India -A Global Player!

1. India is at the cusp of a big transformation as various needed initiatives have been put in place towards improving the existing frame work in-respect of ease of doing business and developing a desired infrastructure in the country & creating an Ecosystem comprised of the best practices in-order to attract Global Businesses. India has greater transparency in governance post demonetization and it indeed offers an extraordinarily good opportunity among EMs. On the onset it is pertinent to mention that the Digital Payments have increased four times with in 02 months after the demonetization which is a proof itself that technology systems, architecture and infrastructure needed for a transparent & effective governance are in place and it is helping in increasing the desired awareness of cash less payments among masses.The PM of India Shri N Modi himself took initiative first enhancing the image of India & Indians abroad by undertaking trips to almost all the important countries where the bilateral relationships were to be improved or further redefined. Indeed a Brand India has emerged as a Global Player in terms of providing ample business opportunities and also towards playing a very active role in addressing the such important global issues such as Terrorism, renewable energy(ISA) & Climate Control issues at the world forums. The "Make in India" initiative has already attracted an investment of about $100 billion since its launch by Modi in Sept 2014 and many international companies have started setting up their manufacturing facilities in India. The potential deals for defence manufacturing with a component of "Make in India" are in pipeline to set up its bases in India forming JV's with Indian private players.The World Bank has increased India’s ranking and as per "United Nations Conference on Trade & Development’s World Investment Report", India is in 03rd place in top prospective host countries. India has jumped to the 32nd rank in Global Competitiveness as per World Economic Forum. India is also gone up by 16 places in Global innovation Index and by 19 ranks up in World Bank’s Logistics Performance Index in 2016. Make in India is biggest ever India Brand Globally and India stand at 06th place down from 09th as largest manufacturing country.Today, India is bright spot in the Global Economy and its inflation, fiscal deficit and Current Account Deficit are under control and foreign investment is growing. So, it is the most opportune & happening time to do business in India and to setup manufacturing bases, R&D facilities & retail outlets along offering of world class services as demand exists. Also, it is time to travel to India to enjoy its hospitality while looking at how the big transformation is taking shape & positive energy is being infused among the people of this great nation by none other than the PM of India himself by setting personal example and getting implemented the needed developmental program through his competent council of ministers.The Department of Industrial Policy & Promotion(DIPP), Ministry of Commerce & Industry, GOI has been awarded world's best practices investment promotion agency in 2016 by UNCTAD as it facilitates the global businesses the entire investment cycle at one stop. It has processed 50,000 business requests involving $ 50 billion investments and creating 1.6 million jobs.

2. India has emerged as a most robust & fast moving economy and the credit for this goes to the present Government of India (GOI) under the constructive leadership of Mr. N Modi since May 2014 as it has a “Mission Defined (MD)” towards a Developed India agenda in a stipulated time frame. India is on a threshold of becoming most Digitized Economy in the world shortly.A lot has been achieved in establishing new miles stones in implementing a number of radical reforms in such a short period of last 30 months of this government. The boldest ever strategic initiative any where in the world on one hand in the form of demonetization  by the PM addressed the menace of corruption & generation of black money, the GST Act on the other hand, supports a unified tax structure Pan India and both shall go a long way to further strengthening of economy, spurt in consumption & growth, further reduction in inflation & improving the life standards of poor & common man including farmers, workers on daily wages & small business man besides providing needed boost to the manufacturing & agriculture. The service sector shall also be consolidated. So, India has emerged a Global player in terms of providing immense opportunities in almost all the sectors. The defence sector is opened for FDIs and there is lot of scope for Global Defence OEMs to manufacture their products in India, first for meeting its domestic requirements and than exporting to other nations. It is pertinent to mention that India is one among the largest importer of defence weaponry & equipment's. The demonetization has put the country moving towards less cash economy at a very fast pace and it has broaden the tax base & reduced the Fiscal Deficit, hence, increased spending could be done on defence manufacturing under Make in India & rural infrastructure development.

2. The opening of about 240 million bank accounts for the poor was one of the most ambitious initiative of the present government towards Financial Inclusion as such a large population so far deprived gets an access now in to the banking system & also for getting the DBT (Direct Benefit Transfer) without any scope for leakages in the form of subsidies and guaranteed job assurance assistance from GOI on monthly basis. This has infused a demand for increase in consumption in rural areas of India in a big way which is destined to improve per-capita income as extremely poor are going to improve their grading to one ladder up which shall be an extra boost to a stable economy as it enlarges its base. The DBT is Aadhaar based and it restricts the leakages, hence, it induces CBMs (Confidence Building Measures). These efforts are further supported through introduction of Life & Medical Insurance Schemes as part of assured Social Security to this class of masses at a bare minimum monthly / annual premiums which is an ideal approach towards attaining Financial Inclusion by bringing such masses in to the main stream of development. It has provided a robust frame work to a stable economy and it is sustainable as linked with the development process under way so that they (the extremely poor) shall keep improving their life standards all along in times ahead.

3. The passing of Insolvency & Bankruptcy Code Act, Enforcement of Security Interest & Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, The Real State & Regulation Act were other milestones established in 2016. The Digital literacy programme launched by the HRD Ministry through prestigious educational institutions shall transform the Digital India drive to achieve the transformation of the society in order to move towards less cash economy. The scheme have been launched Pan India in about 525 out of 680 districts to give lucrative prizes to the people and businesses for the use of cash less instrument in place of cash. India has 1.32 billion population and about 1.0 billion people are now connected with Aadhaar Card and possess mobiles, 1.2 billion have saving bank accounts, about 800 million debit cards and 32 million credit cards.

4. India has ambitious Skill Development Initiative underway where it is going to train about 200 million people by 2022 and out of that about 10.5 million are already been trained so far in last 30 months and it shall provide the required human resource to the growing manufacturing sector. The Skill India has been connected with Stand-up India & Start-up India in order to create direct & indirect employment. MSME entrepreneur's have been facilitated to get loans from SIDBI as well as newly launched MUDRA scheme so that the sector gets a required push and align itself to meet new opportunities arising out of the defence & high tech electronic equipment manufacturing in India in a big way as about 77 manufacturing licences have been issued for defence production with a component of "Make in India". The promulgation of DPP (Defence Procurement Plan) in Apr 2016 has provided the necessary push to start joint ventures between Global Defence OEMs & Indian Private Companies. The permission of 100% FDI in retails is going to provide a big support for setting up Global Retail Hubs in India and it shall also contribute in extra job generation & expansion of economy,so, an ongoing expansion of this stream of business.

5. If I don’t take & discuss some of the most potential criticism received internationally for the Demonetization Drive from world famous / recognized organisations / institutions, business magazines & economists than I shall not be doing the justice to the subject matter at this blog, though, I shall counter them with a logic & explanation later to the point in my personal capacity at Para next. The Independent, Singapore, compared Modi to the nation’s founder Lee Kuan Yew for his dramatic action. China’s Global Times had also called Modi’s move “bold” and “decisive” and described that most of the illegal business was in cash form only, though it also said that it is a superficial measure only. A New York Times editorial called the plan “poorly thought & executed”, and given the pains it would inflict and its small temporary gains. The Guardian editorial said,”Modi has brought havoc to India...The rich will not suffer, as corruptly acquired fortunes have almost all been converted to shares, gold and real estate, but the poor would be hit hard.”The New Yorker compared this drastic move in a large, complex country to an “ocean liner turning with the radius of a Porsche”. Bloomberg though found approval of masses in PM’s constituency. The Economist called it “cautionary tale of reckless misuse of one of the most potent of policy tools: control over an economy’s money”. It further said that demonetization would make only limited strides in shrinking the black economy, but would affect all of India 1.3 billion citizens, the poorest most of all. Kenneth Rogoff, economist and foremost champion of cashlessness, declared in the Financial Times that India’s cash bonfire was poorly designed, and was “too much, too soon”. The Wall Street Journal criticized India’s “bizarre war on cash”, pointing out that in a cashless society “the state has far greater means to harm the public, both through inept policies and abuses of power”. A Harvard Business Review article called it “ a case study in poor policy and even poorer execution”. Analyzing the weak state of digital infrastructure and the reasons for continued cash resilience, it called the demonetization drive “ a case of putting the cart before the horse”. Steve Forbes, in Forbes magazine called the decision “breathtaking in its immorality”.”Further “What India has done is commit a massive theft  of people’s property without even the pretense of due process---a shocking move for a democratically elected government.” Even former Governor of RBI Dr.Yaga Venugopal Reddy, Dr.Amartiya Sen, Mr. Jalan, Mr. Man Mohan Singh & Mr.P Chidambram along with so many oppositions leaders & others at home turf have also spoken against DeMoNe There were so many others also on the same lines criticizing the Demonetization in worst possible words indicating an impact on India's growth potential.

6. Though, I also have more verdicts in favor of demonetization by the world most successful entrepreneurs, world leaders and the economists to negate the criticism as made at para-5 above but I would like to oppose all the criticism my self with my arguments only. Let me now rebut all the criticism as made at Para-5 above by putting the following arguments and also I would like to state with humility that you all might be world renowned organisations, journals, magazines, news papers, economists and financial experts from Ivy Business Schools those have criticized demonetization but I must say that certainly you all have a limited knowledge about the practical realities of India that persists in its villages & remote areas,hence, you have no exposure of what is the foundation of stable economy as the people residing there supported this move of Modi whole heartily as they have complete trust & an ultimate faith in Modi & knows well that this exercise is meant to be achieved for their good. It shall be done that way only and the schemes have already been launched to help poor, farmers, workers on daily wages and small business men in big way. Now onward they shall not be pained but the culprits involved shall be on the run:

(i) The move was well thought / planned & carried out in a systematic way as designed to get the vital signatures of the offenders via digital tracks now created which was not possible other way around as people did not disclose their income through various windows extended before it as Income Disclosure Schemes(IDS). Now the details about all the offenders and also their digital routes they steered during the 50 days period of demonetization are known to the government enforcement agencies & ED. So, the investigations are on against who have converted black in to white through innovative ways or by connivance of corrupts and they shall be brought to the justice so they join in main stream rather going against in future or face harsh punishment. As a result the direct & indirect taxes have already gone up and so is the case with an increase excise . duty and service tax.So, it has served the desired purpose to arrest corruption & to curtail further generation of black money. Other initiatives / steps are planned to unearth total black money in side the country as well as outside. It is a fight of honest India against corrupts and it shall be fought to the last till won as PM & GOI are committed towards it with complete focus & priority.It has provided a cleaner image of India world wide and certainly the improved eco-system for doing the business.

(ii) It stopped the fake currency flow abruptly as was desired and also to curtail the possibility of huge amount of currency printed & piled up in a neighboring country waiting to be dumped in India to topple its economy instantly. The counterfeit currency was faked in near about similar configuration so it was difficult to make out the difference between the original & fake, hence, it was used in terror & insurgency activities carried out against India in a big way. Such activates  have come to halt in affected areas with about 70% reduction, so, it ( the demonetization) has hit the nail on the coffin at the most appropriate time. So, it has improved the vi-abilities of business in

such affected areas.The unearthing of black money is giving boost to fiscal consolidation,hence, more money towards infrastructure development.

I am sure that all those who have criticized DeMoNe as of now shall come up & say by the end of 2017 that it was indeed a game changer for India Development and making India ready for doing business as a Global Player. The PM should press on all the efforts needed to expose who violated laid down norms & flouted Income Tax rules & regulation and any other law of the land on the subject in converting black in to white by adopting various dubious methods during this 50 days of demonetization.