Author archives: Vivek Kaul

  • Corporate Bad Loans Are Draining the Indian Government

    21.02.2018 • IndiaComments Off on Corporate Bad Loans Are Draining the Indian Government

    With a very low rate of recovery of bad loans, this means that the government, the major owner of public sector banks, has had to infuse fresh capital into these banks. By the end of 2018, the government would have infused a total capital of Rs 2,19,718

  • Indian Taxpayers Are Unknowingly Funding Public Bank Bailouts

    14.02.2018 • IndiaComments Off on Indian Taxpayers Are Unknowingly Funding Public Bank Bailouts

    The Reserve Bank of India is not sure of how deep the bad loans problem of India's public sector banks runs. And from the looks of it, the central bank has finally gotten around to admitting the same and doing something about it.

  • Trump Has the Final Say on the End of Easy Money

    12.02.2018 • IndiaComments Off on Trump Has the Final Say on the End of Easy Money

    Ultimately, the Federal Reserve has to ensure that the American economy continues to remain on a stable footing. If rising interest rates end up hurting the American economy, the FOMC will have to react accordingly. No Federal Reserve decisions are written in

  • The End of the Easy Money Era

    09.02.2018 • IndiaComments Off on The End of the Easy Money Era

    The hope was that with money supply going up, interest rates would fall, companies and people would borrow and spend money. This would lead to a faster economic recovery. The idea, as always was, that America will spend its way out of trouble. But that is not

  • Understanding India’s Decade of Decline

    30.01.2018 • IndiaComments Off on Understanding India’s Decade of Decline

    India's investment to GDP ratio "climbed from 26.5 percent in 2003, reached a peak of 35.6 percent in 2007, and then slid back to 26.4 percent in 2017." This is a huge fall of 9.2 per cent from the peak.

  • The Real Problem Behind the Indian Jobs Crisis

    24.01.2018 • IndiaComments Off on The Real Problem Behind the Indian Jobs Crisis

    It's better to get rid of pakodanomics as soon as possible and concentrate on the real problem of creating the right environment which will help the real entrepreneurs create genuine employment opportunities for India's youth.

  • The Jobs Problem in India Has Been Officially Eradicated

    24.01.2018 • IndiaComments Off on The Jobs Problem in India Has Been Officially Eradicated

    This new study has caught the imagination of the media and the politicians in power and is being flagged all around. If seven million jobs are being created in the formal sector every year, India does not have a jobs problem.

  • You Can’t Get Rid of Taxes

    16.01.2018 • IndiaComments Off on You Can’t Get Rid of Taxes

    Every year, before the annual budget is presented, suggestions are made to scrap the income tax paid by individuals. The logic typically offered is that the individual income tax forms a very small part of the total taxes collected by the government, and

  • State-Owned Air India Is Crashing and Burning

    16.01.2018 • IndiaComments Off on State-Owned Air India Is Crashing and Burning

    The government owned airline Air India has been losing a lot of money over the years. Take a look at this table, which lists out the obscene losses of the airline over the last few years

  • Buying High, Selling Low

    11.01.2018 • IndiaComments Off on Buying High, Selling Low

    The law of demand basically states that there is more demand for something when prices are low and vice versa. This clearly does not work in case of the stock market. A bulk of retail investors get attracted to it, only after the market has become fairly

  • Bank Bail-Ins Will Scam Indian Taxpayers

    11.12.2017 • IndiaComments Off on Bank Bail-Ins Will Scam Indian Taxpayers

    If the government keeps rescuing banks what is the signal they are sending out to bank managers and borrowers? That it is okay to lend money irresponsibly given that governments and taxpayers will inevitably come to their rescue.

  • Sound the Alarm – This Bubble Is About to Burst

    28.11.2017 • IndiaComments Off on Sound the Alarm – This Bubble Is About to Burst

    "This time is different," is an argument that is often heard whenever an asset class is selling at peak valuations. And this is the argument that is now being made when the Indian stock market is at extremely high valuations.

  • India Is Too Dependent on Chinese Goods to Boycott

    27.11.2017 • IndiaComments Off on India Is Too Dependent on Chinese Goods to Boycott

    Public rallies against imported Chinese goods are held quite regularly these days across different parts of the country. But, India's dependence on Chinese goods has only grown over the years.

  • One Example of How a Good and Simple Tax Should Work

    21.11.2017 • IndiaComments Off on One Example of How a Good and Simple Tax Should Work

    India's Tax System Needs an Immediate Reform

  • India Lowered Sales Tax, Yet Nothing is Cheaper

    20.11.2017 • IndiaComments Off on India Lowered Sales Tax, Yet Nothing is Cheaper

    The GST on restaurant bills was recently cut to 5%. Earlier it was 12% to 18% depending on whether the restaurant was air-conditioned. Hence, the cost of eating out was expected to come down, with the rate being slashed. Nevertheless, nothing of that sort

  • You Shouldn’t Believe the Fishy Numbers in India’s Real Estate Market

    13.11.2017 • IndiaComments Off on You Shouldn’t Believe the Fishy Numbers in India’s Real Estate Market

    If prices have fallen by 25%, why are real estate transactions not happening? Why has the total number of unsold homes of real estate companies only continued to grow? It is worth remembering here that a 25% fall within a year, is a huge fall. Falls like

  • Why Indian Politicians Need to Use Aadhar

    08.11.2017 • IndiaComments Off on Why Indian Politicians Need to Use Aadhar

    It is almost impossible to carry out any transaction with the government without an Aadhar card. But, while ordinary citizens, like you and I, need to keep showing and linking our Aadhar card everywhere, the same does not apply to politicians and political

  • India’s Modi Government Will Survive the Next Election

    01.11.2017 • IndiaComments Off on India’s Modi Government Will Survive the Next Election

    Prime minister Narendra Modi will visit Gujarat the third time this month. In the run-up to the state assembly elections, he will inaugurate and lay the foundation stones to a number of projects. Modi's multiple visits to Gujarat have led to the question - is

  • Why You Should Be Worried About the Drop in Cash to GDP Ratio

    30.10.2017 • IndiaComments Off on Why You Should Be Worried About the Drop in Cash to GDP Ratio

    This dip in proportions is being passed off as an achievement and a fact that the nation has become more honest. However, the link between a low cash to GDP ratio and low corruption is very weak. It is something that the Modi government has invented to build

  • These Politicians Should Be Banned From Receiving Cash Donations

    26.10.2017 • IndiaComments Off on These Politicians Should Be Banned From Receiving Cash Donations

    If the idea is to eliminate black money, why are political parties allowed to collect donations in cash, in this day and age. If the idea is to encourage digital transactions, why can't PM Modi and the BJP, set an example on this front and ensure that the BJP

  • Recapitalization Won’t Fix India’s Public Sector Banks’ Problem

    25.10.2017 • IndiaComments Off on Recapitalization Won’t Fix India’s Public Sector Banks’ Problem

    Vivek Kaul – Vivek Kaul’s Diary (India) – One of the examples of Big Government I have in my book India’s Big Government is that of government owned public sector banks. (The good news is that the book is available at a huge discount

  • Why You Can’t Sell Your House in India

    24.10.2017 • IndiaComments Off on Why You Can’t Sell Your House in India

    Vivek Kaul – Vivek Kaul’s Diary (India) – I am in Delhi these days. And Delhi and the National Capital Region around it, as you would know, dear reader, have their share of real estate stories. There are stories of builders who have taken

  • Over 44% of Indian Workers Are Now Self-Employed

    23.10.2017 • IndiaComments Off on Over 44% of Indian Workers Are Now Self-Employed

    Vivek Kaul – Vivek Kaul’s Diary (India) – Has Arun Jaitley Been Reading India’s Big Government? Oct 23, 2017 Self-employment is the new buzzword in the Narendra Modi government. And it is going to rescue the one million youth that are

  • Protect Yourself from ‘India’s Big Government’ with Kaul’s Book

    18.10.2017 • IndiaComments Off on Protect Yourself from ‘India’s Big Government’ with Kaul’s Book

    Vivek Kaul – Vivek Kaul’s Diary (India) – Dear Reader, First and foremost, here is wishing you and your family a very Happy Diwali. One of the questions that I keep getting asked about my new book India’s Big Government-The Intrusive