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Correspondent

23 August 2024 at 4:29:04 pm

Red Romance

For long, the Naxalite in news was recognisable by the gun. But the more insidious version of Naxalism has never needed a rifle. It has thrived in varsity classrooms and newspaper and magazine columns, fostered by men and women sympathetic to it. These academics and other members of the so-called intelligentsia have long enjoyed their status as ‘respectable dissenters’ even when their politics offered intellectual alibis for Naxals carrying guns. Prime Minister Narendra Modi’s recent...

Red Romance

For long, the Naxalite in news was recognisable by the gun. But the more insidious version of Naxalism has never needed a rifle. It has thrived in varsity classrooms and newspaper and magazine columns, fostered by men and women sympathetic to it. These academics and other members of the so-called intelligentsia have long enjoyed their status as ‘respectable dissenters’ even when their politics offered intellectual alibis for Naxals carrying guns. Prime Minister Narendra Modi’s recent Independence Day warning about “dimaagi Naxals” should therefore not be dismissed as another political label. His larger point was that an insurgency does not survive on ammunition alone. It survives on ideas and people willing to make violence appear morally fashionable. The most revealing feature of India’s Maoist movement was never simply its brutality. It was the strange attraction it exercised over sections of the metropolitan Left elite. The Naxalite with an AK-47 could be transformed into a romantic revolutionary while the policeman he killed became an instrument of an oppressive state. This was not merely naïveté. At its ugliest, it was the intellectual laundering of political violence. The fantasy of the romantic revolutionary has always been seductive. In this narrative, amplified through sympathetic media priding itself on telling ‘truth to power,’ India was not a constitutional democracy struggling with inequality and corruption but an inherently illegitimate state waiting to be overthrown. In the minds of this elite Left, Maoist violence has often been recast as resistance while attacks on infrastructure as blows against capitalism. The armed overthrow of the Indian republic was the liberation they craved for. Some of India’s most celebrated intellectuals have flirted dangerously close to that moral inversion. The issue here is whether intellectual prestige can be used to sanitise an ideology whose practitioners have murdered civilians, policemen and public servants and terrorised some of India’s poorest districts. A university cannot be the place where Maoist romanticism acquires the legitimacy of a fashionable campus cause. Professors who turn armed insurgents into heroic revolutionaries are not merely exercising academic freedom. If they knowingly excuse violence, they are helping to construct the moral vocabulary that makes violence possible. Let’s be clear here. A professor who criticises the Indian state is not a Naxal while a journalist who exposes state excesses is not an enemy of India. But an intellectual who repeatedly excuses, glorifies or rationalises political violence cannot hide behind the word ‘dissent.’ India has paid an enormous price for the Maoist fantasy. Thousands have died. Entire regions were held back by fear while development was obstructed. The people supposedly being liberated were often the first to suffer. The armed Naxal is now being pushed towards extinction. But the Indian republic cannot afford to leave behind the romantic mythology that made the gun respectable. A democracy can tolerate dissent. It should never be expected to tolerate the glorification of those who seek its violent destruction.

Outpacing Inflation: Smart Investing for Financial Survival

In our fast-evolving economy, one of the most underestimated threats to wealth creation is inflation. While many associate inflation only with rising prices, it’s much more than just costlier vegetables or higher fuel rates. In reality, inflation quietly erodes your purchasing power - meaning the same Rs 100 will buy you fewer goods and services over time. And there are two types of inflation that impact your financial health.


Price Inflation (Cost-Push Inflation):

This is the most common and visible form of inflation. Over time, the prices of goods and services - be it groceries, electricity, or transport - rise gradually. This happens due to factors like increased production costs, population growth, and resulting demand-supply mismatches. Historically, India's average consumer inflation hovers around 6–7 per cent annually. That means something costing Rs 1,000 today could cost Rs 2,000 a decade later.


Lifestyle Inflation (Aspirational Inflation):

This is less visible but equally dangerous. As your income rises, so do your aspirations and spending habits. You may upgrade from a sedan to an SUV, shift from home-cooked meals to dining out frequently, or switch from budget holidays to luxury resorts. While these choices enhance your lifestyle, they also inflate your monthly expenses and reduce your ability to save and invest.

When combined, both price inflation and lifestyle inflation can silently eat away more than 10 per cent of your money’s value every year.


The Solution: Inflation-Beating Investments

To preserve and grow your wealth, it’s crucial to invest in inflation-beating assets. These include:

  • Equities (Stocks): Over the long term, equities have consistently outpaced inflation by offering higher returns.

  • Mutual Funds: Equity-oriented mutual funds provide diversified exposure to the stock market and are suitable for everyone.

  • Gold: A traditional hedge against inflation, gold maintains its value during economic uncertainties. So basically, it beats inflation and also acts as a good hedge against equities.


Invest in the above products for your long-term goals.

Keeping your savings in low-interest options like savings accounts or fixed deposits might feel safe, but they often yield returns lower than inflation - resulting in a loss of real value over time. Invest in savings accounts, fixed deposits, or recurring deposits only for your short-term goals (within 3 years)


The Bottom Line:

Inflation is inevitable, but its impact can be controlled. By being mindful of rising lifestyle expenses and choosing growth-oriented investments, you can ensure your money retains - and even increases - its purchasing power. After all, true financial freedom isn't just about earning more; it’s about making your money work harder than inflation.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605.)

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