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Indian Economy, Scams and Economic Sovereignty


While all Indians are living uncomfortably under a scam ridden country, the trails of graft and scams are still coming with same speed. 

For example, just one major 2G scam ($ 40 Million) is substantial portion of India's GDP ($1.73 Trillion). Since then huge scams like Commonwealth Games Scam,  Coal Scam, KG Basin Oil Block selling, NRHM Scam, MNREGA Scam and IPL Scam are equally huge, the portion of black money is huge in proportion in Indian power game. 

It is funny to see the top brass of government are not only covering up all he scams but also taking retrogressive steps to shoot down new business and start-ups.  The Annual Budget 2012-2013 of Indian Union presented by Finance Minister Pranab Mukharjee imposed a new tax ‘Startup Tax’.
“It is proposed to insert a new clause in section 56(2). The new clause will apply where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares. In such a case if the consideration received for issue of shares exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to incometax under the head “Income from other sources. However, this provision shall not apply where the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund.”

When entire world is promoting home grown industries, protecting the economic welfare of nation based MNCs, the dumb fellows of the largest market of the world is hurting own companies and start-ups.

            Though, it was taken back after corporate world called it Pranab’s Death Blow to Startups in India , extremely ill advised and Devil in the Budget . But it exposed the pressure from west on Indian government to harm its own SMEs. It is certainly the ‘indirect bailing out the Boston at the cost of Bangalore’ in line with what Barak Obama wanted.

Huge list of services under tax gambit was only to fuel the already rising inflation and dearness. An additional tax burden of Rs. 45,940 crores (app. $10 billion), are be imposed on the citizens.

As per the Economist, the poor show on economic reforms reflects the politics. No strict measures taken on graft, political control and monopoly on coal, infrastructure and natural resources; rather it was promoted through indirect means of taxes for ‘Social Programme’.

            The recent backing to Greece, Spain and Italy by IMF and Indian contribution to it, is yet another example of weakening of the Indian Economic Sovereignty.

The international agencies are new means for monetary control.  This fact is well analyzed by the book: “The World Bank in India: Undermining Sovereignty, Distorting Development” .
“Going by a report in The Economic Times of Aug. 29, 2010, India was the largest recipient of World Bank loans, with over $9 billion (15 percent of all loans) as of the fiscal year ending June 2010. When the country already has an embarrassment of riches, why it mortgages itself to a dubious moneylender is a mystery.”

New global regime of economic colonial power playing it well, and our political leaders are only helping them. The questions arise are we just divided voters and taxpaying jerks for our government and UPA allies? Or we are just market for western economic colonial powers? Indian democractic system does not give any power beyond voting to Indian citizen. All we can do is to read and write... discuss and argument!

Amit



Comments

Anonymous said…
nice article posted by this blog really appreciated.
I think from outcome scam India is already poor but in future some other scam also invented soon then we to know what is the actual condition of our country this time. and for that poverty of India . the political sector is responsible this condition.
Common wealth games scam

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