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

Sunday, 4 September 2016

A Booster Shot ?


Business Line ( 05 Sept 2016 ) carries a news report titled :

Start ups may get a Booster Shot of fresh incentives "


It says :

" An inter-ministerial committee headed by DIPP Secretary , Ramesh Abhishek , and comprising senior officials from the NITI Aayog and from Ministries and Departments such as Finance, Labour , Environment , HRD and MSME , will meet within a fortnight to discuss a possible new stimulus for Start ups


The official said ,

We will to push for some more tax incentives in addition to the three year tax holiday, lower compliance requirements especially in labour and taxation and a relaxation in listing norms


The line Ministries will take forward what the inter-ministerial committee feels is feasible so that the new rules can be worked out . We are examining the tax policies of countries such as Argentina , Australia , Chile , Finland and Israel "



Considering that nearly ONE YEAR after the launch of the Start Up initiative , so far only 3 Start Ups have managed to qualify for the tax holiday , this is very good news


But trying to compare what other countries have done to boost their Start Ups , has only , a very limited learning !


We have,

#    A history of 60 years of total neglect of the Start Ups , under a license / permit raj


#    12 million young people joining our work force each year ( with only 10 % finding jobs )


#    3.5 million graduating from colleges , each year ( of which , only 20% are found " Employable " by industry )



I once more request the Committee - and the concerned Ministries - to find a " Productive Vent " for the enormous / volatile energy , trapped inside this " Volcano of Unemployed Youth  "


My own suggestions are contained in my following blogs ( sent earlier as email concerned Policy Makers ) :

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

Saturday, 16 January 2016

TEN  MILLION  START- UPS  IN  ONE  YEAR  ?


Thank you , Narendrabhai , for the Start Up Action Plan announced last evening


I am glad that some of my suggestions ( sent to Ministers / Secretaries ) over the past 2 years , have been incorporated in the ACTION PLAN , in respect of :


*    Self Certification

*    Simplified Registration thru Mobile App

*    Tax Exemption for Capital Gains

*    Entrepreneurship Program for 10 lakh students 

*    No Corporate Income Tax for 3 years


   
 You will find my detailed suggestions covering these points in following blogs at :
 www.hemenparekh.in :







            (  http://myblogepage.blogspot.in/2015/09/from-job-seekers-to-job-creators.html ) 




           (  http://myblogepage.blogspot.in/2015/09/back-factory-of-world.html  ) 




           (   http://myblogepage.blogspot.in/2015/12/blue-print-for-start-up-nation.html  ) 





           (   http://myblogepage.blogspot.in/2015/12/creating-jobs-vs-creating-self-employed.html  ) 





          (   http://myblogepage.blogspot.in/2015/12/get-out-of-way.html  ) 





          (   http://myblogepage.blogspot.in/2015/10/ten-million-entrepreneurs.html  ) 





          (   http://myblogepage.blogspot.in/2015/10/start-up-eco-systems-usa-vs-india.html  )






          (   http://myblogepage.blogspot.in/2015/09/treading-beaten-path.html  ) 





         (   http://myblogepage.blogspot.in/2015/09/second-industrial-revolution.html  )






         (   http://myblogepage.blogspot.in/2015/09/from-single-window-to-single-day.html  ) 





         (   http://myblogepage.blogspot.in/2015/09/myth-of-job-creation.html  ) 





         (   http://myblogepage.blogspot.in/2015/09/killing-many-birds-with-one-stone.html  ) 





         (   http://myblogepage.blogspot.in/2015/07/if-mohamed-cannot-go-to-mountain.html  ) 





         (   http://myblogepage.blogspot.in/2015/12/ditch-historical-baggage.html  ) 





         (   http://myblogepage.blogspot.in/2015/02/create-self-employment.html  ) 



Very likely , your initiative may see the birth of ten thousand new start-ups in 2016-17, which , together , might generate one lakh jobs


In itself, this will bring a new dynamism to India's Economy 


But that will still fall far short of 12 Million ( 120 lakh ) youth joining the work-force each year

Can all of these youth become Start Ups ?


It is entirely possible


All you need to do is to implement my following suggestion, described in ,

"  A New Economic Order / Start Up Act - 2015 " /  12 Sept 2015  " :



SUGGESTION

    *  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 , IF  IMPLEMENTED  ?


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

       
    *  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



Dear Shri Narendrabhai :


It is still not late to incorporate my suggestion in forthcoming Union Budget on 29 Feb 2016

This is your opportunity to ,

*   Dream BIG

*   Enable millions to dream big

*   Unleash the Entrepreneurial Genome of India's Youth

*   Make 21st Century , an Indian Century 

*   notwithstanding the opposition in Rajya Sabha


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

05  Sept  2016

www.hemenparekh.in / blogs


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