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

Sunday, 13 September 2015

A NEW ECONOMIC ORDER ?


A    NEW    ECONOMIC    ORDER   ?

You may also call it , " Start Up Act - 2015 "

#   Objectives of the Act

     Every  year , to create 5 million Start Ups , each employing 2 persons , for a total of 10 million new jobs per year

#    Methodology

     *  Instead of Companies Act - 1956 , these Start Ups will be governed by the Start Up Act - 2015
       *  A Start Up can be launched by any Indian citizen under the age of 30 ( covering roughly 65 % of our population )
       *  A Start Up will need to register online on the web site of the Income Tax Department and obtain a unique " Start Up Number "
      *  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  ?

   *  Billions of rupees worth Black Money will flow into these Start Ups - money which is currently lying unutilized or locked up in unproductive assets
    *  If Jan Dhan Yojana could create 200 million bank accounts in 20 months , Start Up Act - 2015 , will create 200 million Start Ups in next 10 months !
        All that led to this World record was , someone suggesting the unthinkable :
" Let us enable poor people to open bank accounts with ZERO bank balance "
" Start Up Act- 2015 ", will unleash a similar " Start Up Tsunami "  !
    *  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

#   Why  the  need  for  Start Up Act  ?

It is simple
In the past 300 years , we have had different systems of Economic Development , viz:
Communist  /  Socialist  /  Capitalist
There were periods when each worked well - depending upon the geography and the technological environment prevailing during those periods
Today, Internet and mobile apps are pushing the World towards an E - Commerce economy , which covers entire World seamlessly
Tomorrow , Internet of Things ( IoT ) , will tell us what we need to do and when ! Our lives will be dictated by devices !
That will demand a brand NEW SYSTEM of economic development which transcends national boundaries
Old rules / regulations / laws will not help us find jobs for 12 million youths entering India's work force each year
An ocean-going " Ship " , cannot traverse galactic distances of Space
Following in the footsteps of Albert Einstein / Stephen Hawking , we need to
"  Bend the Space "
And travel through the Worm-holes !
Using the hologram of the " Start Up Act - 2015 " , we must project our economy into :
"  Distributist Economy ",
which goes beyond the " Communist / Socialist / Capitalist " economies !
That is the ONLY WAY to create a ,
"  New  Economic  Order  / The Start Up Economic Order "
Last - but not the least :
No politician will oppose the unanimous passing of the " Start Up Act - 2015 " , in Lok Sabha or Rajya Sabha
You know why !

-------------------------------------------------------------------------------------
hemen  parekh
13  Sept  2015
(M) 0 - 98,67,55,08,08


 



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