His argument against HSR starts from a CAD point of view and has now diverted into an emotional outburst about the lowest section of society benefiting from direct cash handouts. It is approaching arguing for the sake of it.
I can say, once full HSR is built with initial imports, it will at least use Indian electricity to run and reduce the oil imports and narrow body imports aircraft from airline industry, and also that India has more chance of succeeding in absorbing HSR tech than completely replacing Boeing and Airbus narrow body aircrafts getting ordered in 500s by AirIndia and Indigo.
As for direct cash handouts, while they give the option to the recipient to spend as they wish, many people don't have the impulse control to spend on utilities v/s just buying liquor by their husbands, in a way the state govts actually funnel a portion the cash handouts back to state exchequer. I can say why not reduce the taxes of Air conditioners and take the hit there or even partially or fully fund them?, let poor consume more house hold appliances by incentivizing purchasing AC, washing machines etc? Compared to cash transfers, executing these are hard involves logistics, warehouses etc than simple bank account transfers to Jan Dhan accounts now being done, even hard is to improve public utilities of the state, like maintaining and providing at least second world level public utilities like hospitals, primary schools, transport infra etc. Point being for Indian context with low resource base, high pop similar to East Asia, we need to increase TFP with government spending and infra and public utilities build up is one way to do that.
For Indian context, though it may sound blunt like
LKY said to MH Dy. CM , we also need to spend on the few regions which bring the dollars and also in parallel focus on asset creation in rural areas, otherwise even a hyper optimized, corruption free transfer of wealth from urban areas cannot support the rural economy indefinitely.
from AI: