A Self Reliant India
Planned & Organized Deficit Spending (PODS) macroeconomic policies some of which have been suggested as per my earlier article will come into immediate effect. (Details are available from me)
All economic & commercial dealings (Export & Import) with other countries will be done in INR.
NRIs & OCIs will be taxed, or a high inward Visa fee will be charged, respectively. These charges will come into effect only if foreign currencies are required for critical imports, in the immediate future. Thereafter, these critical needs will have to be made in India in fully integrated facilities so that we become self-reliant. The logic of full integration being that even if one component has to be imported, the entire product, good or service is left stranded & dependent on that one imported component.
Foreign companies/start-ups will be invited to manufacture/produce or service their technologies with INR lines of credit to be issued in digital, electronic monies. Foreign entities should bring with them the latest technologies & not old plants that would be replaced with new plants in the JV partner’s original country locations. Subordinate personnel, Visas for JV partners & their personnel along with land, power, water and necessary clearances in the various smart city/ economic zones & their respective land banks will be provided. The entities will not be able to exit or sell-off.
Profits earned will be remitted in the domestic currency, & if not remitted, these monies will earn tax-free digital electronic interest of 10% per annum in the domestic currency.
Exports will only be made in surplus areas & payments could be accepted in INR. INR parked on 10% onshore interest-bearing deposits could be used to pay for Indian exports.
Our $ reserves will be used to pay back all our international loans. These loans breed corruption! Having outstanding FX loans and getting new FX loans is NOT Self Reliance. Or, even FDI, when the domestic currency’s line of credit is available and the currency is in use in India is INR.
The INR foreign exchange rate will be fixed arbitrarily after taking the relevant factors into account and not changed (depreciated) for 25 years. If economic performance is good the INR could be allowed to appreciate.
Business trust & respect for IPR (to be paid in INR) & confidence in governance should be strived for. IPR issues especially Indian- Citizens, NRI, OCI & PIO owned & patented should be prioritized & made easy, quick & affordable all across India.
Indian public sector Banks should be rock solid behind “Good & Slick” operational commercial entities that manufacture, produce or provide goods, products & services for the Indian citizens.
Bankers also must operate in a more transparent manner & should flag an account which starts going wayward at the initial stages of fraudulent monetary issues. For example, Air India was allowed to go on. So should have Kingfisher Airlines & Jet Airways etc. too, but the ownership & management should have been audited, overhauled & reorganized as soon as the bank flagged the account in the early stages. Banks & auditors in all 3 cases raised the flags much too late and should also be investigated. The only people who enjoyed the whole experience were the passengers & ATF original suppliers who were being paid prices that were not realistic, or in sync with commerce in the aviation industry. A good example of what could have been done was The Satyam case where ownership & management was changed.
The bureaucracy & politicians can be won over not to corrupt themselves in a PODS practising self-reliant India, because if the government does not tax, then it is not answerable to the public on spending, even if spending is on itself. However remember, GOI will be answerable to the public during election time.
The above-mentioned issues clear the way for a Self Reliant India. With PODS coming into effect monies are available for research & development in core areas of Defense & Space, as well as all other sectors and also with JVs in such activities. It is advised that FDI is not allowed in these areas, but adequate lines of Indian currency are instead provided to Self Reliant Research & Development or Fully integrated Foreign JVs.
The above mentioned 11 issues that have been listed are good for India in the long run, and based on learning from the Chinese experience, ever since they opened up their economy way back in 1978.
A self-reliant Bharat is a non-violent state so exports of arms & ammunition should not be undertaken. When we are self-reliant independently and have surpluses then a case of exports in the subject sector could be considered. In fact, as we are not the strongest military power in terms of physical munitions, but our mental fibre and grit is amongst the best in the world, it would be recommended that we “outsource” our physical defence to a certain extent, until such time that we can physically defend ourselves on a standalone basis, even though we can, but currently, that would mean having a nuclear war.
It is to be noted for now, that in the history of independent India we have never sent our armed forces to attack first as a country. POK may be somewhat an exception…. We always defended and always will defend.
