Obviously FinMin is clueless about economy & fail to remove bottlenecks from the system. Not even surprised. The fall in Economy is not due to corona. Corona just gave an escapegoat to NDA govt.

Now the problem with India-
We jumped to become a service sector based
1/

economy too soon. Govt didn’t plan that but brave IT pioneers opened the unlock doors to become one. So, naturally Govt was clueless. Problem is that service sec based economy creation is too simple if you have the population. Many countries came & will come in competition
2/

of India. Tech giants of India will lose business & to maintain the foreign reserve, India will have to look for other options. That will manipulate custom duties, subsidies too quickly & will not give small business owners to adjust their business model.

3/

Besides that, India wants to challenge a Manufacturing based economy China. That will take at least 20 years. To train workers, encourage private players to install a plant & share patent technology. Can’t happen if you don’t make it simple. Simple to the level that 1 day is
4/

enough to start a company by getting all clearances with almost zero cost. Can’t happen without identifying barren land plots where environmental clearance is generally not required. Can’t happen unless you give a differential tax rate to businesses based on their CSR.
5/

Govt & opposition keeps a keen eye on 4 offices.
1. Custom
2. Excise
3. ED &
4. Income tax
Very often these depts scare businesses & it has created a negative ecosystem. Agencies can be positive too but the British made system in India where Indians tried hard to evade
6/

taxes & Agencies trying to get every penny they could, created this cat & mouse system. Even now when honestly tax is paid, we live in such presumed atmosphere where the general thought of becoming a Million dollar company doesn’t appear in small businessmen mind. They want
7/

stay away from the eyes of these agencies.
Then comes another problem! A big one! BANKING!
There are 19 chinese banks in world top 100 banks. Top 4 out of 5 are chinese. India has only SBI in list at 55th position. These banks not only provide money for projects & industries
8/

but create a pressure of Govts to make policies in favour of their parent country. Right now 19 Chinese banks are doing that for China in world whereas SBI is in no position to influence any country & in fact is on the brink of failure in 2 years. To rotate the money & to
9/

bail out projects, we need these superbanks. These banks should be homegrown too. HDFC can be a potential superbank of India which takes us to the world.

I hope FinMin changes Minister & B’cratic staff.

END