Hello Dear Friends, PLEASE READ THE POST TILL END. You are fully aware about the status of Indian economy and Falling Rupee this year. I have put forth some suggestions to top decision makers in government including PM, FM, Petroleum & Railway Ministers, MPs etc. The same are posted for your consideration with request to two specific issues, for immediate implementation/propagation in our social circles. 1. Reduce use of vehicles to save petro products, esp. 4 wheelers. This can be done at least one day a week for 4 wheeler holiday. (Except for emergencies.) 2. To minimise purchase of consumer items of foreign origin/imported. Both actions can lead to exponential proportions and save foreign exchange from day one. Here is what we have suggested. The suggestions have further scope to fine tune and addition, after this beginning. On your positive feed back to my email id and we can have preliminary discussion with goal to launch Campaign in Surat/South Gujarat. I do count on your support as Enlightened Citizens. Best Wishes. .... Greetings from Surat Citizens’ Council Trust, Surat. We submit important issues which must receive your immediate attention and prompt action in National Interest. The submission is addressed to all decision makers and political parties along with the bureaucracy simultaneously with fervent appeal to rise to the occasion in this hour of crisis and strengthen your efforts. 1. The Inflation is rising. 2. Import bill is rising, without sufficient exports profit to pay for import bills. Phenomena is prevalent for many years now. 3. Borrowed and Inward Remittances of all kinds, Foreign Investment, NRI Deposits etc. are mistakenly considered Foreign Reserves, (which they are not in reality) as they are the liabilities to be discharged/principal amount to be paid back with interest in foreign exchange/currency. 4. Inward flow of Foreign Exchange is not fully utilized for increased production and commensurate exports to pay back at later date. Instead it is treated as New Foreign Exchange Earnings. Only Value Added surplus of income over the cost of imported content of raw material and machinery is our real earning. Rest is liability, which is conveniently undermined. 5. Scale of Petroleum products imports is Inelastic even today, after finding oil and gas in India. 6. Import of gold is regular item on shopping list. 7. Import of products of consumer use is rising, which the country can do without. 8. Some percentage of Raw materials imported is utilized for manufacturing products meant for domestic consumption, which we can do without for some time. 9. Exports have not grown to pay for all imports. 10. Current Account Deficit is out of proportions. Economic policies have not resulted in strengthening our economy, export earnings or import substitution/minimization. The contributing factors not limited to the above mentioned issues call for your most urgent attention and prompt action. We think it is appropriate to submit some of the suggestions which can strengthen your efforts to mitigate the present serious economic situation (if not melt down). We do hope that the government will rise to the occasion to save the economy and spare hardships of citizens, in right earnest. 1. Stop all consumer and consumer durable imports which utilize foreign exchange with immediate effect. People are not going to die without such consumables. Only use of forex for import of food items can be justified in emergencies. 2. Import of oil and gas / petroleum products comprising of very large percentage of import bill is inelastic. Therefore, instant action must be taken to stem their consumption. Some of the ways are listed below. 3. Mandatory two day holiday, saving on transport fuel use. In view of limitation of transport of goods the trucks have to ply between supply points to destination of manufacturing and distribution. 4. Compulsory 1 day off per week for all 4 wheelers. Rickshaws and two wheelers only should be permitted, along with essential services and ambulances, for Effective fuel consumption restriction. It can save upto 10% of oil/petroleum imports immediately. 5. Indian Railways can also undertake project of transfer of Inland goods traffic by container system like export-import type containers and reduce consumption of diesel by trucks. At least long distance haul can be managed by special goods trains. Stop all ministerial and bureaucratic travels within the country and travelling abroad for minimum one year period. 6. Abstain from all goodwill visits by elected representatives and bureaucrats, beginning with PM or President, to set an example 7. Double incentive should be given for increase in domestic oil production, including income tax benefits. E.g. total duty exemption on additional production/output/extraction over last three year average. 8. Heavy import duties on all non-export related imports coupled with 100% CASH Margin. (No Bank Guarantee.) The margin amount should be only released after minimum period of one year. 9. Domestic consumption products based on imported raw materials should be subject to heavy excise duty. 10. To curb inflation, credit restriction on all edible products which are subject to speculation. 11. Speculation in all items of mass consumption must be stopped forthwith, (including food items). Commodities Exchanges must not be permitted to trade in all such commodities which have already led to speculation, artificial shortages and resulting inflation. Therefore, all Non-Delivery transactions should be subject to 100% Cash Margin. No bank credit should be given for these transactions. It will help to bring down prices to lower level. 12. Import substitution incentives to all sectors should be given. 13. Put all liberal imports in abeyance for minimum one year or till the Rupee stabilizes at Rs. 53/$ level 14. Concentration/Increased focus should be on increased penetration of existing export markets 15. Private agencies to be employed for result oriented aggressive export marketing. Indian, NRI set ups should be encouraged as they have the nerve of specific market demand trends 16. All Indian Consulates abroad must be geared up for export promotion. They have excellent local contacts with NRIs and other Organisations in their respective countries. This should be exploited for aggressive export marketing. If necessary, more marketing experts should be sent and/or engage foreign experts to strengthen Consulate efforts. 17. All hurdles/road blocks for exports to be removed. Export products manufacturers should be extended bank credit based on their past performance, at LIBOR + 2% rate. ECGC, FIEO etc. bodies have to be strengthened to support the export drive. 18. For Long Term delivery contracts with foreign buyers, the Consulates can play catalytic role in locating STOCK &SALE Warehousing facilities. 19. Higher duties on all imported products which are presently manufactured in India, to promote domestic production. Benefits of special incentives to be given to only those units who show increased output. Emphasize on competent SSI and Medium Scale Manufacturers. 20. Productivity enhancing training and research to be introduced in all industries and services 21. 100% margin on all consumer products imports at least for one year should be levied with immediate effect. 22. Gold imports by retail buyers should be permitted only by direct dollar payment through NRI channel by residents. 23. No import of Gold except export production should be permitted. i.e. imported gold must not be sold in retail market. 24. Re-export of gold/silver jewellery to receive import replenishment route. No advance licenses to import gold and other precious metals to prevent sale in domestic market. 25. RBI should instruct all banks to recall all loans for import products: gold, gradually recall of loans for raw materials used in manufacturing products for domestic consumption 26. All incentives, benefits should be automatically credited to bank accounts of above exporting entities/beneficiaries, without intervention by govt. department to spare from corrupt practices. Eligibility must be linked to performance, without intervention by govt. depts. 27. Solar research to be intensified for power generation 28. Promotion of Swadeshi drive 29. Do not bother about WTO, as liberalization has been misused. If necessary, intimate them about suspension of WTO conditionalities for one/two year period. Sort of Moratorium during present extra ordinary conditions. 30. Package or emergency steps are to be implemented as a whole and not to split for convenience/manipulation as has been done in the past! 31. These suggestions are sent to: PM, FM, Finance Secretary, Planning Commission, Parties, MPs, MLAs, States for serious consideration and immediate action. The present state is War like Economic Emergency and it must be tackled in such manner. We believe that this is national emergency and all political parties and others must stay together to achieve the singular goal to save the Indian Economy and the citizens who are already suffering from the burden of back breaking inflation for considerable time. The call of the hour is sincerity, transparency and undivided focus on the situation before us. We are confident that United We WILL WIN. 32. On our part we are planning to launch a drive for citizens to co-ordinate their economic decisions to minimize consumption of foreign products. ...
Posted on: Wed, 28 Aug 2013 20:45:15 +0000
Trending Topics
Recently Viewed Topics
© 2015