Commission for Business and Industry Growth and Development (CBIGD)

 Commission for Business and Industry Growth and Development (CBIGD)

There are thoughts to change the terms of reference of the Planning Commission as the institution has outlived its useful and productive function in an economy which is less controlled, less socialistic and less homogeneous across states in terms plans and activities  designed  and approved by it for development of the states and industrial development of the country.

Whatever the faults with the Nehruvian vision for the Planning Commission as a copy of the Soviet plan system its achievements have been dismal and its negative impact as a controlling all knowing authoritarian agency of the central government directly reporting to the Prime Minister. Prime Minister Nehru was of course in love or or I say say infatuated with the Soviet Socialism like lovers sometimes do.

India has achieved a lot since its Independence in 1947 but it has been held back significantly by giving excessively larger role to the public sector and only a very minor role to the private sector. Even now many politicians and civil servants mistrust and suppress the private sector generally and big business particularly. The entire focus and importance must be reversed if India wants to grow and develop.

Then there is the Finance Commission which actually allocates central funds to states to implement their plans or Planning Commission approved plans.  Finally actual allocation of the budget is under the control of the Finance Minister which levies taxes and funds everything.
There is inconsistent and overlapping efforts without any synchronizing among the three major bodies controlling allocation of finance within the government at the center and states.

It is good idea to let the new CBIGD retain its data collection,  research and analysis function  and create a new bigger division to focus on business and industry growth and development across the country working closely with the  Industry, IT, Technology, Agriculture, Health, Education and other ministries which themselves could be reorganized to give much more importance and role to the private sector to develop businesses and industries in each state and district.

CBIGD could also be an implementing agency to make huge investment in infrastructure to move the economy and create jobs and incomes instead of handouts, invest in roads, transportation systems-land, water, air;  electricity, gas and oil, cleaning up and connecting  rivers, public trash collection, public toilets, sewer systems, recycling and purifying water, etc. Each of these could be managed by divisions to oversee their construction simultaneously as these are all mutually exclusive projects.

A subway system in Chennai, an airport in Jhunjhunu, cleaning up of the Ganga, Setting up public toilets, sewer systems in different cities, ... can happen at the same time under competent technicians and managers who will make the ministers and MPs very smart and productive  to their constituents.

Looking back five years from mow we could appreciate wonderful achievements under such a system. If the Planning Commission remains as is then nothing much will have happened. So it is imperative that the Narendra Modi government creates something like CBIGD as a true growth and development agency of India.

Ten Things for PM Narendra Modi to Do to Empower India as India has Empowered NAMO

Ten Things PM Narendra Modi should do to achieve his dream for India

1. Make huge investment in infrastructure to move the economy and create jobs and incomes instead of handouts. Invest in roads, transportation systems-land, water, air, electricity, gas and oil, cleanup and connect rivers, public trash collection, public toilets, sewer systems, recycling and purifying water, etc.

2. Education expansion and reform based on merit  and efficiency of curriculum, students and teachers, use of technology, and focused teaching and learning. Create training centers and polytechnic institutions  in every activity at colleges and schools in all communities across the country. Use public as well as private education systems to build up to date human capital in all individuals as their capacity and interest. Give equal opportunity and resources to all regardless of income, caste, religion, region, etc. Create training  and jobs where people are in rural and urban areas to minimize migration and use available resources everywhere.

3. Give incentives to small and medium manufacturing and creative and innovative centers in each district  and Panchayat Samiti of India. Provide guaranteed working capital through banks and capital markets to profitable enterprises. Give incentives to hire local talent from area colleges, schools and training centers strictly on merit, capacity and performance of the employee.

5. Set the tax rates at 15 percent for income, dividend and capital gains and corporate profit to make them equally important in the eye of the state. Set capital gains at 15 percent for capital appreciation returns on investment up to  20 percent and at 20 percent on appreciation above 20 percent. Apply a universal 5 percent national GST (VAT) on consumers  and 10 percent excise tax on corporations.
Apply a 5 percent of net profit as voluntary giving back to the society  as decided by corporate or non-corporate owners of large businesses. If they do not meet this requirement annually then it becomes a required tax. Corporations would naturally prefer choice of whom to support for education health, training centers, pure donations to the poor and needy, young and old, etc. instead of handing over 5 percent more to the government.

6. Minimize, reduce or eliminate subsidies to create a level playing field in the market place.

7. Crate and build capacity of the individual to create opportunities for each individual.

8. Liberalize competitive money, banking and capital markets to make the needed financing available to all at a reasonable cost, i.e. at interest rates below the expected return rate on the use of funds. Strengthen financial regulation and supervision to stop a financial bubble before it builds up while making finance available to all who need it in agriculture, industry and service sectors as well as consumers who can qualify for prudent credit.

9. Remove religion and caste based quota, reservation, special or extra treatment and subsidies so that every Indian is treated equally on merit basis  and equal opportunity. Eventually make a constitutional change to eliminate the current reservation system altogether. The state should be strictly secular without any preference to any religion. People can practice their religion as they wish. No discrimination and o preference to any religion.

10. Immediately pass a law that any civil servant/government employee caught taking more than a free cup of tea from any one in providing the government service for which he/she is already paid very handsomely should be immediately suspended and prosecuted for taking a bribe in the performance of official duty. His or her pension should also be frozen. This law will apply to all central, state, district, panchayat samiti,  and panchayat legislators. officers and office assistants across the country without exception.

Good luck and best wishes to you and your government for a better, cleaner and more prosperous and equal India.