Booster dose for the economy

Narendra modi government has got down to business with nearly 9 months of his government. There are several moves he made that have caused a great bull run in the market and several more steps expected.

1) JanDhan Yojana:

Within five months between Aug,2014 to Jan,2015 the government got 11 crore poor households to open bank accounts.

2) Aadhaar linked Direct Benefit Transfer:

What congress could not do the narendra modi government succeeded in doing. Nearly 80% of LPG consumers have become cash transfer compliant within a short span of five months from Nov,2014 to March,2015. Not even a whimper of opposition. Commercial cylinder sales have boomed. Diversion reduced.

3) Swacch Bharath Abhiyaan:

There is slow progress on this but the people are getting more aware. Waste segregation and cleanliness are being given top priority. Construction of toilets, cleaning of the ganga all have been given funds.

4) Coal Auctions:

States are going to benefit immensely with auctions of coal mines. CAG estimates of loss of revenue is found to be grossly underestimated. I just don't understand why Iron Ore and other mineral mining licenses are also not auctioned.

5) Spectrum Auctions:

There will be a telecom boom very soon with telco's getting larger blocks of spectrum. 3G data volumes are doubling every six months. ARPMs of telecom players is on the rise.

6) Insurance Bill:

FDI in insurance and pension sector is raised from 26% to 49% and this will lead to huge amounts of FDI come into this sector.

7) Labour Reforms:

Making hiring and firing easier is good for the industry. It raises productivity of the workers and also causes firms to be fitter. Many states are getting on board on this.

8) Liberal share of taxes for the states:

Share of states in the central taxes is raised. This will lead to more money with the states and help them in better management of their economies/budget.

9) Ammendments to the Land Aquisition Bill:

Much needed ammendments of those provisions which were anti-industry need to be made. Keenly following the developments on this.

10) Dilution of the FSA:

Food Security Act went overboard with its 69% population beneficiary cutoff. This is proposed to be pruned to 40%. Better targeting using aadhaar enabled DBT is proposed.

11) Budget:

Lots of incentives to the middle class to save. A few concessions here and there. Nothing much otherwise. Still the general and railway budget need not do anything as most of the steps/changes are being done outside the budget.

12) IRCTC to become like flipkart:

Nearly everyone who browses internet in India has an account with the Indian Railway Catering and Tourism Corporation in case you did not know. So this portal which is always busy is not upto the mark in terms of handling traffic or monetizing its traffic. Railways can make big bucks by launching a wallet for purchases of ticket and also trying to branch into retail-shopping.

Striving for legitimacy

I remember a dialogue by govinda(A popular actor of bollywood in the 90's) in some movie of his where he declares first two floors of a multistory building as illegal. In india a majority of people err and brush the law in a wrong way either wantonly or due to ignorance.

I remember another incident where a son of a leading political figure of yesteryear declare that his father is illegitimate, after DNA tests confirm that he indeed is his fathers son, something which his mother claimed all along, and his father denied.(illegitimate father of a legitimate son)

Free dictionary defines illegitimate as

a. Being against established or accepted rules and standards

In India, Seemingly lawless state and constant media hype over issues big and small has resulted in more awareness among the people.

People strive for legitimacy and want things like money, land, buildings and marriages to be pucca (legal,regular holding,legitimate ownership and solemnized by the society respectively).

Most of the agricultural land in the country is documented in paper which is getting eaten by pests fast. Digitization of land records is seeing resistance from landlords. Buildings are getting constructed without any concurrence with plan.....

Without legitimate holding there is more orphan money. When black money gets created it gets used in lavish spending under constant fear of the law. Sahara episode showed that improper documentation and inadequate KYC lead to people loosing their hard earned money. Undocumented people without proper addresses(read land or buildings) are hard to trace. Supreme court is scratching its head over how it can return money taken(by Sahara)from people when even their names are not properly documented let alone addresses.

Aadhaar(unique identification number) can act as a financial address and a point in space which can map to a person on earth one to one. From there any money that person earns can be returned to him in case it needs to be. Not only this any land or building record with aadhaar number seeded will be easier to establish ownership of.
Hence many city corporations and transport departments etc are going for linking building records and driving licenses with UID-Aadhaar.