Skip to main content

MODI STRONGER THAN EVER

Globally acclaimed economist Jagdish Bhagwati today said demonetisation will promote growth while Amartya Sen and other experts who denounced it stand "humiliated and exposed".
"On the effects of demonetisation on growth, I should say that I was the one economist who had argued (with my co-authors), from first principles, that demonetisation would increase, not diminish, growth," he said.
"And that is exactly what appears to have happened," he said further.
"The Prime Minister's success in Uttar Pradesh has therefore meant that Amartya Sen and his friends who argued that demonetisation would hurt growth, have been humiliated and exposed as much as the Congress," Bhagwati told PTI in an email interview.
He is a professor of Economics, Law, and International Relations at the Columbia University.
"After BJP's victory in Uttar Pradesh, indeed Prime Minister Narendra Modi is now in an even stronger position than when he was first elected resoundingly," Bhagwati said.
He also said that three things ought to be noted that made (Prime Minister Narendra Modi's) current position 'unassailable'.
"First, he has finally decimated the Gandhi-Nehru dynasty, so the Congress is not merely on the ropes; they also lack currently anyone of stature who can rescue it from oblivion," he said.
Second, the Muslim vote no longer is a monolithic anti-BJP vote, Bhagwati said, adding, "I suppose that while BJP did not field Muslim candidates in the Uttar Pradesh election, surely Muslims were aware that the propaganda that Prime Minister Modi was anti-Muslim was an outrageous lie."
Noting that Modi has appointed a brilliant Muslim, ambassador Syed Akbaruddin to the United Nations as our representative, India's best journalist M J Akbar is in his team also, and the new ambassador to the United States is a Sikh of great distinction, Bhagwati said, "India's diversity is thus manifest in Prime Minister Modi's approach to governance."
Referring to Nobel Laureate Amartya Sen's assertion that demonetisation was a 'despotic act', the eminent economist said, "Not knowing finance, he (Amartya Sen) made the mistake of taking the strange position that the demonetisation action was 'despotic'".
"But Sen seemed eager to rush quickly into the fray: here perhaps was his chance to 'get' at the Prime Minister, whom he had long denounced but without success," he said.
"Like Sen, I was also not an expert on finance but I had taken my time and educated myself and I paired myself with finance experts so I would not make a fool of myself."
"Unfortunately, with Sen and me on opposite sides on the demonetisation issue, many in the press seemed to seize on this coincidence and try a repeat of the old controversy, they had conjured up between Sen and me over the issue of the efficacy of growth in reducing poverty," Bhagwati said.
"He (Sen) had lost that time around, flipping from a 'growth does not matter' to 'I always argued for growth' position," the eminent economist said, adding, "Here was his chance to get both me and the Prime Minister, a double dividend."

Comments

Popular posts from this blog

JIO TARIFF CICK FOR TELECOM STOCKS

Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…

STOCK MARKET WELCOME NEW YEAR WITH LOSS

Sensex drops 244 pts
A late sell-off in auto, banking and IT shares pulled back the benchmark BSE Sensex from record high level to close down by 244 points, its biggest single loss in past one month, on the first trading day of 2018. Investors preferred to book profits at record highs amid concerns over fiscal slippages and rising crude oil prices and absence of cues from global markets which were closed for the New Year holiday. The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 per cent, at 33,812.75. This is the biggest single-day fall since December 1 when the index had lost 316.41. The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday. Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 per cent down at 10,435.55. Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in…

NIFTY EARNINGS FLAT IN 2018

UBS Cautious Note

Projecting zero returns from the Nifty, Swiss brokerage UBS has projected a 10 per cent cut in its index target at 10,500 for calendar 2018, even as it remains positive over the long-term. "Top-down, we forecast Nifty earnings growth will recover from 9 per cent in fiscal 2018 to 13 per cent in 2019, but driven largely by financials," the brokerage said in a report. "However, earnings growth is likely to disappoint against consensus forecast of 22 per cent growth for fiscal 2019, implying a 10 per cent cut," it added. Accordingly, the brokerage estimates "no returns from the Nifty in 2018" and has set the index target at 10,500 for this December. The report noted that a sharp earnings recovery, with continued robust macro stability appears priced in by the markets. "A sharp earnings recovery appears priced in. The markets are already close to our 2018 target, given optimistic fiscal 2019 consensus earnings expectations, which build …