Way forward to Industrial Revolution
Global Market trends play vital roles in determining economy and prices, but do we lack quality economists or think-tanks who should know how to convert adversities into valuable opportunities for growth?
Instead of wasting precious time and vital resources, like tax payers money, on accusing its predecessors in office, the present leadership must work progressively and put its acts together to push for Industrial Revolution by immediately taking positive and confidence building measures some of which can be started from the preliminary stage of starting a company for proposed business based upon individual ideas; like amending company act to help and encourage entrepreneurships, non-filing of returns on ROC should not be a criminal offence, eliminate late filing fines for all such companies that are yet to become profitable and come in the taxable brackets and allow or encourage them to submit a sworn affidavits or self-certified affidavits endorsed by its company secretaries to this effect.
To start with, Mega Infrastructure boost, in the form of Integrated Industrial Townships, easily accessible and equipped with multi-mode transport system (Preferable Renewable), can transform and empower India to rapidly grow into the super power arena.
On financial front, Public Sector Banks should function like any other corporate function with full responsibility, accountability and delivery of results, to protect its shareholders –it is important toremember that the real stake holders of the PSBs are the Tax payers. These Public Sector Banks, along with private banks, should compulsorily create a corpus of funds with minimum 5% of their deposits, to support start-up companies or entrepreneurs with attractive loans and up to 100% funding with maximum limit of INR 5.0 Cr. per entity and, in exchange, the lending banks should take 10% (or more as the situation demands) equity stake in such start-ups with offer of buy back of equity, up to the time the entity becomes profitable beyond taxable limits. This type of hand holding by banks could easily transform the country and bring about the much-needed Industrial Revolution 4 based economy surge to make it a “Super Power”.
Imagine the number of NPAs and the quantum of Money blocked in such ventures. Even if a 5% share of this was designed to be allocated to New Business or Entrepreneurs with hand holdings, it would have been a completely different and happy story. As they say never put all your eggs in one basket, so the Economists & Think Tanks, sitting in decision making corridors, should realise it as fast as possible and take sought after actions without much of bureaucratic hurdles and spin offs. Most importantly, they should not shy away or obstruct private financial world -in fact, should push with conducive ecosystem for them to step in and do such hand holdings on their behalf.
Nowadays, every Indian wants to know as to why only law-abiding citizens of general public are subjected to bear the brunt and held accountable for the non-conducive and non-transparent systems which are implemented half cooked without knowing the consequences. General Public simply don’t have any protection from government and are left to defend themselves at their own costs and risks. Whereas these, so-called, public servants and policy makers, who bring such actions harming general public interest, hardly get reprimanded or subjected to consequential legal action. Since they know the laws, regulations, constitutional provisions and rights of the public, yet they (public servants or policy makers) always have a good life in their comfort zones and hardly think twice before they blow tax payers money without being fully accountable. Is the general public meant only for exploitations and accountability and/or for vote bank politics?
Government policies, public servants and policy makers should be subjected to half yearly appraisal system like in corporates and their reports should be made public -wherein general public must be able to witness their report cards periodically and take conscious call in jurisdiction of their rights to know. The Government institutions like RBI, PMO and even MOD (barring sensitive topics) should be brought into this transparency and reporting domain immediately. For all sensitive and confidential aspects like national security etc., there should be a comprehensive approach which can protect it well.
In today’s digital world, every ministry and department has its own websites, so the task of displaying the ‘progress vs promises made’ data could easily be done online to prevent misuse of public money during elections for marketing Govts performance. Digitisation means simplifying the processes with direct access to the user. As they say, Penny saved is Penny earned, so public rallies could be easily addressed through credible Social Media Channels like Facebook Live, You Tube channels and spreading links through Ministry’s websites or apps created as these days, majority of people (at least one in a family) is having access to the smart phones. There may be an argument that there are many villages that don’t have access to Digital Networks. Then, this must be put on the priority list of the Government to handle it, so that every Indian is well connected to give and receive feedbacks to make India a truly empowered nation.
Further, why don’t we ask PMO and State Governments to create investment friendly atmosphere that is so vital for getting private investments to create Integrated Industrial Parks for 100% Export Oriented Units. This could easily be achieved by offering 100% tax exemptions for 10 years for all foreign entities that could bring Non Repatriable FDI and/or technology transfers. The areas should be the border States of Punjab, J&K, Rajasthan, Gujarat, West Bengal and the industries that needs to be pushed for are:
- Food Processing, Dairy Farming, Animal husbandry
- Renewable Energy- Advanced Biofuels, Bio Jet Fuel, Solar power etc.
- New Sustainability driven Agriculture
- Waste to Energy plants on latest technology
- Smart Mobility – Cable car systems, Electric and Biofuel operated Transport.
- Innovation –Proactive Health care, Fuel Cells, Energy storage, CO2 power plants.
- Robotics -Robotic mounted guns, Smart anti pallet Drones, Bomb disposal units etc.
- Laboratory materials for schools
- General small to medium scale units -Readymade Garments, Books and Stationary, Bicycles, Watches, Footwear etc.
- Skill training centres
Incentivising investors with suitable ecosystem will encourage them to not only establish manufacturing bases in India under Make In India initiative, will also prompt them to do technology transfers if Tax Exemptions are provided for 10 years from the start of the businesses. Trust me, low rupee vs USD could become a blessing in disguise and it will start strengthening India’s prospects economically, socially and sustainably.
Insurance sector investors can be incentivised or prompted or attracted to come up with 100% Health Insurance Coverto the value of 15 times of the Taxes Paid by Tax Payers and their families, vide new Health Security scheme. This will encourage more and more people to happily pay taxes instead of looking for risky alternatives of saving taxes. After all, these risky savings are generally to provide extra cushioning for the family and personal welfares.
An appeal to Hon’ble Prime Minister –kindly instructs, advise and ask the Ministers or Public servants or Stake holders in related ministries like Ministries of Finance, Planning and Renewable Energy, to present investment friendly protection plans first, prepare Information Memorandums and then do the road shows to attract FDI, Private Investments etc. Fundamentals of investment banking are for them to secure their investments by formulating suitable procedures and Government needs to support and act as a facilitating agency within the laws of the land.
Any Government in office must ensure that the Minsters, Economists & Policy makers holding all the key positions, must deliver desired results and are held accountable, liable and responsible. After all, Govt. is chosen by the people and has to work for the people. For this to really happen, we the people need to enlighten ourselves with our rights to know the progress of our country and push these Govt. stake holders hard for on time DELIVERANCE, ACCOUNTABILITY, RESULTS and TRANSPARECY (DART).
Initialising through our own small group -youtube channels and social media, we can help bring this enlightenment to transform India into a Fully Empowered Nation. Let’s urge the Government to try for a Progressive & Positive Change, where DART is unilaterally applicable for Citizens as well as Public Servants.