Stock Options for BPL families- A Bottoms Up! approach for Modi 3.0

Modi 3.0 is facing primarily two crises:

1)Unemployment and Under employment or lack of adequate jobs that pay well.

2)Widening of gap between the top 1% of the population and the bottom 50%;

Price rise, inflation , stagnating Private Consumption Expenditure, feeling of high GST and IT rates among the youth are all problems of Expenditure when there are incomes and gainful employment.

Unemployment hits the Bottom of the Pyramid more severely than at the top of the Pyramid.

Economists and Political Thinkers have proposed solutions like encouraging and or incentivising the labour-intensive manufacturing and services sector in rural and semi-urban areas.

This is doable but whether such jobs are sustainable in the long run is a million dollar question say e.g Textiles etc.May be Cement , Steel and other metal manufacturing may have long term prospects but Pollution Control becomes a difficult task on hand.

Private Final Consumption Expenditure is languishing for two reasons

1)primarily because of Rural distress exacerbated by poor monsoon last year

2) Pentup demand after Covid drove PFCE higher last year and so on top of that it has moderately increased by 4% in the current year.

The major question of wealth distribution can be attempted through Stock market.

1)Poor i.e BPL families and families of labourers from Unorganised Sector can be asked to subscribe to a Group Fund by making a SIP contribution starting from Re1 and Govt on its part can contribute an equal amount every year.

2)This Corpus Fund can then subscribe to the basket of top 500 of NSE/BSE Companies.This basket can be given at a discount of 25% to Market price thro a special SEBI legislation and when the subscriber wants to opt out, he can be allowed to sell to the Corpus at a premium of say 10% to the prevailing Market price.

3)This will be a kind of Stock Options for BPL families and the scheme can be modified to suit the ground realities.

Comments

Hanuman and Ganesha!

The two major loved deities of the Hindu pantheon are Hanuman and Ganesha. Let us dwell into the concepts and significance of these two dieties. Ganesha, the son of Parvati and Shiv, is worshipped first before starting any new job or work. Even if you want to start writing or reading , you invoke the blessings of Lord Ganesha who goes under various names- Ganapathi, Vigneshwar, Vinayak, and Pillayar in Tamilnadu. Ganesha Gayathri, Pancharatnam are some of the important Ganesha mantras and hymns. Adi Ganesha idol is in a Temple near Tiruvarur in Tamilnadu with a human face.The mythological story says that Shiv slew His head and then fixed the head of the animal that He saw first after this beheading of His son. Ganesha after that with the elephant head is worshipped as the wisdom god by Hindus. Why only Hindus. He is worshipped in Indonesia where He finds Himself in their currency notes. He is considered the destroyer of evil in Japan. In Mexico, Ganesha idols were said to h...

Shrinking middle class in India?-Data show Growing Middle class!

Key Findings from the SBI Eco wrap Report(25th Oct 2024) Income Inequality is Decreasing : The report uses the Gini coefficient to demonstrate a decline in income inequality in India. The shift is most noticeable in lower income brackets, with a substantial portion moving into higher income groups. This aligns with a rightward shift in the income distribution curve. ITR Filings are Increasing : The number of ITR filings has significantly increased, indicating a growing tax base. This growth is particularly evident in previously untapped states (Uttar Pradesh, Bihar, etc.), suggesting broader economic participation.Below is the chart which shows No. of tax payers in Different income Group in AY2014 and AY2024 which clearly shows that the bulk have moved up from Rs.1.5lac to Rs5 lac to Rs.2.5 lac to Rs.10 lac(highlighted in yellow colour) Growth in 'Crorepati' Taxpayers : The number of taxpayers earning over ₹1 crore has increased significantly, highlighting the expansi...

State of the Indian Economy: Navigating Global Uncertainties

The global economic landscape is rapidly evolving, with trade policy uncertainty emerging as the key driver of the near-term outlook. Recent US tariff announcements have stoked fears of a global trade war, with countries still working out their appropriate responses in this uncertain environment. Despite these external headwinds, the Indian economy has exhibited marked resilience. Although the weakening global economic outlook could impact overall growth through weaker external demand, India's domestic growth engines - consumption and investment - are relatively less susceptible to external pressures. Prospects for the farm sector have been boosted by the forecast of an above normal southwest monsoon for 2025, which could augment farm incomes and keep food prices under check. Headline inflation moderated to a 67-month low of 3.3% in March, mainly due to moderation in food prices. Global Economic Outlook: Trade Tensions and Market Volatility The global economic landscape is facing ...

We are what we are !!

Search This Blog