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

Saturday, 31 August 2013

Time for " Out of Box " thinking ?

Of late , there has been a lot of debate on TV / Newspapers etc , on ,


>    What has caused current economic crisis

>    What needs to be done

>    Who is to blame


The crisis manifests itself thru ,

>    Falling Stock Index

>    Weakening Rupee

>    Increasing Imports

>    Decreasing Exports

>    Widening  CAD / Fiscal Deficit

>    Sliding Industrial Production

>    Falling GDP

>    Rising Unemployment  ......  etc 


Economists ( experts and otherwise ) are offering all kinds of solutions - often contradictory 

Only thing , they all seem to agree upon is that , current Central Government , is largely to be blamed for the current mess !

I am not an economist and unable to offer " Expert Solution " 

But I do have following simple , non-expert solution :

" Through  " No Questions Asked " , appropriate Amnesty Schemes , enable trillions of Black Money rupees to come out in the open , to fund the Infrastructure projects "

Our Government estimates that we need to pump in , every year , $ 100 Billions , for the next 10 years , into infrastructure development , ie , $ 1,000 billions

Our Commerce Minister , Anand Sharma , estimates that the Indians are hoarding 31,000 tons of Gold ( equivalent of $ 1,400 billions )

Given our current economic climate , I dont expect any foreign individuals / companies / financial institutions etc to come forward to invest such funds into India

What is worse , I expect , once again in 2014 , a " Coalition Government " to rule the Centre - fully paralysed by its Coalition Dharma and incapable of taking tough decisions !

Apart from that $ 1,400 billion worth of gold , it would be safe to assume that another $ 14,000 billion worth of cash Black Money is also lying locked up in Safe Deposit Vaults of Businessmen / Politicians and Government Officers !

Grant them amnesty and a 10 %  ( non - taxable ) return on such Infrastructure investments for a period of 10 years , and we won't need any foreign exchange inflow !

Some will argue :

You will be punishing honest tax-payers and rewarding the cheats !

True 

But , in my opinion , this is the only practical / viable solution , in short term 

And , if incorporated in the Feb 2014 budget , it will get approved unanimously !

If those " Cheats " can help create 100 million jobs in 10 years , forgive them for their dis-honesty !

It is high time we did some " Out - of - the - Box " thinking !

Morality of creating jobs today , far outweighs the immorality of tax-evason in the past !


--  hemen




   

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