Hindustan
Times ( 01 Sept 2016 ) carries a news report titled :
" Government approves permanent residency status for
foreign investors "
Following are
the highlights of the report :
" The Centre
approved on Wednesday a plan to allow foreign investors to settle, emulating a
policy in countries such as the United States and Singapore to woo investment
from abroad.
Foreigners need to
invest 100 million rupees ($1.49 million) over 18 months, or 250 million rupees
over three years, resulting in jobs for at least 20 resident Indians every
fiscal year to be allowed to settle, the government said in a statement.
Those who meet the
criteria would be eligible to stay for 10 years. The residency permit can be
extended by a decade. Up to now, such investors have been eligible for business
visas lasting up to five years.
NDA government has
pointed to a 23% rise in foreign direct investment (FDI) to $55.5 billion in
the fiscal year to March as proof the policies are gaining traction.
Investors with the
permanent residency status would be free to buy one home, and spouses and
dependents would be allowed to take private jobs and study, the government said
"
QUESTION :
Other than some very poor people of nearby Bangla Desh , which
other " foreigners " are " itching " to get a Permanent Residency Status in India ? - even without having to invest and
pot holes not coming in the way !
ANSWER :
None !
Even if some of that FDI ( $ 55.5 billion ) was made by "
Individuals " , it was certainly not for getting a Permanent Residency !
On Sept 01 , 2017 , if someone files a RTI application , he will
be informed that this new initiative has managed to attract 10 foreigners to
come forward and invest Rs 100 cr !
But , if NDA government is serious to attract , not Rs 100 cr , but Rs 100 LAKH*CRORE ,
then it needs to take some BOLD
/ GAME-CHANGING measures , such as one described in my following
suggestion ( earlier sent as email to all central Ministers ) :
----------------------------------------------------------------------------------------------------------------------------
Friday, 1 July 2016
FDI : By any other name ?
Many years ago , Shakespeare wrote :
" A Rose by any other name , would smell as sweet "
English-speaking Americans have turned this around to say :
" FDI
by any other means , would work as well "
They are calling their FDI , " Invest in US and get
Green Card " scheme
Officially called , " The EB-5 Immigrant Investor Program " , it
invites foreigners to invest in USA , through following routes :
#
" Direct Investment
Route " , which requires,
* Starting a new Business and creating at least 10 full time local jobs
by bringing in $ 1 million
But this process is very cumbersome
#
" Central
Investment Program " , which requires,
* Bringing in and investing $ 500,000 in a Government approved EB - 5 project in America
* Get your full money back after 5 years
* If you are lucky , you may earn 0.5 % - 1 % return every year
In 2015 , 18,000 foreign citizens invested ( approx ) $ 9
Billion in US under these programs - peanuts compared to a total of over
$ 231 billion worth of FDI in USA in 2014 . Among these were 111 Indians
Now , I admit that no foreigner is dying to get a " Green Card " in
India - and therefore unlikely to take advantage of a similar scheme , if we
were to launch one !
But , we can come up with a scheme that will motivate
111,000 Indians to bring in and invest $ 500 billion within ONE
YEAR !
( remember that amount siphoned out of India illegally and
stashed abroad by Indians , between 2005-2015 ? )
MY SUGGESTION :
# NAME OF THE SCHEME :
EB-3 Scheme ( Earn by Bring Back Black )
# WHO CAN INVEST ?
Any Indian citizen who has stashed away
undisclosed / illegal assets abroad
# WHERE CAN THEY INVEST ?
Scheme
A
# Repay those loans taken from Indian Banks forming Rs 7
lakh*crore of NPA
Willful Defaulters repaying bad loans will be spared prosecution
No need for Govt money ( er , Tax-Payer Money ) , to bail out those banks !
Scheme
B
# Invest in State-wise Infrastructure SPVs ( not Central SPVs ) , managed
by Private Sector
These will be approved by
each state for implementation of the following projects within the state:
* Roads / Bridges / Ports /
Airports / Smart Cities / Dams / Lakes-Ponds for water conservation /
Forestation
* Healthcare / Education / Skills
Development / Swatchh Bharat / Methane from Garbage / Digital India
* Renewable Energy / Manufacture
of Electric Vehicles / Setting up of Electric Charging Stations etc
All such State SPVs will need to be approved by the Central
Government , for which the State will need to agree
for full cooperation in implementation
of the Central River
Interlinking Project
# HOW MUCH MUST THEY
INVEST ?
No upper limit but a minimum of Rs 10
crores
# WHAT PROTECTION FOR INVESTORS ?
No questions asked as to the source of funds , whether brought in from
abroad using official channels or
deposits made in CASH from local lockers !
No penalty , nor any civil
/ criminal action against investors
# WHAT INCENTIVE FOR INVESTORS
?
All
interest / dividends paid out by the SPV , will be tax-free for 10 years if re-invested in any
other similarly
# HOW LONG CAN THEY
AVAIL OF THIS SCHEME ?
This scheme will open on 01 April 2017
and close on 31 March 2018
# HOW CAN INDIA BENEFIT
FROM THIS SCHEME ?
* Inflow of $ 500 Billion ( Rs 34
lakh*crore ) within ONE
YEAR
* Generate 50
million jobs by 2020
* State Governments will go all
out to
# Motivate private sector to set-up
Infrastructure SPVs within their State
#
Vastly simplify government approval process
#
Eliminate / Reduce , rules , procedures and permissions
#
Introduce " State level Incentives " to attract those BLACK MONIES
into SPVs
I believe , with introduction of EB-3
Scheme , there will be
such fierce competition between the States that India's rank in " Ease
of Doing Business "
will jump from current 130 to
within TOP FIVE !
And all of this without having to pass any law in the
Parliament - and with least dependence on bureaucrats !
Dear Policy Makers :
With two years already gone without making much of a dent
, I urge you to stop tinkering with
INCREEMENTAL
IMPROVEMENTS
Promising freebies before State Elections , won't take you
beyond 2019 !
----------------------------------------------------------------------------------------------------------------------
01 Sept 2016
www.hemenparekh.in / blogs
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