Don't have, can't spend.

"The near 900 bps fall in (interest) rates between 1996 and 2003 marked a historic break from high interest rates of the past," and "This led to an across-the-board rise to corporate bottom lines and consequently of stock prices." This was the great Rate Bull from 2003 to 2008, wrote Adil Rustomjee. We now have a bull market due to the Systematic Investment Plan (SIP) in mutual funds. "With much of the economy locked down, 2020 is the worst year in independent India's economic history - and yet the market rises 12%." There is a disconnect between the SIP Bull and the real economy. A note - titled 1 year, $90 bn and 0% Return Later from Kotak Securities - deflates much of the hype over stock market buoyancy by pointing to low corporate earnings growth and near-zero investment returns over the past 12 months." The government perpetuates this myth because it gains from Securities Transaction Tax (STT), capital gains and taxes on dividends. "For example, the 2025-26 Union Budget projects a 131% growth in STT collections over the actual receipts in 2023-24," wrote Rajrishi Singhal. "Annual GDP growth was 9.7%, 7.6% and 9.2% in 2020-21, 2021-22 and 2023-24 and it fell to just 6.5% in 2024-25." India needs to grow at 7.5%-8% to become a developed economy and that needs private investment. But, "While the government raising its share of the capex has helped, what is still missing in the act is a sustained rise in private investment," wrote Roshan Kishore and Abhishek Jha. "Budgeted capital expenditure (capex) of the Centre rose to over 3% of GDP in 2025-26 from 1.7% a decade ago." However, "A significant portion of it has been in the form of financial transfers by way of equity infusions and loans to public sector enterprises (PSEs), state governments and other institutions." This capex is not investment in new infrastructure but is used to plug revenue shortfall, wrote Shruti Gupta. Financial Services Secretary M Nagaraju said that "corporates are better placed for investments, pointing out that they are 'enjoying strongest balance sheets' and added that financial sector should also support them." ET. "The country's much-awaited GST 2.0 reform officially kicked in on September 22, collapsing multiple tax slabs into simpler structure and handing what Finance Minister Nirmala Sitharman has described as a Rs 2-trillion boost to consumers pockets. ET. However, people need disposable cash to be able to spend. "Nearly 70% of people buying iPhones in India choose to pay via EMI. Also, a recent study found that 93% of salaried Indians earning less than Rs 50,000 a month are relying on credit cards to support their everyday expenses, with credit and EMIs no longer optional extras, they are lifelines." FE. Indian businesses are known to be unethical. According to a Reddit post, a was offered a salary of Rs 400,000 per annum "but required him to sign a bond stating that if he left the organization within three years, he would be liable to pay a staggering Rs 1 million as compensation." ET. Living on debt and investing in shares. The Sword of Damocles (Britannica). Not one, but two.