उंडगी

Today I had an opportunity to attend the lecture of famous writer and prominent economist Mr. Sanjeev Sanyal. Does he need an introduction? भाई, बस नाम ही काफी हैं। 😃
So this Principal Economic Advisor, Government of India, had been given topic ‘New Economics for New India.’ And what a speech it was.!
Informative, insightful, immensely motivating and so much more, that I couldn't contain into my small brains.
Here are some of the points he covered.

Inflation:-

our generations are accustomed to inflation year after year. We are not happy if the prices go down. But at some point of time Indian economy need to bring down the rate of inflation by correcting the value of Rupee against Dollar and by some other monetary reforms. During UPA govt. average rate of inflation was 10.2℅. And if it had continued Indian economy would have been in a crisis. So they are in the process of settling the Price increase to a level and then bring it down. Of course here also economists can't disturb export trading.

No equilibrium:-

There is no fixed equilibrium in anything. Everything on the earth is always evolving. He gave example of GST reform. First step is someone had to ‘do’ it. You can't only keep talking about it and make it happen. Then it was a mess in first 3 months. And it went on improving every month after the other. And even after 50 years from now it ll have some amendments. Because modification a continuous process.

Complex adaptive system:-

I really liked this term.Economies all over the world are complex adaptive systems; Hinduness ie. Hindu living is a complex adaptive system; Governments are also systems that are complex and adaptive.

Butterfly effect. But no matter how complex system is,context matters.New India is on a verge of transformation. We are looking forward to create a new version of India which is highly compatible for the new age 21st century without losing its cultural and historical identity and pride. So the changes India and its citizens are going through may be painful for some time but are making a lasting effect in the history of India. And Indians realise this fact and are strongly standing behind the government. Whether it's demonetisation or GST or oil rates people are grumbling but appreciating government efforts and brave decisions. Because “Context matters”.

Mr. Sanyal also talked about Chanakya AKA Kautilya’s concept of economics. Explained the concept 'limited state’ and the difference between Chanakya version and the western version of this concept.

Culture change, behavioral change:-

It's a high time for a new India to make fundamental changes in it's civic culture or our behavior in the society. Following the rules is mandatory. Indians outside of India are best immigrants when it comes to following the rules. Then why not to follow them within India.?

Context is what makes a difference.

Agricultural sector also needs to make many changes into orientation or view towards this business. Gandhiyan view doesn't work now, because we are speedily and steadily growing economy. Everywhere in the world economics that are prosperous are mostly urbanised economies. We can't stop the inevitable.but we can certainly use it for our benefit and to protect the environment.But for that we ll have to shift our context. Crops that need more water and fertilizers should be replaced other cash crops and crops that are more sustainable, etc.

Deal with the bad debts :- Creative destruction.

Govt is in the process of dealing with the bad debts.Govt. monetary apparatus have listed down 56 institutions that are experts in making bad debts and then rescheduling it. And they are holding 2 3rd of such bad or rescheduled debts.There is a massive crackdown on these institutions by RBI.Government is announcing them 'bankrupt.’ Sanjeev calls them disruptive construction.

Make in India status:-

There are many problems in the typical indian environment for the businesses to grow.Those Problems are now been addressed properly. Accounting correction through GST, clearing the banking systems, massive improvements in transportation facilities etc. are some of the things govt is doing to bring in the business ventures.

Sanjeev answered questions about
Oil prices, employment, real time interest rates, SMEs, and likewise..

Announcement:- Amita Ate is a layperson and not an economist. She has written what she understood. Maybe it's not what Mr. Sanjeev Sanyal said. 😋

#अमिता