Tuesday, 8 September 2015

KILLING MANY BIRDS WITH ONE STONE ?


KILLING   MANY    BIRDS   WITH   ONE   STONE  ?

Shri Amitabh Kant
Secretary - DIPP
Ministry of Commerce
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Dear Sir :
Just read that the task of " Start Up : Stand Up " initiative announced by Shri Narendra Modi in his Independence Day speech , has been entrusted to DIPP
The question that you must be debating in your mind could be :
 How can we ensure that millions of new Start Ups are born and nurtured ?
During your talk at Jai Hind College ( Mumbai ) on 05 Sept 2015 , you held out one approach , viz :
No need for making any application to any Government Agency for grant of any permission / approval , to set up a Start Up
Apparently , you are trying to distinguish Start Ups as a new ,
 " Category of Businesses "
A category  quite distinct from MSME
Such " Out of Box " thinking has many advantages
It will enable us to treat Start Ups as " Business Class " governed by totally different set of rules / regulations / laws
One revolutionary way to treat them separately , should be :

No Income Tax of any kind for the first 10 years of operation as a Start Up !

 Conditions :
*  A Start Up must register on Income Tax Dept web site , as a " Start Up "
*  Must file each year,  START UP ZERO TAX RETURN, quoting Start Up No

If implemented , this one " Innovation " will set in motion , the following :

>    Billions of Rupees will flow into setting up of Start Ups
>    Black Money will flow into the main stream of national economy
>    All business transactions ( receipts / payments ) will become official
>    Millions of new bank accounts will get opened / active
>    Collection of GST will sky-rocket
>    Millions of new jobs will get created by these tax-free Start Ups
>    Thousands of tiny factories / workshops will crop up everywhere
>    Share of Manufacturing in GDP will cross 25 %
>    Capital Goods Industry ( Mother of all industries ) will go double-digit
>    Exports will rise and current adverse Trade Balance will decline
>    3 million youths, graduating each year ,will set up Start Ups from homes
>    Decreased agitation re " Quotas / Reservations "
>    Many unforeseen advantages

Of course , eminent economists ( and sundry naysayers ) will say :
Unworkable / Impractical / Horrible / Disastrous / Dangerous , idea !

I would be happy , if anyone has a better idea that will create 10 million Self Employed , every year

On other hand , an Online Survey among millions of ordinary citizens will settle whether this idea will work or not ( most popular Opinion Poll ever )

If conducted thru a Mobile App , 200 million Smart phone owners will respond to such a survey in 10 days !
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hemen  parekh
08  Sept  2015
    


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