Monday, January 15, 2018

Storage, Irrigation, Skills, Automation...





The GOI should invest more capital in (FOOD) storage because a third of it has a poor shelf life without proper storage... Higher income of farmers could increase farmer's stockholding and release when prices are high...




The difference between whole sale market and the retail market is a game of 4% profit loss daily, the prices, other than the stock market, are less volatile in the absence presence of capital and the stock or demand supply and expectations... which could lead to higher farmers' stockholding and inflation adjusted prices...




The ability to hold or save is important... Lower irrigation facilities and higher cost is a much bigger problem coupled with capital investment...




MGNREGS should be transformed to GOI's SKILL DEVELOPMENT Program... It would increase productivity of the RURAL INDIA... It would help save labour and could increase productivity of the economy... Think not of labour alone...




GOI's implementation and information transmission mechanism, the case of the GST, to public is taking too much time or too slow... which has obstructed the revenue growth…




The RBI should give the pricing power to the markets by giving a limit to nominal income (real income plus inflation) at 10% to clear... it should drop the inflation target to 10... also by lowering the borrowing cost... it has not limited inflation in the securities... It has limited nominal income of the rest of the economy...




RBI may try to reduce the borrowing cost inflation... Flow of goods and services should lower inflation and increase real wages... Real rates have improved due to lower inflation and expectations... in a World of negative real rates...




Automations are capital intensive or require capital (money)... In INDIA the borrowing cost is higher compared to the developed and capital rich countries with few bottlenecks in supply... However, it has a plenty of cheap labour... which points to employ more labour than automation which is dear and require skills...




Skilling and re-skilling to increase productivity of the labourforce, according to industry needs and demand, would increase job creation... Education and internet education ( or self education) is important for self employment and business and entrepreneurship... It would help facilitate informed decisions and minimize risk...




Lower wages in INDIA could help to integrate with the global supply chain and value addition through increase in productivity or production in labour intensive line of output due to lower cost and prices... Exports are important for jobs...




Spend to increase production at lower cost and increase employment... The economy is going through a lower price period... except the borrowing cost... which could also reduce interest on PUBLIC DEBT...




Stock cycle is different from the stock market cycle.. A company with a credible and consistent performance is the best insurance... If a stock is good, people form very higher expectations, suppliers (offers) supply more at higher prices and demanders (bids) demand more at lower prices... resulting in higher prices... When risk is there... there is more profit... Look out for credible performance... it is safe... consistent, too...


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