The rise and rise of the Censor Senas!!!

Acclaimed film maker Sanjay Leela Bhansali has again been engulfed in a controversy. This time around his soon to be released magnum opus Padmavati, which has enraged a section of people in North India –   Rajputs in particular, who have threatened to behead Bhansali, maim the lead actress Deepika Padukone apart from stopping the screening of his film. A few years ago, Bhansali had faced the ire of some religious groups over his film Ram Leela over the title. Bhansali then rechristened the film to Goliyon Ka Raasleela – Ram Leela and managed to get away. And his last movie, Bajirao Mastaani met with similar pre-release blues when activists from Maharashtra claimed that Bhansali was distorting history in the name of creative freedom. The film was finally released after Bhansali claimed that it was a fictional work. So, with all his rich experience in handling similar crisis in the past, hopefully Bhansali will get over this as well, even as I hear that the producers have deferred the release of the film.

Bhansali is not alone in this. In the past, quite a few filmmakers have gone through the harrowing experience of their film being threatened to be stopped. And the reasons varied from “hurting religious sentiments” to ‘distorting history” to “disrespecting past leaders” to “using Pakistani actors” to “hurting a particular community” to “against Indian ethos” and so on. Almost every month we have a film which gets caught in such a controversy at the time of release. Conspiracy theories abound that filmmakers often play with fire to stoke these controversies as a means to promote the film. In these days, where a film’s financial fate is decided on the opening it gets, one cannot dismiss these theories. Controversies help to “hashtag” the film for a few days and help to raise interest levels!  And then the producer gets into a “compromise” with the fringe groups in return for a safe passage for the film! And one cannot blame the producer for the same as few million bucks ride on each of these films!

These days, some fringe group or other raises a stink even before they have seen the film suspecting to hurt their sentiments just by going by the trailer and promotions. In the case of Padmavati, Bhansali got into trouble just as he commenced shooting when a group called the Karni Sena vandalized the sets at Kolhapur earlier this year. What perplexes one is how could they conclude that the film is going to hurt their sentiments even before the shooting commenced? Did they get to see the script? The Karni Sena chief admitted recently that though he not seen the film he had a “hunch” of what the film is about. Well, if only if we can find a way of utilizing their skills of prescience better like in weather forecasting,… we may be better off!

In effect, what we see is fringe groups taking the mantle of the censor board and becoming “Censor Senas”! Karni Sena, which was originally formed for securing the interests of Rajputs against discrimination, seems concerned only about the image of their clan as depicted in films as can be seen the last few times they shot into limelight – like before release of Ashotosh Gowarikar’s Jodha Akbar! During the release of Kamal Haasan’s Vishwaroopam, I had opined that filmmakers may have to get their films certified by fringe groups on whom the film is about!  But it appears that not just fringe groups, but filmmakers may have to seek approval even from news anchors as we saw yesterday when the producers of Padmavati had an exclusive screening of the film for a few news anchors! So, Arnab Goswami apart from being the Prime time Prosecutor cum Defense lawyer and Judge now has turned a “Super” Censor Board member as well!  As things stand, in India, film makers may have to show their script, may be add a few scenes to glorify and take blessings from the “Censor Senas” and then commence shooting!

In all this, what comes under very close scrutiny is what the Govt. of the day does or doesn’t do in such circumstances. In this, no party has covered itself with glory. While our constitution has enshrined the Freedom of Speech and Expression as a fundamental right, as far as political parties are concerned it often is secondary. What is more important to them is the political impact of exercising that freedom. And they take umbrage under “Whataboutery” of such incidents of the past! I am certain that if the ruling govt. makes its intent clear right from the beginning that once the Censor Board clears the film for release they will ensure that they will provide the necessary support, the threats of stopping the film will lose its sting. But, usually it’s not the case. The party panders to the community overtly or covertly as per their electoral clout and plays to the gallery. Just like what the BJP government in Rajastan has done in the case of Padmavati or what the AIADMK Govt. did for Vishwaroopam. Then it is left to the filmmaker to broker peace with the protesters either financially or by tweaking content. Either way it doesn’t augur well for our country which often talks of promoting its soft power!

“Your right to swing your arms ends just where the other man’s nose begins” is a quote often made in the context of freedom of expression. So, the argument is that no creator has any business of hurting sentiments of others and hence they should stay off topics like religion, community, biography of leaders, depiction of history, Indian culture,…,… If that is the case I am afraid that the only way out for filmmakers is to become a Rohit Shetty and churn out capers of the Golmaal variety!

On a serious note, while in a country where people are emotional and argumentative, aspects of religion occupy an important space in one’s lives, I do agree that it is important to respect the sentiments of others. However, any act of disrespect or alleged disrespect cannot be judged by people themselves. It was our former PM Vajpayee who once said “An answer to a book is another book!” in the context of banning a book! Similarly the answer to a film one doesn’t like, is to stay away from the film and not threaten to stop the film or vandalise the theatres!

Ergo, I feel that the role of the Censor Board becomes crucial while certification. As per its charter, the CBFC (Central Board for Film Certification) can refuse to certify a film on many accounts including some of the concerns espoused like disturbing communal harmony,… Once the film is certified for release by the Censor Board in its due wisdom, it should become the responsibility of the State to support the filmmaker with its release, if the situation warrants. With such an onerous responsibility, it also becomes crucial for the Board to have the right people as its members.  Here again, instead of treating Censor Board as a place for rewarding loyalists, considering the sensitivity involved, the Government of the day should pack this with eminent people from different walks of life who can carry out the job without prejudice.  At a time when as a country we are in the throes of “Arriving” in the world scene, we need minimum distractions.  Threat to Freedom of Expression must not be one. Time for the Censor Senas to Rest in Peace!

Postscript: This is my 150th post! A big thank you for reading, liking, commenting and at times sharing my posts! Your encouragement has always been a big driver!

Pic Courtesy: Amul 

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Mersal, Mitron and the New India paradox!

For those outside of South India, a week ago, the word Mersal would have called for a detailed introduction. Today it doesn’t. The leaders of BJP in Tamil Nadu with their outbursts against Mersal, have ensured that the film became a National hashtag! I watched Mersal and frankly my take was that it was a regular masala pot boiler meant strictly for the actor Vijay’s fans.  Towards the end, Vijay gets into a monologue against the corrupt medical system in the country looking into the camera lens.  In between, he also trashes the recently introduced GST with what are clearly illogical and false arguments. Somewhere in the beginning of the film there is an innocuous line taking a dig at Demonetisation as well!

In Mumbai where I watched the film, there was no applause or whistle for the GST lines. Probably there were, in other parts of the country particularly Tamil Nadu. Enough for the TN wing of BJP to take offence and call for muting of these lines in the film. Some other leaders of BJP went further.  They dragged the religion to which the actor Vijay belonged – apparently Christianity and pointed out that, it was the reason there was another line in the film where his character says it is better to build a hospital than a temple in the village!

Inane arguments and counter arguments occupied national prime time in the week following Diwali and at the end Mersal, which would have been anyway a super hit became a super-duper hit. I’m certain that remaking rights in other languages will go at a fancy premium now. One can only get Mersalled (meaning “Amazed” in colloquial Tamil) looking at these developments!  The particular clip with the GST lines went viral that too with English Subtitles and what was just meant for Tamil Nadu is now being consumed by people all over!

The same last week we saw another “Mersalling” development. A short clip of a mimicry artiste by name Shyam Rangeela went viral on WhatsApp. In that clip, you can see Shyam doing an immaculately close mimic of the Prime Minister Narendra Modi. This act was originally part of a Star TV show – The Great Indian Laughter Challenge. But after the clip attained gigantic viral velocity, the producers decided to edit off this portion. I watched the clip and was “Mersalled” by the talent of this guy. His act of Modi was spot on, with liberal throw ins of Mitron and Bhaiyon Aur Behenon,..  just like how Modi does in his speeches.  After this development, I am sure his phone must be ringing endlessly and he has already become a mini celebrity in the highly competitive 24*7 sound bite seeking world!

Those who are tuned to the FM Station Radio Mirchi would be familiar with their very popular satire show “Mirchi Mitron”. In this satirical program again, there was a voice which could be identified with Modi having conversations on current topics with different people. Though this was popular, in a surprising move, this section went off air since early this year.

In all this, there is a clear pattern. Political satire in India is on a ventilator where pulling the plug comes easily. It looks like it’s no longer cool to take pot shots at the ruling party or its leaders. Either the party will take strong exception and flex its majoritarian muscle to come down heavily on the perpetrators of these satire (the Telugu version of the film Mersal is still languishing at the censor table) or eerily the creators develop a sense of self-censorship and exercise restraint (Like in the case of Star TV and Radio Mirchi). In any case, these don’t augur well for a New India!  Has New India’s leadership lost its sense of humour? Is political satire so damaging??

In the “Old India”, political satire was thriving and flourished peacefully. In Tamil Nadu, where BJP made a ruckus about few lines against the Government, one gentle man by the name of Cho Ramaswamy used to shred parties and their leaders with his sharp wit, that too for 60 years till his last breath last year. Being a man of multiple talents, he used multiple platforms – from Theatre to films to Magazines to TV to take his political satire to people. In his heyday, he didn’t spare any of the ruling party or its leaders. And naturally Indira Gandhi and her Congress party for most of his life were at the receiving end of his relentless jibes. Never to make a personal attack on his adversaries, Cho used wit, sarcasm and comedy to drive home the point. Later on, he trained his guns on the Dravida parties. The magazine Tughlaq was popular when he edited the same. His TV shows gained high TRPs among middle class Tamils. His plays were usually sold out. And the irony starts here. In spite of Cho’s continuous attack, Tamil Nadu was among the handful states in the country that withstood the Anti-Indira wave in the aftermath of the Emergency in the 1977 Loksabha elections. So, the people of Tamil Nadu enjoyed Cho’s satire but made smart, practical choices while voting in the elections! They used to vote for Congress at the centre and one of the Dravida parties at the state!  My point is that people by and large don’t take these political satire seriously. They do enjoy the same but make their own smart choices.

We keep hearing that the New India is about being confident, looking ahead and keeping insecurities aside.  But, it looks like the leaders in BJP do not think so. While I am not sure if the Prime Minister is himself against satire trained against him or his party, it is clear that in his party there are those who send clear signals to that effect. And that doesn’t augur well for the New India which the PM is persistently pitching for! So why not he openly invite Shyam Rangeela to perform the Mitron,… act in front of him in a public meeting in his next Man Ki Baat address???  That could be his best tribute to Cho, undisputedly one of India’s best political satirists whom Modi himself considered as one of his mentors and well-wishers!

Postscript: This is now part of folk lore. R.K Laxman had just caricatured Jawaharlal Nehru after the 1962 war against China in his own inimitable style. Did the TOI editor get a call from the PMO to demand an apology the next day? Well, Laxman got a call from Nehru himself the next day where he told him, “Mr. Laxman, I so enjoyed your cartoon this morning. Can I have a signed enlarged copy to frame?”

“Turmoil” Nadu needs a Naidu!!!

The once prodigious state of Tamil Nadu (TN) has in the past few weeks earned a pitiable sobriquet of “Turmoil Nadu” and not without reason.  The state has been in a state of incapacitation ever since it’s Ex- Chief Minister the late Jayalalitha, was herself bed ridden for multiple health problems around the same time, last year. From then on, TN has been limping from one crisis to another. If it was uncertainty over Jayalalitha’s survival for few months since September, it was the crisis of her death in December for few weeks followed by the now done and dusted Jallikattu controversy in January.

When one thought that “Thai piranthaal Vazhi Pirakkum”, it is was the “Amma” of all leadership wrangles which ensued, resulting in the unceremonious exit of O. Panneer Selvam (OPS) as Chief Minister. The subsequent sentencing of Sasikala, the 24*7 resort drama that followed and the many heart to heart discussions various leaders had with the soul of Jayalalitha at her Samadhi consumed the state for few more weeks till Edapadi Pazhanisamy (EPS) was installed as Chief Minister. When one thought that the worst for the state was over, then came the cancellation of the bye election in R.K. Nagar constituency following brazen distribution of cash even at the peak of Demonetisation!

For political parties, fishing in troubled waters comes easily. BJP at the centre has been no exception in fishing in TN’s muddled waters. With the spectre of a drought looming large, this fishing expeditions so far have not yielded much results. Yet, it has not stopped the BJP from trying. Throwing the hat into the circus ring or rather posturing to throw have been two ageing star actors – Rajinikanth and Kamal Haasan, who of late have found the voice to raise against the not so new ills of TN. As I write this, it is yet uncertain if these will remain dress rehearsals sans a final stage performance! In the meantime, there has been coming together of the OPS & EPS camps while isolating the Mannargudi camp which has been camping in one of the resorts in Pondichery. Or may be Coorg. Or is it Kerala?  With the judiciary intervening almost on a daily basis on conducting a floor test, on disqualification of the defectors and generally everything, one can be certain that the state is in Coma and governance in suspended animation!

The Tamil Nadu I grew up was never like this. Even today, in spite of the lack of any meaningful governance, the state does still rank high on many social indices. But this is living in past glory and milking the once healthy cow.  The seeds for today’s rot have been systematically sown by the two Dravida parties who have been ruling the state alternatively since the death of MGR. To be fair, till the beginning of this century, things were not bad.  Almost ten years ago, a foreign visitor after visiting few states like Maharashtra, Karnataka, UP, the then AP, and in the end TN asked me why things were looking better in TN compared to the other states. And like all Indians who never say “I don’t know” to any subject on the earth, I gave my own theory. Which was that TN was the only state where the economy was quite balanced between Agriculture (Rice), Manufacturing (Auto, Textiles and small machinery) and Services (SW). Unlike other states even when growing well, the growth was not balanced between the sectors and hence created its own problems. For example, Karnataka had a high share of Services and less of Manufacturing while Punjab had a high share of Agri and Industry but less of Services. But if I look at the statistics today, this is indeed the case for TN and this has certainly ensured a very equitable growth in the state and no other state comes close to this balance.

Again, what TN is today is a result of some far-sighted thinking in the 70’s and 80’s by the then Governments. In the last decade or so, the state has been drifting away. While TN has been sleeping and slipping, the other states have been catching up. And this catching up has happened mainly due to some strong political leadership in each of these states. The neigbouring state of Andhra Pradesh ever since its bifurcation has seen some frenzied action. Both Telangana and Andhra Pradesh are fiercely competing today to garner investments. And in the age of competitive federalism, one state’s gain is another state’s loss. When Kia Motors (a subsidiary of Hyundai Motors) decided to set up a new manufacturing facility they opted for Penukonda (Anantapur) in Andhra Pradesh. It is heard that the Chief Minster Chandrababu Naidu took personal effort in bagging the project for his state and ensuring painless and swift land acquisition. In his weekly Swaminomics column, Swaminathan Aiyar once hailed the AP model of land acquisition for developing the capital city of Amaravati as an ideal model for other states to follow. He wrote that “Other states must study Naidu’s example, and adapt pooling for their own use.”

In Telangana, K.T.Rama Rao, its IT minister and son of the Chief Minister, has been in the forefront of attracting investments in the IT sector. In my own resident state Maharashtra, the young and dynamic Chief Minister Devendra Fadnavis is focused on making Maharashtra the most sought after destination for manufacturing again. And he already has a few early wins. Among his other plans are big bang infrastructure projects like Mumbai – Nagpur Express way,… In Rajasthan, its Chief Minister Vasundara Raje has been the flag bearer for labour reforms for the entire country.

In the midst of such action, what has been TN up to?  Plunged in a serious leadership crisis ever since Jayalalitha went to jail in 2014, TN has been just a torch-bearer for sycophancy saddled between MGR/Amma anachronisms on the one hand and OPS/EPS/TTV acronyms on the other. So, for “Turmoil” Nadu to regain its past glory and become a “Thalai” Nadu once again, its needs a Naidu like leader! ASAP. No, as of yesterday!  Do you have any picks? I have none at the moment.

Cartoon courtesy: Surendran/The Hindu

Demonetisation and it’s after”math”!!!

Ever since the RBI released its Annual report 2 weeks ago, Demonitisation (DeMo) is back in the news. And with its eminent Ex-Governor Raghuram Rajan now in India to promote his book, DeMo continues to hog the headlines and Op-Ed pages. The analysis of DeMo swing from scathing criticism of being a “big mistake” by the likes of Ex-Economic Advisor Kaushik Basu to calling it a “huge success and a course correction” by the likes of Gurumurthy, the veteran commentator on public affairs. So, as it happens in most issues these days, “for every spin there is an equally effective and opposite counter spin”! And where you stand on an issue depends on where you stand on the ideological divide.  On social media, it was a hashtag war between #DeMomenisationsuccess and #DeMonetisationfailure!

Ten months on, based on all the data available (99% of DeMo notes coming back to the banks) it seems that DeMo has not helped in sucking out the black money. In retrospection, I wonder how the government expected anybody in India to give up their prized possession (currency notes in this context) at all in the first place. In my own experience, when coming out with marketing promotion programs for the trade, we usually take twice the time for foolproofing the program compared to conceiving the program itself. This is from the wisdom of previous programs over the years where, we found that the Indian brain works over time always to find loop holes/gaps in any program announced. So, in a sales promotion program for example the trade will end up earning the incentives while you never achieve the increased sales objectives!

This is what happened in DeMo as well. If you remember, the day DeMo was announced, the chattering class’ verdict on WhatsApp group and dining area discussions was that it was a “Master stroke”! While the middle class and upper middle class folks who didn’t have unaccounted cash had to just find ways of beating the lines to exchange their notes, the ones who had, started cranking their brains. The result was the everyday tweaking of the rules and adding more terms and conditions for currency conversion. The then Economic Affairs Secretary Saktikanda Das became a celebrity overnight, thanks to his daily media briefings on what else – change in rules!

By now, it is clear that notwithstanding the anti-DeMo commentary of economists, there was overarching, tacit support for the DeMo move from common public. Inspite of loss of business for traders, loss of jobs for casual workers and loss of income for farmers the Note Bandi didn’t evoke much unfavourable mood towards the BJP so far. I am not sure if it will, from now on. What explains this paradox?

Many of the commentators have alluded to the human trait of Schadenfreude to explain this. That the poor were happy because this was one move which affected the rich and privileged and that the Prime Minister Modi had the guts to do so. This is a good possibility. But there could be more to this as well.  Within days of the DeMo announcement, the initial despair among people who were caught unawares with a lot of unaccounted cash turned into a relief, when they found ways and means to deposit the same into the bank. Among many ingenious ways, one was to tap into their own staff and workers to distribute the cash and get them deposited into their bank accounts. A report said that by Dec, the deposits in Jan Dhan Accounts peaked to Rs.74,609 crore! As of Sep, it was just 4,273 crore! The number of Jan Dhan accounts itself went up 5 times in this period!  My guess is that, in this process of conversion through the conduit of using others’ accounts, there must have been a cost.  The government must have lost an opportunity to earn taxes on the unaccounted income but those who had a lot of unaccounted cash ended up incurring a “conversion tax”! And I am certain that those who were witness to the rich incurring this tax felt certainly happy that DeMo was an equalizer of sorts. And not just being a witness, there would have been many who would have benefited from the sudden largesse of their masters as well and got their share of the “conversion tax”. So, instead of the government collecting taxes from the haves and distributing to have-nots by way of welfare measures did DeMo make it as a Direct Benefit transfer from the rich to the poor without the government in between?  Probably.

It’s evident now that the DeMo move has been a rocking political success for the government. On the economic front, though the objective of sucking up the black money has not been achieved directly, certain fringe benefits have accrued. Like reduction in cash circulation, increase in Digital transactions, and increase in bank deposits,…  These may leave the country in good stead in the future.  In the short-term however, the country skipped its GDP beat.

So when one does the after”math” of DeMo, it may well be like the popular “Elephant and the Blind men” story. For some, it’s a failure. For some, it’s a success. For some, it’s a partial success and for some it could be a partial failure. I would like to go with Rajan’s assessment that the short-term economic losses far outweighed the long-term benefits.  In hindsight, one is always wise. Other times – otherwise!

Lal Krishna Narayana Murthy!

On the 18th of August, just as trading in the bourses started in India, Vishal Sikka, CEO and MD of Infosys decided to extend his working day sitting in San Francisco till late hours to announce his resignation. Within minutes, his farewell note to his staff found its way to the media and a more detailed and emotional post was up on his personal blog. The “Moving On” post happens to be his first post in 15 months!!! The Infy scrip which was faring well the last few days in anticipation of the “buy back” announcement on the 19th, took a battering and ended up 10% down by end of the day. And during the course of the day, Infy Board stood behind Sikka and sort of blamed N.R.Narayanamurthy (NRN), for his dogged, open insinuations in the last few months which it claimed eventually led to Sikka’s exit. In the end, the self-proclaimed Kshatriya warrior capitulated as conspiracy theorists would add in good measure “to Brahminical dogma”!!!

Following this, water cooler conversations in offices and WhatsApp discussions were around this story as if the whole of India is invested on Infosys. But then, why not? For long, Infy was the bellwether for the Indian IT Industry. For Indians, It was a proud success story in post liberalization India.  In the success of Infy, there were many sub texts. The arrival of India in the global scene as a software power. The rise of Bangalore as another Silicon Valley. The ascent of the Indian Middle Class. The revenge of the Brahmins post the “Mandalisation” of India and so on. Some of these sub texts – real and some just façade as time would tell later!

Those were heady days for the Indian Software Industry and Infy was its leading beacon. There was not a single day in my memory when there was no positive news about Infy in the pink papers. Infy led the way and other IT companies followed. Visit of world leaders to India were not complete without a Tee off at the Infy golf course in Bangalore. Same for head honchos of global corporations.  A visit to the impressive campus in Bangalore was part of the itinerary for the chairman of Brother Industries, Japan – my previous company on his maiden visit to India. I heard later that his positive impressions in that visit hastened Brother’s investment plans in India. As Infy basked in that glory, NRN was inseparable. Slowly and steadily, beyond his business and his association with Infy, he became the conscientious voice for the country.  So much so, when UPA was searching for a successor for Abdul Kalam as President of India, an opinion poll threw up NRN as a strong candidate.

Though Infy was a story of 6 middle class entrepreneurs, the story of NRN was most visible. As the senior most founder he ensured his imprint was ubiquitous in Infy. When he sacked the other Murthy (Phaneesh) – till then the highest paid employee in Infy and head of Global sales on grounds of sexual harassment of a female colleague, NRN’s personal stock went up. “The day flying Business class reaches me to my destination 5 minutes earlier, I will shift from Economy to Business!” – This was NRN’s response to the question on why he continued to fly Economy on business trips at the top of his career at Infy.  NRN’s decree that the founders will not hang in and will hang up their boots at 70 was seen as a revelation in India Inc, where founders seldom retire. And when he soon walked the talk by stepping down as CEO for Nandan Nilekeni, it was seen as one of a kind of move. Till this point NRN had not made one wrong move. But after yesterday’s story, most of the ire got directed on NRN.

I was skeptical to the extent of being cynical when NRN chose to return to Infy briefly that too with his son in tow. Later, after anointing Sikka as the CEO and MD after an extensive search, when NRN stepped down from Infy for the second time, one expected that he would walk into the sunset quietly. The events in the last few months where NRN almost behaved like an activist shareholder frequently venting his ire on the affairs of Infy through the media shows that he too is a mere mortal. To be fair, I am certain that NRN would have tried to represent the concerns of employees and shareholders over corporate governance at Infy privately to the board before going public. That he chose to resort to the media means that there is more to this than meets the eye.

Cut to Goa, June 2013. The BJP National Executive was meeting in what was not another routine Executive meet. In the meet, it was clear that the path will be cleared for the then Gujarat CM Narendra Modi, to become BJP’s PM candidate for the 2014 Lok Sabha polls. Lal Krishna Advani, BJP’s tallest leader and architect of its growth till then, chose to skip the meeting.  He then subsequently sent in his resignation letter when Modi was chosen to lead the party’s campaign. Ironically it was the same Advani who played a stellar role in shielding Modi on his role in handling post Godhra riots in the very same Goa in 2002! Even after the spectacular victory of BJP in the 2014 polls, Advani did not have one word of wholesome praise for the chief architect of the win namely Modi but chose to credit “All party kaaryakarthas”!!! And in many public appearances along with Modi in the last 3 years, he hasn’t displayed too much benevolence in accepting Modi as “the” new leader for the BJP.  When the history of BJP is written, Advani will certainly occupy a significant space unless otherwise he chooses to become a footnote with his continued petulance.

That brings us to the point of the “Art of letting it go”!

Whether it is NRN, Advani, Mulayam or Ratan Tata it demonstrates the fact that stepping down, giving it up and walking away into oblivion doesn’t come so easy for humans.  But for forced reasons like health or regulations, can and do leaders walk into the sunset gracefully and remain there? Pranab Mukherjee, the recently retired President of India when asked what kind of legacy he would like to leave he said, “Don’t want to leave a legacy.  Will melt into the mass”!! Hope Lal Krishna Narayana Murthys of the world heard that.

The “Art of letting it go” is certainly fading and it’s time we make it a “Science”.

 

 

 

Our Tryst with GST* – * Conditions apply!!!

GST – The Good and Simple Tax, as our acronym lover PM touted during the launch on 30th June is finally a reality after almost 11 years of intense labour. This along with FDI in retail must count among the most awaited reforms in India by India observers.

So, the advent of a single tax which subsumes, at last count, some 17 different taxes and myriad cesses certainly must count as the single largest Tax reform undertaken in India. Not to forget the application of tax only on value added in the chain. Along with this simplification, the fact that goods from one state can pass thro different states without wait, harassment and accompanying corruption portend a new beginning for trade in our country. In the pre-GST era, logistics and warehousing strategy of companies have been dictated by tax compliance rather than supply chain considerations. In the sense, the number of warehouses and their size would be driven by billing point concerns rather than geographical spread of demand. In the GST era, warehousing will depend on supply and demand equations and not taxation points. And hence like in most developed countries, companies will get to run larger, integrated and fewer of warehouses. Development of more efficient logistics hubs, warehouse consolidation and ensuing FDI will become a reality soon. This is a new dawn for retail, supply chain and logistics industry.

So with all the seemingly obvious benefits of the GST regime, why is it that there is still some cynicism and negativity from different quarters about the move? Why is P. Chidambaram once the prime mover of GST when UPA was in power, cautioning all of us to “Get Set for Turbulence”? The GST in the current form is nowhere close to the one which was originally conceived. Rolling stones probably gather no moss. But a rolling GST gathered whole lot of moss on its way from the wisdom of empowered committees to standing committees to GST council. The current version of GST is a product of what I call “co-operative federal bullying”. The result is instead of the One Nation, One Market, One Tax premise, what we have is One Nation, One Market, One Tax name, 3 Sub Tax names, Multiple Rates, Few Exceptions, Some flexibilities and with an *. * – Conditions apply.

Being part of the GST council, the states in their own wisdom, ensured that we as a country don’t get away with a simplistic tax which may throw many Chartered Accountants out of jobs. However, I understand that without having a set of different GST rates (in some cases different rates for the same category as per user segments) or without excluding items like Petrol, Alcohol, Real estate,.. consensus could never have been built in getting GST off the ground. UPA’s failure to make GST a reality during their regime stems from this. So the choice before the centre was to accept what the states demand and bring about a not so ideal GST or wait endlessly for a few more years may be decades before some major economic crisis forces all concerned to come to an agreement on the ideal GST. From that point of view I agree with the stand taken by the Govt. to bring in GST in its present form with its shortcomings, with a hope of ringing in the changes in the coming years. Kudos are in order hence.

The Congress party which at every opportunity reminded us that the seeds for GST in India were sown by the UPA, however, chose to be petulance personified and boycotted the GST launch. While rubbishing the GST in its present form its main “anGST” against GST was that it is being rushed thro and should be delayed by 3 months till September. We all in India know that in our country whatever may be the preparatory time available, things get accomplished at the last minute. If we get more time, we stretch our deadlines accordingly. That if we have more time, we will be more prepared and can do trial runs before actual roll out,.. exists only in theory. Don’t we see in our Indian weddings, folks tying up some loose ends literally till the baraat arrives and continue to do so as the wedding is in progress?  Finally when the wedding gets over, its smiles all over.  So even after the GST roll out, there will be glitches, teething problems and surprises which I am sure we will find ways and means of getting over. Pushing back by another 3 months is not going to make things any different.

It must be commended that this Govt. stuck to the date of July 1. It would have been very easy for the PM and the Govt. to throw in the towel and put off the launch by a few months. But then, there are other implications. Come Oct. it is the peak festival and hence business season in India. Does It help if the roll out happens when India is in the midst of its biggest Annual economic cycle? Will it help if GST is launched in Jan. in the final quarter of the fiscal year???

The ruling party, the BJP counts traders as its important traditional support base for the party. That the party still decided to go ahead with the tax reform which professes maximum disruptions for this group is a significantly courageous move.  In India economic reforms have always been carried out under duress; when push comes to shove. The heralding of GST must be the 1st major economic reform brought in when not under any kind of stress but just to ease up things for the future. This certainly conjures up the arrival of Acche Din for our country.

Still our penchant for complicating things comes to the fore here as well.  Though the GST collections have to be shared between the state and the centre, could it not have been done at the back using technology rather than coming up with 3 variants like SGST, CGST and IGST??? Does the Anti-profiteering clause make sense? Will not competitive economics eventually drive pricing??

GST is indeed a Good and Simple Tax. So there is nothing like a good or better time to introduce the same. But, we should not forget that this is India and we are Indians. So, conditions apply.

Modi Sarkar and the Gita Saar!!!

As Modi Sarkar completes 3 years in office this week, the media is abound with pieces on the hits and misses. Depending upon who the author is and his/her political leanings, the pieces portray either a Glass Half Full or Half Empty picture. Very few have been honest portrayals.

As Aam Aadmis, it’s but natural that our opinions are influenced by what we read/see in the media. So per what we see these days, the economy is doing rather well – India is the fastest growing economy in the planet. The stock markets are on fire and at historical highs! India’s consumer price Inflation stands lowest since we started publishing consumer price index in 2012. In the past weeks the Rupee has been strengthening Vs. the Dollar though this is a double-edged sword.  FDI has been seeing record inflows.

And if you go by some of the pronouncements of the Govt. there again the last 3 years have been very busy for the Govt. of India. Infrastructure projects mainly on Roads and Railways have been unleashed like never before. Govt. has been kicking off programs like Make in India, Skill India, Start up India,..,.. to increase the employment and employability across sectors. Price control though a very socialistic intervention has been resorted to particularly in the healthcare sector to prevent fleecing of the common man. Programmes like Jan Dhan Yojana, Swachh Bharat and Aadhar have been given a fresh impetus right from the top.

In the 1st 18 months, the Prime Minister took it upon himself to travel to countries that mattered to signal the change and restore confidence on the India Story. The results have been emphatic. World over, it is now acknowledged that this Govt. under Modi is on a crucial transformative path and probably this time this is for real and long-term. (In the past India always flattered to deceive).  The inflow of FDI and announcements of various projects in Mfg. and Infrastructure are there to see.

So far so good.

While this is the flavor in the media by and large, it will be interesting to know what the sense on the ground is. If one goes by electoral results as in a democracy it is the barometer of an incumbent Govt.’s performance, there are no two ways about Modi Sarkar. By and large in all types of elections, Modi and his government have got a thumbs up from the electorate. In Economic times’ survey of the Indian Industry, the Industry has clearly thrown its weight behind Modi Sarkar.

In Britain, mid-term opinion polls ask a simple question to respondents: “Are you better off today than you were three years ago?” It would be interesting to know the outcome if somebody does a similar mid-term poll in India to understand what’s in peoples’ mind.

My hunch is that the response will be a farrago of sorts. First, that the conditions on the ground are yet to change. And, second that still the people are happy with the Govt.’s performance.  And yet this is fully understandable. For all the economic indicators and the efforts which have been put in by the Indian Govt. so far, on the ground, results are yet to show up. The fastest growing economy or the influx of FDI or the flag ship programmes kicked off by the Govt. or the massive increase in infrastructure spending and the many other initiatives are yet to result in changes in the life of the common man. In terms of jobs/increased disposable incomes to workers, farmers, middle class,..  And yet no one seems to complain. People still have immense hope on the Prime Minister and his Sarkar.

This is where the Saar (essence) of Bhagavad Gita comes in. In Chapter 2, Verse 47 of the Gita, Lord Krishna says, “You have the right to work only but never to its fruits. Let not the fruits of action be your motive, nor let your attachment be to inaction.”

representative visual

The public so far seem to be satisfied as long as their Govt. is earnest in their intentions and seen to be carrying out their job sincerely. The hope being that this is still “Work In Progress” and results will follow sooner or later. The common man’s response to Demonetisation is a good example of this behavior.

It looks like the Govt. is also taking this Gita Saar seriously and moving forward on a mission mode without getting too much flustered by the noise around it.  I must say here that while this is true for most of the ministries, there are some which have not taken the Gita Essence seriously. I am not sure if the Smart City project has gone beyond announcement of a list of cities. No one knows what the Ministry of Agriculture is up to in transforming the agricultural landscape which has been fraught with draught related woes at times and flood related at other times. That is to name a few.

So when the PM does a review of the performance of ministries on completion of 3 years, we hope he cracks the whip on those who have not taken their mission seriously. And reminds them of their Karma and another gem from the same Gita which says, “The meaning of Karma is in the intention. The intention behind action is what matters”. And declares,  Abki Baar Gita Saar!!!