left without a solution

The left parties have made obstruction of governance and policy making into something of a fine art. From international relations to domestic financial policies, seems beyond their ambit when it comes to expressing reservations and stalling progress.
There is an uncanny method in this apparent madness. Raise the stakes, make a loud noise placket your constituency - and then end it all with a whimper. In politics when cynical maneuver replaces reasoned strategy the results are stalled progress and gains ephemeral.
On two recent issues, the stand of the left parties has been appalling. On Iran the left opposed the Indian government even before the government had taken a stand. That they mellowed down - not after an explanation from the Indian government - but when China and Russia went with the vote - puts a question mark on where left loyalties truly stand.
In the more recent case of the striking airport employees, who by no starch of imagination can be described as laboring proletariat - the left’s stand has been akin to that of a street fighter out to browbeat with his brawn. The bluster is all the more galling given the pathetic record in efficiency and honesty of the airport staff.
On national television Sitaram Yechury, the articulate politburo member and MP, compared the strike with the Bofors scandal. He went as far as to draw parallel between the falls of the Rajiv Gandhi government with that of an impending fall awaiting the Manmohan Singh government on the airport issue. This is a patent absurdity. The airport strike is not a political issue f any consequence. The privatization deal has a lot to offer the airport staff including profit sharing and a sizable financial stake.
The worrying thing is that the left rhetoric is bound to get shriller still. With elections ahead in left ruled states of West Bengal and Kerela policy and programs - indeed governance itself - could be held hostage for perceived political mileage.
On its part, the congress is toughing its stand. The airport bids went ahead in the face of strident protests by the left. At the Hyderabad plenary, Sonia Gandhi made it clear that Congress will fight the state elections as a full alternative even as they remain partners at the center.The left would do well to heed a recent survey which predicated a shrinkage of their political space should snap polls be called at the current time. However as things stand, they seem to be in a happy position classic to a status where power is without responsibility.

buying costly cell phones could atract the tax man

Buying that swanky new cell phone just got a little bit tricky. The income Tax department is watching you closely If you are going to spend as little as Rs. 25,000 they may come after you.
In a startling development last week, the department went across Mumbai’s retails stores and physical checked their ledgers. This was done to find out who the “big spenders” were and how they managed to get the money to splurge. The information was matched with the spender’s tax returns and notices were sent to over 400 people.
This is a retrogressive return to the days of the tax raid raj. The move has the potential of having a dampening effect on the economy. India’s economic growth is driven by a healthy 29 percent saving rate that drives domestic consumption, unlike China, which depends on consumption from aboard. This is a major advantage for the country and the latest move could hurt domestic consumption.
Even tax collection could suffer from this move. Taxes such as VAT contribute a far larger share in the government’s revenue collection when compared to Income tax.
. If an atmosphere of fear is created, it is sure to inhibit expenditure and in turn revenue from goods sold. As a result the income tax department may gain but the revenue from other departments such as excise and VAT will show a slowdown. The imbalance in revenue collection negates the logic of going after individuals. It will ultimately hurt the government more than consumer.
While it is no one argument that tax evasion goes unchecked, these intrusive methods are not the right manner to go about it. This constitutes a regime of fear where a consumer will have to think twice before making even innocuous purchases.
The move is likely to encourage the use of cash instead of credit cards. The consumer will easily by pass the tax effort by spending cash and this will only drive up the share of the parallel economy. The income tax department has other pressing problems. It has billions of rupees locked in t\legal disputes and the income tax return process too is in need of further simplification. By going after so called big spenders it is merely creating a problem rather than having a solution. The department will do well to rethink its position on this issue since consequences are a slowdown of the economy which India can ill afford.

small time india now in big league

The cheer is strange for this frontline town. Frontline that is on of the Naxal war that rages like a red blister across much of central India. Says a wireless telecom sales manager, plucked out of a management school in Delhi and placed here, " The truth is that while business is surprisingly good with people sick of land lines, I cant venture out worried sick as I am of land mines. Ranchi has no suburbs. Twenty miles out and you are in naxal cross hairs. I can't believe how much time I spend at the bar these days - there is just nothing else to do around here." He may have a point. While cell phones have boomed and Sunil Mittal said at a recent conference that the opportunity in Ranchi was spotted late, even most cell phones don't connect.

The real estate market though has boomed, regardless. Partly because Jharkhand became a state and expectations of a growth of the sort witnessed by Deharadoon propelled investor sentiments. The real action however is in the natural resources sector. You have a queue here for investing in mining in power and coal. Says Tanmay Priadarshini of Jindal Steel "Things take time here, but make no mistake, once you realize the sort of resources the state has you will appreciate that there are few better alternatives than Jharkhand. Sure law and order can be tough but the mining sector overall has the capacity to be a transforming agent in this state. We are very bullish about Ranchi."

This being Ranchi the main road is called simply that – main road. And here stands a five star hotel in white marble, its called Capitol Hill. It houses another giant potential investor - Arcelor Mittal. Currently playing the waiting game the steel giant has eyes firmly on the state. So do about 40 other steel and coal companies of various sizes who have signed MOU's. However says a senior Indian Steel firm CEO on the condition of anonymity “ The only problem is that the after the MOUs nothing has moved. And some of the MOU’s have even lapsed since the time of reference is long over. There is also a lot of uncertainty since PSU firms corner mines so you are left groping in the dark in the middle of seemingly endless opportunity.” Transparency is alien in these parts. What you see is never what you get. This is India inc. as it used to be.
\u003c/p\>\n\u003cp style\u003d\"margin:0in 0in 0pt\"\>\u003cfont face\u003d\"Times New Roman\"\>The malls bandwagon so conspicuous ion other growth towns is absent in Ranch – so far. However both the pantloon group and the future group have plans lines up with the later likely to start operation here early next year. So the mall going Indian will soon have its fist cousin in Ranchi. Says local businessman Aditya prasad " Reality as a trigger for growth has been slow in coming but its now firmly here. We also ready have an top-notch Apollo hospital and a seven star hotel is planned. It may not look like much but this lace is catching up – and fast.'\n\u003c/font\>\u003c/p\>\n\u003cp style\u003d\"margin:0in 0in 0pt\"\>\u003cfont face\u003d\"Times New Roman\"\>The youth are hopeful too. Some kids on motorbikes restless like the rest of India are eating at a popular Kebab joint on main road. I join the feast to see what the youth are humming. The ambitions seem modest a couple are preparing to go to Delhi to take the IAS exam two others work for telecom franchises and all of them are unanimous in one thing – Mahendra Singh Dhoni. If ever there was a motivational guru who could motivate enter peoples and give them hope this is it. Says Sarawak \n\u003c/font\>\u003c/p\>\n",0]
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The malls bandwagon, so conspicuous in other growth towns , is absent in Ranchi – so far. Pantaloon though has a big mall lined up. So the mall going Indian will soon have a first cousin in Ranchi. So while reality as a trigger for growth has been slow in coming its now a reality. Apollo has set up the first real multi facility hospital and a seven star hotel is also in the works.
The youth are hopeful too. Some kids on motorbikes- restless like the rest of India are eating at a popular Kebab joint on the main road. I join the feast to see what the youth are humming. It’s a modest hum - almost a whisper. A couple of them are preparing to go to Delhi to take the IAS exam, two others work for telecom franchises and all of them are unanimous in one thing – Mahendra Singh Dhoni. If ever there was a motivational guru who could motivate an entire people he is it. Says Sarawak gonda, 22 “ look we have to aim at the top and if we have it in us it is possible. If he can be a one of just eleven in a billion we are only looking to join the workforce.” Way to go mate! The odds are indeed in his favor.