Wednesday, 20 September 2017

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  ]

 





Structural  Reforms  [  30  Jan  2016  ]





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  ]





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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  ]





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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  ]


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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



  




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