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Posted on 08 April, 2014, No Comments Comments admin
The BJP manifesto and foreign investment
The BJP has released its manifesto yesterday. One of the most important challenges before the next government would be to revive the Indian economy. The UPA government inherited a 8.5% growth rate in the GDP. It will leave behind a 4.5% + growth rate. For revival of the economy and expansion of economic activities, investment is required. Investment has to be both domestic and foreign.
Foreign direct investment is an additionality of resource. In sectors such as infrastructure where domestic resource is inadequate, FDI can play important role. The FDI, however, has to be carefully permitted considering the requirement of each sector. While the BJP will encourage FDI in certain sectors, it is presently opposed to opening out of multi brand retail. Unorganized retail is a largest employer after agriculture. There are four crore small retail establishments in India which support almost 1/6th of India’s population. Multi brand retail by major international groups will displace mass retail jobs. It will hurt our manufacturing establishments since organized international retail sources products internationally. India can ill-afford foreign owned stores selling Chinese goods. The elimination of small retail establishments will also reduce consumer choices. Nowhere in the world have international retailer enriched farmers or producers. The benefits of elimination of middlemen will go entirely to the multi brand retailers.
In a town like Amritsar which is heavily dependent on trading, a few multi brand retail establishments can cause havoc to the trading community. I challenge the Congress Party for a debate on the impact that multi brand retailer will have on the trading community of Amritsar.
My interaction with the hotel industry:
Yesterday, I had structured interaction with all the hotel owners of Amritsar. The subject was expansion of tourism in Amritsar. I made the following suggestions to the hotel owners:-
Amritsar will always be a tourist hub. It has to upgrade the railway station, complete the road and highway development programme, and have more directly connected international flights. The monuments in and around the city need to be preserved. Additional tourism spots such as a visit to the Khalsa College, creation of food street, reasonable taxation on hotels, increasing the number of hotels and rooms available will also help the city in a big way. The tourism infrastructure and creation of other attractions such as amusement parks can ensure that a standard tourist visiting the Golden Temple stays in Amritsar for two nights instead of one. The tourism traffic to the city itself will be doubled. This alone will help the hoteliers, traders, transport providers, restaurants, Dhabas and all tourism attraction points. Amritsar needs to think out of the box.
Posted on 07 April, 2014, No Comments Comments admin
Finally, the BJP alliance with Telugu Desam Party stands announced. This alliance represents a formidable challenge to all our opponents in the states of Seemandhra and Telangana. It is definitely capable of sending a large contingent of members to the Lok Sabha in support of the NDA. This alliance has two important impacts:
Firstly, it has established the irrelevance of the third front. All non-Congress regional parties will have to align with the non-Congress combination represented by the NDA. The third front and the left front can never suit those occupying the non-Congress space in their states. In order to form a government, they will loose their political identity by being close to the Congress. They will loose their political identity. It is thus important for them in the larger interest of their politics to be a part of the NDA. The TDP’s return to the NDA has reinforced this point.
Secondly, with this election is becoming increasingly a one horse race. This alliance substantially settles the issue whether the NDA will get 272+ on its own or not. The NDA now is capable of achieveing the half mark by itself.
The FIR against Amit Shah:
The first information report lodged against Amit Shah comes as a surprise to any student of law. An appeal to the voters to take revenge against the incumbent government or the opponent because of its non-performance by voting against them is routinely done. The context in which the speech has been delivered has to be analyzed. In this speech, Amit Shah makes an appeal to the electorate to vote against someone and avenge the injustice. I wonder which provision of law can such a speech violates since it is only an appeal to vote.
Posted on 06 April, 2014, No Comments Comments admin
The first round of polling is a few hours away. Polling is spread out over five weeks. A week is also a long time in politics. My appeal to the BJP supporters all over the country is that no election is over till the last vote is polled. The BJP is the clear front-runner with its allies. In the dying hours of the campaign before the polling in each state, the groundswell for Narendra Modi, the BJP/NDA, and the desire for change is becoming clearer. This takes the shape of a strong undercurrent which is commonly referred to as a “Wave”. Complacency and over confidence are always counterproductive. The people we meet on the road to success are the same that will meet when the going is not so good. Modesty in victory and graciousness in adversity are the hallmarks of political maturity. A last minute push by the party supporters is capable of taking the NDA into the 300 seat range. I am expecting good news of yet another alliance in a prominent South Indian state. That will add to the overall momentum. The party supporters must measure their words. We must remain focused on campaign issues and avoid controversies. The going is good. We should not take our eyes off the ball.
Amritsar Campaign
Yesterday, along with the Punjab Chief Minister, Sardar Parkash Singh Badal, I addressed a very large rally organized by the Akali Dal leader Vir Singh Lopoke in Raja Sansi. Rallies in rural Punjab have an atmosphere of their own. Mammoth crowds assemble in the morning. They are disciplined and committed. The Akali Dal has great ability to transfer its vote to its allies. The charm of Badal Sahib continues to dominate rural areas of Punjab. At his age and seniority, he works tirelessly. The power in his voice can outbeat most people half his age. He follows strict discipline and covers his daily schedule effectively. He is restrained in the use of language. His political style is a lesson for many. His political career has been spread over six decades. He has been the Chief Minister of Punjab five times. His political journey is a lesson for Captain Sahib. It is easy to become a Chief Minister once on the strength of anti-incumbency. But to become Chief Minister five times needs something more. Kuch baat hai ki hasti mit-ti nahi hamari.
Trade and industry interaction
In the interaction with the large group representing various trade and industry in Amritsar, I realized that they are all very enthusiastic about this election, but deeply concerned over the depleting manufacturing sector. I told them that my personal philosophy is low interest rate, low rate of taxation, improving infrastructure, competitive cost of utilities and expansion of the economic activities. I discussed with the trade and industry representatives the need to expand economic activities through low cost manufacturing which makes India a competitive economy. Amritsar needs to be strengthened on infrastructure, tourism, border trade, and a few manufacturing clusters.
The Company Bagh
There still subsists a sports culture in Punjab. I interacted with the local Cricket Association and its members yesterday. Today I spent time in the Company Bagh where I met the Badminton Association and its players, the Lawn Tennis Association and its players, besides a large number of morning walkers. Company Bagh has hugely improved with the efforts of Anil Joshi, a local Minister from Amritsar. Besides being the lung-space of the city, many regard it as part of its lifeline.
The Central Park of New York, the Hyde Park of London, the Lodi Garden of Delhi, are unwinding spaces of the cities. The Company Bagh has the same potential.
Posted on 05 April, 2014, No Comments Comments admin
Committed politicians need to be obsessed. It is their own choice whether they can be obsessed about their ideological and developmental issues or about themselves. Capt. Amarinder Singh questionably falls in the latter category. He creates fake propaganda and then buys the same himself. He relishes in his own image where he believes that he is a monarch in a democracy.
The Captain’s credentials are not exactly inspirational. The standards he has set in his own life are not an object of envy. Notwithstanding all these black-holes, he relies on his feudal instrument – be rude, be impolite and talk down to people. He calls me a pseudo Punjabi, a poor lawyer and a bad politician. I find it lacking in humility and modesty to talk about my own achievements as lawyer and politician. It is for others to judge me.
He has not spoken a word on what he did for Punjab during his tenure as Chief Minister. As a former Member of Parliament and as a legislator in Punjab, he has not a single credible speech to boast of. He has no vision on development of Amritsar. He has not uttered a word regarding what he will do for Amritsar. He can’t even tell the people that he will be accessible. His track record of accessibility is poor.
He gets nominated by the guilty party of 1984 and he chooses to pontificate to others on the disaster of 1984. He represents a party which provided India with the most corrupt Central government in history. He then questions others on probity while he is being prosecuted under the Prevention of Corruption Act and he advocates stringent punishment for the corrupt. It is only when he has to file his nomination papers that he realizes that it is good to be a family man. He can singularly lower the level of political discourse.
But eventually democracy has its own way. It will never accept a discredited Captain of a sinking ship.
Posted on 04 April, 2014, No Comments Comments admin
In the course of my campaign, I have met thousands of people, Trade and Industry Organizations, and several entrepreneurs. The declining economic situation in the country has impacted all. There is the need to expand economic activities, recreate investment environment period, place more money in the hands of the consumers and lower the burden on the weaker sections. Even though it is for my party to decide collectively larger issues of policy, the opinion that I wish to canvas should be made clear. I will strongly support the following ideas both within my party and in Parliament:-
1. The current income tax exemption for income of Rs.2.00 lacs should be gradually but significantly raised. It will be the major relief to small traders and mid level employees and the common man. The initial loss of revenue is not very significant. Such loss would be partly made up by placing more money in the hands of consumers and earning indirect taxes when consumers spend this money. The more the money velocity, the larger will be indirect tax benefits.
2. Small industrial units up to a turnover of Rs.1.50 crores are exempted from payment of excise duties. In view of the depleting value of rupee and inflation, this limit should be enhanced to Rs.5.00 crores.
3. The Goods and Service Tax (GST) should be immediately implemented. Comfort level will be given to State with this aspect which anticipate a loss of revenue. This will ensure uniform rate of Tax in all states.
4. The Jawahar Lal Nehru Urban Renewal Scheme has imposed stiff conditions on States with regard to levy of taxation on property owners before grants are made by the Central Government. We should declare 50 important Centres as tourism circuits. Obviously, Amritsar because of its religious and historical importance, attracts one lakh tourists a day. It shall be a Tourism circuit. Tourism circuits will earn revenue for the country by increasing volumes of tourism. These circuits should be exempted from the strict compliance of JNURLU conditions.
5. The border area farmers are losing on cultivation of their land because the fencing is within India’s territory and their lands are across the fencing. The NDA Government had started a compensation package for these farmers which was discontinued by the UPA. The same should be restored back.
All these steps can bring a major relief to the people of Amritsar.
Posted on 03 April, 2014, No Comments Comments admin
The Drug Addiction Menace
In the areas bordering Pakistan, drug trafficking is rampant. A large number of youngsters start with the thrill of experimentation and eventually become drug addicts. Wherever I travelled during campaigning, many people have expressed concern on the issue. Several families have been destroyed due to this problem. The potential of young men has been damaged. The social fabric of the society has suffered badly.
Even though it is primarily the responsibility of every family to inculcate such values in the children that keep them away from the forbidden path, nonetheless, Governments cannot abdicate their responsibility in this matter.
Both Central and State Governments have an onerous responsibility to discharge. A tight vigil along the border which prevents availability of narcotics is the prime responsibility of the governments. Strict and deterrent punishment for those who trade in and supply prohibited drugs is a state responsibility. The users have to be compassionately dealt with. Establishment of De-addiction Centres in affected areas, which are run by professionals and trained people is essential. The social and economic environment of the affected areas has to be radically improved. I have the following stray-thoughts on the subject:-
1. Create new avenues for gainful employment. Amritsar has Six Polytechnic Institutes and Six Industrial Training Institutes. These need upgradation. In addition, I will seek the creation of 6 new Polytechnic Institutes and similarly 6 new Industrial Training Institutions. The curriculum would be revamped to meet new emerging demands. Information Technology and Smart Classes which connect training institutions with potential employers will greatly help in employment creation.
2. Will seek robust broadband connectivity and penetration of Information Technology both for Amritsar and its surrounding rural hamlets and expedite the establishment of the proposed Software Technology Parks of India (STPI) centre in Amritsar.
3. Incentivize setting up additional 25,000 Small and Medium Industries based on the comparative factor advantage of Amritsar — particularly textiles, woolen fabrics, textile machinery, agro-processing and leather products. In addition, many of the existing 12,418 SMEs which give employment to 55,429 people, along with 24 Medium and Large units which employ 6,176 people, need financial restructuring. We will commission a detailed study unit wise and help in the rejuvenation of the existing Small and Medium Industries.
4. Set up an Entrepreneurial Development Centre for training of potential entrepreneurs which will create the basis for new SMEs to be set up and generate employment potential.
5. Establishment of Sports Development Centres in the State. Punjab has great tradition of producing outstanding sportsmen. There should be multiple Sports Centres with facilities of all outdoor sports in the State. There have to be two to three Sports Centres in every District. The atmosphere of outdoor sports has to be recreated.
6. Training of youth for job orientation converting them into skilled work-force, creation of job opportunities through promotion of small and medium industries, establishment of Entrepreneurial Development Centres is essential. Addiction to sports rather than to drugs must be the aim.
I visited an outsourcing centre in Amritsar. It has employed a few thousand IT trained youngsters who speak three languages; English, Hindi and Punjabi. Industrial training and coaching institutions must be encouraged to offer knowledge or multiple languages which adds to employability. The States in Southern India have done well in business process outsourcing. If Gurgaon can become an outsourcing hub, why can’t be outskirts of Amritsar respond to the challenge? Mass jobs for youngsters, particularly young ladies, are generated in this field.
Let the stray thoughts be a subject matter of debate.
Posted on 02 April, 2014, No Comments Comments admin
Amritsar city as I see it
I have campaigned for over two weeks in Amritsar. It is unquestionably one of the most charming cities in India. My past experience of Amritsar has been as a visitor to my grandparents’ home. My subsequent experience has been as a political campaigner who was in-charge of the party campaign in various elections to the Lok Sabha and the Assembly when I was headquartered at Amritsar.
It is a historical city founded in the sixteenth century. The city has a great religious significance. Sri Harmandir Sahib being located in the city gives it an international importance. The Durgiana Mandir, the Jallianwala Bagh, the Ram Tirath, the Attari border and the Gobind Garh Fort has religion, culture and history written all over. Some gardens in the city have been substantially improved. Amritsar represents the soft power of the State as a religious, historical and trading centre. It has a huge ability to attract people. Tourism will always remain a mainstay economic activity in the city.
I visualize an Amritsar which is connected on all sides by large highways, a city where the internal infrastructure needs to be hugely improved and where basic facilities need to be provided to a section of the people. There are large sections which still require connectivity for water, sewage and proper roadways. Projects under implementation need to be monitored and expedited. Several flyovers and elevated roads have been built in for the city. The lifeline of connectivity through all the flyovers like the Bhandari Bridge need an overhaul. They need to be strengthened and expanded significantly.
The heritage sites of the city need to be preserved and strengthened. The gardens need to be expanded. The greenery of the city can add to its environment. Several old buildings such as the Khalsa College need to be projected at the national level as a symbol of high quality education.
The economy of Amritsar primarily depends on tourism, industry and trade. The main industrial activity has to be around the creation of a textile cluster, the agricultural implements industry, the rice mills, embroidery, jewellery, decorative items and footwear. These clusters need to be supported by the State. The Central Government has a scheme for adding to the infrastructure of the clusters. The trading activity is centered on various items of trade related to the production of the above mentioned items.
The infrastructure for opening up of the border trade has been established. A last push is required to be given to the town to the expansion of the official border trade between India and Pakistan. Industrial activity will always depend on the manufacturing environment in the country and our ability with regard to low-cost manufacturing. Tourism and trade (including international trade) have a singular ability to revive and strengthen the economy of Amritsar.
For tourism to be strengthened, the road, rail and air connectivity has to be facilitated. Direct international flights are the need of the hour. A good airport needs to be better connected. The social infrastructure of Amritsar requires multiple categories of health care — both public and private. The promise of establishing an AIIMS in every State has to be materialized. Amritsar with a legacy of medical colleges could be an ideal location for AIIMS. The expansion of the industrial corridor to Amritsar can add to the spurt in economic activity in the city. This should be accompanied by creation of suburban townships.
The food of Amritsar is an essential part of its soft power. Establishment of Food Streets and a Food Village which opens into the late hour of the evening can add to the charm of the city. A no traffic walkway food street or food village where traditional items of Punjab are sold, can be a great tourist attraction. It can reflect the personality of Amritsar.
Posted on 01 April, 2014, No Comments Comments admin
State of the Economy
The high point of this election is that it is being contested predominantly on governance. The past few days have witnessed an intense debate on the state of the economy. Yashwant Sinha and Ravi Shankar Prasad of the BJP have launched a scathing attack on the government for its failure to act on the economic front. Yesterday the Finance Minister, P.Chidambaram put up a defense on behalf of the government.
The economic environment in the country has taken a beating during the UPA regime. From 1991 to 2004 three successive governments of different shades and opinion liberalized the economy. Slowly but surely the reforms kept coming. 2004 became a defining moment for the Indian economy. The UPA government abandoned the path of reforms. Growth rate in the initial years was primarily on account of the global environment and the impetus of the past policies. Thereafter the growth rates depleted. The revenue generation became modest. Expenditure and economic activity started shrinking. Employment generation has been extremely slow. The farm sector has not done well either. It is under a serious pressure. The manufacturing sector has not grown and during certain quarters it has even shrunk.
It is easy to pick up some odd statistics and base the entire argument on it. However, the UPA did not honestly analyze as to why things went wrong. It could therefore offer no corrective. From the UPA’s mistakes I have several lessons to learn.
Firstly, India’s Prime Minister should be a tall leader. He must have the last word; he must have the authority to overrule others. Prime Ministers will be judged not by the duration for which they hold office but by the footprints they leave behind. Regrettably, Dr. Manmohan Singh was unable to overrule others. Projects worth several lakh crore rupees were pending clearance for a few months.
Secondly, there should be no structure outside the government stronger than the Prime Minister. The National Advisory Council was a challenge to governance. It was an alternative power centre more powerful than the Prime Minister. This did not help the state of affairs. The policy shift did not help any large economic activity.
Thirdly, corruption in governance created an adverse environment for the investment climate. The 2G spectrum allocation and the Coal Block allocations adversely affected India’s image domestically and internationally. They hurt the investment climate. They added to the uncertainty of doing business in India where contracts could be cancelled and investment confiscated.
Fourthly, Retrospective taxation intended to create fresh liabilities shattered the confidence of the investors in the Indian economy.
Fifthly, the arrogance of the UPA government and the misuse of investigative institutions dead-locked the relationship between the Opposition and the government.
The result of all these factors has been that the economy has suffered. The argument that others in the world are also doing badly is untenable. Has the UPA taken any steps to convert India into a low cost manufacturing hub? The only inflation correcting mechanism that the UPA followed was to tinker with the interest rates. Did it ever look at expanding the supply side? UPA inherited an 8.5 percent growth rate in 2004. It leaves behind 4.5 percent growth rate and yet Mr. Chidambaram makes it appear that he is proud of UPA’s performance.
Posted on 31 March, 2014, No Comments Comments admin
I am in Delhi today having to address some public meetings in Delhi in support of the BJP candidates and to attend the meeting of the BJP Central Election Committee on Andhra Pradesh. I had also to address the Foreign Media. Delhi now has a large number of foreign Press correspondents representing various foreign media organizations. Some of them have additionally come to cover the national elections. I made a brief introductory statement and then left it to the correspondents to question me.
I will deal with only some of the key issues which appear to be of interest to foreign media. These issues obviously include those which are of great interest to foreign readers and viewers. I was asked as to how the BJP will re-establish confidence in Indian economy. The UPA has completely marred the investment cycle in the country. I answered that BJP’s top priority would be to restore the investment cycle in the country. The UPA has damaged the confidence in the Indian economy. India is no longer regarded as an investment destination where there is an ease of doing business. Clearing projects takes unusually large time. Some States have been discriminated against. The Prime Minister never had the last word on clearing these projects. The BJP’s priority would be to generate economic activity in the country so that international and domestic investors both feel that India is a better place for doing business. On Foreign Direct Investment I categorically stated that the BJP regards FDI as an additionality of resource which will generate economic activity but our commitment to FDI would be sector specific. We are opposed to FDI in multi brand retail because India is still not prepared for it. On retrospective taxation I clarified that the imposition of retrospective taxation during the UPA regime was a defining moment for subverting the investment climate in India. Stability of tax regime has to be maintained. Retrospective legislation for taxation is permissible only when taxes already collected are to be protected. Taxes which impose fresh liability should not be legislated with retrospective effect.
On the economic model that the BJP would follow, I stated that the BJP economic model would be such that it generates economic growth. It should encourage entrepreneurship. However, considering large scale poverty in India we cannot merely depend on the economic growth to pull people out of poverty. Poverty alleviation schemes are necessary. The schemes, however, have to be also linked to asset creation.
On foreign policy I clarified that our policy in dealing with the neighbourhood would be dictated by security considerations. However, our policy in relation to rest of the world would be influenced by economic considerations. Looking East-wards our specific concerns about security issues relating to the Indian Ocean would be of prime interest.
On the possible outcome of the elections, it was clarified that a fractured mandate will be detrimental to national interest. The NDA needs a clear mandate in order to put the national economy back on wheels. Polls are predicting that the NDA would be the front runner. The last minute push to the front runner will take us beyond the half way mark. The Indian electorate is very mature.
The Captain is again Wrong
There is a report in the media today that Captain Amrinder Singh says that I am extremely busy lawyer in Supreme Court and a lawyer who charges exorbitant fee. He has further stated that I would be unwilling to lose my lucrative practice to serve the people of Amritsar. The Captain is intoxicated about himself. He does not check up facts. I stopped practising five years ago when I became the Leader of Opposition in Rajya Sabha. I gave up my ‘lucrative’ practice at that time. I have even suspended my professional licence. But has the Captain been ever sure of his facts?
Posted on 30 March, 2014, No Comments Comments admin
A Nightmare that will not be
Sensing defeat the Defence Minister A.K. Antony cautioned the left front that ‘Secular’ forces may have to team up again to keep the BJP out. It is clear that the Congress will be restricted to a two digit figure. It’s only hope is to prop up the third front and support it from outside.
Third front is a failed Idea. It’s government that won’t last beyond a few months. In terms of governance quality it is a Nightmare. Is the Congress party hoping to repeat this “failed Idea”?
Antony’s statement emphasizes the need for voters to realize that for political stability and in National interest, it is necessary to give to the front runner NDA a last minute push so that NDA has a clear majority on its own.
The Majitha Rally
Punjab Minister and Akali Dal leader Bikramjeet Singh Majithia organized a massive Akali-BJP rally in my support today. The rally was addressed by Shri Prakash Singh Badal, Kamal Sharma, Bikram and myself. In the rally it was mentioned that Punjab and Chandhigarh had given five Ministers in the central government. I started counting who these five minister were.
Ashwani Kumar had to resign under dubious circumstances. Pawan Bansal resigned along with Ashwani Kumar under equally shameful circumstances. Manish Tiwari has chosen to keep out of elections due to ‘Medical’ reasons. Mrs. Santosh Choudhary has been denied a party ticket. Not a great Showing.