Mriganka Debnath

Computer Science Engineer || ETL Developer ||

[Akshat Shrivastava @Akshat_World]

[1] Tell folks, that record number of HNIs are leaving India, people get angry.

They say: more HNIs in China are leaving.

[2] Tell folks, that good jobs are disappearing in India. People get angry.

They say: but entrepreneurship is picking up.
Everyone will become an entrepreneur now.

[3] Tell folks that average household savings % of GDP is going down. And, your taxes are rising.

They get angry.

They say: but, record number of Mercedes, 10-10Cr flats and IPL tickets are getting sold.

Point is: you can't tell economic facts to folks who are politically brainwashed.

[Akshat Shrivastava @Akshat_World]

[1] Pay Taxes.
[2] Breathe polluted air.
[3] Work day in and day out to save some money.
[4] (To enjoy some comfort) Pay one of the highest taxes again to buy a car.
[5] Pay fines for availing those comforts because the government can't control pollution.

Seems legit.

[Akshat Shrivastava @Akshat_World]

Rich Indians are giving up their citizenship.

6500 HNI's left India last year (8.2Cr of wealth). This year, India tops the list of countries whose citizens have taken citizenship from OECD countries.

Even when it comes to Ultra-HNIs, people are leaving.

For context: there are only 12,000 Ultra HNIs in India.
These are people, who have more than 25Cr of investable wealth.

Think about the benefits they bring?

[1] At least 1Cr-5Cr in direct taxes each.
[2] At least on an average 10 good jobs to the economy.

Gone.

With more nations like Malta selling their passports, it is only a matter of time---that more incentives would be offered to the rich to shift.

Countries like Malta (and other Emirates) are eying to become something like Dubai. They are offering better and better incentives to the rich to come.

Here are some honest/prominent reasons why rich Indians are shifting abroad for good.

1. Reservation.
2. Govt focus on lower class and Elites, middle class to pay taxes.
3. Weak passport.
4. Corruption.
5. Pollution.
6. Lack of high paying jobs.
7. Fast depreciation of Rupee.
8. No social security for the middle class.
9. Poor ROI on taxes.
10. Lack of green spaces in big cities.

While Fin-Tech firms in India see value in targeting the Rich 1% Indians, unfortunately, we as a nation are not seeing this as of now.

It is easy to say: 'don't worry, more rich Indians will be created' -- true. And, I really hope so.

But, it takes decades for someone to get rich -- and less than a year to leave.

[Akshat Shrivastava @Akshat_World]

Many Food Delivery drivers earn more than Engineers in our country.

In fact many informal sector jobs NOW (pay much better) than formal jobs in India.

But, HOW & WHY did we get here?

[1] See, the government's vote bank is the lower class. They actually turn up to vote; create a headache for the government in case they can't avail healthcare, food prices high etc.

[2] Now, three options to solve this issue: (a) take from the rich to feed the poor (b) take from the middle class and feed the poor (c) bring actual growth -- that makes everyone rich.

[3] Crushing the rich is not easy; they provide financing power to fund elections. Plus, they have options. Tax them more, they leave the country. And, would be welcomed by many nations.

On top of this, bringing actual growth is HARD! The world's growth itself is slowing down.

So here comes the easy option:-

[4] Crush the middle class. Tax them more, they will crib. But, will have no option but to pay.

So slowly close to ALL benefits are drawn away:

- Indexation benefits on Mutual Funds (gone).
- EMI addiction at all time high (the middle class takes this the most).
- 20% TCS on your taxed income (if you invest abroad/go abroad).

Analyse last 20 years: some moves (eg. RTE act has practically increased the cost of education for the middle class). And have crushed them completely.

RTE (right to education) eliminated 'middle cost' schools from our country. In cities like Gurgaon: their is either government school or high-fees paying school; that's it.

Why? because after RTE schools that charged crazy fees, survived (as they could absorb 25% reservation).

The schools that charged 'okay' fees, got crushed (they had limited margins to begin with; with 25% reservation their operating models collapsed).

Now the problem is that the middle class has 'aspirations': most would never send their kids to govt schools. In many cities now (eg. Gurgaon), no middle class schooling options left.

So basically take loans, and send your kids to RICH school.

[5] RTE was 1 move. Another move is EMI market. This is availed mostly by the middle class. They feel, they are winning by buying things on loans.

But, NO. This is mindless consumption at scale, which will make the middle class poorer with time.

Look around:

- High paying jobs are hardly there.
- Cost of living (for the middle class) is escalating.
- 0 facilities (healthcare/schools) are used by them.

But, when it comes to taxation (and spending via EMIs) they are effectively paying the highest (as a % of their salary)

Solution? Be aware.

[Akshat Shrivastava @Akshat_World]

Inflation is easing. And, seems like the inflation genie is back in the bottle.

So a great time for a quick refresher on inflation:-

Here is how the inflation data fools you.

In 2010, what you could buy with INR 10,000-- to buy the same things now, you need INR 23,485.

The interesting part is: these are official inflation estimates (captured by government data).

If you look at the REAL inflation rate in the economy it would come out to be much higher.

Why?

[1] For example: consider school fee. An average school in a metro now charges close to 15K/month as fee. This is given less than 4% weight on the CPI inflation basket.

So by this logic, if you are sending your kid to a school where the fee is 15K/month, your salary should ideally be 3.75 Lakhs.

[2] You might have also noticed that your rent might have increased by around 25-30% post COVID. Housing has just 10% weight in our CPI basket.

[3] Food & Beverages make up 47% of the CPI inflation basket (a very high weightage).

Now, I'm willing to bet that these would be the Mandi prices, not the outlet prices from where a large section of normal middle class usually buys.

Point is: prices are rising much faster than you realise.

Math does not lie, people do.

Smart folks, understand the math and design their life accordingly.

Is there a solution? yes, invest in inflation proof assets: stocks & limited supply things.

If you don't learn investing, you will be simply fooled by numbers.

[Mriganka Debnath @MrigankaDebnat]

Totally agreed.

[Akshat Shrivastava @Akshat_World]

According to a 2012 RTI filing, there were 8 Lakh people with more than 1 Cr in Agriculture income, who paid ZERO taxes in India.

[1] 1% farmers in India own more than 10 hectare of land. And, they are by no standards poor.

And, as per a paper by the erstwhile Planning Commission, if we could tax even 0.04% richest farmers, it would generate 50,000 Cr of tax gains.

[2] This money is enough to run the MGNREGA scheme for a year.

This post is not against farmers.
It is about getting the rich to pay their fair dues.

[3] It doesn't make much sense why a normal corporate employee making 25K/month should be carrying the burden of taxes for Crorepati farmers.

Widening the tax base would not hurt the government's revenues.
And, it would improve the life of a normal tax payers.

But, guess how many political parties are talking about it?

Share it with others to help yourself.

[Akshat Shrivastava @Akshat_World]

If you are new to investing.
And, don't know how to invest your salary.

Here is a simple explainer:-

[A thread...]

[Akshat Shrivastava @Akshat_World]

[1] Politicians can have multiple sources of income.

[2] CEOs can have multiple sources of income.

[3] It is only an average worker that is forced to believe that moonlighting is unethical.

[Mriganka Debnath @MrigankaDebnat]

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[ISRO @isro]

Chandrayaan-3 Mission:
'India🇮🇳,
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and you too!'
: Chandrayaan-3

Chandrayaan-3 has successfully
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#Chandrayaan_3
#Ch3

[Cyberabad Police @cyberabadpolice]

URGENT ALERT FOR HYDERABAD RESIDENTS

The entire East and Central Telangana region is currently experiencing non-stop flooding rains,and the situation in Hyderabad is no different.We urge all residents to take immediate precautions and stay safe during this extreme weather event.

[Shah Rukh Khan @iamsrk]

Main kaun hoon, kaun nahin, jaanne ke liye, READY AH?

#JawanPrevue Out Now!

#Jawan releasing worldwide on 7th September 2023, in Hindi, Tamil & Telugu.

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[Mriganka Debnath @MrigankaDebnat]

#whistle_podu #CSK #IPL2023