How to Boost Economy

 

Dear Shri Jaitleyji :

Over the past few weeks , media ( offline and online ) is full of reports on the slowing down of the economy ( GDP dropping to 5.7 % )

Over the last two days , you have held several meetings with your colleagues ( Ministers / Secretaries / Economic Advisors )

Then yesterday, in a press conference, you said :

“ We have noted all economic indicators and decided on a slew of measures to boost the economy , which will be announced after consulting the PM “

Here are my suggestions :

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TAXATION :

Newspapers say that you are NOT in favour of giving relaxations in taxes ( Individual and / or , Corporate ? ) , to stimulate the economy

Despite your well-known views on the matter of taxation , I urge you to , consider my following suggestions :

CreateWealth to Create Jobs   [  26 Feb 2014  ]

 

https://myblogepage.blogspot.com/2014/02/create-wealth-to-create-jobs.html

Structural  Reforms  [  30  Jan  2016  ]

https://myblogepage.blogspot.com/2016/01/structural-reforms.html 

But , if you are not in a position to raise taxes ( for Infra spending by the government ) or reduce taxes ( to stimulate Consumer spending ) , then the only way out is :

Howto raise $ 500 Billion  [  17  Sept  2017  ]

https://myblogepage.blogspot.com/2017/09/how-to-raise-500-billion.html 

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FUNDS  FOR  INFRASTRUCTURE :

In another blog, I estimated that we need Rs 430 lakh*crore  for funding our Infrastructure projects , and said :

“  Union Government must NOT even try to fund these projects  !

There is  NO WAY , it can find these kind of money through taxation  !

There will be a revolt  !  “

 Don’t Ask ,How ?  [  07 April 2014  ]

https://myblogepage.blogspot.com2014/04/dont-ask-how.html 

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EXPORTS :

As per recent notification of the World Trade Organization ( WTO ) , India can no longer offer Export Subsidies , as our per capita Gross National Income ( GNI ) , has crossed $ 1,000 for the third year in a row

This will require withdrawal of MEIS ( Merchandise Export from India Scheme ) , which provides a direct subsidy to exporters based on the value of exports

This scheme cover 7,000 items and costs the exchequer around Rs 23,500 crore a year

I suggest following :

#  Allow MSME Exporters to engage TRAINEES ( under the Apprentice Act ) , up to 25 %

    of their current employee-strength

   

#  Increase training duration to 4 years , without obligation for “ absorbing “

#  Let the central government subsidize 75 % of the monthly stipend paid to trainees

    ( indirectly subsidizing the exporters from that Rs 23,500 crore saved – without

      violating our WTO obligations )

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HOW  TO  MAKE  INDIA , “ LOW  COST  ECONOMY “  ? :

Our ultimate survival ( in a “ Dog Eat Dog World “ ) , will solely depend upon making our Economy , a “ Low Cost Economy “ , vis-à-vis rest of the World

There is only ONE WAY to achieve this , as described below :

Howto break the Vicious Circle ?  [  03  July  2016  ]

https://myblogepage.blogspot.com/2016/07/how-to-break-vicious-circle.html

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Dear Shri Jaitleyji :

My only request is that even as you are consulting the Experts ( on how to boost the Economy ) , please also ask a few ORDINARY CITIZENS for their views !

21  Sept  2017

www.hemenparekh.in / blogs