Comments by "Rutvik" (@rutvikrs) on "" video.

Who will pay for all these things?
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What you term as Revdi for the industrialists has resulted in industrial houses, India's entire pharmacy sector and today Jio internet services. If loan waivers and welfarism was the way forward, we should have seen Kerala as a commercial giant compared to my state Karnataka which had minimal welfarism.
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Let him run a state first. National stage is too big for his party. And what part of this speech seems educated? This is congress politics of the late 70's which stagnated India.
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India is aiming for energy security, maritime capacity and infrastructure with these loans. India is doing what we failed to continue between 1971-99 with Birla and Tata. There isn't a single stable country in the world without what is termed "preferential sector" in the Chicago school of economics. US has the military industrial complex that resulted in today's network giants like AT&T and tech giant IBM which in turn birthed all of the tech companies we know. Japan has Zaibatsu resulting in old companies like Kawasaki, Honda becoming auto giants. S. Korea has Chaebol which resulted in Samsung(which branched out like Adani just did with money from the govt), Hyundai. China has many cliques associated with politics. Taiwan follows Chinese on this. How else do you propose India develop? What other models exist?
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@fistarena4735 how is it working in Delhi and Punjab? 🤔
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These ideas are from the 80's.
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"...for the worse". I completed the sentence for you. This has never worked and never will. Loan waivers encourage another round of borrowing and bad financial practices. We have seen this state after state, country after country.
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Because his ideas are not new. Countries have gone bankrupt following policies like this. 🤦
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@anandgarhwal1421 Jalti nahi hai bhai, darta hoon. I used to work with IAC. His economics is hokum. We are being led down a dangerous path worse than demonitisation.
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Because Indian liberals subscribe to the school of thought that the act of disseminating rights is the best method of ensuring good outcomes. I have had several debates on this with them but they are unmoved. It's not economically feasible but most importantly it works only on a tiny sliver of use cases.
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@srr4745 "revdi" to Ambani and Adani has led to Jio network and services, Access to coal and iron, and physical infrastructure. In the past revdi to businesses led to the current form of Indian Pharma sector.
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@srr4745 1. No has waived the loans of industrialists. It was written off. If I don't pay my EMI and my car gets repossessed and sold for less, the balance amount is written off. It means i still owe them the balance money. It's not a waiver. 2. Look at your reply, you have mixed 4 separate things, Mallya and Choksi's written off loans, Adanis acquisitions which he made with his own debt, corporate tax breaks and GST. Tell me a single loan exempted for Ambani or Adani. Where can I see this allocation in the budget or bank balance sheet? 3. India has to increase its tax base else we will end up like our neighbourhood. Corporate taxes in India are already high(48% cumulative) enough that most of the new startups have left India. Flipkart is now based out of Singapore. WazirX has shifted to Dubai.
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@rgnandanshetty2950 how did you come up with the math that a farm loan waiver is going to take less than 1L Cr? Also could you point to where these exemptions make it on Union govt or bank budgets? I want to educate myself. Help me.
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@rgnandanshetty2950 the issue is i happen to have a career in economics. The last time this idiotic policy took place, it cost 25000 Cr for a state like UP. What will the figure be for India when UP accounts for 4-9% of arable land? Also every school of thought in economics knows any loan waiver increases inflation. So what is the end goal here?
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@rgnandanshetty2950 so let me inform you on a few things. 1. Agricultural loans are tied to land owners and leasers not agricultural workers. An agri worker works for daily wages. A waiver does not help them. 2. In the monetary environment where you are trying to reduce supply to curtain imported inflation from USD, how do you propose a waiver scheme that requires increased capitalisation to substitute liquidity for financial institutions which are already dealing with a NPA crisis? 3. Welfare led growth has conditionalities that this move does not meet, which HDI metric does a farm loan waiver target beyond a blind hope that the farmers will spend on life choices that improve them? Where is the causal link to this proposition?
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@rgnandanshetty2950 4. Depending on the methodology, UP has between 4-9% of arable land in India. 1.5 L Cr considering the average agri loan amount(charitably, median will be much higher) of 75,000; gives you 2 Cr loan units. There are an estimated 11 Cr farmers in India with most of them being either low yield or micro land holding. This provides a challenge as you are asking for 4 out of 5 to miss out. 5. I urge you to read the EPW article on farm loan waiver back in 08-09. It lists the pressure on credit that local agri financial institutions that Indian policy has inflicted. We should not encourage any party to repeat this policy.
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@rgnandanshetty2950 good intentions and common sense do not lead to good policy outcomes. As far as the profession is concerned, no serious economist makes case for loan waivers. It's not restricted to India, look at how even lifelong democrat economists like Jason Furman are going after Biden for his student loan waiver. I am asking to be educated, please tell me where can I find the waiver in the union budget or bank balance sheets. If my memory serves, it was a write-off not a waiver. The difference is, the bank gets to attach assets. It does not mean the defaulter is off the hook, they still have to pay the amount back. Instead of making the case to get defaulters rich and poor to pay back, Kejriwal is asking for policies that exempt poor people. Apply the same principle to criminal cases(rich getting away), you will know where we are headed as a society.
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@srr4745 you don't pay your emi for 3-6 months. SBI will attach your property and auction it. If the total amount is not recovered(ex: property sold for 50L and loan was 75L), the balance(25L) is written off. Write off is an accounting activity to be reflected on P&L and balance sheet, not a waiver. The loan document also mentions that in the event of a write off, you still owe the bank the balance amount. The same applies to the defaulters.
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@nprad even if what you are saying is true, ever heard of prioritising sectors and businesses? AT&T provides internet and network services to middle America in exchange for defence deals. Japan and Korea developed by giving loans to Zaibatsu and Chaebols. So what is so wrong about it?
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@nprad could you name some companies that were sold for less? Ones that have actually happened.
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@nprad you are comparing cost of constructing airports with investment into PPP projects. Not the same thing. Scope of PPP includes operating which is taken up by the pvt partner.
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@nprad 1. Privatization of Vizag steel plant is under discussion. It's not yet sold. 2. Krishnapatnam is held by govt of AP not the Union government. BJP is in the opposition in that state. 3. Reliance and Adani are able to take over because they have raised the most money using debt between 2020-2022. Bidding is a public process and it is available through an RTI. I would want to be educated if there are any cases where a party bid lesser than the highest bid was approved. 4. This activity is called the "preferential sector" in economics that all developing and developed economies take part in. We did this with Birla and Tata post independence and stopped it during the tenure of Indira. Having policies like this has resulted in Tatas automotive industry, Pharma industry and most recently Jio internet services.
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@nprad 5. UPA signed Several PPPs run on BOOT contracts in the 2000s. Since there is a transfer pre written, private only invested enough capital to keep it running not on capacity expansion. This has led to assets that are under market requirement, high operating cost and extractive. This causes the asset to be undervalued. Example: BLR airport held by GVK. They are constructing/expanding only after overcrowding. It lacks fog equipment which allows landing in low visibility. It's management is running as a cash cow (make me my investment+profit back). If the asset is valued at 1000crs, and I will have to invest another 500crs to get it to run on a expansion phase, would i bid for 600crs or 1100crs? This is why govt auctions are undervalued in India after 2010s. 6. No govt including this one has overstepped the bounds like the Japanese did(forced acquisition of Toshiba and Fujitsu's semiconductor business by Mitsubishi) or Koreans (Samsung monopoly on defence contracts)
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