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By:

Correspondent

23 August 2024 at 4:29:04 pm

Algorithmic Anarchy

The NEET paper leak protests at Delhi’s Jantar Mantar should have remained a legitimate expression of student anger over the collapse of examination integrity. Instead, as the agitation escalated into clashes with the police, abusive sloganeering and an increasingly radical political campaign, Meta’s algorithms emerged as an invisible force multiplying the unrest. The controversy surrounding the brief removal of Prime Minister Narendra Modi’s message to the youth in the aftermath of the...

Algorithmic Anarchy

The NEET paper leak protests at Delhi’s Jantar Mantar should have remained a legitimate expression of student anger over the collapse of examination integrity. Instead, as the agitation escalated into clashes with the police, abusive sloganeering and an increasingly radical political campaign, Meta’s algorithms emerged as an invisible force multiplying the unrest. The controversy surrounding the brief removal of Prime Minister Narendra Modi’s message to the youth in the aftermath of the protests only reinforces that concern. Meta has attributed the takedown to a “technical glitch” and apologised. But when the world’s largest social media platform can temporarily suppress the message of the elected leader of the world’s largest democracy during a politically charged moments, the issue extends well beyond a single deleted post. Who decides what India sees? That question has become impossible to ignore during the Cockroach Janta Party’s protests. Across Instagram and Facebook, users have reported being inundated with CJP videos, reels and protest clips despite never following the organisation or engaging with similar political content. Whether this resulted from coordinated paid collaborations, recommendation algorithms or both deserves a thorough investigation. But the larger democratic concern is that public opinion is increasingly being mediated not by citizens, journalists or elected representatives, but by opaque algorithms designed in Silicon Valley and optimised for engagement rather than democratic responsibility. Meta’s recommendation engine is not a passive notice board. Every piece of political content that reaches millions has first been selected by an algorithm whose workings remain largely hidden from public scrutiny. This is hardly unique to India. Around the world, Meta has repeatedly been accused of amplifying polarisation, misinformation and political extremism because outrage keeps users engaged. From elections to ethnic conflicts and episodes of civil unrest, the company has faced persistent criticism that its commercial incentives reward divisive content over balanced discourse. Democracies cannot afford to outsource the architecture of public debate to corporations whose primary obligation is to shareholders rather than constitutional values. While citizens are entitled to challenge governments and demand accountability, there is an important distinction between a movement that expands because people are persuaded and one that appears to be algorithmically amplified into omnipresence. Equally disturbing has been the normalisation of abusive political language during the protests. When such content is repeatedly amplified through recommendation systems, platforms cease to be neutral intermediaries and become active participants in degrading democratic discourse. Platforms that influence elections, protests and public opinion must explain how political recommendations are generated and why particular narratives receive extraordinary amplification. Silicon Valley companies insist they are merely technology platforms. But their algorithms increasingly exercise editorial power. When software determines which protests dominate national conversations and whose voices disappear, technology has already become politics.

The Economics Behind PM Modi’s 7-Point Appeal

The appeal reflects an exercise in ‘nudge theory’ — using behavioural change to support macroeconomic stability.

The recent economic appeal by Prime Minister Narendra Modi comes at a critical juncture for the Indian economy. Amidst global uncertainty driven by geopolitical tensions in West Asia and volatile crude oil prices, the government has proposed a 7-point behavioural shift to safeguard our national interests.


From a chartered accountant’s perspective, these suggestions are more than just a call for austerity; they represent a strategic attempt to manage the Current Account Deficit (CAD) and protect the Indian Rupee (INR) without resorting to aggressive monetary tightening.


Macroeconomic Rationale

India continues to rely heavily on imports for crude oil, gold, edible oils and fertilisers. During periods of global uncertainty, higher import bills can place significant pressure on foreign exchange reserves and government finances. By focusing on these sectors, the appeal seeks to conserve foreign exchange reserves, contain imported inflation and strengthen the country’s fiscal and external balance sheets.


Inside the 7-Point Plan

Reduced Fuel Consumption and WFH - The push for work-from-home and public transport is a direct hit at the oil import bill. For businesses, this translates to a shift from fixed costs, which include office rent and utilities, to variable costs. While this improves operating margins for many firms, it poses a valuation risk to the commercial real estate sector and urban retail ecosystems.


Limiting Gold Purchases: Gold is often viewed by CAs as ‘unproductive capital’ because it locks up household savings that could otherwise flow into productive financial assets like mutual funds or the stock market. Discouraging gold purchases helps stabilise the rupee, though it may temporarily dampen the revenue of the jewellery and luxury retail sectors.


The ‘Vocal for Local’ Mandate: Encouraging Indian-made goods is an investment in our MSME sector. Increased demand for local products improves inventory turnover and strengthens domestic supply chains. However, for this to be sustainable, Indian manufacturers must bridge the gap in pricing and innovation to remain competitive against global alternatives.


Domestic Tourism and Forex Conservation: By encouraging domestic travel, the government is essentially trying to stop ‘invisible imports'—the outflow of forex by Indian tourists abroad. While this provides a massive boost to the Indian hospitality and event management industries, it requires rapid infrastructure scaling to meet the demand.


Agriculture and Fertiliser Subsidies: The call to reduce chemical fertilisers is a move toward fiscal discipline. Reducing the government’s massive subsidy burden helps lower the fiscal deficit, though the transition must be managed carefully to ensure it does not impact agricultural yields or food inflation.


From a financial standpoint, the Prime Minister’s appeal is an exercise in Nudge Theory—using social persuasion to achieve macroeconomic stability.


While these measures support economic resilience, their success depends on how businesses and consumers adapt. As CAs, we must monitor the working capital cycles of our clients in the affected sectors and keep a close eye on the RBI’s forex reserve updates over the coming months.


Ultimately, this is a call for ‘economic patriotism'—insulating the Indian economy from external shocks by strengthening our internal consumption patterns.

(The writer is a chartered accountant based in Thane. Views personal.)


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