He Built NIFTY 50! Now He Says Indian Investors Are Doing This Wrong! | Kushal Lodha #370

Introduction of GST.

You're one of the persons who have invented something like GST and Nifty 50.

How was that entire process?

In those days in India, everything was expensive.

Between Susan and me, we had one laptop.

On that one laptop, we wrote all the code and that's how Nifty happened.

Dr. Ajay Shah joins us today.

Having tracked India's economy for decades, he breaks down the major financial risks which are there right now.

When did you create the Nifty 50 index? It was released in March 1996.

Any other changes you think should be done in the GST regime?

Get to a low single rate like 10%, 9%, 8%.

Remove all interference against the movement of the GST.

There's a third big pillar that is waiting to be done, which is to put a slice of GST to the city.

So if you buy goods in Bombay, then 3% of that GST would go to the Bombay municipality.

I actually want to abuse your privilege.

It is not efficient to hold your assets in any one country.

And I'm not being disloyal to India.

I'm just being truthful and practical.

You should not hold too much of your money in any one company.

This is a classic mistake of promoters.

It is a mistake the government makes to make a bad tax system.

And then the prime brainpower of the country gets devoted on how to undo that damage.

Whereas if a tax system is clean, then the brainpower of the country will be devoted to making podcasts, which people actually want to hear, or making pakoras, which people actually want to eat.

Nobody wants...

The cleverness of how to misrepresent this and call it a 5%, that's just a waste of effort of society.

America is great because the companies of America are great.

I wish to say to all of us and to the audience, we are B grade or C grade in our skill on how to run companies.

Companies in India are mostly very badly run.

There is a lot to learn on how to do firms better.

And we should view it with energy and excitement that how do we make better companies.

For this, lots and lots of investment will be required.

Do you think there should be multiple rates for multiple products? Any specific indices are not there in India right now and should come in India?

My dream would be...