A Bad Advice

It is too late too odd

Do Indian leaders have to follow every act by their American counterparts? Why I am asking this? Because latest missive from Salman Khurshid, minister of company affairs smacks of nothing less than following the US steps. It is in a way bizarre way to propagate the austerity drive, pursued by the Congress party, even when its fruitlessness has been pointed out by media.

Khurshid has directed that CEOs of big corporates should not take the salaries which might appear as shameless. His obvious reference might be Anil Ambani, who just last week emerged as the most earning person in India. The reason why Khurshid did not take Anil's name publicly perhaps was Anil has not taken any salary at all this year. It was his arrears from year 2007 which made him the highest salaries person in India. Taking into consideration Anil's connection with Samajwadi Party, bête noire of Congress in Uttar Pradesh, it is hardly surprising that Khurshid has targeted the CEOs.

Why his act appears misplaced is that situation in India and US are quite different. When Barack Obama appealed to bosses of big companies not to take high salaries, the US economy was really in bad shape. It still is. Relatively speaking, corporates in India made more noise about recession that the actual losses. Government of India announced two big packages for corporates which largely eased the state of affairs. Profit margin of companies never went so low as to initiate a damage control exercise. Luckily enough, during the onslaught of melt down, political scenario in the country was hotted up by general elections at central level. Those who are familiar with Indian election system, know very well how much it ignites the economy. In Maharashtra alone, it is estimated that at least Rs 500 Crores (50 million) changed hands during the elections.

The elections for state assembly are currently underway in Maharashtra. A policeman on election duty told me each corporator is asking for Rs 50 lakh to the candidates for campaigning. There are 288 constituencies in the state and more than 250 serious candidates. If each of them spends at least Rs one crore (10 million) there will be exchange of Rs 250 Crores. Isn't this sufficient to infuse running spirit in the economy which is already going fit, if not strong.

Therefore, the statement by Khurshid appears more through the 'loyal than king' syndrome. Without really taking course to austerity, he wants to become messiah of poor and labourers at the cost of corporate culture.