CORPORATES GET LOANS WITH MORE EASE THAN FARMERS AND CITIZENS BELOW THE POVERTY LINE
VIEW
I believe that it is essential for banks to provide loans to individuals with high credit worthiness as this would help in reducing the bad debts or doubtful debts the bank would've had otherwise.
Industrialists efficiently use the loans for business which provide job opportunities to countless citizens across the country. These business organisations have steadily increased the GDP of our country and made our economy grow to what it is right now. Forty years ago, there was shortage of food in India but as of now, India has sufficient food and farmers generally tend to increase their crop growth because of the competition and their failure leads to loss of money and ends up taking loans. China for example, they have moved from an agriculture based sector to an industrial based sector and their economy has been booming from many years. They are the leading manufacturers in the world and provide products all over the world. India needs to adopt measures to move into an industrial sector to increase the GDP and have a flourishing economy to stand out in the world. Industrialists have formulated several business plans and provided employment to citizens and that's why industrialists and corporates are the DNA of our country, without them, India wouldn't be what it is right now.
Corporates are going to be using the loans to expand their business which thereby does increase our countries GDP but there is already sufficient food in our country and there is no need for farmers to have such immense competition and add more complexities to their life when they have no financial stability nor education on how to utilize finances.
With more industrialists and emerging entrepreneurs, India can grow economically and slowly emerge as one of the greatest economies the world has seen but this can only be possible when India shifts from the agrarian culture that it has been following to a more advanced industry based sector.
Harsh Balraj Asrani(18SJCCB209)
COUNTERVIEW
Waiving off loans by the government is a strictly sanctioned process, it requires previous records , reliable reputation , an upward trend in its previous business transactions and promising future projections for its growth in the coming years . These are required to exhibit to the government that not only is the company successful , it will continue to be so in the upcoming future as well. Maintaining an upward stock trend is not something that even companies like Facebook and Google can boast about . The simple sounding requirements mentioned above hide an enormous task which has to be completed by the company in order to maintain its foothold in their respective industries and in order to even be eligible for future loan waivers in times of crisis.
A corporate can further only choose to waive off its loan when it showcases to the government Its financial crisis and the government is convinced of the return they would get should the company not go bankrupt in the coming years. It can be taken to be a kind off stress removal for these companies as it enables them to not only temporarily boost their stock prices but also to perform without the stress of loan repayment. The government further receives interest upon the loan waiver should the company perform well which makes it a profitable venture for it.
Farmers and citizens on the other hand do not contribute in the slightest towards country GDP and its welfare. A citizen is only concerned with his/her lifestyle while a farmer is only concerned about his crops. While the crop growing farmers are very valuable to the country the profession the practise itself is based a lot around luck and the seasonal rains . loan waiving doesn’t guarantee the government any returns and neither does it help in the future crop plantations these farmers would undertake as they can provide no guarantee of a bountiful harvest next year. That being said loans being waived off have become more of a “ fashion” these days set up only to buy good will among farmer voters in the constituencies for the upcoming elections, the government now wants to ensure its seats in the coming election and hence is more inclined to buy off these relatively cheap farmers and citizens with their grand schemes and plans. The government now worries about its seats during times of elections rather than the countries GDP and hence is now ensuring stricter check for companies asking for loan waivers . Banks no longer have an independent reign to wield in this matter , any and every topic under company loans has to be directly brought under the governments notice as this has now become their prime source of income rather than investment. As a result loan waiving for farmers has become more of a semi-annual trend while that of a company as rare as sighting a blue moon.
Kavya Venugopal(18SJCCB211)
VIEW
I believe that it is essential for banks to provide loans to individuals with high credit worthiness as this would help in reducing the bad debts or doubtful debts the bank would've had otherwise.
Industrialists efficiently use the loans for business which provide job opportunities to countless citizens across the country. These business organisations have steadily increased the GDP of our country and made our economy grow to what it is right now. Forty years ago, there was shortage of food in India but as of now, India has sufficient food and farmers generally tend to increase their crop growth because of the competition and their failure leads to loss of money and ends up taking loans. China for example, they have moved from an agriculture based sector to an industrial based sector and their economy has been booming from many years. They are the leading manufacturers in the world and provide products all over the world. India needs to adopt measures to move into an industrial sector to increase the GDP and have a flourishing economy to stand out in the world. Industrialists have formulated several business plans and provided employment to citizens and that's why industrialists and corporates are the DNA of our country, without them, India wouldn't be what it is right now.
Corporates are going to be using the loans to expand their business which thereby does increase our countries GDP but there is already sufficient food in our country and there is no need for farmers to have such immense competition and add more complexities to their life when they have no financial stability nor education on how to utilize finances.
With more industrialists and emerging entrepreneurs, India can grow economically and slowly emerge as one of the greatest economies the world has seen but this can only be possible when India shifts from the agrarian culture that it has been following to a more advanced industry based sector.
Harsh Balraj Asrani(18SJCCB209)
COUNTERVIEW
Waiving off loans by the government is a strictly sanctioned process, it requires previous records , reliable reputation , an upward trend in its previous business transactions and promising future projections for its growth in the coming years . These are required to exhibit to the government that not only is the company successful , it will continue to be so in the upcoming future as well. Maintaining an upward stock trend is not something that even companies like Facebook and Google can boast about . The simple sounding requirements mentioned above hide an enormous task which has to be completed by the company in order to maintain its foothold in their respective industries and in order to even be eligible for future loan waivers in times of crisis.
A corporate can further only choose to waive off its loan when it showcases to the government Its financial crisis and the government is convinced of the return they would get should the company not go bankrupt in the coming years. It can be taken to be a kind off stress removal for these companies as it enables them to not only temporarily boost their stock prices but also to perform without the stress of loan repayment. The government further receives interest upon the loan waiver should the company perform well which makes it a profitable venture for it.
Farmers and citizens on the other hand do not contribute in the slightest towards country GDP and its welfare. A citizen is only concerned with his/her lifestyle while a farmer is only concerned about his crops. While the crop growing farmers are very valuable to the country the profession the practise itself is based a lot around luck and the seasonal rains . loan waiving doesn’t guarantee the government any returns and neither does it help in the future crop plantations these farmers would undertake as they can provide no guarantee of a bountiful harvest next year. That being said loans being waived off have become more of a “ fashion” these days set up only to buy good will among farmer voters in the constituencies for the upcoming elections, the government now wants to ensure its seats in the coming election and hence is more inclined to buy off these relatively cheap farmers and citizens with their grand schemes and plans. The government now worries about its seats during times of elections rather than the countries GDP and hence is now ensuring stricter check for companies asking for loan waivers . Banks no longer have an independent reign to wield in this matter , any and every topic under company loans has to be directly brought under the governments notice as this has now become their prime source of income rather than investment. As a result loan waiving for farmers has become more of a semi-annual trend while that of a company as rare as sighting a blue moon.
Kavya Venugopal(18SJCCB211)
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