Money Matters- Then and Now

One of the topics discussed during the Times Literary Fest organized in Bangalore on 23rd February 2019, was  " Money Matters- Then and Now". It was initiated and moderated by Mr Ravi Subramaniam renowned banker and author. The participants were Mr Gurcharan Das, Economist & author and Dr Radhakrishnan Pillai, author of a series of books on Chanakya Nithi. Before we start, here is a brief about each of the three eminent personalities:-

Ravi Subramanian is India's numero uno thriller writer, having written seven bestselling books. An alumnus of Indian Institute of Management (Bangalore), he is currently head of a leading financial institution. A career banker and financial services professional, Ravi has worked with various multinational banks (Citibank, ANZ Grindlays Bank and HSBC) for over eighteen years.

Gurcharan Das is a renowned author, commentator, and public intellectual. His last book, 'India Grows at Night' was on the FT’s best books for 2013. He is general editor for Penguin’s multi-volume ‘Story of Indian Business.’ He studied philosophy at Harvard University and was CEO, Procter & Gamble India before he became a full time writer. 

Radhakrishnan Pillai is the bestselling author of Inside Chanakya's Mind, and Chatur Chanakya and The Himalayan Problem. He has researched Kautilya's Arthashastra extensively and has a Master's degree in Sanskrit. he is a well-known management speaker, trainer, author and consultant.

Question:  What has been India's approach to taxation and tax rates since the ancient times? 

Answer: Gurcharan Das (GD) :  India has always had a concept of a just tax rate which was pegged at 1/6th of the earnings. The balance of payment between countries has also been in India's favour till the industrial revolution and  British entry on the scene.

Radhakrishnan Pillai (RP) :  As per the Chanakya Niti, taxation was based on the premise "Wealth belongs to the society". The policy of the state is to function as a regulator. Tax collection was to be gentle akin to a honey bee collecting honey from the flowers. Even on occasions when the tax payer was unable to pay the tax, the aim was not to punish him immediately in a merciless manner but in stages of sama, dana, beda, danda ( first stage being that of counselling and ending with punishment)

Question: What was the significance of money and money matters?

Answer:  GD:  Wealth was held very important ( Artha eva pradhana). Once the economy is got right, everything else will follow.There was a direct connection between administration of wealth and the temples of ancient times. Often times, trade negotiations happened in the precincts of temples. The relationship between temples and the wealth of the administration is borne out by the recent instances of huge amounts of wealth discovered slashed away in the treasury located at the Sri Padmanabha Swamy temple in Thiruvananthapuram, Kerala.  

RP:  Under the Chanakya Niti, the four principles for dealing with wealth are (1) Wealth identification (2) Wealth creation (3) Wealth management and (4) Wealth distribution. Philanthropy is to be inculcated as a way of life. It is not something to be considered after one has become rich.

Question to GD:  In your writings on the East India Company, you have made some interesting observations. Could you elaborate?   

Answer: This was the time when the best goods were made in and available in India. The world did not wear any underwear until people were exposed to India's fine muslin cotton. On their first voyage to India, the Portuguese brought many things to exchange for the coveted Indian goods. But the Indians were not interested in any of their goods. 

Later, the  Portuguese ship returned filled with Indian spices. As it came near Sumatra, the British traders took permission from the rulers in Sumatra to destroy the ship after saving the Indian spices and in return offered to give them the goods at much lower prices.  

Question to RP: Economic models are changing by the day whether it is with regard to land, agriculture or patents.How does this impact business?   

Answer :  What it means is that today it is not about doing hard work alone but doing smart work is the key..  

Question to GD:  In your book " The Marwaris: From Jagat Seth to the Birlas ( The Story of Indian Business)", you discuss the importance of the trust factor, A lot of value was placed then on trust? 

Answer: Yes, if  one traces the life and times of Ramakrishna Dalmia, one can see that  a big success was achieved by him from humble beginnings.He took a lot of risk at a young age dealing in London silver in the stock market but this approach was possible because of the trust that he had in self and others even in trying circumstances. 

Question to RP: Trust levels are going down these days and we are also seeing a reduction in the risk taking appetite.On the policy side what can be done to revive these aspects in Indian institutions?  

Answer: Chanakya Niti advises to "test them before trusting." Spying and counter spying was resorted to then while appointing bureaucrats.  

Here GD added:  There is a  need to revise and update the insolvency and bankruptcy law. we must raise the growth rate to 8%. Apart from this, if left alone, Indian entrepreneurs  have been doing very well since 1991,when the economy opened up. India grows at night while the Government sleeps.   
We need Governance reform. The problem of court cases pending for ages need to be addressed. Meritocracy should be the criteria for selecting and promoting public servants as well. Technology should be leveraged to cut bureaucratic red tape.  

Overall, I felt that this session was a rare gem, something one may not hope to find in a literary festival which would normally focus on social issues. Although the subject of discussion was "Money matters: Then and now" I had the feeling that the panelist RP chose to play it safe while speaking, and stuck to his expertise of  Chanakya Niti (Then) . He appeared to be very reluctant to share his thoughts on addressing the economic issues of "Now".