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India moved from ‘crony socialism’ to ‘stigmatised capitalism’: CEA
New Delhi, Jan 29 (IANS) Making a philosophical summation of Economic Survey 2017-18 authored by him, Chief Economic Advisor (CEA) Arvind Subramanian on Monday that among the positive lessons from the year past was from the efforts begun to shift India away from a prevailing mindset he described as “stigmatised capitalism”, which, in turn, had earlier replaced one of “crony socialism.”
Subramanian, who has authored the Survey, was addressing reporters here following the tabling of the government’s annual report on the economy in Parliament earlier in the day, which precedes the presentation of the Budget on February 1.
Concluding his media address, the CEA said that among the positive lessions of last year was a significant one that related to public attitude and perception.
“Speaking of the positive lessons of last year, the last 50-60 years have seen a shift in attitude from what I call..and I claim the patent for these definitions..from crony socialism to stigmatised capitalism,” he said.
“It is this stigmatised capitalism that has made reform of the Twin Balance Sheet (TBS) problem very difficult,” Subramanian said referring to the phenomena of a heavily leveraged corporate India, as well as the related problem of massive accumulated non-performing assets (NPAs), or bad loans, of state-run banks.
“If we can address the TBS issue, it will go a long way to tackle the exit problem (insolvency in corporate India) and the ‘Maahaul’ (ambience or environment) of stigma towards capital,” he added.
The latest Economic Survey said: “The ambivalence relating to the private sector relates to the experience with Indian capital. The private sector has always had to struggle with the stigma that came with being midwifed in the era of the license-quota-control Raj.”
The roots of the NPAs in the Indian banking system, which have reached the staggering level of nearly Rs 9 lakh crore go back to the boom period in the economy during the previous decade under United Progressive Alliance (UPA) rule. Only the bad loans of state-run banks add up to around Rs 7.5 lakh crore.
The government has embarked on a two-pronged strategy on bad loans. On the one hand, it has brought in the Insolvency and Bankruptcy Code (IBC) which provides for a six-month time-bound insolvency resolution process. On the other hand, it has approved a Rs 2.11 lakh crore recapitalisation plan for state-run banks.
The Reserve Bank of India has referred 12 accounts, totalling about 25 per cent of the gross NPAs, for resolution under the new IBC.
“As a result of the TBS problem, the public concluded that promoters had little skin in the game, that India had ‘capitalism without equity’, and that instead of limited liability there was very little liability, all further exacerbated the negative perception of Indian capital,” the Survey said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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