Modi was never supposed to know the economy. He was supposed to select innovative people who do know the economy, and give them freedom to implement their plans. Instead, from the beginning of his government, he has picked random people who don't know much about the economy themselves, and now Nirmala Sitaraman who is a certified idiot, and arrogant on top of that. He has really lost the plot on how to run the country. There are so many areas apart from economy, such as Environment, Education, Infrastructure, Defense, where we need guys who are brilliant to handle and transform these sectors. None of these have happened. The only good posting is Amit Shah as home minister.
Modinomics is different from pure economy. Modi called LED bulb manufacturers and asked why they do not sell bulbs at 50 to 60 rs instead of 400? They told that it will require an order in crores. Modi gave order of some 22 crore bulbs and distributed them through Electricity board. These measures saved 20000 MW electricity which will require an outlay of Rs 1.5 lakh Crore or more. Lots of resources saved such as Coal, water etc are different. Earlier, when government used to give employment to people, they used to engage them in Pit digging. Modi used them for creating water bodies or to revive water bodies and tree plantations. These are the measures which economist will not think. This will require a typical Gujju Mind.
In other examples. Modi gave Free gas connections to poor people. Now the cost of free cylinders shall be easily be recovered out of duty on gas within couple of years. The additional duty so collected will add billions to government treasury.
Modi gives subsidy in interest on housing. It amounts to Rs 2.65 lakh over a period of 15 years on an average. Now consider only 7 lakh Rs of materiel in making of 1 home. Duty of 18 pc on same will amount to Rs 1.20 lakh. So modi collected Rs 1.20 lakh as duty on material so used in housing in advance against Rs 2.65 lakhs to be given over a period of 15 years. So there is almost no cost to government.
Now what is the effect of these measures? One guy from Orisa met me. He was telling how his life changed by these measures. He told me that his light bill in village reduced to Rs 160 from 400 by arrival of LEDs. Out of Rs 240 so saved, he can buys a gas cylinder in 2 months of time. Earlier , he used to buy a big piece of wood for Rs 1000. Every time when he required to cook food,it was required to be ignited with Kerosene. Laddies will face a lots of problem in cooking in rainy season and there will be a lots of smoke. Now , laddies can take full rest in night and wake in time , switch on gas and cook food. Earlier, they used to wake up early to ignite choolha. The most important thing he mentioned is that all the trees were cut for fire wood. Now the area has once again has become full of trees. So these small measures have changed the life of millions.
Most of us here are privileged class people. We get 24 hours water, 24 hours electricity, 24 hour gas by gas line. We do not realize many time how these small measure can change the life of many.
If any of you have studied economics, you may be knowing the theory of Marginal utility. There was a riddle in economics that why water is so cheap even though it is vital for life and why diamonds are so costly compared to water? When the theory of marginal utility came in, this riddle was addressed. This theory says something like this that when any resources is available to you, its value for you will be equivalent to how much of the same thing is available to you. The water is desert when you die of thrust will be way more than a heap of diamond. Same way, the value of same amount of money to a poor or who does not have it ,is much more than a guy having big balance.
So this is Modinomics. When he planned to double the farmer's income, he met a lots of guys who have pioneered the techniques of Zero budget or very low cost farming. He did not double the price of food grain or agriculture producer but focused on how the hefty fertilizer and insecticide as well as water bill can be reduced. Money saved is money earned. Some time a rupees saved is much more than a rupee earned.
