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New government: Expectations and challenges
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Bikky Khosla | 27 May, 2014
The oath taking ceremony is over and now is the time for the new government to get down to the business. There are high expectations everywhere, but what is more important now is that the economy needs urgent attention and nourishment. It is in a mess for quite some time now and the newly sworn-in government has to set it right. The economic policies and the forthcoming budget to be unveiled in the next two-three months will have significant implications on the fate of the economy.
So, how to start with? Investor sentiment has remained very weak in the last few years and the government needs to pay urgent attention in this direction. Speeding up the stalled infrastructure projects, resolving iron ore and coal mining issues, easing bureaucratic controls over businesses, doing away with legislation like retrospective tax law -- these are some comparatively easily attainable tasks and the government should cash in on them immediately. We need to send a positive signal to investors and we should do it as soon as possible.
Inflation must also be tackled. The last government miserably failed in easing the supply bottlenecks and that is why even the repeated monetary tightening measures taken by the RBI failed to make any real difference. In contrast, it hurt the economy by pushing interest rates higher and higher. Now we should learn from the past mistakes. Well-planned short and medium-term anti-inflationary measures have to be taken to remove the supply bottlenecks instead of just relying on the monetary policy.
Under the UPA rule, fiscal deficit came down below 4.6% of GDP but to do that they carried forward a massive subsidy burden of 2013-14 to the current fiscal year. In addition, planned expenditure was cut drastically in the last two years and thus leaving little scope for further such cut. But I think something about the subsidies can still be done. At the same time, priority must be given to raising revenues. Implementation of goods and services tax (GST) and direct tax code (DTC) can make a big difference in this respect.
Another major challenge is job creation. To make this happen we have to revive the manufacturing sector and focus on manufacturing-led growth. The micro, small and medium enterprise sector contributes to manufacturing, exports and employment in a big way and therefore this sector should be vigorously promoted. In addition, many severe challenges being faced by almost all our industrial sectors, particularly telecom, banking, aviation, tourism, pharmaceutical, automobiles, oil and gas, etc. have to be addressed if we want to create more jobs.
I invite your opinions.
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expection and challenges
rushi.daftary.gujarat | Sun Jun 8 13:24:49 2014
i am having small industry.i would to like say that goverment should not give subsidised items,food to people.bcos they generally don't work.they get free grains,food etc and spend their income on alcohol,gutka,bd etc.but not for food,home,educationetc.goverment should manage register for who don't have job(for completely illetrate fellow)and complusory send them to the industry where they are needed.
goverment should not supply anything free or by subsidized rate,it makes public(labour level)lazy and this effects industry,production,and harms small industry like me.
railways
SPA | Fri Jun 6 15:32:02 2014
SIR, Railway industry gives poor services in south especially in tamilnadu , only in single lane , all train has to pass throgh it, consuming more time and tension, all conversion made for bi lane and must electrificated, and another major drawback is skipping important business class stations (municipal limits )for stoppages, is a ridiculous, so ,i think in this new regime all should be installed properly and serving good services, Regarding roads , all pending highway infrastructure and damaged roads should be restored in good manners which cause hurdles for transportation . THANKING YOU SPA
Job Creation
Firdaus Kapadia | Wed Jun 4 04:59:33 2014
Millions of jobs are being done by Contract Employees. This needs to be changed. A start could be made with the Railways which is the largest employer and whose contract employees are denied of minimum wages, PF, ESIC and other benefits. Even service tax is not paid by many of the contractors.
policy
ivan | Sun Jun 1 05:13:37 2014
all taxation policies should be made more easier.
Deffence
Ravindra | Sat May 31 06:43:04 2014
I totally agree with this article but deffence is also very important.The way china is incircling us is a matter of great concern.We must boost up the morale of our jawans and start a firm dialogue with these countries.We should also takeup manufacturing and research on small and medium weapons.
Internal security is also a big concern.We must start dialogue with advasies and try to solve there real problems to stop spread of naxalism.Development is the best answer.If the people will start earning they will automatically join national main stdeam.
I am for trade with India
Sultan Barq | Thu May 29 09:38:20 2014
I am in business in Pakistan. Was interviewed by Aljazeera TV about a week before oath for my opinion whether our PM should accept invitation? I stressed about the need for peace and mutual trade and respect.
GROWTH STIMULATION FOR MSME
Chathoth Murali | Thu May 29 08:31:13 2014
Many of us wish to be an entrepreneur one day. The main deterring factors are inability to bring capital, product identification and product marketing. We retire early in life. All that experience we acquired become useless abruptly. many retirees, especially NRIs saved sufficient to start an MSE. But not confident enough to venture out. Hence, these fence sitters safely park their savings at 5% FD, which don't even cover inflation rate. Bank lend it out on 15% , and successful business make a minimum profit of 10% on this. If these retirees are given responsible fool proof guidance they could be earning 25% earning on their savings, instead of meager 6%. It is not necessary for the Government to give heavy subsidy if they can organize clusters of such consultancy services constituted by retired professionals on a nominal fee, across the country. They can carefully study the retirees ability, resource, talent strength and weakness, identify right products and marketing potential. Lakhs of Engineers are coming out from college looking for job. Many of these unemployed youngsters are the children of such retirees. If proper guidance is given and confidence built up they will be more than happy to invest their savings to own their own business and guiding their children to take their business to next generation. Well, Government has to create confidence for investors and unions must understand small retirees problems, if they are sincere on creating jobs and eradicating poverty
Nuisance Tax on Aerated waters
SurajParkash 9315879780 | Thu May 29 05:07:29 2014
Apart from easing the day to day nuisances and problems of the citizens, the new Govt must take cognizance of all useless non productive taxes, which do not bring substantial gains, but creates huge nuisance, huge losses to Govt, and above all generates black money. And plays havoc with just every one in many ways.
One is excise duty & sales (Vat) tax on aerated soft drinks, The sale by big companies like Coca, Pepsi etc is hardly 15-20 %, rest is all sold by spurious bottlers in Coca / Pepsi bottles itself, with spurious dirty water from municipal taps, and rest 85 % sold all over India, without any duties and taxes, as also any Income Tax.
But certainly destroying health of one and all, more cruely causing untold harassments and health hazards to bus, train, and road travelers. Majority of Indians cannot afford water or soft drinks at Rs 12 a bottle costing to manufacturer hardly Rs 1/- where Rs 11 is digested by spurious manufacturers and their retailers. A mother travelling with kids or an old or young man in summer just does not have any access to clean drinking water who has to fall prey to these water Mafia every where.
For bringing Achhey Din in India, it is very urgent to free the soft drink industry from all Central and State taxes
Suraj Parkash
9315879780
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Re: Nuisance Tax on Aerated waters
Firdaus Kapadia | Wed Jun 4 05:03:04 2014
It would be better to arrange the provision of clean and safe drinking water from the taxes collected on soft drinks which are unhealthy anyhow.
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Road Ahead
Pankaj | Thu May 29 04:06:57 2014
UPA govt. policies seemed to be purportedly designed to weaken rupee to bring in more FDI. This forcible creation of situation for dumping FDI needs to be understood first by the new govt.
First Congress subsidized oil which caused other costs to go up. Then abrupt removal of subsidy coupled with more than 100% increase in price of coal and artificial increase in prices of minerals due to mining restrictions was the sole driver for high inflation and poor BoP. Instead of using the money for inclusive growth by investing in solar power , money was laundered in name of MGNREGA which was another driver for inflation. Instead of governing the economy and nation, UPA/Congress took directly to disburse cash with their hands resulting in complete mismanagement. Even policies like interest rate etc were not system centric but person centric. One RBI Governor feels it should be high, followed by his successor who feels otherwise. Delay in project clearance lead to high interest impact causing only bank books to blossom only to payback later for the NPAs. Real NPAs are still hidden due to huge CDRs which were unprecedented. This is nothing but planned destruction of national capital to make way for FDI which we are today in all the sectors which were created by our entrepreneurs like Airlines, Telecom, Cement, Steel, Insurance and Retail. While indigenous efforts in Defence has been neglected, FDI is being promoted with great fanfare. Economy enslaved to FDI!
New Government/expectations and Challenges
Rekha Mathur (www.facebook. com/dearpack) | Thu May 29 02:05:18 2014
We all hope the new govt. Fulfills some of its promises
Black money
URS | Thu May 29 01:45:05 2014
Property transaction is one of the major generator of Black Money even in remote villages. High stamp duty results in avoidance of duty payment and generation of black money. My suggestion is that the stamp duty should be reduced to say 5% level on national basis so that people are willing to pay. Most of the salaried person buying property need to covert his white money to black. Another option is to make the stamp duty similar to Vat. You pay stamp duty only for the value increase from your purchase price after adjusting for the inflation index. Another suggestion is instead of buying the stamp paper for the value of the stamp duty, payment of stamp duty is made in the bank. When one buy stamp paper one do not know whether the stamp paper is original or duplicate. For any transaction just make stamp paper used to be of value not more than Rs 100 as the stamp duty amount can be deposited in the bank . This paper is now just for making the agreement. Govt saves lots of money in printing stamp paper of various denomination. The payment of stamp duty in bank can be easily checked by any legal firms or any individual for a fee. The payment info can be printed on line from any registers office.
Visa.
A. Siriwardane | Thu May 29 01:36:04 2014
I love to live in India.
As an artist I earn from western countries. If live in India whatever I earn from west would be spent in India. So I won't be a burden to India.
I hope that there would be a solution for the need of people like us.
Expectations are on a higher side
Nikunj Devpura | Wed May 28 15:29:36 2014
Its true that expectations are on a higher side and govt needs to work on to meet those expectations amidst the difficulties or the challenges being faced by India and rightly observed by you.I believe that govt should clear its stance on Taxation approach by taking immediate action on high profile Vodafone judgement. This will provide certain relief to corporate world especially foreigners who are looking India as the favoured Investment destination.Uncertainties in the tax approach is the most troubling issue for any investor. This is one way of creating the better business environment and restore confidence.Moreover govt needs to take some harsh decisions which are pending and create some decisive structure and framework. Should also solve the gas and coal issues which are essential for promoting growth. Mining issues has been a battle of row between corporates and govt needs to be addressed soon. As per the current scenario import of the ore was among the top 5 commodities even we have resources in India.
Hope to see timely action by the New government and see India on the path of High growth and Better living of Standard.
Hire better translators
Jim Anderson | Wed May 28 15:03:31 2014
Title says it all.
Energy
AK SHYAM | Wed May 28 13:30:26 2014
It is time that we imbibe Renewables in a big way to lessen the burden on fossil fuels. Globally, residential units are becoming independent (with solar) and instead of paying electricity bills, earn revenue for power supply to the grid.
Wholistic approach (combination of conventional with renewables - Hybrid power)in Energy planning will prove beneficial in the next few years.
Economic Policy
Sukumaran | Wed May 28 13:15:13 2014
Indian Economy should be allowed to grow horizontally. From Economic growth there should be economic development.
Protectionism should go.Let there be competition for a while.
Rural job creation
Ashok Phadke | Wed May 28 11:29:32 2014
For the new government; this should also be in the list of "to do" things. For this; agro Industries like value added sugar from Sugar cane; Ethanol plants to produce only fuel grade alcohol and of course; use of renewable energy from agriculture sector will go a long way in increase of jobs; income levels and thus; subsidies can be reduced.
Suggestions for New Governemnt
Rajesh Singla | Wed May 28 11:25:26 2014
The biggest hurdle in job creation is our education system. We don't produce people for jobs, we just produce jacks of all and masters in none. The graduating youth is just not employable. You visit any industry, there is a urgent need of skilled work force. But even the skilled work force being trained in most of ITIs is not employment ready and ranks low among untrained but experienced lot.
The solution is, please don't teach all subjects to everyone, just bifurcate early and integrate more effectively with industry.
Now, let me speak out on the issue of subsidies and poor. I am not against subsidies and feeding the deprived. But at least we must have some checks and balances. We cannot feed someone through out his life. We must have an incentive to find job and do some work. Feed the hungry at Rs 2 per kilo rice or wheat, but tell him that this can happen only for say 3 months. By that time, if he still cannot feed himself, train him or divert him to infrastructure labor. At least monitor him.
For industry. lower interest rates. In a country where car loan is available for 10% and industry loan for 14%, how can you expect industry to grow. Furthermore, maybe you can have a car loan within 72 hours and that too without collect-oral, loan for industry needs a min of 6 weeks and usually with collect-oral.
Next is MGNREGA, please stop it. Don't make villagers stick to their villages. There is urgent need of labor in each and every sector.
Make Mobile Phone use expensive.
New Govt
C K Nair | Wed May 28 10:48:07 2014
The vision is quite perfect. India can flourish within the minimum possible time. Congress is always there to ignite. Such an action will encourage Modi Govt perform well .Should listen to them but to ignore when ever,what ever way it demands. Let Modi government continue at least for 15 years. Mr.Modi only can make India as a super power
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Re: New Govt
Firdaus Kapadia | Wed Jun 4 05:05:52 2014
One person cannot change a country. All Indians need to change to make India a super power.
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inflation in India
Prof.P.Madhu Sudana Rao | Wed May 28 09:52:46 2014
I submit my comments on 'controlling inflation' in India.
I am a professor of Banking and Finance in one of the government
universities of Ethiopia..
I am a person of Indian origin.
The Ethiopian government is following an innovative of controlling the
prices of most essential commodities.
The government fixes the retail prices of the commodities to be sold
by a retailer. Name of the commodities along with their prices is
pasted on the glass pane of the shop keeper with government seal.
The consumer is advised not to pay more than the prescribed price. If
the shop keeper demands more price,it should be brought to the notice
of the government on a mobile and mail id. Immediate action will be
initiated against the trader by cancelling his retail license.
The chain in the production process is never harassed or penalized and
the price is automatically controlled. If the price fixed needs
revision traders can approach the government through their chambers.if
the traders cannot supply the commodities,foreigners like Chinese
traders in the country are permitted to distribute in whole sale
market.The model is giving wonderful results since last six years in
the country.I feel it is a foolproof model to combat Inflation in any
country.
Taxation
Aliasgar | Wed May 28 08:28:19 2014
Few months ago some BJP leaders came up with the idea of transaction tax to be imposed & all other central taxes to be abolished.Government should give a thought to that option as that will give a substantial boost to the market as business houses will have a clear focus on their business saving much time on various tax related issues.Middle class will also benefit & our production houses will become more competitive in the international market.Its worth giving a thought
Agenda for the new Govt
SK Misra skm810@ gmail.com. Chairman ITRHD | Wed May 28 06:50:37 2014
Rural development is one of the priority areas. With community involvement,the results can be spectacular leading to job creation,raising living standards,women's empowerment,education and primary health care,taking care of the girl child, infrastructure development, skill development programs,training programs rural tourism .Involvement of different ministries at the central and state level and partnership with reputed NGO's will make a world of difference.
Priorities for the new government
S.R.Krishna Murthy | Wed May 28 05:55:41 2014
The new Government has started with a bang, by taking on all the SAARC countries along its stride, with immediate dividends like the freeing of the captured fishermen. The trimmed Government and Ministry, conveys that the govt. is serious about its agenda of good governance. Therefore it is too early to comment on its economic agenda; which assumes that the Govt. may overlook the obvious. It would not be wise to go about in hypothetical conjectures.
But all the talk of Development per se will turn to be mere gas, unless a strong and sound foundation is laid to sustain that. History is witness to disappearances of Civilizations like Rome, while more ancient Cultures like India are surviving and vibrant; the reason for the latter being its importance to Education; especially the Prime and Middle education. The castles that Rama and Dasharatha had built are nowhere to day, but Ramayana lives on forever.
But in Modi’s current disposition, the Primary education finds no place; or it may possible have been eclipsed by other more lucid nomenclature. It should not be forgotten that wars are lost because of a faulty horseshoe! The bureaucracy should not be led to think that the subject does not merit its attention.
The entire primary education should be overhauled to make it a nation-building exercise, as detailed by none other than Bharath Ratna Sir M. Visweswarayya in his ‘Memoirs of my working life’. That will be the foundation for strong industry and economy.
priority of work
Marathe K.V | Wed May 28 05:27:42 2014
We expect government need s to strengthen bilateral trade ties to encourage business to roll froward SME which employ huge man power instantly. Such business would be on balance of payment basis and hence no additional Dollar would be required. Improve grain storage facilities through Private participation which shall help in supply of food grains timely with quality and without spoiling of valuable and scare food items.Look how coal and Iron mining and related industries like power,steel and other ancillary industries get movement as these are important raw material for infrastructure.Identify sensitive area and do not allow any body to go for mining even for any sort of tourism to protect environment.Take up river connecting scheme which would solve water problem in India.For financing Private participation should be encouraged.Good relation with neighbours will prevent expenses on defenses which could be used in developmental program. These are few suggestion from a common man like me.
S B Panicker | Wed May 28 05:20:37 2014
I fully endorse the above views and recommendations
one tax window
suman | Wed May 28 04:47:15 2014
One person is giving income tax, service tax, house tax, property tax, entertainment tax etc etc it should be in one single window only middle class/ service class people are giving tax others are enjoying the business.
REVIVAL OF SICK UNITS
SUSHILKUMAR GUPTA | Wed May 28 03:58:13 2014
All the issues indicated in the above article are in line with the expectations further revival of sick units which are due to want of cheap finance need to be groomed and made operative as many entrepreneurs are idling and employment cannot be generated if entrepreneurs can not perform.
Suggestions
Patel | Wed May 28 03:05:29 2014
As per my opinion new government should bring down the prices on diesel as well as petrol. But they should reduce more on diesel as all the transport is dependent on diesel.
Bring total control on prices of food
Control on food adulteration and if they are caught their license should be suspended and vigorous punishment.
Those who are involved in rape case they should be taken in the middle of sea and from there they should be dropped. Reduce prices on drugs. Taxes should be done in such a way that everybody has to pay compulsory tax from the smallest thing like needle to large thing like foreign countries as we can see in European and north America and make taxes little bit low . If they are caught not paying taxes they should be heavily penalized with vigorous punishment.
Thanks.
HIGH NET TAXES
Kamal Deep Singh | Wed May 28 02:24:50 2014
I entirely agree with you on the above writ up,along with these steps this govt. Also do have very easy chance to control or rather bring down inflation drastically by easing or rather bringing down indirect or say repeatedly paid taxes,yes this will also decrease in collection funds by govt. But at the same time on other hand unnecessary govt. Expenditures are tamed majorly, corruption which last govt. not failed but also accelerated in their own beneficial personal interest, as on date a urban citizen of India pays app.80% to 85% of its salary income in such taxes(35% IT plus whatever he buys or pay for services utilized he has to shell out on multiple taxes direct and indirect impose on it)
new Govt expectations and challanges
vinod goyal | Tue May 27 21:51:42 2014
I fully agree to various issues or factors you have highlighted for economic growth but also i would like to add that the newly elected govt must give due importance to " renewal Energy Sources " The govt must frame the policy for Investors and developers of Solar Power Energy and must strictly enforce the compliance of RPO by DISCOM. The green energy is being sold at a price of rs 2.80/ unit to DISOM under REC mechanism but due to non enforcement of RPO , all such green energy producers are in trouble as they are not able to meet even financial interest burden because REC certificate are not being traded as projected by the govt due lack of enforcement on DICOM for purchase of REC and consequently the investors have started pulling back their hands and are reluctant to invest funds in green energy
If the govt takes it seriously and take effective steps to promote the Green Energy, it will not only help in reducing pollution but also to a greater extent minimise the gap between demand and supply of energy . This is the basic need of economic and social development as if there is no Power or energy , the growth for which we have been talking about would be adversely affected on all fronts Moreover , the waste land can be made useful by putting up more nos. of Solar Power plant . Rajasthan alone is capable to meet the entire countries need of power by putting up solar power plants if barren or waste land is converted into solar power park . .
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Re: new Govt expectations and challanges
Thomas Jose | Thu May 29 01:54:42 2014
Industrialization is the key to prosperity. The IT sector should have a boom. Tourism sector should be boosted up. Agriculture should be able to give value added products. The cost of production in agriculture should be brought down by giving subsidy to fertilizers. Fuel subsidies have to be maintained. The ministry of petroleum should audit the accounts of petroleum companies. Building materials tax have to curtailed to promote growth in the infrastructure development. Headline price should be brought under control. The income tax limit should be increased. Surcharges on tax should be avoided. Uniform tax police is to made across the country
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