The Rise of Extreme Right and Left in India and the crony capitalism impact..

Indian Economy has risen to new heights as per the capitalistic standards. The SenSex is 29000 at the time of writing this from 5000 just a decade back. The average indian IT Salary has gone from 25000 to 96000 PM and the no of startups in technology  per month has gone from 5 per month to around 50-60 per month .Average land per sq feet has gone from 15000 to 150000 RS. All seems rosy and Growth correct ???

Not Correct . Here are some facts the per capita income has gone from 2300 to 2450 usd per annum in the same period.The average land held per person have gone down 50% decreasing the net-worth.If you go through some facts and analysis you will find the most investments done is in the capital markets or through venture capitalists and private equity who are short of ideas in west and chasing the growth in India.But here is the deal growing E-Commerce and other Big Retailers who are undercutting the Price by selling below the cost price have not just being harming the small mom and po stores and small retailers but the very customers they are trying to lure. Seems counter intutive but no because most commerce in India is done by small scale private business and its impossible to drive  them out  of their business beuase they are the most avid consumers as well. So all the money printed in US is being absorbed by these companies here undercutting the margins of their competitors but also creating a socio economic imbalance of gigantic proportions. Once the money stops flowing and all the black-money is channeled into the country or locked into the land prices what happens !1

To explore this lets go to Greece . The same policies that are happening in India happened in US as well as Greece . US survived (metaphorically) but Greece could not once the money started flowing out . Technically US also is bankrupt and the money all sucked up by top 0.1% but people there have still basic means to survive and so are blind sided to all the capitalistic jugglery going on. But Greece Collapsed because it did not have much backup or weight behind it and people have to start surviving on a meal of bread and milk .

India is Greece to the Power of 10 . Most of the people there are much poorer and have lesser backup and security. The money in India is mostly owned by Cheobols or mafia families growing on political patronage and corruption.Even neo-cool companies like flipkart and Myntra got around by selling items on lesser price they bought and free shipping and using venture money to fund operations.

 

All this has given birth to parties like AAP and Parivartan who are nothing but group of common people coming together for social cause to counter those parties like Shiv sena and BJP who are Extreme right and support capitalism are trying to everything to privatise the country and create efficiencies in some manner.The middle grounds and traditional parties like Congress who ran on middle grounds are wiped out and unlikly to survive.

I do not know what is right for that country but at this time it seems that some thing drastic needs to happen  in country of 1.5 billion which will have a ripple effect accross the Globe both positive or negetive.

We have to wait and watch to see how much these left wing parties gain grounds and how much of the wealth can be spread accross the country to create some equality ... Time will tell sooon

February 09,2015, 12:14 pm
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Ecommerce Scam in India #startup

BIg Scam in India The ecommerce companies are being used as backdoor entities for FDI with out Govt approval . Majority stake in these multi brand retail shops is maintained by foreign venture and private equity which may be violation of 51% equity required by Indian entities Now the game there is simple use venture money to undercut small retailer by selling below the cost price in many case and wiping out competition . The plan is to purge all the small mom and pop shops by 2020 and create big chain stores or ecommerce sites This works well for few but the problem is that in country like India this creates a socioeconomic problem which can be appalling as it grows bigger . Solution The government should enforce regulation as well as the business should move more towards localization rather than big brand sale through e Commerce Anyway the consumer is benefiting from this jugglary which is good thing for middle class in India June 01,2015, 01:35 pm
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