With TMC exit, Chidambaram to increase AC rail fares by 3%

[sob]

I will admit, I did not realize this until after I read your post. I thought that this was, as the title suggested, an "increase [of] AC rail fares," not an additional tax. I suspect the same about Yusuf and Bangalorean.

For the passenger it is a increase in fare, but the whole issue is that instead of the benefit accuring to the Finance Ministry the money should have gone to the IR. They are in desperate need of the money.

 

[pmaitra]

It was for the first time in the history of any organisation that the Unions rose in a single voice to demand that the Railways increase the passenger fares across all the segments. Previous Railway Ministers, had refused to raise the fares for the fear of facing the backlash of the aam aadmi, leaving IR without the resources to even operate independently.

Today IR is dependent on the grant from the Finance Ministry to run on day to day business as more than 90% of their revenue goes towards meeting their fixed costs, leaving no money for safety and track expansion.

A small hike is the need of the hour, but the money raised, should go 100% for improving the safety and the basic amenities of the passengers. If people see the results of the fare hikes then the vast majority will have no problem in shelling out the extra money.

I think you are confusing between, or are misinformed about, 'aam admi' and 'unions.'

 

[aeroblogger]

For the passenger it is a increase in fare, but the whole issue is that instead of the benefit accuring to the Finance Ministry the money should have gone to the IR. They are in desperate need of the money.

Perhaps it's my background in aviation, but fare increase to me automatically means that the operator of the transportation is receiving the money. If the money is going to the government instead of IR, then it is a tax being levied, not a fare increase.

 

[sob]

I think you are confusing between, or are misinformed about, 'aam admi' and 'unions.'

No PM, there is no confusion. The unions were supporting the price increase because they have seen in recent times their salaries have not been paid on time and also the Railways have had a tough time in paying for the pensions. The writing is on the wall.

In fact I do not remember the Railway unions ever endorsing/opposing fare hike. It is always the passenger unions which oppose the fare hike.

 

[pmaitra]

No PM, there is no confusion. The unions were supporting the price increase because they have seen in recent times their salaries have not been paid on time and also the Railways have had a tough time in paying for the pensions. The writing is on the wall.

In fact I do not remember the Railway unions ever endorsing/opposing fare hike. It is always the passenger unions which oppose the fare hike.

Ok, I agree. I misunderstood; sorry about that. Right, the employees' unions an passengers' unions have always held opposing views.

 

[jackprince]

Defcon1 is right, this is very good news. The nation cannot make rules for exceptional conditions of the kind that you speak of. I am sorry to say, this country's middle class is too used to being pampered and getting subsidies which they do not deserve. Its time the middle class learned to pay for what they consume.

The message is: travel by 2nd class if AC is too expensive for you. Don't live beyond your means and expect the nation to subsidize it.

Harsh, but that is the reality.

well, it used to be customary to reply someone after reading his/her post in this forum, which you obviously mustn't have done. Even you could have read up defcon1 's post, who read what I have posted.

I said "If it was fare, it would have been very much acceptable", what not acceptable is non-refundable service tax, which btw, I think I will have to check up whether by the existing S. Tax rule or not. I may be forced to agree with Defcon1's idea of preventing people from extra booking! But boy, I guess you will learn someday that whether or not you have to stretch a lot, you always put your family at fore, but getting ripped off in the process is not acceptable.

 

[Bangalorean]

well, it used to be customary to reply someone after reading his/her post in this forum, which you obviously mustn't have done. Even you could have read up defcon1 's post, who read what I have posted.

I said "If it was fare, it would have been very much acceptable", what not acceptable is non-refundable service tax, which btw, I think I will have to check up whether by the existing S. Tax rule or not. I may be forced to agree with Defcon1's idea of preventing people from extra booking! But boy, I guess you will learn someday that whether or not you have to stretch a lot, you always put your family at fore, but getting ripped off in the process is not acceptable.

And I guess you will learn someday that you ought to stop expecting the nation to subsidize your family's travel. No, seriously - what are you talking about - sitting with an internet connection and a computer, and talking about "getting ripped off", for such a small amount!!

Your talk of "read my post first" is absolutely irrelevant. So, would it be ok with you if it had been "non-refundable fare" instead of "non-refundable service tax"? For someone who claims that he is "being ripped off", how does it make a difference what the amount is called - after all it is the same amount that you need to pay, no matter what you call it. You will "get ripped off" anyway.

Everyone wants greater luxury for themselves and their family. Even Amitabh Bacchan will have his own desires and wishes - I'm sure he wants a private jet to take him and his family around. The poor vegetable seller who goes to his village once a year wants to travel by second class instead of general compartment. I would love to take my folks in first class and business class everywhere.

But then, if the fares and economics don't work out, they don't. If one finds it too expensive to go by a certain mode of transport, one will have to go by one class less. If is because thousands of people like you talk of voting Mamata because of this little fare hike (which is very much affordable to every stakeholder), that the railways never improves.

The point I had to make has not changed by re-reading your posts or your reply.

 

[Sridhar]

The service tax is 12.36 per cent but after the abatement of 70 percent it will be 3.708 per cent on passenger fares in AC classes and freight

Freight rate will also go up by 3.708 percent from October.

However, auxiliary services rendered at stations like catering and parking will have to bear the burden of 12.36 per cent as there will be no abatement on these services.

 

[jackprince]

And I guess you will learn someday that you ought to stop expecting the nation to subsidize your family's travel. No, seriously - what are you talking about - sitting with an internet connection and a computer, and talking about "getting ripped off", for such a small amount!!

Your talk of "read my post first" is absolutely irrelevant. So, would it be ok with you if it had been "non-refundable fare" instead of "non-refundable service tax"? For someone who claims that he is "being ripped off", how does it make a difference what the amount is called - after all it is the same amount that you need to pay, no matter what you call it. You will "get ripped off" anyway.

Everyone wants greater luxury for themselves and their family. Even Amitabh Bacchan will have his own desires and wishes - I'm sure he wants a private jet to take him and his family around. The poor vegetable seller who goes to his village once a year wants to travel by second class instead of general compartment. I would love to take my folks in first class and business class everywhere.

But then, if the fares and economics don't work out, they don't. If one finds it too expensive to go by a certain mode of transport, one will have to go by one class less. If is because thousands of people like you talk of voting Mamata because of this little fare hike (which is very much affordable to every stakeholder), that the railways never improves.

The point I had to make has not changed by re-reading your posts or your reply.

No amount is small, unless is spending is justifiable. When a service has not been rendered why should there be a service tax? Non-refundable fare goes to Railways' improvement, non-refundable service tax goes to Finmin.

I always believed that if you are to debate with someone, you must listen other persons point before replying, else it is quarrelling. It is forum to debate, not to quarrel, so my suggestion would be that your attitude of "Your talk of "read my post first" is absolutely irrelevant" may not be appropriate.

btw, you seem to be having a ocean of knowledge about economics. My ignorant self would simply like to ask that given the rate of inflation, and not so much increase in pay for middleclass citizen like me, what does the govt. wants us to do? The salary I get, used to make me able to get a moderate life-style, now the govt makes it impossible to maintain that despite the increase of the salary amount in parallel. Is it a sign of development or something else?

Oh, I know that the govt. should do everything only to make every amenities available to upperclass people. But, hey we middleclass people do contribute to this nation too?

But then, if the fares and economics don't work out, they don't. If one finds it too expensive to go by a certain mode of transport, one will have to go by one class less.

And I have this tiny little problem with so called economic reformation that such a sprint to economic development, which leaves the middleclass miles behind and to make compromise again and again and again. I used to have a daily expense, common day to day stuff, of rs. 450/- about a year ago; now i have to bear 600/-, which is not a lot amount; but add to 30 days its 4500/p.m.. And guess what, the same govt has increased my salary by rs. 2500/p.m in the last year, including annual increment.

Also, thanks to you now I know that in India, having a computer and an internet connection in a middleclass home is a luxury. Glad you told me that guys belonging to middleclass should splurge on a luxury of having a computer and a net. but, you may be a bit wrong, since these days it is not very hard either to buy a computer or get an internet connection, if one saves for 2 years.

If the govt. and reformist like you wants to bring about all the reforms in a single sweep, well I hardly can criticize you. after all these days, middleclass should be used to being ignored by everybody. but hey, wont a guy who has to travel 36 hrs in a train in a sleeper class would have face the same pinch if it goes by your wish in a few days?!!! lets see, if you guys can bring that to bear.

btw, "Now, even I would vote for Mamata!!!" means a little different than what you have understood, perhaps?

 

[Ray]

I believe that.

Therefore, we need to increase the rail fares by at least 25%. If one were to match bus fares for same distance, the hike should be by 50%.

No quibbles on that.

Raise the fares.

But increase the safety and service.

Don't do sneaky stuff wherein a tax (cess) is levied to bail out the mismanagement of the economics under the guise of moral grandstanding of 'increasing the rail fares'.

Increasing rail fares means that it is for the Railways and not as a means to salvage inefficient economic policies.

On encouraging foreign investment, there is no quibbles either.

But don't sell the country to foreign vested interests.

 

[Ray]

What people are missing out is that the so called fare hike is not for improvement of anything.

It is to salvage an inefficient govt for its years of apathy and populism which now they cannot manage to handle.

Come the elections, the 'more reforms around the corner' will mean more packages of inefficient, money guzzling schemes.

Cess, what people fail to understand is a sneaky way to balance the books without anything going to the department in whose name the cess is so proudly bandied about.

Indeed one has to cut his coat as per the cloth.

But then the cloth must be worth the coat that one is wanting to make.

One would not mind travelling by general class if only one did not have to queue endlessly on the platform and then fight one's way in. And if the toilets did not stink to high heavens.

One does not willing wants to waste money for showing off one's wealth. They are forced to do so because of the poor facilities and to get a marginal benefit so that one does not detrain as a total wreck!

Because of the poor services in the Railways, many fly by cheap airlines, which too is no longer cheap!

So, what is the answer. By road?

Even the highways do not encourage road travel.

So, what is expected?

Be a fatalist and blame our karma?

It is the rich, and the MNC boxwallas who go around on company expense or those who can show it as expenses for IT deductions, who talk big about economic requirement of the Nation and all that!

Be a normal and average Indian and face the reality.

And sing the real tune!

I have appended in a post the ridiculous cesses we pay which are archaic and irrelevant and we don't know a sausage about it!

 

[Bangalorean]

No amount is small, unless is spending is justifiable. When a service has not been rendered why should there be a service tax? Non-refundable fare goes to Railways' improvement, non-refundable service tax goes to Finmin.

I always believed that if you are to debate with someone, you must listen other persons point before replying, else it is quarrelling. It is forum to debate, not to quarrel, so my suggestion would be that your attitude of "Your talk of "read my post first" is absolutely irrelevant" may not be appropriate.

btw, you seem to be having a ocean of knowledge about economics. My ignorant self would simply like to ask that given the rate of inflation, and not so much increase in pay for middleclass citizen like me, what does the govt. wants us to do? The salary I get, used to make me able to get a moderate life-style, now the govt makes it impossible to maintain that despite the increase of the salary amount in parallel. Is it a sign of development or something else?

Oh, I know that the govt. should do everything only to make every amenities available to upperclass people. But, hey we middleclass people do contribute to this nation too?

And I have this tiny little problem with so called economic reformation that such a sprint to economic development, which leaves the middleclass miles behind and to make compromise again and again and again. I used to have a daily expense, common day to day stuff, of rs. 450/- about a year ago; now i have to bear 600/-, which is not a lot amount; but add to 30 days its 4500/p.m.. And guess what, the same govt has increased my salary by rs. 2500/p.m in the last year, including annual increment.

Also, thanks to you now I know that in India, having a computer and an internet connection in a middleclass home is a luxury. Glad you told me that guys belonging to middleclass should splurge on a luxury of having a computer and a net. but, you may be a bit wrong, since these days it is not very hard either to buy a computer or get an internet connection, if one saves for 2 years.

If the govt. and reformist like you wants to bring about all the reforms in a single sweep, well I hardly can criticize you. after all these days, middleclass should be used to being ignored by everybody. but hey, wont a guy who has to travel 36 hrs in a train in a sleeper class would have face the same pinch if it goes by your wish in a few days?!!! lets see, if you guys can bring that to bear.

btw, "Now, even I would vote for Mamata!!!" means a little different than what you have understood, perhaps?

I am no great economist, but speaking of inflation, I do know that one of the contributing factors to inflation is the government's spending on populist schemes and subsidies. If you speak of food inflation, what is the basic root cause of it? If you drill down, you will see that it is because of inefficient supply chains and storage facilities. From decades, we have been rotting with the current system. And when people speak of private companies coming and setting up retail facilities, with intelligent supply chains, the argument we hear is, "we can do it ourselves, why do we need foreigners, we have fire in the belly". How many decades more, how many decades more are we going to hear the same old excuses and assurances? Telecom liberalization happened, and now you have among the fastest growing and best mobile telephony in the whole world. The anti-lib gang was saying even then, "we have fire in the belly that we can do it ourselves, MTNL and BSNL can do it, why do we need to get all these people"? At the end of the day, everyone benefited, including BSNL. Everyone grew, and came out better at the end of it.

My point is that the reason we are stuck in a rut and are not able to progress is because the public of this country have been fed all the wrong ideas, and there is a sense of entitlement in terms of subsidies. The middle class guy (even I am one, btw) whom you speak of, who has to travel 36 hours by sleeper, will need to travel for only 20 hours when Indian railways adds capacity to its tracks, and even less than that after a true high speed rail is implemented. For that to happen, IR needs to survive as a viable entity. Subsidies have made it a sick babu-infested entity, like most of our government departments.

When we were having this discussion for several pages, it was not apparent that this amount was a tax, and does not contribute to IR. But in any case, if you are cursing them for "ripping you off", you should have the same complaint even if it was a fare increase, isn't it?

This discussion is not about upperclass versus middleclass, or even about IR anymore. This discussion is now about liberalization and reforms.

 

[Ray]

Causes of Inflation

Economists believe that inflation is a monetary phenomenon. However, in the short and medium term inflation may be affected by supply and demand pressures in the economy, and influenced by the relative elasticity of wages, prices and interest rates.

1. Over-expansion of money supply i.e. excess liquidity in the economy leads to inflation because "too many money would be chasing too few goods".

2. Expansion of Bank Credit Rapid expansion of bank credit is also responsible for the inflationary trend in a country.

3. Deficit Financing: The high doses of deficit financing which may cause reckless spending, may also contribute to the growth of the inflationary spiral in a country.

4. A high population growth leads to increase in demand and money income and cause a high price rise.

5. Excessive increase in the price of fuel or food products due to political, economic or natural reasons will lead to inflation for short- as well as long-term.

States of Inflation

There are different states of inflation which is characterized based on its value as well as variation from the previous value.

1. Hyperinflation – It is a very high rate of inflation, usually a rate in excess of 50%. History has some excellent examples of hyperinflation. In Germany, inflation exceeded 1 million % in 1923. It was said that a horse cart full of money would not buy even a newspaper. Right now, Zimbabwe is having an inflation of 1 million %. They have to issue currency of $500 Million dollar (I am not kidding!!) which could only buy a lunch at McDonalds.

2. Deflation – It is the decrease in the general price level of goods and services only when annual inflation is below 0% resulting in the real value of money. Hence, it is sometimes called "negative inflation". Japan suffered from deflation for almost a decade in 1990s. To control recession and Central Bank of Japan was forced to have a negative interest rate on deposit for over a decade.

3. Disinflation – It refers to a time when the rate of change of prices is falling while the inflation rate is positive. For example – if the inflation rate comes down from 3% to 2%, we would say it is disinflation. In India, we have a disinflation because inflation has come down from a high of 13% to 6% and it is still dropping.

4. Stagflation – It is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time. Stagflation can result when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable.

Effects of Inflation on economy

food, commodities and other services become expensive for consumption. Inflation can cause both short-term and long-term damages to the economy; most importantly it causes slow down in the economy.

1. People start consuming or buying less of these goods and services as their income is limited. This leads to slowdown not only in consumption but also production. This is because manufactures will produce fewer goods due to high costs and anticipated lower demand.

2. Banks will increase interest rates as inflation increases otherwise real interest rate will be negative. (Real interest ~ Nominal interest rate – inflation). This makes borrowing costly for both consumers and corporate. Thus people will buy fewer automobiles, houses and other goods. Industries will not borrow money from banks to invest in capacity expansion because borrowing rates are high.

3. Higher interest rates lead to slowdown in the economy. This leads to increase in unemployment because companies start focusing on cost cutting and reduces hiring. Remember Jet Airways lay off over 1000 employees to save cost.

4. Rising inflation can prompt trade unions to demand higher wages, to keep up with consumer prices. Rising wages in turn can help fuel inflation.

5. Inflation affects the productivity of companies. They add inefficiencies in the market, and make it difficult for companies to budget or plan long-term. Inflation can act as a drag on productivity as companies are forced to shift resources away from products and services in order to focus on profit and losses from currency inflation.

Inflation - its causes and effects on the economy

 

[Defcon 1]

No amount is small, unless is spending is justifiable. When a service has not been rendered why should there be a service tax? Non-refundable fare goes to Railways' improvement, non-refundable service tax goes to Finmin.

I always believed that if you are to debate with someone, you must listen other persons point before replying, else it is quarrelling. It is forum to debate, not to quarrel, so my suggestion would be that your attitude of "Your talk of "read my post first" is absolutely irrelevant" may not be appropriate.

btw, you seem to be having a ocean of knowledge about economics. My ignorant self would simply like to ask that given the rate of inflation, and not so much increase in pay for middleclass citizen like me, what does the govt. wants us to do? The salary I get, used to make me able to get a moderate life-style, now the govt makes it impossible to maintain that despite the increase of the salary amount in parallel. Is it a sign of development or something else?

Oh, I know that the govt. should do everything only to make every amenities available to upperclass people. But, hey we middleclass people do contribute to this nation too?



And I have this tiny little problem with so called economic reformation that such a sprint to economic development, which leaves the middleclass miles behind and to make compromise again and again and again. I used to have a daily expense, common day to day stuff, of rs. 450/- about a year ago; now i have to bear 600/-, which is not a lot amount; but add to 30 days its 4500/p.m.. And guess what, the same govt has increased my salary by rs. 2500/p.m in the last year, including annual increment.

Also, thanks to you now I know that in India, having a computer and an internet connection in a middleclass home is a luxury. Glad you told me that guys belonging to middleclass should splurge on a luxury of having a computer and a net. but, you may be a bit wrong, since these days it is not very hard either to buy a computer or get an internet connection, if one saves for 2 years.

If the govt. and reformist like you wants to bring about all the reforms in a single sweep, well I hardly can criticize you. after all these days, middleclass should be used to being ignored by everybody. but hey, wont a guy who has to travel 36 hrs in a train in a sleeper class would have face the same pinch if it goes by your wish in a few days?!!! lets see, if you guys can bring that to bear.

btw, "Now, even I would vote for Mamata!!!" means a little different than what you have understood, perhaps?

Since you have already accepted that you have no knowledge of economics, I must inform you that you are looking for wrong solutions, which incidentally is no fault of yours. You ask for increasing your salary to compensate for inflation, but you don't realize that if government does it, the inflation will simple increase further. The cold hard truth is salaried people always suffer due to inflation, middle class or not, this is one of the basic things you study when you study about inflation. If you don't want to be making compromises in the future, the right idea will to start saving and investing rather than thinking about an increase in salary, because it will never be enough.

 

[Bangalorean]

What people are missing out is that the so called fare hike is not for improvement of anything.

It is to salvage an inefficient govt for its years of apathy and populism which now they cannot manage to handle.

Come the elections, the 'more reforms around the corner' will mean more packages of inefficient, money guzzling schemes.

Cess, what people fail to understand is a sneaky way to balance the books without anything going to the department in whose name the cess is so proudly bandied about.

Indeed one has to cut his coat as per the cloth.

But then the cloth must be worth the coat that one is wanting to make.

One would not mind travelling by general class if only one did not have to queue endlessly on the platform and then fight one's way in. And if the toilets did not stink to high heavens.

One does not willing wants to waste money for showing off one's wealth. They are forced to do so because of the poor facilities and to get a marginal benefit so that one does not detrain as a total wreck!

Because of the poor services in the Railways, many fly by cheap airlines, which too is no longer cheap!

So, what is the answer. By road?

Even the highways do not encourage road travel.

So, what is expected?

Be a fatalist and blame our karma?

It is the rich, and the MNC boxwallas who go around on company expense or those who can show it as expenses for IT deductions, who talk big about economic requirement of the Nation and all that!

Be a normal and average Indian and face the reality.

And sing the real tune!

I have appended in a post the ridiculous cesses we pay which are archaic and irrelevant and we don't know a sausage about it!

Extending your argument, you would probably advocate abolishing all taxes? Would that make sense?

Road travel has improved a lot, and is really not as bad as it was. Some routes that I have driven on recently like Bangalore-Chennai, Bangalore-Pune, are almost world class. Many other roads are being improved, expressways are being built.

Indian airfares are among the cheapest in the world. At least the middle class Indian can take a flight today - in the 1980s and earlier, our eyes used to boggle at the prospect of going by "airplane", while it was hardly a new experience for kids of our age in other nations like Japan, UK, France etc.

Indian railways, which has been untouched by any serious reform till date, is the bad egg. While there have been some improvements in IR, overall it remains a fossil of the bad old days. The day IR is really reformed and unshackled, we will be able to see some progress on this front. Till then, it will remain a place where foreigners take their memories and pictures back, of piss, shit on the tracks, foul smells, crowds and garbage.

 

[Ray]

But in any case, if you are cursing them for "ripping you off", you should have the same complaint even if it was a fare increase, isn't it?

No.

One is used to being fooled to be ripped off.

One is only expecting honestly in stating of the purpose.

Is it too much to expect of a Govt where they have feathered their own nest and pushed the burden of their thieving ways that has landed us in the mess on the people?

What have we done to deserve this?

 

[jackprince]

Since you have already accepted that you have no knowledge of economics, I must inform you that you are looking for wrong solutions, which incidentally is no fault of yours. You ask for increasing your salary to compensate for inflation, but you don't realize that if government does it, the inflation will simple increase further. The cold hard truth is salaried people always suffer due to inflation, middle class or not, this is one of the basic things you study when you study about inflation. If you don't want to be making compromises in the future, the right idea will to start saving and investing rather than thinking about an increase in salary, because it will never be enough.

Defcon1, I don't disagree with you completely. As a matter of fact, I am very much for raising of fare in railways, as I have said in the very first post. But, I am completely and totally against the non-refundable service tax idea.

btw, i have querried and yes, service tax is always non-refundable, and it is not an exceptional case. so, i guess all my raving were for a stupidity on my side partially.

however, bangalorean needs a lot to learn about Indian middleclass i have found.

 

[jackprince]

Extending your argument, you would probably advocate abolishing all taxes? Would that make sense?

I fail to see how it was extension of Ray sir's argument?! Ray sir protested additional tax burden, not advocated abolishing of existing taxes.

Indian airfares are among the cheapest in the world. At least the middle class Indian can take a flight today - in the 1980s and earlier, our eyes used to boggle at the prospect of going by "airplane", while it was hardly a new experience for kids of our age in other nations like Japan, UK, France etc.

now I understand that definition of middle class differs to you and me. My middleclass still can't afford to take flight, excepting in advance planning by 8-9 months. Its railway or no way mostly, for us.

Indian railways, which has been untouched by any serious reform till date, is the bad egg. While there have been some improvements in IR, overall it remains a fossil of the bad old days. The day IR is really reformed and unshackled, we will be able to see some progress on this front. Till then, it will remain a place where foreigners take their memories and pictures back, of piss, shit on the tracks, foul smells, crowds and garbage.

I humbly beg those esteemed foreigners to keep away from the Indian Railways. The majority people here simply donot have the same standard of hygine as them. It's kind of shameful, until I see that the idea of toilets haven't reached a majority even a decade or two ago. I don't condone this littering mentality, but it will take eons unless the govt. turns strict to impose fines, which btw, has nothing to do with service tax rISE. to maintain t And Indian Railways will be crowded, unless the govt. reforms forces us back to no. 11 bus.

Indian Railways may be bad egg, but however much it stinks, it is the heart-line of this nation.

Please, please, please, I beg you do not attempt to bring FDI in it!!!!

 

[Ray]

Extending your argument, you would probably advocate abolishing all taxes? Would that make sense?

Road travel has improved a lot, and is really not as bad as it was. Some routes that I have driven on recently like Bangalore-Chennai, Bangalore-Pune, are almost world class. Many other roads are being improved, expressways are being built.

Indian airfares are among the cheapest in the world. At least the middle class Indian can take a flight today - in the 1980s and earlier, our eyes used to boggle at the prospect of going by "airplane", while it was hardly a new experience for kids of our age in other nations like Japan, UK, France etc.

Indian railways, which has been untouched by any serious reform till date, is the bad egg. While there have been some improvements in IR, overall it remains a fossil of the bad old days. The day IR is really reformed and unshackled, we will be able to see some progress on this front. Till then, it will remain a place where foreigners take their memories and pictures back, of piss, shit on the tracks, foul smells, crowds and garbage.

Abolishing of all taxes?

You live in utopia?

Relevant taxes and not sneaky ones and be upfront. If it affect, then just too bad, but one knows how the money is being spent.

South Indians roads are good.I have travelled on them extensively. But India is not South India.

Air travel cheap? Don't compare world rates, Go by PPP.

Improve the railways for sure. Raise the price of ticket, No hassles. But remember the majority of Indians travel by rail. Check it in economic and social terms when raising the price. I am sure you do not understand social costs and the economics of the not so privileged who use the rail as their means of conveyance for trade and business also.

I think you are too divorced from the reality called India, since air travel is cheap to you and used by the 'middle class'!

I wish that were true!

 

[Bangalorean]

now I understand that definition of middle class differs to you and me. My middleclass still can't afford to take flight, excepting in advance planning by 8-9 months. Its railway or no way mostly, for us.

I humbly beg those esteemed foreigners to keep away from the Indian Railways. The majority people here simply donot have the same standard of hygine as them. It's kind of shameful, until I see that the idea of toilets haven't reached a majority even a decade or two ago. I don't condone this littering mentality, but it will take eons unless the govt. turns strict to impose fines, which btw, has nothing to do with service tax rISE. to maintain t And Indian Railways will be crowded, unless the govt. reforms forces us back to no. 11 bus.

Indian Railways may be bad egg, but however much it stinks, it is the heart-line of this nation.

Please, please, please, I beg you do not attempt to bring FDI in it!!!!

You and I (and others on this site like Yusuf and TR) belong to completely different schools of thought. When I saw your post in this thread, I understood immediately that this is the age-old argument between liberalization and the old pseudo-socialist school of thought.

Think for a moment, about how defeatist your argument is. You don't want to improve the railways, you want foreigners to "stay away".

You people said the same thing about roads initially. A growing Malayasian company offered to build roads at bargain rates to connect Indian cities, Rajiv Gandhi said that "we are a poor country, this is not for us". Arundhati Roy said that "India needs food, not mobiles".

Today, we have an excellent telecommunication network, as good as any in the world. We have excellent roads in many parts of the country, and several great toll expressways.

I did not mention FDI in railways at all, but breaking it up and privatizing several aspects of it for a start, would be good. FDI can be invited for high speed tracks for certain sectors like Bangalore-Chennai, Pune-Mumbai-Ahmedabad, etc.