Dr. Swamy interacted with people about how corruption is hampering Indian economy during a program organized by the Foreign Correspondents Club, Hong Kong. The interaction also focused on anti-corruption efforts taken by Indian Government.
The Indian politician and economist shared his opinion on several issues during his speech on November 14. Let’s take a look at four of the most important points that he spoke extensively on.
Those using hawala racket show pro-Pakistan approach
During the discussion, Dr. Swamy opened a can of worms by exposing the fact that certain leaders from the opposition parties are pro-Pakistan because they do not want Pakistan to expose details about their black money.
The Rajya Sabha MP pointed out that some top politicians from the opposition parties have invested in Switzerland, Cayman Islands, Virgin Islands, etc. via Dubai using hawala racket. ISI officials and Dawood have complete information about this money and involved politicians. So, they are under fear and take a pro-Pakistan stand. This is extremely dangerous, and national interest is getting compromised.
Demonetization move will help in controlling prices of agricultural products
Subramanian Swamy highlighted the point that farmers usually do not accept cheques while selling their products, they mostly deal in cash. In India, forward trading of agriculture commodities is allowed. Thus, such markets attract a lot of black money holders. These people buy agriculture products during harvest time from wholesale markets and put them in cold storage. They cause an artificial shortage and this causes a spike in prices for agriculture produce.
Even if the country has an abundance of production assisted by good monsoon rain, the prices for agriculture produce keep going up and down. Government’s demonetization move will definitely impact these transactions made using the black money.
Participatory Notes are causing instability
While sharing details about reasons behind destability in the economy, Subramanian Swamy pointed out that black money is sent out of India via hawala racket and is brought back in the form of Participatory Notes.
Participatory Notes are issued by Morgan Stanley, the US Fidelity Investments, and Goldman Sachs. They do not have any date or name on them, but just mention the amount (their value). People can get them in the US by simply showing their Indian passport, bring it back to the country, and invest in the stock market. No questions or personal details are asked. Investors can invest and withdraw such investment at any time, thus, such investment creates instability in the market. Government must look into this and ban such investment.
Must take the next step to incentivize people for not creating black money
“Fighting corruption is like the fight against cancer, it hurts. Modi Government has taken a remarkable step,”-said Dr. Swamy.
The anti-corruption crusader also shared his opinion that in order to make sure people do not accumulate black money, the government must abolish the income tax. According to his calculation, the revenue obtained from the same is even lesser than the revenue that government receives from spectrum sale. So, the government can easily recover its lost income from spectrum sale and other indirect taxes. He plans to discuss the same with Prime Minister Modi soon.
By: Nitten Gokhaley
The author is a consultant journalist; you can follow him on Twitter- @Nitten4u