Defenders of Indian Economy
We have on May 2, 2023 received recession probability 2023 of various countries like
Source: https://twitter.com/stats_feed/status/1653415950383824896?t=cFKcDT4qCec-N4IIME7I1g&s=08
The Street Markets, Temples, and Indian way of parenting their children through lots of protectionisms —all are protecting indian economy by keeping money rotating.
Further, even ladies' chappal repair wala, mochi, chay wala, punctcher wala, halwai wala especially samose wala; paan wala; choori-bindi wala; all are keeping Indian economy going on by moving money from one hand to the other hands.
Land of many festivals like Holi, Deepawali, Eid, Bihus, Onam, Xmas, Baisakhi, Shivratri & many more, India has in addition to the above, each day of calendar an important day in some way or other and is having relevance for some or other Puja like they being inter-alia ekadashi, pradosh, Vat Savitri vrat, Tuesday, Thursday, Saturday, Monday, Wednesday or Friday.
Visiting to shrines like Badrinath Kedarnath, Sai Baba, Tirupathi etc, visiting rivers like Ganga in Kartik Purnima, trodding melas like Kumbh mela, and many more religious yatras besides sightseeing are also giving fuel to Indian Economy to roll on.
Because of these safeguards, and the langars arranged by various religious and help groups like Gurudwara, Temples and similarly feeding Kanya on Navratris, the political system of india doesn't care about combating the ongoing unemployment or rampant inflation.
These and many more like inter-alia sabzi wala, street food vendors including paani puri/ gol gappe wala, gubbara wala, lock/key repaires, automobile repairers, self treatment through various medicines, custom driven panditai for marriage, birth, and death etc, also custom driven personal ceremonies like jamai shashtis, naamkaran, god bharai for pregnant ladies, Satyanarayn Katha, Kocha (any and every time vidai ceremonies of married daughters) while daughters departs from parents house, hospitality rendered to son-in-laws etc all are defenders of Indian economy. These informal sectors inter-alia are making India recession-proof!
That's why this is Incredible India!
Are or will these things generate demands in the society. No, not at all. They, rather, generate supply of goods and services and movement of money horizontally. Street Market works on the principle of subtle demand that remains available in the society for almost all the time during the season under consideration.
Money moves either horizontally like water in rivers or vertically like rains from cloud. We will also see in this article that it also moves as a water in fountains in these above mentioned informal sectors.
When Government sector generated employment is in force, money moves vertically downword too through Government Salary and in the process it creates demand. Now-a-days, this process is being attempted through Direct Benefit Transfer (DBT) too; however since in DBT, there is neither that much purchasing power, nor there is a sense of surety as it used to be always there in government salary, so it is not generating significant demand in the economy.
Only the sufficient Government salary to sufficient numbers of working population having steady nature is a good demand generator, and therefore ensures democracy at work to the country because people, then, can freely express their opinion and exercise their economic rights. Their liberty remains protected. The Government sector employment seek meritorious persons as it goes through a set of standard tests, which generally cannot be compromised. So it gives an outlook towards education to be more from a scientific temper. The Government salary always gives boost to the sector, where work is of emergent nature as it not only gives oxygen to fundamental rights, but also instills a sense of duty toward humanity. The reason is simple because it never focuses on profiteering. However fundamental duties coming from directive principles of state may get affected due to apathy of top administration from nourishing and timely modifying such government owned sectors for modern changes. Like pay commission which comes periodically to upgrade or update pay structure of Government sector, there is always a need to have a commission to upgrade and update these sectors periodically so that they remain always tuned to the modern technological frameworks.
Like private sector, which is profiteering driven, Government sector is power positions driven. Government sector employment and salary gets worst affected by loose administration, non-keeping of pace with modern science and technology, existing of large number of vaccancies and overstaffing for a particular job due to positional power of the head of that job.
Private sector rotates money horizontally in the society or community and sometimes even it syphoned the money out to outside countries. The private sector rozgar ensures loyality at work to the specific community and related society because people cannot freely, then, express their opinion and exercise their economic rights, which goes against echo of their specific community and concerned society. Their liberty is manipulated. The private sector employment seek services of suitable persons as it goes through the viability of functions of job at a least cost and not the functions commensurate with the possessed educational standard and many a times the selection of workforce is not filtered through the set of standard tests. These standard tests at times, if any, can be compromised too. There is always an element of negotiations in choosing personnel for such jobs. So it impacts on the outlook towards education to be more from proper behavioral temper rather than from the scientific temper. The private sector always gives boost to those sector, where work is of repetitive nature because of their profiteering nature. It is forced to comply Government laws, therefore, instills the sense of compliance of fundamental duties coming from directive principles of state. The private sectors always want to tune themselves for modern changes and demands so as to get maximum profit out of sales and circulate those profits horizontally within the community. Here, there is no need felt to have a commission or an organisation to review or audit them periodically to upgrade and update so that the private sector remain always tuned to the modern technological frameworks. They just either resort to personals layoff or closures or mergers or splits without giving much thinking on the future of engaged work force.
Private sector is profiteering driven. It gets worst affected by loose moral values, biased administration, excessively obsessed about profits, sudden closue or layoffs due to either not keeping pace with demand or enormous debt or other ulterior motives, existing of large tie ups and habit of bribing Government authorities for flexibility in laws compliances or licences and money siphoning or laundering.
Having said all the above, the defenders of Indian economy which are enlisted in first few paragraphs of this discussion are though private in its nature, but are not that way impacted as are those which are a bit more organised and tuned to Govt laws. These informal sectors are also not suffering from the culture of administrative clog of Government employment sector. However, they are benefitted by Government as well as private sectors employees due to they all being part of community custom driven demands.
These supply chains of street marketing and customry customs driven informal sectors work on principles of creating supply within the existing demand of goods & services of that Desh (place or country specific), Kaal (time or season specific) and Patra (community or demography specific). Therefore they do not need another force, hence marketing echo, for generation of such demand, as their demand is regulated by essentiality of daily needs, customs of community, seasonal and other related compulsions. The greatest denominator is that their supply, howsoever plenty it is, it is within the demand of such items and demand is regulated by either essential basic needs, or by compliance of discipline forced by fear and greed emanated from customs and community. Any excess supply of one market, after a period, depending on their shelf life and/or demand, goes as feed or input commodity to another market serving to a lesser affluent community of layered or graded poverty community. The graded or layered poverty is further explained below in this article.
Thus in India, if corporates don't intervene the street markets and customry customs informal sectors, this economy keep on protecting movement of money within its various sectors and communities, which are surviving in this informal sectors.
Another factor that is responsible for protecting the movement of money is the existence of graded poverty. Poverty in India is available in clusters of different affluence and each cluster is having its own market. Each market is supplying goods to the lower segment market from its otherwise wasted goods. This has a big impact in keeping whole poverty sustainable and poor people alive. Such markets can be studied to have an indirect real feel of poverty in the society. To name a few grades of these communities of graded poverty in ascending order of poverty are kabari wala, skilled repairers, maids, unskilled labourers, sweepers, hawkers, slum dwellers, street dwellers, rag pickers, beggars, food pickers, homeless, abject poor etc. They are not mutually exclusive. They overlap each other. Some places, sometimes, they stay together in clusters but in other places and other times they are distributed vastly or sparsely.
Markets of economy are also tuned to such layers of poverty. Where there are big, and structured markets for well, upper and lower middle class, there are also markets from unstructured shops (redi), movable (theli), roadside (patari), weekly markets, second hand market, Kabari walas, chor markets, hawkers, slum market, free pickers etc etc. to where goods move to amongst them and also from them to the targetted communities. Many communities of relatively slight higher echelons also visit to such markets targetted to lower affluent population for specific purposes at times. These markets are also not mutually exclusive and are overlapping in their nature of supply of goods and their clusterings. Some of them are embedded into their counterparts in the organised framework too. A lot more can be written on graded or layered poverty systems of India, but that will deviate our focus on the current topic.
This way these informal sector markets keep on money getting horizontally circulated within the limbs of various communities and sections of the society. Their contribution towards horizontal movement of money by way of paying taxes to organised and recognised government remains always lower than their volume of trades but they keep on feeding taxes to unrecognised government who maintains order through their vocals and locals. These vocals and locals ensures policing for such markets and feed the organised state policing bodies to keep them in good humour. Thus vertical circulation of money like a fountain of water though remains available in this section of society but it is not that much substantial to give immense immediate contribution to the taxes of recognised government of the place or sovereignty. However the trust value to the consumers of these markets are not ensured by these policing vocals and locals. Though there is no remedy to cheating of consumers available from them to customers, yet they always remain there protecting their client vendors of informal sector markets from government rules, regulations and their regulators.
The basic fact that these informal sector markets believe more in circulation of money through outside the banking system, say preference in dealing in cash. Therefore the vagaries of banking systems viz bad debts, and frauds of the banking systems don't effect them to that extent. Moreover, their transactions are also enormous and fast, so impacts of volatility of banking systems remains minimal in the domain of these informal market sectors even if they join the circulation through banking systems at least for them who are working within that level of affluence where the speed of exchange of money is fast.
Each Government or corporate world wants to link these informal markets through banking systems either by changing their financial transactions through say digital currency like Phonepe, Paytm, Gpay etc or involving their labours and skills through digital apps like Ola, Uber, Reliance smart stores, Big Basket etc just to increase their income without increasing their labour force and liabilities to that extent. This way more and more informal sectors are ingressed upon. Their shrinkage makes economy and society prone to recession because of part of the informal sectors get hooked to the banking systems which is a prominent and significant vector for controlling and impacting economy of any country.
Let us conclude. That part of economy which remains away from banking systems of the economy works as defenders of economy as it is not prone to national debt syndromes and banking frauds which are always available in any higher corporatised banking systems model because banking laws are always manipulated by big corporate houses, companies and Governments on the one hand and on the other hand banks health becomes volatile by speculative markets of stock exchanges to which the banking systems is always prone to. Therefore, to keep the economy recession proof, besides such informal sectors, the roles of banking systems with strict regulations is very crucial.
