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Excerpts

Should the Indian Markets fear Narendra Modi?

I have been referring to cooking gas, fertilizer and kerosene subsidies. I must confess that I am surprised by the way words are used by experts on this matter. When a benefit is given to farmers or to the poor, experts and government officers normally call it a subsidy. However, I find that if a benefit is given to industry or commerce, it is usually called an “incentive” or a “subvention”.

 

We must ask ourselves whether this difference in language also reflects a difference in our attitude? Why is it that subsidies going to the well-off are portrayed in a positive manner?

Let me give you an example. The total revenue loss from incentives to corporate tax payers was over Rs 62,000 crore. Dividends and long term capital gains on shares traded in stock exchanges are totally exempt from income tax even though it is not the poor who earn them. Since it is exempt, it is not even counted in the Rs62,000 crore. Double taxation avoidance treaties have in some cases resulted in double non-taxation. This also is not counted in the Rs62,000 crore.

Yet these are rarely referred to by those who seek reduction of subsidies. Perhaps these are seen as incentives for investment. I wonder whether, if the fertiliser subsidy is re-named as “incentive for agricultural production”, some experts will view it differently.

from Narendra Modi’s Speech at ET Global Business Summit

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Links

Mega Linkfest:January 30,2016

Some off beat reads for the weekend:

The End of Twitter (New Yorker)

Elon Musk Vs Warren Buffett (Bloomberg)

Desi man facing 380 years in jail (Fortune)

The rise and rise of Amit Shah (Wire)

CIA releases declassified documents on UFOs (Telegraph)

Making a murderer in Uganda (Foreign Policy)

The penis implant is here (GQ)

Travelogue:Winter Himachal in a Thar (TeamBHP)

Startup Story: Olabi (YS)

Why women need to get tested for cervical cancer (YouTube)

Nathuram Godse:The man who killed the Mahatma (Quint)

Malaysia’s utterly bonkers corruption scandal (Vox)

Indonesia’s call to tackle Islamism (Swarajya)

Donald Trump on India (Quartz)

Photos of the Week (Atlantic)

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Tweets

Worst January since 2008

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Links

Linkfest:January 29,2016

Some stuff I am reading today morning:

Engineers India OFS today (MyInvestmentIdeas)

BSE asks SEBI for listing approval (Mint)

Investors chase gold bonds in falling stock market (ET)

Dolly Khanna’s failed stock pick (RJ)

Coattail Investing (Prashanth)

How to apply for IPO using ASBA (Apna Plan)

Investors underwhelmed with Hedge Funds (Reuters)

Forget about ‘stocks for the long run’ (DR)

College kids are now high frequency trading (Fortune)

Why we will never see a Buffett/Soros again (MarketWatch)

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Links

Linkfest:January 28,2016

Some stuff I am reading today morning:

Cyrus Mistry gets a ‘B’ (Outlook)

Why Indigo stock has taken a beating (Mint)

Telecom Companies could sink (FE)

How Reliance Retail is changing e-Commerce (BS)

Kitex Garments:Case Study for Chartists (Prashanth)

Is the trend really your friend? (DR)

What’s its like to be owned by Berkshire Hathaway (HBR)

How Facebook squashed Twitter (Stratechery)

China’s 1 Trillion $ Money Exodus (Bloomberg)

How to make the world richer (Fool)