Emails (Others): FOR A GOOD DEED : NEVER TOO LATE

Dear AMN,

Bharati joins me in wishing you and Geetaben , a very happy Diwali

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 TradeWar Epidemic ? …………………………………………………………………………… [ 22 Mar 2018 ]

Thanks for Speaking Up ! ………………………………………………………………………… [ 27 Mar 2016 ]

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

Sunday, 28 January 2024

FOR A GOOD DEED : NEVER TOO LATE

Foundation of Economy

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