Tuesday, August 12, 2008


While hosting Aahaa Kaapi Klub this morning, on the behest of several people, we asked why the IT industry is being blamed left right and center for changes in the society..
And along comes a "Govind" who was pretty abusive to start off with. Thankfully there are damage control measures.
Looks like he got up on the wrong side of the bed today.
But hey it kicked up my adrenalin and I am in supercharged mode.


Karthik said...

Well.. What were those Interesting comments which detonated your adrenalin stream? (Poor!) IT'ians like me would like to hear those soothing comments made by Mr.Govind.
Only we know the mysteries behind our stories. So pls do conduct your program inside a s/w firm to explore and experience it yourself..

Ganesh said...

Hey Chinmayi... I could sense your anger from your words. U said "Govind...Govind...Govind.. in a bid to control him". Probably the comments from other callers against the IT industry pricked him to respond in that way. Still, let the IT industry grom rapidly; but at the sametime, the Government should extend the kind of support the IT industry enjoys in the current scenario.

Chinmayi said...

karthik: good point .. but dont know whether that will ever happen
ganesh: as I said technology allows some things and there were some umparliamentary words which I heard and you didnt.. :)
and I guess there are a lot of subsidies for farming.. how come no one takes that up?and more than that, the income is totally tax free :)

Ganesh said...

Hmmm... I would attribute that to lack of interest & awareness. And the media is playing a key role in promoting IT industry. Everyone is cashing on it & Non-IT guys/common man are at the receiving end due to soaring prices of commodities/real estate etc., See today there is a dearth of civil engineers to meet the ever growing demand in the construction industry. There seems to be a skewed growth (in favour of IT industry). The ordinary man's dream is to see a balanced growth in the key sectors :).

Vamsee said...

It's funny. There's never been 'balanced development' (except probably in soviet russia and we all know how that went), and there never will be. Today it's IT, tomorrow it will be something else. People who whine about it are the people who can't take advantage of it.

The govt. will give incentives for only two reasons: political or economic. If anybody thinks the govt. really cares about the common man, they're sadly mistaken. You're on your own, dude.

The media is playing key role in promoting IT industry? Lol. They'd promote anything that is news, man.

Ganesh said...

Vamsee: Have you ever been to Gujarat? If not, I can understand your ignorance that Government cares a damn about common man.

Vamsee said...

Ganesh: Oh, not really. I don't want to go there either. I know very well how they care for the muslim common man :)

S.Kumar said...

Hi Chinmayi,
Every country has a speciality, the Chinese for manufacturing, the US for design, space, the Swiss for chocolates and watches, the Swedes for Textile machines, the French for Airbus, perfumes and the like.
Every top country HAS its own arena which no other country can surpass. For Indians the face of us to the world is IT. There is no denying that. Whatever the politicians trumpet, like India Shining campaign - its all centred or having a foundation only from our IT. Lets be proud of it and focus more on that to imrpove the whole lot of INDIANS.

Karthik said...

May be its not coincidental, but I would like to bring this to everyone's notice (to emphasize my earlier comment posted y'day)
A software engineer, who is also an IIT alumnus, committed suicide few days back due to intolerable work pressure.
Read the complete story here (right click and open in a new window to read better).

Anonymous said...

It's funny amd sad to compare benefits/subsidies given to a farmer with those given to IT industry.

These are highly skilled corporate companies who understand how to cash on every single bit and byte in the Law. On the other hand, the average farmer doesn't even understands his civil & economic rights!

If someone argues that knowing how to utilize your special previledges is your duty, then it's nothing but arrogance. It's like giving you a piece of land in the moon!

Vamsee said...

Dear Anonymous,

It would also be funny and sad to say that the farmers are gaining nothing from the IT boom. Some benefit by way of better farmland prices, due to demand from other sectors, like real estate.

Some would benefit from higher prices for better-quality crops, now that people's eating habits are changing substantially. We all make the mistake of looking at economic development from our own limited perspective.

But an economy is a huge, growing organism which is affected by so many factors that you cannot possibly say the effect of IT boom is limited to only small class of people. The trickle-down effect will come to farmers, sooner or later.

Educated people realize those benefits faster than uneducated. It's a fact. You can see plenty of educated farmers making tons of money growing cash crops. So be patient, and let the open markets do the job of distributing the wealth. Governments have never been good at this, and they never will be.

kumaran said...

Dear Vamsee,

I don't think it is politically right to compare subsidies given to IT industries with farmers. There are lot of micro economics involved with small farmers (who have just 2 to 5 acres of land)life.

A US based MNC IT company( "welcome to human network") which makes networking equipments and softwares has given 10 years tax free just because that company has its R&D operations in one of the SEZ in Bangalore.That company has 72 billion dollar cash reserve and
$ 3.5 billion as profit for FY '08.

On the other hand a farmer gets subsidies for power for bore well and he gets tax free income for his 2 to 5 acres of land .

AFAIK per acre he can get a profit of 20,000 Rs/per acre land for every year.

I left to you to calculate who is getting more benefits.

A poor farmer can not go and sell wheat or rice to international customers directly . He has to go and sell only TNPSC which buys at the rate of 1000 Rs per 100 kg bag. do you know there were bans to sell the rice to kerala state from tamil nadu ? . The state govt want to control the rice price , so the y don't open the private market to sell rice.

A good rice (ponni) which sold at 26 Rs last year , now selling at price of 38 Rs, But The the farmer who sold 8 Rs per Kg , now gets 10 Rs per kg.

The farmer gets 2 Rs extra per kg.
The brokers and merchants in between you and the farmer makes more money.

Let the govt says farmers can sell all the rice in open market and there is no ban exporting rice to other states and countries directly. Then see the rice will be 100 Rs per Kg . Do you ready to buy it ? will the govt remains in power?

If a US based IT company which gets tax exception from India which can sell their services and products to any part of the world and make millions of dollars.

Govt has no control over pricing of these companies.

But the poorest of poor farmer has to follow all the pricing rules and regulations of govt.

If you say educated , rich farmers ? , How many of you know such kind ?

If you are talking about farmers who having 100 acres land ,
AFIAK there is only 2 people in my District , Both are ministers in state and central govt.

we don't need to tax them , we supposed to strip their properties.

If you want to see the state of farmer , I can take you to my village @ free of cost and also suthikattufying navagraha temples.

Of course I can take you the to the IT company (Where I work for) which is in SEZ also.

If you ask me personally , I would say every software , KPO, BPO has to be taxed including Blue Elephant ;-)

There is a saying in tamil

"Uzuthavan kankku pathha uzakku minjathu"


PS: I don't think this is the right forum to debate this kind of issues through celebrate's blog.

Vamsee said...

Hi Kumaran,

I partly agree with you. It is a very sad state of affairs that our farmers cannot sell their produce on the international market. You can blame our politicians and the government which meddled so much in the name of subsidies that our farmers cannot hope to be competitive globally (as yet).

Sure, being allowed to do export will definitely push up prices. But not as much as you think. Because, there are other South-Eastern countries which export way more rice than we ever can. Which are probably 10 times smaller than our country. So, the price will stabilize sooner or later.

Regarding taxes, sure, a global corporation can get more tax-breaks. You know why? Because they generate more value than our farmers. Painful to say, but that is the truth. We can get all emotional about farmers and their plight, but the global economics is ruthless - it works logically, and whoever adds the most value will reap the most benefit.

Unfortunately, our agriculture is in such a state of disrepair that the value they add is almost nil when it comes to global trade. You can blame our politicians for coddling our farmers and letting them rot in pre-historic agricultural practices. Subsidies cut both ways - it can act as encouragement, and it can also act as a permission to be uncompetitive.

Of course, our country is not the only one which gives subsidies - but in the long term, they are more harmful than useful. Tax-breaks are different - they are temporary by nature, and are generally motivated by economic intent than political intent. Plus, tax revenue is direct money into the govt's coffers. No govt. can ignore it forever.

Of course, I am aware that political ramifications cannot be ignored. On the other hand, you cannot protect an industry forever. It ultimately destroys the said industry - be it farming, manufacturing or services.

What you need is intelligent solutions - like letting companies like ITC and Bharti setup cold-storage facilities - and let them buy produce directly from farmers.

Of course, even that is difficult, because supposedly our kirana vendors get hurt if Bharti is allowed to tie up with Wal-Mart. Development is a one-way street. You cannot sit in a box and develop at the same time. You have to take risks. Both political and economic to get progress.

Hope I'm making sense :)

yamini said...

hiiiiiiii chinmayi.hw r?this yamini.accept me as ur frnd no.i cant leave any comment for u bcoz i am a great fan of u