Everyone is waiting for a crash to happen.
Whether it is the prices of petrol, Zomato’s valuation in the IPO or for that matter the Indian equities market – everything seems expensive.
Let’s first start with the rising petrol prices.
There is a big case for the fact that –
Taxes are not being cut
Global crude prices have come down
Fiscal Deficit has been under control
The issue with all the above is none. But it is just a product of first order thinking. Let’s try and put second-order thinking to this issue.
There is a big case in India presently to ensure transition to electric sources – whether it is vehicles or cooking in our houses.
But this transition cannot take place until and unless it makes a commercial sense.
Yes, global warming is real but when it comes to using a greener source of energy, the shift will not happen because people care for the environment but it will ONLY happen if it makes commercial sense.
This is something that we had discussed in an earlier webinar covering Tata Motors. Here are a few excerpts –
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