Imperative of Re-Monetization .

RE-MONETIZATION of the Indian economy in a time bound manner would be the key starting Policy Instrument, that starting point of the policy that will form the arrow-head to drive the required change in the polity of the nation, the Policy around which the new Laws and Rules of Governance are to be framed and rolled out.

Re-monetization of the Indian economy would be a key tool to kick off the complete resetting and restructuring of the economy, its banking system, tax laws and governance paradigm.

A crucial starting point would be to bring into the open, the hidden or black wealth or economic activity releasing energies that are hitherto not available for legitimate nation building.

As is well known and acknowledged, Black money is held and has been   generated primarily through the following:
 

  1. Theft of the National and State Exchequers. This is primarily through siphoning off of money in government contracts
  2. Through kickbacks
  3. Through paper trail completed projects for which tenders are called, passed, projects completed on paper; such as roads, other civil works; with nothing or very little done on the ground.
  4. Through siphoning off from various poverty alleviation or social schemes; through corruption of all manner.
  5. Bribery and corruption where cash is exchanged for favors.
  6. Tax evasion
  7. Goods traded and produced in the cash economy.
  8. Over invoicing and under invoicing of goods including of those exported and imported.

Black money is used and parked in numerous ways including the following:
 

  1. Cash
  2. Real Estate
  3. Gold, diamonds and jewelry
  4. Overseas through over-under invoicing, hawala etc. that is then invested in buying real estate and / or businesses for and / on in the names of close relatives and / or fronts overseas or back in India.
  5. Tax havens
  6. Cornering of permissions and / or licenses to set up educational institutions’, hospitals, land banks and colonizing companies etc.

There is a huge number and network of “money recycling” companies that are absolutely legal and functioning within the confines of the legitimate economy. They are duly registered companies and are registered with appropriate authorities including with tax, service tax, GST or whatever.

They trade, raise bills and expenses, file tax returns, but hidden within these on paper, legitimate activities, is a “money recycling” business. It is because of this phenomenon, that the De-monetization initiative of the Modi government largely failed and, shockingly, almost all the money in circulation came back into the banking system, overnight! These entities convert black into white and white into black as per the needs of their clients.

The De-monetization flop amply demonstrates that the Indians are always prepared; and do not react well to coercive and draconian laws and measures; they need to be taken into confidence and won over.

All of these and other areas are the target to be tackled under the new policy at time of the announcement of Re-monetization.

The re-monetization of the economy would be also underpinned by the effort to bring into play the huge wealth held by Indians, in India; and overseas through family and relatives settled there. Of particular interest would be relatives and extended family members overseas who grew rich in various overseas businesses through investments of moneys transferred in the referenced country from third countries other than India, given that “Hawala” usually has a two or three step-hops process.

The government would make an announcement of unconditional amnesty for bringing into the open “white” economy, wealth and assets held in India or overseas, through a policy encouraging full disclosure of hidden, undeclared wealth and assets, under a set of rules pre-announced, and a Legal Framework that is nation as well as people friendly. One that promotes enterprise, and creates activity and wealth at a rapid pace for the entire socio-economic spectrum. This document sets out this framework.

The first and foremost impact of the new Policy framework would be to make India into a totally white economy; to eliminate the Number two or Black economy as an act of voluntary coming out into the Sun, as a consequence of sensible policies couched in a general amnesty; rather than the straight out coercion approach that governments have tried and failed in.

Conceivably, if successful, this would turn India overnight into probably the 2nd or 3rd biggest economy of the world with huge surpluses available to the nation virtually overnight. This would especially be so if the amnesty, guaranteed by a constitutional amendment, and attached to the New Deal Policy framework is successful in bringing into the mainstream economy all wealth held in India, and globally, by Indians that was legitimately created and / or originally stolen and invested overseas and grew over the years to gigantic proportions.

Question is, why should our genius, our money and wealth, be contributing so very much to other countries with no benefit to our own? Something most of our citizens settled overseas wish to do, passionately and freely is intrinsic their desire to contribute to India.

Re-monetization would provide an unprecedented opportunity for India to reset its economy and governance paradigm. The first and most important aim and consequence and indeed imperative, would be to bring the hidden part of the Indian economy, the Black or Number Two economy, whether in India or held overseas, out in the open.

If these garners the support of those in the “hiding wealth” net over the past 50 years, and the implementation of the policy is efficient and engenders confidence, it will, literally overnight, leap-frog India into the big league international economy narrative.

Re-monetization is framed to be done in a manner that incentivizes full disclosure, inspires confidence, and not fear. It is designed to be done in a manner that takes into account both public and individual interest and psychology as well as national and larger public interest.

While the system is being corrected and realigned, even those who have been responsible for theft of the National and State exchequers, the Politicians, Bureaucrats with or through their extended families and coteries, are being given a generous and fair chance to come up above board and contribute to the Tsunami of Change that is required today to bring India into a position of Material and Spiritual strength.

Re-monetization of India would begin with the government announcing a broad based general amnesty to all Indians living anywhere in the world up to 5 generation Indians abroad, to take advantage of the scheme as follows:

The Rising India Party proposes that on winning elections it would move to carry out the implementation of Policies laid out in the party’s published framework. These would include:

  1. Re-launching and re-setting of the Economy through a re-monetization exercise, combined with a new Policy Framework for Economic Activity in the country.
  2. The country would for a period of 18 months of the Re-monetization of India exercise, provide the opportunity to all Indians, in India and Overseas to declare and come clean on their hidden on ill-gotten assets.
  3. An unconditional Amnesty would be announced within a clearly defined framework, whereby in return for full closure of all wealth, however and whenever made over the past 50 years, citizens would gain a clean slate and in some cases, privileges as set out.
  4. The amnesty would apply to all Indian citizens, including for those living abroad who are descended from an Indian parent in cases of hidden wealth over 50 years, cut off year 1968.
  5. In order to engender confidence in the amnesty the Rising India Party would pass through acts of Parliament, amendments to the constitution as appropriate to support the re-monetization and amnesty policies that protect the Core Interests of India and the people declaring their hidden wealth.
  6. The amnesty would provide the grounds for the-coming-out-in-the-open for all Indian Citizens or to Indian Citizens by decent, present anywhere in the world; through a full disclosure of all activities and wealth held globally.
  7. The amnesty would also provide the opportunity wherein in return for full disclosure for citizens to gain possible opportunities for access and become an integral part of the national narrative at Core Groups at various Core Levels of national activity and development discourse.

An act of fully guaranteed and secured pardon and fresh friendly interface with the Indian State, would be a great attraction to millions of people within India and to a large part of the diaspora present abroad.

The voluntary full disclosure policy is the way forward as the core policy to re-set and re-monetize the Indian nation and its economy. This can certainly not be done through coercion or threat that the Indian State is currently employing in its effort to gain compliance to its archaic laws run by the same old corrupt bureaucracy. The “thane-dar” approach will simply not do for our people, not is it appropriate within our civilizational narrative.

Factors that were kept in mind whilst designing the New India paradigm include the fact that our civilization has displayed an outstanding characteristic; in that professions, skills and knowledge, in any given field, are passed down from generation to generation within the same family and its children or pupil inheritors. Thus, a goldsmith has been one for generations, so also the teacher or Guru, the artisan, the tailor, the trader, the metalworker, and indeed the business man-family and so on. This ancient fact only just started to break, mostly after independence, but still exists in pockets.

For instance, to this day, our business families, exemplified by the Marwari clan, and others of their ilk amongst the Guajarati’s, Sindh’s are the world’s smartest and best, in every way. Their financial acumen and business sense are unmatched and unparalleled anywhere in the world. What they have lacked in genuine opportunity through free trade and business friendly laws in India, they made up for, with sheer enterprise, innovation and sheer perseverance.

The new Policy must generate a sense of liberation and freedom from the tyranny of the past rules and its implementers, bureaucrats, and politicians and unleash positive energies that carry everyone on the up-draft.

The Rising India Party would, immediately on elections initiate a Re-Monetization initiative and a Reset of The Finance Ministry and India’s economic management as stated below.


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