Yesterday ( 01 Dec ) , following
news reports appeared :
Business
Line
“ By 2030, India may offer
green investment potential of $ 3 trillion, says IFC report “
Highlights of the funds required :
·
Housing Sector………………………………..
$ 1400
Billion
·
Electric Vehicle………………………………
$ 667
Billion ( between 2018-2030 )
·
Renewable Energy…………………………
$ 448 Billion
·
Transport Infrastructure…………………..$ 250
Billion
·
Agriculture……………………………………….$ 198
Billion
·
Urban Water Supply………………………
$ 128 Billion
------------------------------------------------------------------------------------------------------------------------------
·
TOTAL………………………………………………$ 3091 (
in 12 years = $
250 Billion per year )
DNA
“ India needs Rs 50
lakh*crore investment in next five years “
While delivering 5th Annual Defence Estates Day
lecture , FM Shri Arun
Jaitleyji said :
“ Inadequate infrastructure is a major hindrance in growth and the
funding requirement for infrastructure in the country is huge
There is a requirement of a
whooping Rs 50 Lakh*Crore investment in the sector
over the next five years “ ( approx. $ 750
Billion in 5 years = $ 150 Billion per year )
I believe , if anything , these figures are gross under-estimates ,
even if we have a modest ambition to become a “ Middle Income Economy “ by 2030 !
But the question is not so much about the accuracy of these
estimates
The
question is :
From where are we going to find
these monies ?
No amount of increasing the
coverage of our tax-base
, will suffice
And government is committed to lowering the tax rates ( for both , individuals and
corporate )
Then there is a limit beyond which we must not increase Foreign Investment (
Direct or Indirect )
And whatever Foreign Investment does flow in, has compulsion of
earning a 10 % return
! ( - there is no way we could get foreign loans @ 0.1 % interest , for more than 1 % of our funds
requirement ! )
There is only ONE WAY to raise all
these funds
And that is :
BLACK MONEY AMNESTY scheme like the
one which Indonesia
introduced (July 2016-Mar 2017 ) and raised $ 342
BILLION {
One third of its GDP } , from
745,000 tax payers , by levying 2 % - 4 % tax ( as
against 50 % in our case ) / NO PENALTY /
NO QUESTIONS asked /
NO SCRUTINY !
The Scheme yielded $ 2.3 Billion
by way of tax
Now consider the following :
·
India’s BLACK MONEY is
estimated to be $ 460 Billion ( apx. 20 % of our GDP )
Our own recent Amnesty Scheme yielded approx.
$ 10 Billion ( 2 % of GDP )
Indonesia managed $ 342 Billion which amounted to nearly ONE THIRD of its GDP
If
we too could bring out Black Money @ 33 % of our GDP , that would amount to
nearly $ 800 Billion !
·
Indonesia’s BLACK MONEY is
estimated to be $ 851 Billion ( parked overseas ) – which means
, Indonesia managed to garner nearly 40 % of hidden Black Money !
·
The Indonesian
government has estimated 5,500tn rupiah ( = $ 407 Trillion ) will be needed through 2019 for infrastructure; the state
budget can probably cover a quarter of that.
·
At the end of the third quarter of 2017, Bank
Indonesia (BI), the country’s central bank, announced an interest rate cut down to
4.50 per cent from
previous 4.75 per cent.
References :
Did I hear someone say
: “
It is time to look east-wards “ ?
02 Dec
2017
www.hemenparekh.in / blogs
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