Tata Saga – part 13
Innovation in Stupidity. If you hire third rate advisors – you get stupid suggestions. This is the kind of output you get when ai hallucinates.
Some amateur has clerically looked at definition of NBFC and missed the woods for the trees. RBI of course continues to set new benchmarks for harassment and ineffectiveness. On the first of October they have launched an Export Declaration Form which will destroy all digital exports. Under the new circular, anyone selling anything overseas will need to file an export form with name and address of importer irrespective of value. The old exemption for low value exports has been withdrawn. So if you export a mobile app for Rs 10 which someone installs with a click – you need to get the name and address of the person downloading. There is no level playing field. Apple and Google don’t need to do anything when they sell to India or anywhere else. But an Indian app developer from a SEZ can neither sell in India nor overseas. RBI should be named “Reduction of Business Initiative”. They are mistakenly calling it a “ease of doing business” change. If we have friends like this, none of us need enemies.
Now the Tatas have got into a stupidity competition to match RBIs stupidity. Tata electronics gets Rs 600 to assemble an Apple phone. The govt gives them a subsidy of Rs 6000 for each phone assembled. The topline is Rs 100,000 per phone. The contract manufacturing revenue is rs 600 per phone – not Rs 6,000 and most certainly not Rs 100,000/-. Now an innovative auditor has agreed to show turnover as Rs 100,000 instead of the real Rs 600. The business has no viability or no reason to exist other than to claim the PLI subsidy. Welcome to the Rs 62,000 crore taxpayer penalty called PLI.
Now Tatas is using this exaggerated turnover tp beat the RBI definition of NBFC. When a country gets into a competition to out do each other on stupidity – where would it take us.
Tata Consulting Engineers is another similar example. But far more hilarious.
This is the RBi and the House of Tatas trying to outdo each other on stupidity. Both seem to need a change in leadership.
The sane option for Tata Sons is to migrate to being an AIF. This changes the regulator from a painful RBi to a market friendly SEBI.
