Indian Economy

[Azaad]

Incompetence. Leaderji and PMOwallahs probably have a favorable view of disinvestment etc but the kind of state capacity just is not there in the DIPAM/FinMin (a clueless FM does not help either). Again, read this in addition to my post in the politics thread (where I claim that their capacity to undertake infra capex push is limited too - despite their generally sincere efforts).

Vajpayee did a terrific job but I prefer not to compare political realities of different timelines so refraining from making a direct comparison between him and ji.


That we would. Probably.

I mean what's the competence you require to disinvest or privatise & if so how did we have it then & lose it now ? Tbh , it doesn't make sense. If the FM isn't competent ,get another minister .

We had Arun Shourie look after this process then. We can get someone else now. Goel would make a good minister in charge of this portfolio or even Rajeev Chandrshekhar .

 

[shade2]

https://swarajyamag.com/economy/the-great-disruption-how-china-is-stalling-indias-industrial-ascent

The Great Disruption: How China Is Stalling India's Industrial Ascent​

View attachment 22233

>Chings refuse to ship equipment to India
>shipments have to be routed through 3rd countries
>Costs increase
>Dhandhos of both foreign and domestic types lobby gormint to drop duties on import of machines
>Or subsidize machine purchases
>L for Govt if they do either, L for private sector if govt does nothing
>India's "ranking" as a place to move your factory to drops even further viz Vietnam etc.

of course the thing here is if the Ching is doing this to India, they could do it also to Vietnam tomorrow, Hopefully W*stern dhandhos redouble their efforts to get out of China and not bendover further.

 

[ezsasa]

Does anyone know why's Modi not into disinvestment or privatization of PSUs ? Earlier it was the stock market was depressed or the courts put up roadblocks but one of the highlights of the ABV administration were precisely privatization & disinvestment on a massive scale going head on with the Sangh & its affiliates.

Had they been returned to power in 2004 , we'd probably have only a third of the PSU's we have today. Is this a real blind spot in his administration or a matter of ideology ?

@crazywithmath ; @ezsasa

they don't need to for now, original goal of disinvestment was to sell family silver every few years to make up for fiscal deficit. just before elections, RBI gave a dividend of 2 lakh crore, ABV time ministers would not have dreamed of such numbers.

India's fiscal deficit to shrink continuously amid strong tax revenues: World Bank

India's fiscal deficit is projected to shrink due to rising tax revenues, highlighting an improved fiscal position, according to a World Bank report. With expected GDP growth of 6.7% for FY2025-26 and FY2026-27, India's services and manufacturing sectors will see sustained expansion. However...

economictimes.indiatimes.com

 

[GodEmperorDoom]

Does anyone know why's Modi not into disinvestment or privatization of PSUs ? Earlier it was the stock market was depressed or the courts put up roadblocks but one of the highlights of the ABV administration were precisely privatization & disinvestment on a massive scale going head on with the Sangh & its affiliates.

Had they been returned to power in 2004 , we'd probably have only a third of the PSU's we have today. Is this a real blind spot in his administration or a matter of ideology ?

@crazywithmath ; @ezsasa

There’s also a significant public perception problem. I used to think that my fellow statesmen from the neighboring state, who share the same language, were more rational and wouldn’t resort to the usual zombie-like arguments of "Muh Privatization." But it turns out they’re parroting the same lines.

It’s a general lack of rational thought. If you ask them what the benefits are, they’ll say things like jobs, profits going to the government, or that privatization increases costs. They’ll even cite examples from Europe. Yet 99% of them don’t know what a furnace is or realize that we’re working with bottom-barrel resources while still importing specialty steels. If only this 10,000 crore had been allocated to a PLI scheme for that, at least we could have seen some real change.

There’s a saying that people only learn the lesson when they’re directly affected by the quality and service of the product themselves and until that they spew the same normie crap.

 

[shade2]

I mean what's the competence you require to disinvest or privatise & if so how did we have it then & lose it now ? Tbh , it doesn't make sense. If the FM isn't competent ,get another minister .

We had Arun Shourie look after this process then. We can get someone else now. Goel would make a good minister on charge of this portfolio or even Rajeev Chandrshekhar .

Does anyone know why's Modi not into disinvestment or privatization of PSUs ? Earlier it was the stock market was depressed or the courts put up roadblocks but one of the highlights of the ABV administration were precisely privatization & disinvestment on a massive scale going head on with the Sangh & its affiliates.

Had they been returned to power in 2004 , we'd probably have only a third of the PSU's we have today. Is this a real blind spot in his administration or a matter of ideology ?

@crazywithmath ; @ezsasa

Couple of reasons i can think of

>Political hot-potato
>Image as it is smeared by dogs barking ADANI ADANI every 5 seconds
>Nobody wants to buy PSUs, bade teer maar liye Tata ne by buying Air India, everyone sees this
>PSU Lobby via unions and all.

I am more in favor of reforming PSUs to make all employees and management work like private sector with clear goals and consequences for not meeting them, like the Chings do, but ofc that is much harder than just privatization

 

[GodEmperorDoom]

>Chings refuse to ship equipment to India
>shipments have to be routed through 3rd countries
>Costs increase
>Dhandhos of both foreign and domestic types lobby gormint to drop duties on import of machines
>Or subsidize machine purchases
>L for Govt if they do either, L for private sector if govt does nothing
>India's "ranking" as a place to move your factory to drops even further viz Vietnam etc.

of course the thing here is if the Ching is doing this to India, they could do it also to Vietnam tomorrow, Hopefully W*stern dhandhos redouble their efforts to get out of China and not bendover further.

Will Semi-Literate PM still wake up from his slumber and increase PLI to Machine Tool Industry. They can't expect to run every now and then to China or Japan Or Germany for them right? Gobhiji doesn't know stuff, but I hope they will learn their lesson in hard manner atleast now. They can't expect "Aatmanirbhar Bharat" without Machine Tool Industry or it becomes Assemblynirbhar Bharat.

 

[crazywithmath]

I mean what's the competence you require to disinvest or privatise & if so how did we have it then & lose it now ? Tbh , it doesn't make sense.

Vajpayee successfully went after a number of low hanging fruits but chickened out before touching the likes of BPCL, HPCL, NALCO, Air India, BEML etc. This is precisely why I was refraining from making a direct comparison.

If the FM isn't competent ,get another minister .

Tired of suggesting the same.

We had Arun Shourie look after this process then. We can get someone else now. Goel would make a good minister on charge of this portfolio or even Rajeev Chandrshekhar .

Ji/Shah started rewarding loyalty over performance quite a while back.

 

[ezsasa]

Couple of reasons i can think of

>Political hot-potato
>Image as it is smeared by dogs barking ADANI ADANI every 5 seconds
>Nobody wants to buy PSUs, bade teer maar liye Tata ne by buying Air India, everyone sees this
>PSU Lobby via unions and all.

I am more in favor of reforming PSUs to make all employees and management work like private sector with clear goals and consequences for not meeting them, like the Chings do, but ofc that is much harder than just privatization

this gormint is even expanding state capacity in some sectors.

SAIL is supplying specialist steel to build navy ships
NTPC is now a days building hydrogen plants
MIDHANI is developing titanium for AMCA.
BSNL using India 4G/5G stack equipment.
in 2015, gormint used EESL to bring down the market price of LED bulb to 1/4th with one big tender.
etc.

when competition was pakiland, this didn't matter much. but when it is cheen which is a state capitalist economy, GoI too needs to have state capacity in hand.

 

[crazywithmath]

Couple of reasons i can think of

>Political hot-potato
>Image as it is smeared by dogs barking ADANI ADANI every 5 seconds
>Nobody wants to buy PSUs, bade teer maar liye Tata ne by buying Air India, everyone sees this
>PSU Lobby via unions and all.

This gormint has done demo/GST/corporate tax cuts, cut OFB/railway PSUs (notorious for their unionbazi) in size, introduced agniveer in armed forces (politically sensitive in bimaruland and beyond) and handed out billions in incentives to dhandhos/'ebhil punjipatis' (through PLI, SPECS etc). Safe to assume that the political repercussions, although significant, are not the major factor.

 

[Suryavanshi]

Disinvestment is happening don't worry.

 

[shade2]

this gormint is even expanding state capacity in some sectors.

SAIL is supplying specialist steel to build navy ships
NTPC is now a days building hydrogen plants
MIDHANI is developing titanium for AMCA.
BSNL using India 4G/5G stack equipment.
in 2015, gormint used EESL to bring down the market price of LED bulb to 1/4th with one big tender.
etc.

when competition was pakiland, this didn't matter much. but when it is cheen which is a state capitalist economy, GoI too needs to have state capacity in hand.

Yes this is my point, most of the industrialization chad moves have to happen by the Govt itself via PSUs that work like normal private companies, not employment generators for lazy people doing chai-biscoot as it is currently.

Later on any big "tech improvements" or other benefits from PSU heavy lifting can be passed on to private sector dhandhos

It is also why i support a Maruti Udyog style arrangement for a Semiconductor Fab in the country rather than giving massive PLIs for dhandhos who will do sub-optimal things like OSAT/ATMP plant or use mature nodes for their production.

 

[Suryavanshi]

@ezsasa


USA

 

[Aaj Ka Hero]

Does anyone know why's Modi not into disinvestment or privatization of PSUs ? Earlier it was the stock market was depressed or the courts put up roadblocks but one of the highlights of the ABV administration were precisely privatization & disinvestment on a massive scale going head on with the Sangh & its affiliates.

Had they been returned to power in 2004 , we'd probably have only a third of the PSU's we have today. Is this a real blind spot in his administration or a matter of ideology ?

@crazywithmath ; @ezsasa

I saw here people complaining how India despite big steel producer doesn't have quality to compete for prize market and also how STEEL CARTELS are being formed.
Well, government too can tighten the knoose and I hope this is the case.

 

[SKC]

We don't have money for critical defense projects, ISRO, for MSME, for R&D but somehow the crook Anil Ambani manages to get another loan of 3900 cr loan. Since last year he has managed to get total fresh loans of above 20K cr! This is after he cough up over INR 57K Cr. loan as Write Off!

What kind of BS our Govt is doing these days?? No relief on fuel prices, no course correction but they have enough money for these loan defaults!

If he was not brother of Mota bhai then he would have been in Jail.​

 

[Nutcracker]

I am pretty sure Indians can make excellent bags at this price, but when greed takes over, and there's zero oversight from the government... This is the natural outcome


View: https://x.com/MhaskarChief/status/1879028378705310148?t=eSjwCTq_SBvTI-xVoUGLUw&s=19

That's what happens when Gobhiji restricts AliExpress for common people but not for dalal dhandhos.

 

[Azaad]

We don't have money for critical defense projects, ISRO, for MSME, for R&D but somehow the crook Anil Ambani manages to get another loan of 3900 cr loan. Since last year he has managed to get total fresh loans of above 20K cr! This is after he cough up over INR 57K Cr. loan as Write Off!

What kind of BS our Govt is doing these days?? No relief on fuel prices, no course correction but they have enough money for these loan defaults!

If he was not brother of Mota bhai then he would have been in Jail.​

This is coz we've a useless opposition who functioned more like China's party when they made allegations on the Dassault Reliance tie up thus jeopardizing further procurements thru the MRFA tender of the Rafales for Leaderji developed cold feet & when the opportunity to actually raise a genuine issue presents itself , the bastard is busy making statements like fighting the state.

 

[Azaad]

8th Pay Commission announced: How much salary hike central government employees can expect, how to calculate it

8th Pay Commission announced: Prime Minister Narendra Modi has approved setting up the 8th Pay Commission to review and revise the salaries of central government employees. The new pay commission will boost the salaries of current central government employees as well as pensions received by...

m.economictimes.com

I wasted prime years of my life by chasing career prospects in the Pvt Sector when I should've pursued options in the PSU.

A few of my batchmates are employed in Oil PSU's & are leading THE life - company quarters , conferences in the Mediterranean , huge bank balance , day time trading , etc - all for filling in their days in office - 1 time lunch , 2 times tea , 2 times punching in & out ( attendance) , salary promptly deposited in the bank at the end of the month , fuck & forget .

Performance ! What's that ?

Before pedants here jump up & down pointing out pay commissions don't apply to PSUs , I was referring more to the government culture of aaraam pehle , kaam aaraam se fursat mile toh , tankhah samay par , izaafa alag , oopar ki kamai alag.

 

[crazywithmath]

8th Pay Commission announced: How much salary hike central government employees can expect, how to calculate it

8th Pay Commission announced: Prime Minister Narendra Modi has approved setting up the 8th Pay Commission to review and revise the salaries of central government employees. The new pay commission will boost the salaries of current central government employees as well as pensions received by...

m.economictimes.com

I wasted prime years of my life by chasing career prospects in the Pvt Sector when I should've pursued options in the PSU.

A few of my batchmates are employed in Oil PSU's & are leading THE life - company quarters , conferences in the Mediterranean , huge bank balance , day time trading , etc - all for filling in their days in office - 1 time lunch , 2 times tea , 2 times punching in & out ( attendance) , salary promptly deposited in the bank at the end of the month , fuck & forget .

Performance ! What's that ?

Before pedants here jump up & down pointing out pay commissions don't apply to PSUs , I was referring more to the government culture of aaraam pehle , kaam aaraam se fursat mile toh , tankhah samay par , izaafa alag , oopar ki kamai alag.

Weigheted avg hike (post 7th PC) ~ 13% (possibly the lowest in history - UPA era hikes were 20%+)

Having delayed 8th PC so much can they go even lower now?

 

[Suryavanshi]

Before pedants here jump up & down pointing out pay commissions don't apply to PSUs , I was referring more to the government culture of aaraam pehle , kaam aaraam se fursat mile toh , tankhah samay par , izaafa alag , oopar ki kamai alag

well you can find comfort in the fact that gormint is holding out on doling out gormint jobs.
50 lakh central employees currently and they are projected to drop by 50000 every year.

At the end of the day the only ones remaining will be A and B grade.

It's a frog being boiled slowly so we cannot perceives its effect correctly.

Passport service was one such example. The only sarkari babus there are now the old Buddha's who give final stamp to your document.

This model need to be tried further and all gormint offices need to be filled with Private employees with just one or two Gomrint grade A or B officer supervising.