Posted by: _____ May 24, 2014
MODI-fying India
Login in to Rate this Post:     1       ?         Liked by
1. Will Modi increase the subsidy to farmers or not ?

India has record harvest for last two years he may not incrrese the subsidy--Nepali farmers are relatively sfe
Many Indian farmers are committing suicide because they cant pay bank loan--Modi may Increase the subsidy to those--Nepal be careful Increase in subsidy means their agricultural products will be cheaper than Nepali agricultural products

In such case , what to do ?

Nepal government should match the subsidy provided to Indian farmers to Nepali farmers so that our product will be competitive--But is our government ready?

2. There will be lots pf incentive to Industries to India so chances of more industry start up-

In such case

Positive effect to Nepal

1,. There will be high demand for energy so hydro power investment will be lucrative-Chance of FDI in Nepal will be higher--but is government is doing its HW for such scenario ?

2. More jobs created in India means less Indians to Gulf countries--chances for Nepali workers

3. Indians will be richer--means some increase in Indian tourist in Nepal.--business opportunity

4.Hopefully those industries will also use cheap Nepali labors--Increase demand for non skilled workers

Bad effective

1. lots of Nepali Industries need to compete with Indian industries--very difficult to survive --they need either subsidy or higher tariff for Indian goods (India will complain) how Nepal will react- Is govet doing its HW?
2. Lots of New products in India means lot more import--problem with trade balance?


To escape from all those situation what nepal need to do

Invest in Hydropower in transmission line every year 100 billion Nepali Rs--start building it in five years time we have lots of hydro power

Provide all Nepalese 300 units (300KWH/ hr ) of electricity for 400 rs . If they do this cooking food in electricity will be cheaper than in gas so import of Indian gas will be reduced dramatically.
At present I think government is subsidizing almost 900 Rs per gas cylinder instead produce electricity and subsidized Nepali product (electricity).

Government need to act fast

start different project that will produce 6000Mw of electricity in 5 yrs
subsidized that electricity and provide them for Nepalis. all Nepalis will use electricity instead of gas
Nepal can invest 100 billion rs per yr (government,ppl,bank and foreign aid)

Local ppl who woked in hydro power construction can be paid half (if they agree) and half of their salary can be converted into their investment.or equivqlent of free elctricity when the project is complete. Or they cam consider it loan to government which government will pay later on with interest.
This is when they need money

That is what I think, and i think its the only way out for Nepal Nepal will never be out of its misery otherwise.
conservative thinking wont work.traditional way of thinking failed. need to think new model of development-are we flexible enough?










Read Full Discussion Thread for this article