Comments by "Raju" (@rajx7120) on "Should you worry as coalition rule returns? Here is what India’s experiment tells us" video.

  1. Don't blame demonetization alone for breaking momentum. Raghuram Rajan put a break on bank lending, due to the NPAs, by putting banks on Prompt Corrective Action. I must add Rajan didn't cause the NPAs, but Chidambaram et al did. How can companies grow, if they don't have credit? Also, the ILFS crash broke the NBFC sector which affected loans for consumer spending especially in automobiles. Prof Ila Patnaik had written on this.
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  2. We should also look at inflation. Under a BJP govt, growth is a bit less, but inflation is even less. Growth under Vajpayee and Modi, was mainly due to govt investment, while consumption was less. A subsequent Congress govt pumps money after BJP's reforms, which gives higher growth due to consumption, but soon is overshadowed by much higher inflation, which topples them.
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  3. Economy is actually recovering. Private sector has cleared all it's old debts, and taking new debt for investment. Bank NPAs are lowest ever. Infrastructure is best ever. The foundation has been made strong in the last 10 years.
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  4. ​​ @soundar4270 Firstly, don't bring RSS everywhere. They care about cultural issues, not economy and disinvestment. In the past, they actually supported Gandhian, socialism and Swadeshi ideology. Now, there is good reason for selling profit making PSU, from a business point of view because :- Firstly, this is when they will fetch best value. Secondly, a lot of PSU, are dealing in old technologies that are becoming outdated. The world over, private sector is dumping these tech, and moving to more sustainable and efficient technologies. Govts are too slow to react to market disruptions. As a result, what is profitable today, would become an inefficient dead weight tomorrow. Lastly, govts prevent realization of full potential of a company, by forcing dividends that could have been reinvested. Eg- privatizing VSNL, turned into a world beating company called Tata Communications. And govt now earns much more in corporate taxes and it's employees' direct taxes.
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  5. Also NPAs inherited from UPA.
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  6. ​ @AndyKatana Good economy can result in election wins, if govt cuts petrol taxes, because it is now earning from higher GST collections.
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