Thursday, March 26, 2009

Hindusthan has to regain its role as a global economic power

Savings to the extent of 25 to 30% of the GDP or one's own income is said to be healthy economics for a nation or for the individual. The figures for Indian savings in Swiss bank show amazing wealth trends of Indians - a few Indians!

Read the following article by Dr S.Kalayanaraman in

Some excerpts:-

"The story of Independent India has been a continuation of the social structure left by the British colonial regime with the ruling class appropriating a significant percentage of the national income. The impoverishment of the 65 per cent of the people dependent upon the village economy is the most serious impediment to India regaining its rightful place in the comity of nations as an engine for increasing total world output. Maddison had shown that "India had the world's largest economy in the 1st century and 11th century, with a 32.9 per cent share of world GDP in the 1st century and 28.9 per cent in 1000 CE. United India had 22.6 per cent of global GDP in the year 1700 compared to 23.3 per cent of entire Europe".

It is possible to regain that stature for India in the world economy. Two immediate steps should be taken.

The monies held in Swiss Bank accounts by Indians should be nationalised under Benami Transactions Prohibition Act, 1988 and the onus of proving legitimate holdings should be on the account holders. Swiss Banks should be asked to remit the monies into the Indian treasury. Holding benami accounts is a cognizable offence. This was an Act intended to prohibit benami transactions and to establish the right of the State to recover property held benami.
Under 5 of the Act, Property held benami liable to acquisition-
(1) All properties held benami shall be subject to acquisition by such authority, in such manner and after following such procedure, as may be prescribed.
(2) For the removal of doubts, it is hereby declared that no amount be payable for the acquisition of any property under sub-section(1)

2. The dismal trend of negative growth rate in agriculture should be reversed.

Deposits in Banks located in the territory of Switzerland by nationals of following countries:

India$1456 billion
Russia$470 billion
UK $390 billion
Ukraine$100 billion
China$96 billion

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