Dear
AMN,
Bharati
joins me in wishing you and Geetaben , a very happy Diwali
You
might like my following blog
It
is still never too late for L&T to contribute by launching ( ready for 13
months ) :
with
regards,
hcp
[ 98,67,55,08,08 ]
Foundation of Economy
On 31 Oct , PM Shri Modi
unveiled the Statue of Unity
For 2 days, media ( online
and offline ) were full of reports / articles / analysis of its significance
Newspapers printed millions
of words and TV channels devoted hundreds of view-hours
Statistics were regurgitated
: height / weight / concrete / steel / copper / workers / years / cost etc
Then on 2 Nov , Shri Modi
laid the foundation of a low cost economy, by
announcing a slew of measures to boost ourMSME sector
TV channels mentioned this in
a passing reference of a few minutes
Newspapers barely devoted a
few column-centimeter of real estate
Hardly any expert-panel
debated its significance !
What makes MSME sector,
the foundation of our economy ?
Here is what :
· Country-wide
65 million MSME provide jobs to 120 million persons ( as per Shri Giriraj Singh
– Minister of State for MSME )
· MSME
sector contributes 38 % to our GDP and 45 % to our Exports / Manufacturing
output
I am referring to the announcements
made by Shri Modi with regard to boosting MSME sector
These announcements will help
lower the COSTS of the following INPUTS :
COST of MONEY
· Quick
access to credit at attractive terms ( Rs 1 crore in 59
minutes ! )
· 2
% subsidy on interest ( for MSME registered for GST )
· MSME
exporters to get 5 % interest subsidy ( up from current 3 % )
· Credit
based on trade receivables ( by analyzing GST / Income Tax Returns )
COST of TECHNOLOGY
· Rs
6,000 Cr scheme for technology up-gradation ( 20 hubs / 100 spokes )
COST of COMPLIANCE
· Returns
under certain Labour Laws to be filed once a year ( instead of twice a year )
· Computerized
software to decide inspection of MSME factories
· Inspectors
to file their reports in 48 hours
· Easier
process for Environment Clearances and “ Consent to Establish “
COST of LAND
· 70
% cost of “ Pharma Clusters “ to be borne by the government
COST of SELLING
· Minimum
procurement by PSUs ( from MSME ) raised to 25 % ( from current 20 % )
· 3%
procurement from MSME run by women
COST of MANPOWER
·
A mission will be launched to ensure that MSME
employees have Jan Dhan Accounts, provident fund, and insurance
These measures make for a
GOOD BEGINNING , and I hope that announcements which will further
lower their INPUT COSTS , will be made soon
But, we have a long way to go
to make ours’, a truly LOW COST ECONOMY
I urge the Policy Makers to
look up my following blogs ( earlier sent as emails ) , for
suggestions on how to lower the costs of the following left out INPUTS :
· Land
· Machineries
· Materials
· Manpower
· Energy
· IT
/ Communications
· Transport
/ Logistics
· Training
/ skilling
· Systems
/ Procedures
Level Playing Field ? …………………………………………………………………………………[ 11 June 2016 ]
How to break the vicious circle ? ......................................... …………….[ 03 July 2016 ]
Teach them to fish ………………………………………………………………………
…………… .[ 05 Nov 2016 ]
Automation is Inescapable ……………………………………………………………………………[ 30 Nov 2016 ]
Gist :
Reduce " Cost of
Inflation " by limiting " Annual
Wages-Salaries Increases " to 75 % of
the preceding year's
GDP number ( ie: if GDP for 2015, is
8 % , maximum salary /
wage
increase that can be granted on 01 April 2016 , will be 6 % )
.
How much capital needed to create ONE job ? ………………………… ……………[ 22 June 2017 ]
Solar Power at Re 1 / kwh ? …………………………………………………………. [ 29 Jan 2017 ]
Unlimited Power and around the clock …………………………………………. [ 29 July 2016 ]
Universal Basic Income ………………………………………………………………..
……………[ 20 Jan 2017 ]
Can Indian IT re-invent itself ? ……………………………………………………..
……………[ 03 Feb 2017 ]
HOW CHINA MAKES CHEAP ? ………………………………………………………………………[
08 Nov 2014 ]
" BACK FACTORY " OF THE
WORLD ? …………………………………………………………..[ 09 Sept 2015 ]
How to Boost Economy ………………………………………………………………………………[ 20 Sept 2017 ]
In a State of Denial ? ………………………………………………………………………………….[ 22 Sept 2017 ]
What would happen ? ………………………………………………………………………………….[ 29 Sept 2017 ]
Discovering the Obvious ? …………………………………………………………………………..[ 30 Nov 2017 ]
Not Good Enough ! ………………………………………………………………………………………..[ 02 Dec 2017 ]
Saving Jobs : Creating Jobs …………………………………………………………………………
[ 19 Dec 2017 ]
Free Electricity ? Possible ………………………………………………………………………
…. [ 28 Dec 2017 ]
Of Interns and Apprentices ………………………………………………………………………….[ 07 Jan 2018 ]
Whose Interest ? ………………………………………………………………………………………..[ 26 Jan 2018 ]
Car Grave-Yard of World ? ……………………………………………………………………… [ 14 Feb 2018 ]
Modiji’s ( incomplete ) Message ! ………………………………………………………………. [ 13 Mar 2018 ]
A Robotic Invasion
? …………………………………………………………………………… [ 19 Apr 2018 ]
An Important Challenge ? …………………………………………………………………
. [ 01
July 2018 ]
The E Commerce Elephant ……………………………………………………………………………[ 02 Aug 2018 ]
And a final observation :
Without waiting for
formulation of any MSME POLICY , Shri Modiji just went
ahead and made these announcements !
I urge Shri Modiji to encourage
his cabinet colleagues to start making similar announcements without waiting
for finalization of the following :
# Electric
Vehicles Policy
# E
Commerce Policy
# Data
Protection Policy
# Old
Vehicle Scrapping Policy
# Export Policy
# Intelligent
Transport Policy
# $ 5
Trillion GDP Economy Policy
# Solar
Energy Storage Policy
Of course , in hindsight ,
some decisions may turn out “ poor “ and seen as “ mistakes “
But “ not taking any decision
“ is not an option !
There is no shame in
admitting such “ honest mistakes “ and make a “ course correction “
Thank You , Shri
Modiji !
04 Nov 2018
www.hemenparekh.in /
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