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Showing posts from December, 2016

Year End Dream of Credit Fueled growth

             The key takeaway from PM's speech on 31st December 2016 was except the scheme declared for pregnant mothers, all other schemes are interest rate subsidies.               The housing scheme was kind of anticipated. PM has talked first about his vision of 'Housing for all by 2022' in his Madison square address. Then he reiterated the objective last month in one of his speeches. In today's speech, first definite measures have been announced towards achieving this objective. I think it's laudable, though I am slightly skeptical about wrong set of beneficiaries using the scheme and possible domino effects of using credit as main channel of boosting the growth.               One wonders how exactly government is going balance the trick of maintaining government deficit vis-a-vis bearing burden of all subsidies. I think the gap between value of old invalid notes and value of old invalid notes returned to banks will be used here. My guess is the gap will be

Watching Afghan President in Golden Temple

I was watching a news clip where Indian PM visited Golden temple along with Afghanistan President before ‘Heart of Asia’ summit. And my first thought was of a complete cynic. ‘Shouldn’t a patriotic Indian seek apology from Afghanistan President for the plunders of Ahmed Shad Durani or Abdali?’ Then I realized that there is some poetry or design of fate in the fact that I witnessed on video: Afghanistan PM wearing a saffron shawl (उपरणे in Marathi ) in Golden Temple during the visit. Saffron was not a random choice!                 Why do I see the poetry or design? Here’s the interesting fact, not an academic explanation!               Apparently, as Wikipedia tell me, Ala Singh, may be the ruler of Patiala, had been with Abdali during the third battle of Panipat or his time in India and Ala Singh was crowned as first Sikh Maharaja at the Sikh holy temple. I am trying to highlight irony of nostalgia, much prevalent in Maharashtra, of relating Maratha empire’s actions to nationa