Sunday, September 24, 2006

Super "Sop"pers

The moment an industry worries about sops and argues that its market will dwindle unless the government (or whoever) reduces taxes/duties/interest rates - you know that the industry is doomed - they deserve to . These poor little rich characters will not progress unless they think beyond sops and lobbying. Heres one example. Jitters over proposal to end US sops for Indian jewellery. Have they not heard of moving up the value chain? Do read the arguments in the piece around how Indian jewellery has "democratised diamonds in the US" and how the beneficiaries of these sops are "3.25 lakh skilled workforce, mostly from the rural areas of India" workers in jewellery units are poor rural craftsmen (did they forget to mention that the owners are rich?)

But give sops we will. Not to individuals or hard working salaried employees- make no mistake. I was reading the annual report of a textile company and chanced upon TUF, a Textile upgradation fund, that allows 5% interest rate with a repayment of 10 years. (Note that the current home loan rate is upwards of 8 percent.) So, all those industries who toiled (and perhaps failed) with old equipment can go for brand new (or second hand) ones at a subsidy, which comes from, well, the honest taxpayers money.

1 comment:

Aadisht Khanna said...

You're making the exact opposite claim that Sainath does, do you realise? :)