PM Modi works only for one person: Adani

 

1. The Adani-Modi Nexus: Crony Capitalism Institutionalized ?

Evidence:

  • Metastatic Growth: Gautam Adani’s empire expanded from ports and coal to airports, defense, and renewables—often winning contracts in sectors prioritized by Modi’s infrastructure push. The Adani Group’s market value surged from $10B (2014) to over $200B (2023) .

  • Resilience Amid Scandal: Despite the Hindenburg Report (2023) accusing Adani of "brazen stock manipulation," the group secured $5B from U.S. investors like GQG Partners. Opposition leaders allege political protection .

  • Comparative Cronyism: Ambani and Adani dominate India’s infrastructure landscape like 19th-century American "robber barons." Mumbai’s airport, highways, and cultural institutions bear their brands—a visible symbol of wealth concentration .

Counterpoint:
Adani and Ambani are "phenomenal entrepreneurs" (Rohit Lamba, Penn State) who bet on Modi’s development sectors. Their success mirrors Korea’s chaebols or Rockefeller’s Standard Oil during industrialization .

Verdict:
While not illegal, the proximity fuels perceptions of a quid pro quo. As James Crabtree (Billionaire Raj author) notes: "The optimal level of corruption is never zero"—but India’s institutions fail to police boundaries .

2. Demonetization & GST: Policy Weapons of Mass Disruption

The Charge: "Demonetisation and a flawed GST destroyed MSMEs and worsened inequality" .

Table: Impact of Modi’s Signature Economic Policies

PolicyPromiseRealityVictims
DemonetizationCurb black money, boost digitalizationGDP growth fell 130 bps (Q1 2017); 9.1M new taxpayers (offset by informal sector collapse)Cash-dependent MSMEs, daily wage laborers 
GST"One nation, one tax"8+ tax slabs; 17% avg. rate (vs. global 10-14%); ₹2 lakh crore/yr evasion; 1,445 days to enforce contracts (vs. 400 in Vietnam)Unorganized sector (48% workforce), backward states 

Structural Flaws:

  • GST’s Fatal Design: Multiple tax slabs created classification chaos. Essential goods (0%) and luxury items (28% + cess) were politically necessary but operationally disastrous. Small businesses couldn’t claim input credits, shifting demand to corporates .

  • Digital Divide: GST compliance required internet access and accounting literacy—unattainable for 93% of India’s informal enterprises .

Verdict:
GST and demonetization accelerated formalization but "worsened inequalities and cushioned tax evaders" while annihilating the unorganized economy .

3. "Assemble in India": The Manufacturing Mirage

The Charge: "Failed ‘Assemble in India’ enriches China; Modi mastered slogans, not solutions" .

Data vs. Hype:

  • iPhone Illusion: Apple assembles 14% of iPhones in India—lauded as a win. Yet, Gandhi’s Nehru Place visit exposed the truth: 90% components are imported, creating minimal value addition. "Assembling iPhones enriches oligopolies, not workers" .

Table: Make in India’s Decadal Report Card (2014–2024)

MetricTargetAchievementGap
Manufacturing GDP share25% by 202515.9% (down from 16.7%)-9.1%
Industrial growth rate12-14%/yr9.5%/yr (peak: 12% in 2015)-2.5–4.5%
New manufacturing jobs100 million18.4 million (2023)81.6 million
Trade deficit with ChinaReduceDoubled to $120B+Worsened by 100% 

Vietnam’s Victory:
Vietnam captured 32% of diverted FDI from China ("China+1") by slashing logistics costs (8% of GDP vs. India’s 14–18%) and streamlining land acquisition. India’s "red tapeism" and infrastructure gaps proved fatal .

Verdict:
Make in India became Assemble for China—a "fiasco" of overambition and under-execution .

4. MSMEs: The Forgotten Backbone, Crushed

The Charge: "MSMEs wiped out" .

Execution Errors:

  • GST’s Reverse Charge: Small suppliers faced working capital crunches as large buyers withheld payments to cover GST liabilities .

  • Credit Starvation: Demonetization dried up cash flow, while banks prioritized Adani/Ambani loans. MSME share in lending fell to 12% (2024) .

  • PLI Rollback: The Production-Linked Incentive scheme—touted as MSME salvation—was "quietly rolled back" after failing to offset compliance burdens .

Human Toll:

  • 12 million MSMEs shut between 2020–2025, erasing 30 million jobs .

5. Farmers: Sacrificed at the Altar of Corporates

The Charge: "Farmers crushed" .

Agrarian Apocalypse:

  • Debt Traps: Climate shocks and volatile prices doubled farmer debt. States like Maharashtra saw suicide rates spike 40% post-2020 .

  • Corporate Capture: Farm law protests (2020–2021) exposed fears of Adani-Ambani domination in storage, trading, and retail. Though repealed, backdoor deregulation continued .

  • Trade Imbalance: Agricultural imports hit $35B in 2024—squeezing prices while export tariffs protected corporate processors .

Structural Illnesses: Beyond the Five Wounds

Gandhi’s charges overlook systemic pathologies:

  • Jobless Growth: Youth unemployment hit 15.7% (2023)—highest among G20 nations .

  • Inequality Engine: The unorganized sector (48% of workers) shrank 11% under GST, transferring wealth to conglomerates .

  • Geopolitical Bleeding: Trump’s 25% tariff—punishing India’s Russia ties—exposed foreign policy failures. "No country condemns Pakistan" despite terror attacks .

The Global Lens: "Dead Economy" or Distorted Diagnosis?

Trump’s "dead economy" jab clashes with IMF data:

  • Growth Mirage: India’s 6-7% GDP growth masks private investment stagnation (12% of GDP vs. China’s 24%) and export weakness .

  • Vietnam Contrast: With half India’s population, Vietnam attracted 2.3x more manufacturing FDI by prioritizing ease of business .

  • Sovereignty Surrender: Gandhi’s quip—"Trump will define the trade deal; Modi will follow orders"—reflects eroded bargaining power .



Location: Tamil Nadu, India

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