Budget

The time of the year to dissect the Annual Budget :)...obviously if you are an expert...But I am neither an expert nor an individual who possess the wherewithal (if I can say so) to do so...but here is my viewpoint on it.

Well I wouldnt like to start on the hottest topic to discuss - the Rs. 60000 crore loan waiver to the farmers ( might come up with another blog for it, think it deserves atleast that...;) ) Lets start with the excise duty cut given to the pharma and auto sector. The honourable FM says that manufacturing is the worst hit sector and it being the backbone of any economy should be supported. His view being that "consumption drives production and production drives investment". So he has decreased it to 8% from the previous 16%.

So now you can buy a car of your dreams and still have enough in your pocket to buy fuel for it....Add to it the increase in the threshold limit of exemption from personal income tax... Has the "Mission impossible" really be accomplished.Will there be surge in the demand for the cars?...Well seems so...or does it?...Firstly, yes the prices will be slashed by at least Rs. 10000-12000 for sure and as high as 1.25 lakhs for the high end models...But wasnt the consumption more dependent on the interest rate (of the loan) than the actual price?...Isnt the interest rate dependent on the inflation which has forced the interest rate not to be dropped?...So I dont think its going to drive the demand as much as it is expected to do...

Also the point to be noted out here is that the previous excise duty cut from 32% to 24% by the Jaswant Singh's gov didnot percolate down to consumers in the long run as the manufacturers progressively hiked the prices to nullify the effect of the duty cut...Will history repeat itself?...HOPE it doesnot...

Coming to the pharma sector, here again the question arises whether the cuts would benefit the consumers...What is being said by the pharma bigwigs suggests that a small cut in prices of the drugs is expected but the good news is to end here. The major portion of the cut is going to be utilized for the pharma infrastructure which they say would benefit the consumers in the long run but as everyone knows - its better not to believe anything until it is officially denied.

Yes you would have more take home salary from this year owing to the the increased in the threshold limit but if you check more closely for an income of Rs 50,000 per month, it means close to Rs. 5750 deducted through direct taxes and (hold your breath), if you spend this savings in groceries, your mobiles, FMCG products; the government will get 1 Re from every 4 Rs. you spend through the indirect tax route ( service tax in case of your mobile bills). So its going to benefit the consumers but gov is not bearing any loss of income from this...so hats off to Mr. FM and not to forget that extra spending will mean that sales revenue is going to rise for the corporates. This actually means higher corporate taxes to the gov because the corporate tax rate is not cut....

Then the person would think y spend, lets invest it. Here too, FM has a hidden agenda. He has increased the short term capital gains tax to 15% so to avoid that, you will have to invest your amount for long term which is absolutely very much necessary and I think its a move in the right direction...again the gr8 economist at his best....

Finally any budget is an electoral budget because budget is not to antagonize the people...so no debate on this...:)

Patience - A figleaf???

People say patience is a virtue you should always possess. But for some this becomes an excuse to not do things and then say they are being patient. The best examples I can give on people having this viewpoint are the so called experienced people in the field. The government bureaucrats will tell youth to take the responsibility and then be patient till the results are out. Colleagues in an organization comes up and says "Be patient yaar", kya itni marwa raha hain kuch nahi milne wala hain....Well bullshit...If they had actually done something they wouldnt be where they actually are. Yes I do believe some of them are right because they have been through this chain previously but majority are just bol bachchans.


Patience is important after you have done the requisite amount of work. Look at farmers - well for me they epitomize patience. They have done whats needed for their land and then wait for the harvest time. Their patience is time bound. This is where I think people should understand that being in cocoon for too much longer isnt going to yield the best quality of silk. By being at the same place for too long isnt going to be beneficial unless you are moving in the right direction at the right pace and its you who decides that pace. The best example from yester years who missed the bus of coming out of their shell is the American automobile industry who were woken up from their slumberness by the vigilant Japanese. This I think is very important today when there are plenty of opportunities and you are the one in control.

The only hurdle to this is to know when is the time to wait and when is it to show controlled aggression...well as with all good things, this too can be mastered with experience and by being in different circumstances...But we should always remember that -


First do whats necessary, then whats possible and suddenly we are doing the impossible...


and ofcourse Patience when stretched too far will lead to cowardice (influenced by French prof)..

Here is one bol bachchan saying good bye ;)

A greenhorn at work

Speaking on a subject requires a relevant indepth knowledge and the right vocabulary to put forward your viewpoint. So what better option than starting with what drives this nation. The passion n adulation it creates, the topic which generates interest and vishesh tippani from everyone and one which drives our markets as well (will happen really very soon).

As is said ( and I truly believe it) " If Cricket is a religion, Sachin is GOD". And no I am not biased for any religion per se but believe that if this can be an adhesive which glues our great Nation than why not. I will not talk about my idol as it might end up being fanatical comment eroding the pedestal on which He stands.

How about the kuber ka khazana which has been unveiled recently firstly by IPL and then by ICL (in its second edition). It has made cricketers think whether its better to play cricket at this level and represent a business house and let go the pride of playing for ones nation. Has it made cricketers commodities in the market which has no place for emotions?...Will every other galli cricketer want to be the next badshah, giant, champ, heroes et al or an Indian, an Australian, a South African??...Is it really going to do good for the cricket and as one superstar claimed can it help (or should I say will it help) any other sport in India?...

This I say after the same cricketers were whining about the cramped up schedules which doesnt allow them enough rest....and now are willing to sacrifice their time with their loved ones to be present for a six week long extravaganza....The respective country boards along with ICC which support this format have not changed their itineraries....and the counter attack which comes up instantly is that if it happens in NBA and soccer then why not cricket?....It will turn this game into a professional sport where winning and not whining will be everything. It will make players responsible team members and will inculcate a killer instinct (by being ruthless) in them. (But I hope it remains a sport and not end up being a strategy game as people still like to watch the Brazilian flair at work than a well crafted Italian defence.)

well all said and done if it really achieves even 50% of what it has promised to do (good for world cricket and other Indian sports) then I think it has achieved its half quartely results and will surely end up as gainers in this bullish cricket market.

Till then watch your fav cricketers in their very best (30 seconds to fame) role...