated 25/1/23). Saying HC order on Yes bank AT1 bonds problematic without getting into the  bottom of the reasons for Yes Bank's and Regulator's failure in the Governance of bank does not sound prudent  and does not stand justice from an ethical  angle.  The bank's failure in the conduct of its credit portfolio has led to all its  problems and making the investors (including depositors )scapegoats to bear the brunt irrespective of the legal protections the bank enjoys by incorporating safety clauses in the terms and conditions of the bonds issue only smacks of casual approach to its own responsibilities to protect its depositors and its creditors. The bank cannot itself  turn out to be an  NPA by not servicing the interest on bonds and writing down the liability without repayment, when its own advances turn NPA for very obvious reasons other than natural calamities and things like that.

  T.V.Gopalakrishnan

   Personal views.

   Bengaluru 560076. 

Suggestions for the Budget 2023-24

 Suggestions for the Budget 2023-24 

The budget is round the corner and the expectations and policies to aim for a $ 5 trillion economy have been the subject of discussions , debates among the public, academicians, and policy makers both at national and international levels. The budget 2023-24 assumes significance as the foundation for the Country’ s  economic growth aimed at in the midst of geo political disturbances,  lots of uncertainties caused by the domestic economic conditions with high inflation, fluctuating exchange rates , depleting foreign exchange reserves, not so encouraging current account and fiscal deficits ,domestic interest rates moving northwards and continuing  covid 19 pandemic consequences and uncertainties in the area of  oil prices , social disparities and mind boggling technological advancements found all around creating a sense of fear along with tremendous hope to perform better and deliver improved economic results. The FM's task is no doubt very tough, particularly this year's budget being the last before the next general election. All said, there are plenty of avenues to go for a soft budget with stress on innovative approach to augment resources having no  adverse impact on inflation and enhancing effectiveness on Governance standards ensuring optimum use of all assets including human resources at the command of all PSUs and Banks , preventing leakages of envisaged revenues through corrupt practices and bringing in cultural change in the mindset of people all around to find pleasure and happiness in the development of the economy to enjoy a fulfilling life. Like the GST  which is very well spread over the entire population, the Direct Tax if not eliminated altogether should at least cover 10% of the population justifying the efforts and expenditure to collect the taxes.    

The need for some policy measures to augment resources without any adverse consequences on inflation, exchange rates, economic growth , employment  is paramount and from this angle some random thoughts for possible consideration  can be  more inter-alia in  the area of Direct taxes as spelt below.

Rationalisation of  the Security Transaction Tax ( which is absolutely non inflationary in character) in such a way  that it prompts to avoid speculative tendencies  among investors and at the same time  encourages foreign institutional investments, can perhaps be a possible approach .There can be different types of Security Transaction Tax for Individuals and Institutions and with in these groups there can be dynamic rates for purchases and sales under different ranges of cut off amounts to optimise revenues and minimise speculations. The need to raise public participation in the capital market is  a prerequisite to contain undue volatility seen of late in the market  and this needs to be factored into while rationalising and incentivising the STTs. By and large retail investors objective of investment in equity market is for periodical flow of cash by way of dividends , build up of a little wealth to depend upon in their old age in the absence of  adequate social  security and also to be part of the economic development through shareholding in dependable and well run corporates.   

The need for review of  exemption of agricultural income from  tax and  taxation of  allied activities of agriculture  is overdue.  Many  economic activities take  shelter under agriculture and  allied activities to avoid taxes of various kinds. Generation of  inequality  of wealth and income, black money,  and  distortions  in the build up of data emanating from  agriculture and all allied activities and non agricultural activities need special attention and scrutiny to fix tax evasion particularly by those having close association with political parties, influential contacts and the wherewithal to smartly avoid taxes mixing agricultural income with other incomes possibly coming under tax net. While pure agriculture activities carried by small and marginal farmers deserve a very sympathetic approach and tax exemption, evasion of payment of taxes by rich farmers even with corporate backing, having several sources of income and varieties of activities cannot be allowed to take shelter under Agriculture to enjoy tax benefits. The issue may be politically sensitive but time has come to sensitise the rich farmers and all others and impress upon the people on the need to enhance the status of agriculture and bring it on par with  other industries and do justice to all categories of income earners , tax payers from the point of view of  fair distribution of wealth and levy  of taxes. Participation of the majority of the population in national development through tax payment is also a necessity to take the country forward. 

Mushroom growth of farmland clubs  in and around major metropolitan and urban centres has been a trend these days  enabling wealth creation without getting detected perhaps and adding values to GDP possibly. It seems to be  a grey area and real estate transactions involving farm lands abets  corruption , black money and  facilitates evasion of taxes . All real estate deals deserve a special watch and deal using technology , aadhar card, making supervision and documentation fool proof from corruption of any kind and evasion of tax. A proper tie up of banks, Registrar of properties, purchasers and sellers with the aid of technology and legal experts can do wonders to help the economy free from many of the ills. The ease of doing business in real estate deals for individuals particularly in respect of ancestral properties involving legal heirs is practically absent. Corruption is unfortunately legalised and institutionalised and despite these, people suffer and they remain totally dissatisfied. This is  definitely avoidable by some intelligent and technology linked solution.         

While digitalisation has picked up very well and payment and settlement systems have made rapid progress  among the people, the simultaneous increase observed in currency circulation is definitely a cause for worry  from the point of view of containing inflation, eradicating  corruption, generation of  black money, financing of  terrorism and evasion of taxes. Budget season is  perhaps the most appropriate time  for the Government and RBI to track the increase in currency circulation and arrive at the segments of the population showing interest in currency transactions in preference to digital transactions  and  to assess as to how they possess currency,  why they hold currency,, how and where exactly the currency possession  increases especially when  digitalisation of currency transactions is made easy, convenient, , safe and traceable. Poor segment of the population seems to have switched over to digitalised payments and are found to be comfortable and happy without  physical currency  is an achievement to be really  proud of  for both  the Government and RBI.  

 

Though the performance of Public sector banks and some of the public Sector units engaged in different kinds of manufacturing and other varieties of economic activities, is claimed to have considerably improved, but to what extent the non performing assets and non performing human resources remain unnoticed or escape scrutiny from the Regulators if any ,needs to be seriously reviewed and remedial steps taken to enhance their performance,  contribution  to the GDP and involvement in making the living comfortable and dependable for the masses. A small example from my personal experience in this context is not out of context. The Gas Authority of India Ltd has installed pipelines and  meters to provide piped gas connection to thousands of houses a few years back investing huge resources including man power, but  the connection has not been provided so far for  reasons best known to GAIL only .How many of such undertakings keep wasting its resources without any return to themselves, to the exchequer , to the economy and the needy public is a serious matter to be looked into and converted into performing assets for the benefit of all stakeholders.  

      Overall improvements in  Governance Standards by insisting  for feedback and suggestions from public in general and  professionals from all walks of life in particular can definitely go a long way in  preventing  / minimising corruption and changing the very complexion of the economy  with improved all round performance in registering good growth, enhanced tax compliance without force and changing the very culture to have ethics, and transparency  in carrying out the duties and responsibilities of each and every citizen interested in the welfare of the society and development of the nation. The National  Budget is one of the best possible instruments to lead and motivate the people to culturally change and realise all the dreams of a true Welfare nation.  

 

T.V.Gopalakrishnan

Senior Citizen 

(Views are personal)

Reduce the inequality and aim to reach the Growth target fast.

 The words of Dr Rangarajan and his prediction about the growth of the Indian economy over a period of more than a decade  cannot be set aside as the economy needs a lot of measures to enhance the per capita income to be on par with advanced and developed nations. The achievement of $5trillion economy as he rightly put , itself is impressive and the Government deserves all kudos for having put the economy on fast track of growth. However, the inequality level has been widening and the concentration of wealth with a few at the cost of majority does not seem augur well and the so called welfare  for all will turn out to be a mirage if timely measures  are not put in place  to lessen the gap between the rich and  the poor with fair distribution of wealth through fiscal and monetary policies. The lessening of inequality can  prove to be a boost to the economy and the objectives of fast growth of the economy and enhancement of per capita income within the  expected time schedule can be comfortably met for the satisfaction of the Government and happiness of the people all around. Readiness with action is all that matters. 

T V G Krishnan

( Modified version of this comment in response to Dr Rajan's article appeared in Business Standard on 24th Dec.2022).     

Mis Selling by banks of Insurance products

 Mis selling of Insurance products is more seen in private sector banks and many of the individual investors lose money and suffer silently. Banks and Insurance Companies generally take cover under the clause "investments are subject to Market Risk"and they resort to all sorts of gimmicks to trap the bank customers and market the insurance products and have their own ways of fooling the investors whether they are literate, illiterate or gullible .The weaknesses to fight involving technology, legal approach and indifference of the institutions  and general Jane do attitude of investors themselves are fully exploited both by the banks and insurance companies alike to make some unethical and very cheap money at the cost of their own reputation and the Reputation of the Regulators even. ICICI Bank and ICICI Prudential Life Insurance are classic examples for mis selling from my personal experience and experience of many if You Tube Videos  in the matter can be trusted . The modus operandi is to load all sorts of charges and keep totally silent without informing the investors as to where their investments stand . Once the investors realise their follies and receive less money than their investments after several years , no amount of complaint or argument will be heard is the ground reality. Either influence or Legal approach seem to be the only way out which investors seldom resort to for some obvious reasons  or no avenues or wherewithal.   

  This comment appeared in a modified manner in Business Standard 19/12/2022. 

Non tradional approach along with traditional approach is the need of the hour to contain inflation.

 

RBI has been doing its best to contain the inflation and inflationary expectations and also keeping in mind to ensure the growth momentum of the economy. However, the fact remains that as long as inflation in our economy is caused because of various other factors including geo political conditions, inflation linked fiscal measures like oil prices, widening inequality in the generation of wealth and incomes, having cascading effects, corruption, black money and malpractices which are predominant in the absence of effective administrative measures, the inflation control is a wishful thinking. Inflation cannot be controlled by monetary measures alone will be realised sooner than later by the authorities as inflation has already been allowed to rise its ugly face for quite some time and its perpetuation . It requires more of administrative measures and non traditional approach as the demand induced inflation come from people perhaps having sources of income other than known and declared sources. Further the fast digitisation of the economy has also perhaps increased the velocity of money circulation to cause possibly the demand induced inflation. It is time to seriously ponder to have non traditional approach along with traditional approach to contain man made inflation  rather than money made inflation.

TVG Krishnan.

( a modified version of this appeared as letter to the editor in BL dated 10th June 2022).

Fake notes and RBI

 The figures are disturbing and the benefits of the demonitasation if at all have been nullified. There is no semblence of Governance and in the name of librealisation the well established and meticulously developed systems and procedures pursued by the RBI for decades have been given unfortunately a go bye over a period. THE RBI seems to have lost its glory and perfection in carrying out its responsibilities with utmost accuracy and without giving any loopholes to subvert its own rules and regulations.RBI never indulged in extravagance and was a role model for many of the central banks of the world for discharging its functions in the best interests of the Government and the whole economy. The deterioration seen, of late, is regretable and needs to be deeply introspected for reestablishing its glory and independent status. An independent and efficient Central Bank is always a proud of any economy and nation.

TVG Krishnan

( this comment appeared in Business standard dated 30/05/2022 against the article fake note of Rs 500 increased by 102% in FY 2022)