Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday 14 September 2015

AN EXAM WITH A DIFFERENCE !




World Bank / KPMG report ( Ease of Doing Business ) for India's States, which got released on 14 Sept 2015 , was an

Exam with a difference

An exam where the exam-paper was leaked in advance !

In fact , exam paper was set by the States being examined !

Now , you may wonder why,

*  Tamil Nadu ( rank # 12 ) signed MOUs worth investments of
    Rs 2.4 lakh*crores at recently concluded Global Investment
    Summit - 2015

whereas ,

*  Uttar Pradesh ( rank # 10 ) , could get investment
    commitments worth only Rs 33,000 Crores during visit of
    Shri Akhilesh Yadav to Mumbai recently

To unravel that mystery , you would need to know , how many marks UP and Tamil Nadu got , in each of the 98 questions !

But you would never know , if the Industrialists who signed those MOUs , had some other secret questions , beyond those 98  !

I believe , for the next round , DIPP is planning to raise the number of questions ( ranking parameters ) to 300 !

For this next exercise , I have following suggestion :

*  Let InvestIndia web site ( owned by DIPP / FICCI / 28 States ), host an Online Questionnaire Survey on those 300 parameters

*  Each " Ranking Parameter " to have a 5 point scale of rating

*  Each parameter to carry a pre-assigned " Weightage " , clearly visible against each parameter

*  Online rating to be carried out by Corporate Members of recognized Industry Associations ( FICCI / ASSOCHAM / CII etc ) and Member Firms of various Chambers of Commerce

*  Online Rating to remain open for just ONE WEEK , - the first week of each quarter

*  As soon as rating exercise gets over , algorithm-based and automatically computed " Analytics " ( Eg : Raw Scores / Percentile Scores  / Co-efficient of Correlations / Frequency Distribution Curves / Standard Deviations / Regressions / Position Improvements etc ) , to become immediately visible to everyone

*  The results should also be displayed on MakeinIndia web site


I believe this will make this exercise much more authentic / cheap / fast / unbiased / reliable and certainly less "controversial " as far as the States getting low ranks are concerned

Corporate and various political parties , will certainly have more faith in the " Impartiality " of such an Online Survey

And above everything else , it will motivate the States to keep improving on a continuous basis , thereby ushering , what Shri Narendra Modi likes to call ,

FEDERAL  COMPETITIVENESS

------------------------------------------------------------------

hemen  parekh
15  Sept  2015
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Sunday 13 September 2015

MYTH OF JOB CREATION ?


Or , if you like , call it :

Truth of Job Creation  !


In its poll manifesto ( 25 March 2014 ) , Congress party promised to create 100 million new jobs in 5 years ( ie: 20 million / year )
If elected to power , of course !


This , despite having created only 1.3 million jobs between 2004-2009 ( from 457.8 million to 459.1 million / NSSO report )

But the leaders who drafted BJP manifesto were much more practical / pragmatic


In its Manifesto , BJP said :

" Encourage and empower our youth for Self Employment - incubating entrepreneurship as well as facilitating credit "


Why did it say so ?


Take a look at the following news ( DNA / 11 Sept 2015 ) :

Against 368 vacancies of " Peons " advertized by UP Govt , applications received were as follows :


*  Total Number of applicants.............. 20 lakh
    {  5,435 applicants for each post  ! }

*  No of PhDs....................................  201

*  No of Master Degree holders............ 20,056

*  No of Bachelor Degree holders.......... 1,23,000

*  No of 12th Standard pass................. 6,00.000

*  No of 10th Standard pass................. 8,20,000

   { Minimum prescribed Edu Qualification }


I suppose these are those 20 lakh unemployed youth who registered on the UP Employment Exchanges , within the first 7 months of Shri Akhilesh Yadav forming the SP government !


Of course , those not getting appointed as Peons , will continue to receive every month , Rs 1,000 , by way of Unemployment Allowance , earlier announced by SP Govt


Now , if " Providing Jobs / Employment " , is a " State Subject " , then SP Govt in UP , may want to stop this dole-out , and replace it with the " Start Up Act - 2015 " described in detail on :

hemenparekh....in


It is time to dispel the Myth that either Industry or Government can ever succeed in creating 12 million new jobs each year !


-------------------------------------------------------------------------

hemen  parekh

14  Sept  2015

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Saturday 12 September 2015

A NEW ECONOMIC ORDER ? aka " Start Up Act - 2015 "



You may also call it , " Start Up Act - 2015 "


#   Objectives of the Act

     Every  year , to create 5 million Start Ups , each employing 2 persons , for a total of 10 million new jobs per year


#    Methodology

     *  Instead of Companies Act - 1956 , these Start Ups will be governed by the Start Up Act - 2015

       *  A Start Up can be launched by any Indian citizen under the age of 30 ( covering roughly 65 % of our population )

       *  A Start Up will need to register online on the web site of the Income Tax Department and obtain a unique " Start Up Number "

      *  Although all Start Ups will need to file annual Income Tax returns ( with full disclosure of income / expenses / profits / sources of funds etc ) , it will not be required to pay any Corporate Income Tax for the first 10 years of its existence

     *  A Start Up will be free to raise  funds from any source ( Individuals / Companies / PE funds / VCs / Angel Investors / Religious Trusts etc )

     *  100 % FDI will be permitted in Start Ups

     *  A Start Up can receive loans or equity and be able to accept fixed deposits . It can also give loans to individuals or other Start Ups or invest in other Start Ups by way of equity

    *  There will be no restrictions on what interest ( on loans / FDs ) that a Start Up may pay nor any restrictions on dividends it may declare

        The dividends declared by Start Ups will not attract any Income Tax

    *  As far as the persons / companies etc providing funds to Start Ups ( by way of loans or equity ) is concerned , no questions will be asked re their source of funds



#   What  will  happen  ?

   *  Billions of rupees worth Black Money will flow into these Start Ups - money which is currently lying unutilized or locked up in unproductive assets

    *  If Jan Dhan Yojana could create 200 million bank accounts in 20 months , Start Up Act - 2015 , will create 200 million Start Ups in next 10 months !

        All that led to this World record was , someone suggesting the unthinkable :

" Let us enable poor people to open bank accounts with ZERO bank balance "

" Start Up Act- 2015 ", will unleash a similar " Start Up Tsunami "  !

    *  Within 3 months , thousands of Venture Capital Funds will be born , exclusively for funding of Start Ups ( You know who will set up these VCs ! )

    *  With NO Income Tax to be paid , Start Ups will conduct all transactions through cheques ( receipts / payments )

    *  GST  collections will go up

    *  Domestic Savings Rate will go up

    *  Since millions of ( Black Money holding ) individuals / businesses will come forward to fund these Start Ups , lending pressure on banks will go down

    *  Who knows , Start Ups may get into the business of Assets Reconstruction and relieve banks of NPAs !

    *  With locally / domestically stashed Black Money flowing into the economy , our dependence on FDI will go down

    *  Corruption will decline drastically



#   Why  the  need  for  Start Up Act  ?

It is simple

In the past 300 years , we have had different systems of Economic Development , viz:

Communist  /  Socialist  /  Capitalist

There were periods when each worked well - depending upon the geography and the technological environment prevailing during those periods

Today, Internet and mobile apps are pushing the World towards an E - Commerce economy , which covers entire World seamlessly

Tomorrow , Internet of Things ( IoT ) , will tell us what we need to do and when ! Our lives will be dictated by devices !

That will demand a brand NEW SYSTEM of economic development which transcends national boundaries

Old rules / regulations / laws will not help us find jobs for 12 million youths entering India's work force each year

An ocean-going " Ship " , cannot traverse galactic distances of Space

Following in the footsteps of Albert Einstein / Stephen Hawking , we need to

"  Bend the Space "

And travel through the Worm-holes !

Using the hologram of the " Start Up Act - 2015 " , we must project our economy into :

"  Distributist Economy ",

which goes beyond the " Communist / Socialist / Capitalist " economies !

That is the ONLY WAY to create a ,

"  New  Economic  Order  / The Start Up Economic Order "

Last - but not the least :

No politician will oppose the unanimous passing of the " Start Up Act - 2015 " , in Lok Sabha or Rajya Sabha

You know why !

-------------------------------------------------------------------------------------

hemen  parekh

13  Sept  2015

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Prakash / Piyush / Nitin ko Kyun Gussa aata hai ?


Because they keep looking at the following figures re CHINA and feel very frustrated !

CHINA ,

*  Consumes approx 50 % of entire World's consumption of Steel and
    Cement , every year

*  Has built one brand new city every 20 days , during last 20 years
  
*  Plans to build one brand new city every 18 days for next 20 years

*  Plans to move 350 million rural people to these cities in the next 15
   years
   ( some 2 million people every month ! )

*  Is building 3 * 1000 MW coal-based power stations , every month

*  Added 13 GW of Solar Power plants in 2014. Will take total installed
    capacity to 100 GW by 2018

*  Against India's GDP at $ 1.88 Trillion , China's GDP is $ 9.24 Trillion

*  Even if we manage to raise our GDP to 10 % per year , and even if
   China's  GDP were to decline to 7 % , it will take us a few decades to
   catch up with China

Of course , Prakash / Piyush / Nitin firmly believe :

*  Being able to  vote  freely and elect MP of your choice is  GOOD

*  Being able to form democratically  elected  Govt is  BETTER

*  Being able to  debate  issues in Lok Sabha is  BEST

But ,

*  Being able to save 1.6 million children ( under the age of 5 ) , dying
   from starvation every year ( 4,383 / day ) , is  DIVINE
   

Mahatma Gandhi once said :

" In the hands of starving , God appears in the form of bread "


Citizens of India are saying :


Our Beloved Netas ,


This coming Oct 2 , please save us from the spectacle of laying flowers on Bapu's samadhi !

Please shed your crocodile tears in the privacy of your homes !


-------------------------------------------------------------------------------------

hemen  parekh

12  Sept  2015


B2BmessageBlaster

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Addendum on  30  Sept  2019 :

----------------------------------


After struggling for 3 years, Niti Aayog has developed a fairly elaborate framework for rating / ranking of various States on their " Ease of doing Business "


In the meantime, China has gone far far ahead and developed / installed " digital data compilation " of its 33 million Corporate and 1.4 Billion citizen 


On dozens of parameters , corporate and citizen are being rated / ranked and offered benefits / incentives if ranked " Good " and punished / deprived of benefits, if ranked " Bad "  !

To know the details of this " State Surveillance " system,  read :

  

Wednesday 9 September 2015

" BACK FACTORY " OF THE WORLD ?



China is known as the " Factory " of the World

India is known as the  " Back Office " of the World

Can India become the " Back Factory " of the World ?

Wrong question !

Right question is : WHEN can we become the " Back Factory " of the World ?

Answer is " hiding in plain sight " !

This week , an astronaut , sitting in a satellite 400 km above the earth and hurtling through space at 16,000 km per hour , operated a robot on the earth

Earlier , scientists sitting in NASA space centre or  in Shri Harikota space centre , have operated Mars Rovers / MOM ( Mars Orbital Mission ) remotely

From a distance of millions of miles

And soon , astronauts  will be sending emails to earthlings from millions of miles away , using " Space Internet " on their Mobile phones

Invariably , each such team of scientists , comprised Indians !

So , WHEN can our scientists - and software Start Ups - enable Indian workers , sitting in Hyderabad / Chennai etc , to operate / manipulate , machinery in factories of Europe / America / China ?

I believe this can become a reality by 2020 , if Central Government and State Governments , just get out of the way of our scientists / Start Ups and leave them alone !

Then tell them :

" You are our next generation of Freedom Fighters . Free our millions from
poverty / starvation / jobless depression / ignominy / suicides

Like war - ravaged people of North Africa , Indians cannot invade Europe / Australia / Canada , in search of jobs / better life

We depend upon you to bring the jobs to India - jobs such as ,

  *   Operating Machinery in Factories abroad

  *   Controlling Air Traffic at Airports around the World

  *   Operating upon patients in Hospitals , all over

  *   Teaching students in Schools , in remote Africa

  *   Any job that currently requires immediate presence of a worker


And , if you set up a " Back Factory " , you don't need to pay Corporate Income Tax for next 10 years !


Simply register on web site of Income Tax Department as a " Back Factory " owner and file annual " Zero Corporate Tax Return "


When this happens ,


>  Millions of skilled Indian workers will operate factories around the World ,
    sitting in , internet connected " Back Factories " in small Indian towns

>  Foxcon will not need to replace its high-wage Chinese workers with one
    million robots ( as officially announced sometime back )

    At half the wages of those Chinese workers , Indians will operate Foxcon
    factories , all over the World , remotely !

>  " Contract Labour Act " will need to be replaced with " Back Factory " Act

>  " Minimum Wages Act " will need to be scrapped !

>   India will not need to fight with WTO on " Manpower / Service Exports "

>   " Make in India " will morph into " Make from India "


I hope NDA Ministers and members of NITI Aayog will ask , Narayan Murthy / Sam Pitroda / Azim Premji / Sundar Pichai / Satya Nadela / Ray Kurzweil etc :


"  How soon can this be done ? How can you help ? "


------------------------------------------------------------------------------

hemen  parekh

10  Sept  2015

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Tuesday 8 September 2015

PM Says : Seize the Opportunity !



Talking to Indian industrialists yesterday ( 08  Sept  2015 ) , Shri Narendra Modi said :


"  We should look at the scenario today as an opportunity for India that must be seized "


Here is what he left unsaid :


"  In order to seize this opportunity , Companies from all over the World are rushing in with announcements of their investment plans in India


If you need a proof , just look up,


" Who is investing in India ? "


on....www....B2BmessageBlaster.....com


You will find  800 + announcements from  64 + countries , growing at the rate of 50 new announcements , every day !


Industrialists from all over the World are rushing to India because their own national economies are either stagnant or shrinking , whereas , our GDP is growing at 7.5 % and likely to touch 8 % next year


Carpe Diem !  "


With regards ,

hemen parekh
09 Sept  2015
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