More from @mkvenu1

M K Venu

@mkvenu1

4 Aug 20

As a young reporter for The Independent newspaper (Times Group) I covered the Rath Yatra thru Bihar in 1990. What struck me then was no mainstream political party tried to physically protest onsite as Advani’s cavalcade wound its way from Gujarat via Bihar for weeks(contd)

Only some cadres of the Indian People’s Front stood with black flags on the way. It faintly struck me no mainstream party had an effective way to counter the overt use of religion in politics. As reporters we found it difficult to fathom the religious fervour (contd)

generated by what was so clearly and brazenly a political project. With benefit of hindsight there is no doubt the Ram Temple/Hindutva movement helped establish BJP in Bihar and later enabled it to counter Mandal politics too. BJP had zero presence in Bihar before that. (Contd)

Read 5 tweets

M K Venu

@mkvenu1

12 May 20

PM says he is unveiling fiscal support cum stimulus of Rs. 20 lakh crore or 10% of GDP. This includes RBI liquidity package -already announced- of about Rs.4.5 lakh crore. The details of fresh fiscal package to be unveiled by finance minister tomorow. At long last!

Net of RBI liquidity package already announced the fiscal package could be 7 to 8% of GDP. PM hints there could be more income transfer to vulnerable sections & additional financial support to important segments of supply chain of business & economy.

It remains to be seen how the fiscal package of additional 7 to 8 % of GDP will be funded. Will RBI print more currency or will other mechanisms be unveiled under which gross borrowings will be increased without monetising deficits.

Read 6 tweets

M K Venu

@mkvenu1

18 Apr 20

The strangest policy notification from govt : says foreign investment proposals from countries sharing borders with India will not get automatic approval as per existing guidelines. This is clearly targeting China because Pakistan/Bangladesh never had access to automatic route.

If idea is to discourage China from buying Indian companies cheap then restrict takeovers. Why prevent them from bringing FDI in greenfield projects via existing automatic route. It is unprecedented that the world’s 2nd largest economy is being put in a special category of FDI.

If I know how this govt’s mind works it might be using the new FDI barrier against China as a bargaining chip to get something from Xi Jinping. Otherwise such a draconian measure against the 2nd largest economy cannot be easily explained. We will know soon what the real story is!

Read 4 tweets

M K Venu

@mkvenu1

27 Jan 20

A highly respected ex RBI Guv tells me in 70 years our economy never slowed due to a domestic demand slump. It was always a supply problem (oil shock, drought etc)which slowed the economy. Official documents never spoke of a demand shock in a largely untapped consumer market.

To reinforce his point the ex RBI Guv asked me to check with CEAs of past regimes whether they ever cited demand shock in as a major issue in their Economic Survey overview. I checked with two CEAs from late 1980s to late 1990s & both said demand slump was never an issue.

The question then arises as to why such a serious demand shock has visited India’s economy when 800 million people are still to consume basic comforts like refrigerators, ACs, washing machines, low end cars etc. The only answer is serious economic mismanagement!

Read 4 tweets

Share this page!

M K Venu

Try unrolling a thread yourself!

More from @mkvenu1

M K Venu

M K Venu

M K Venu

M K Venu

Did Thread Reader help you today?

Like this author's thread?