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

Thursday, 13 November 2014

FW: RE: HOW CHINESE MAKE CHEAP ?


From: amitabh.kant@nic.in [mailto:amitabh.kant@nic.in]
Sent: Thursday, November 13, 2014 11:29 AM
To: Hemen Parekh
Subject: Re: RE: HOW CHINESE MAKE CHEAP ?

Dear Hemen Parekh,
I greatly appreciate your inputs! Extremely refreshing! We need radical change  agents like you.
All the best!
Regards,
Amitabh Kant

----- Original Message -----
From: Hemen Parekh <hcp@recruitguru.com>
Date: Wednesday, November 12, 2014 11:26 am
Subject: RE: HOW CHINESE MAKE CHEAP ?
To: amitabh.kant@nic.in

> Dear  Shri  Kant ,
>  
>  
> Many thanks for your kind words
>  
> Yesterday , I have couriered to you , a folder titled " Transforming India " .  It should reach you today
>  
> That folder carries my suggestions ( my past blogs ) , as listed in attachment
>  
> With so much talk / action about DIGITAL INDIA , you may want to forward my suggested Mobile Apps ( listed in the folder , as * VotesApp /  * I SIN > < U SIN ) , to the concerned officers , for examination , and  implementation , if considered feasible
>  
> In the meantime , I hope you find some time to read my today's blog , reproduced below
>  
> with regards ,
>  
> hemen  parekh
> Mumbai ( 0-98,67,55,08,08 )
>  
> -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
>  
>  
> A   CASE   FOR   ZERO   PERSONAL   INCOME   TAX
>  
> --------------------------------------------------------------
>  
> For past two years , I have been advocating total abolition of Personal Income Tax
>
> Not because , a few countries such as Saudi Arabia , UAE , Qatar , Oman , Kuwait , Bahrain etc , have NIL personal income tax
>
> But , even for a less developed country like ours , it makes a lot of sense
>
> Here is why :
>
> * Today's Hindustan Times reports following study by Price Water-house Coopers ( PWC ) :
>
> " Average take-home salary as a % age of total salary " - are :
>
> >   Saudi Arabia................ 98.86
>
> >   China.......................    62.05
>
> >   Germany...................   60.61
>
> >   USA..........................   60.45
>
> >   UK...........................    57.28
>
> >   India.........................   54.90
>
> >   Italy.........................    50.59
>
>
> *   It is obvious that Saudi Arabian citizens take home more because there is NO      personal Income Tax there
>
> *   In India , our " Take home Salary " is only 54.90 % , because we pay a very
>      high personal income tax
>
> *   Of the total revenue receipt of Central Government ( 2013-14 est ) ,Personal      Income Tax contributes only 23 % ( approx Rs 12.4 lakh crore )
>
> *   If personal income tax were to be abolished , this revenue will be lost
>
> But , here is the Upside :
>
> *   India's current Household Saving Rate = 30.1 % of GDP
>
> *   That means our total Household Savings = Rs 24.72 lakh crore
>
> *   Of these , 
>
>      >  Rs 16 lakh crore are tied up in unproductive Physical Assets (Gold/Land)
>
>      >  Rs   8 lakh crore are invested in Financial Assets (Bank / Mutual Funds)
>
> *   If Personal Income tax is abolished , it is possible that our Household 
>      Savings Rate may go up from 30.1 % to 45% of GDP (it was 40% in past)
>
> *   That would add Rs 12.36 lakh crores , raising total to Rs 37 lakh crore !
>
> *   And most likely , the proportion of investments would be ,
>  
>     >   Rs 7    lakh crore in Physical Assets , and
>
>     >   Rs 30  lakh crore in Financial Assets ( Productive use )
>
> And that's not all  !
>
> *  With NIL personal tax to pay , all the cash ( black money , no doubt ! ) ,
>     lying in bank lockers , will get deposited in official bank accounts , within
>     one year
>
> Now , couple this BOLD & IMAGINATIVE step with :
>
> *  Creation of  SPVs , dedicated for building Infrastructure . No questions asked
>
>    for amounts invested in these SPVs . No dividend tax for 10 years 
>
> If implemented , there will be no reason for us to go begging China / Japan / USA for investments in Infrastructure / Manufacturing etc !
>
>
> *   hemen  parekh  /  12  Nov  2014
>  
>  
>  
> From: amitabh.kant@nic.in [mailto:amitabh.kant@nic.in]
> Sent: Tuesday, November 11, 2014 5:55 PM
> To: Hemen Parekh
> Subject: Re: HOW CHINESE MAKE CHEAP ?
>  
> Dear Hemen Parekh,
> Excellent Piece! Congratulations!
> Warm Regards,
> Amitabh Kant
>
> ----- Original Message -----
> From: Hemen Parekh <hcp@recruitguru.com>
> Date: Sunday, November 9, 2014 8:51 am
> Subject: HOW CHINESE MAKE CHEAP ?
> To: nsitharaman@nic.in
> Cc: amitabh.kant@nic.in, singh.shailen@nic.in
>  
> > Dear Team India :
>  
> Here is my latest blog :
> ---------------------------------------------------------------------
>  
> A few days back , I heard , Government of India banned imports of cheap Chinese fire-crackers ; presumably to protect the jobs of thousands of workers , working in the fire-cracker factories of Shivkashi and elsewhere
>
> > This morning newspapers carry headlines :
>
> > " Lakhs of poor women working in Agarbatti factories thrown out of jobs , due to imports of cheap Chinese Agarbatties "
>
> > Soon expect a ban on imports of Chinese Agarbatties  !
>
> > It is the same story with big manufacturers of ,
>
> > >   Power Generation equipment
>
> > >   Solar panels
>
> > >   Machine Tools
>
> > >   Construction Materials........etc
>
> > Indian manufacturers of these equipment want India Government either to ban imports of such equipment altogether or impose huge import duties to discourage its imports
>
> > They are telling Government :
>
> > " If you don't , thousands of workers will lose jobs "
>
> > In turn , the Indian Government is telling the Chinese :
>
> > "  We already have a negative trade balance with you , of about $ 35 BILLION.
>    You must help us correct it by buying from us MORE ( of those expensive goods that we manufacture ) ,
>
> > and,
>
> > Stop exporting to us all of those CHEAP Chinese goods "
>
> > Question is :
>
> > How many Chinese goods can we stop importing ?
>
> > No one seems to be asking :
>
> > "  What enables the Chinese Manufacturers to make those goods so cheap ? "
>
> > May be - just may be - India Government , and those Indian manufacturers , need to find answers to this question  !
>
> > May be , we need to IMPORT those Chinese Labor Policies /  Government Procedures / Manufacturing Practices / Bank Interests /  Tax rates  / Land Usage laws / Single Window clearances and a hundred other things that have enabled China to become , the " Workshop of the World "  !
>
> > That is the only way to save - and create - JOBS , in India
>
> > ---------------------------------------------------------------
>
> > hemen  parekh  /  09  Nov  2014
>  
>  
>
>
> Amitabh Kant
> Secretary to Govt. of India
> Ministry of Commerce and Industry,
> Department of Industrial Policy and Promotion,
> 157, Udyog Bhawan,
> New Delhi-110 107
> Tel: 23061667 / 23061815
> Fax: 23061598
> email: amitabh.kant@nic.in


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