The only pillar of Modi’s democracy
This is a followup post to our previous article which talked about how the Nov 8 directive is not a true measure against Black Money & not demonetisation in real sense.
SBI has reduced deposit rates from 6% to 4% now. Loan rates are expected to follow. As written in a previous note, this was not a strictest measure for demonetisation and may have other motives, the estimate is coming out right.
With such reduced low rates, local businesses and entrepreneurship are bound to get up a boost. Capital will be available easier than ever and at rates lower than ever making the Indian businesses and even exports highly competitive in the tough global market. With low interest rates, people with money will seek other avenues for money growth and many should turn towards financing new businesses. Expect a significant jump in India based VC funds and many startups getting funded at early stage levels.
This will also boost up the real estate market as housing will become more affordable particularly the low cost housing. However the land costs may remain lower and may not rise in the medium term. Agriculture will also get a push with cheap land available now and as an impact food prices may also go down.
This is a tectonic shift in the country, the magnitude and the impact of which is yet to be realised. Opposition seems to have totally missed the pulse of people and Modi or they are dwarfed in their ego & pride. Whatever it maybe, they are playing to the tunes of Modi now. By the time they react to his actions, he has already made the next move. With his app initiatives he has directly connected with the people who now seem to be the only pillar in Modi’s democracy.
The cues for now indicate that this current so called demonetisation was not an action against black money but a move towards development of India. Modi for now walks the talk- Development has always been his agenda and he presents himself as a true Vikas Purush.
We eagerly wait for the next episodes in this high action drama to reveal the true intent. For now we rejoice for the only pillar that matters to Modi.