Looking merely at direct taxes, it is often suggested that India is an under-taxed nation. This, says R. Vaidyanathan, does not take into account the speed money paid for government service. This rent-seeking makes the nation high-taxed.

THERE is a view among some experts that India is an under-taxed economy. Many a time Finance Ministers believe in this and exhort people to pay their dues.

Advertisements are issued to induce people to pay taxes and novel schemes are suggested before every Budget to augment government revenues. One of the common arguments is based on the share of taxes to GDP and it is suggested that it can be much higher. Another is in terms of the composition of the taxes - direct and indirect - and it is suggested that the latter, which are regressive, are larger share of the pool.

Table 1 gives the share of taxes to GDP for select years from 1991. The share of taxes, both direct and indirect, has been around 15 per cent of GDP in the last decade and half. The share of indirect taxes was of the order of 11.5 per cent and that of direct taxes 3.6 per cent.

Based on this data of direct taxes to GDP of nearly 4 per cent, many experts, particularly of the Left persuasion, argue that we are a under-taxed nation from the view of the direct taxes. But, as we will show, they do not take in to account the payment to be made to government employees (variously called bribe, rent seeking, speed money, lubrication, etc.) for carrying on any activity and to that extent the total taxes are much higher than reflected.

Table 2 gives the level and composition of taxes of both Central and State governments in the last decade. A slight shift in the proportion of direct taxes from 1991 to 2003 is seen. It has gone up from 14 per cent of all taxes to nearly 24 per cent during this period when the proportion of the indirect taxes came down from 86 per cent to 76 per cent.

A substantial drop is seen in the Customs duties due to our international commitments. Excise duties declined from 28 per cent to 23 per cent during 1991 to 1996 and by a similar magnitude later. The share of personal income-tax showed an increase from 6.6 per cent to 9.9 per cent. As personal income-taxes and excise duties are shared with State governments, there is no enthusiasm for the Centre to reform them.

The aggregate taxes do not reveal the full picture of evasion and coverage. Table 3 provides the number of returns filed by salaried and non-salaried persons in 1999-2000 according to the I-T Department.

It says that there were no salaried persons earning more than Rs 1 crore annually and in all only 200 persons above Rs 25-lakh. In the case of self-employed, the number is around 900 in the Rs 25-lakh category with none in the Rs 50-100-lakh category.

From Table-3, it looks as if a relief fund should be created for all our top film-stars, cricket players, surgeons, lawyers, chartered accountants, architects, tax consultants and other self-employed persons. They all seem to be in distress!

Table 4 provides the number of returns from some categories of services as published by the I-T Department. The numbers speak volumes about the coverage and the nature of underlying collections.

The whole country there are apparently only 10,539 utensil and 5477 furniture shops in the taxable category. Pinch yourself.

Immediately the argument will be to strengthen, enhance, improve and network the I-T Department. The issue is not that. It is much more serious and cancerous. If you visit the Postal Department officers’ quarters in, say, Mumbai you will find mostly cycles and scooters.

But if you visit the residential quarters of the staff of Direct or Indirect Tax Department, you may find expensive cars parked there. That should provide clues to the issues facing us.

At the same time we find that the income of government employees rising faster than the inflation rate in the last thirty years.

Table 5 provides the increase in salaries of public sector employees in relation to inflation. The emoluments have risen 3610 per cent from 1971-72 to 2000-01 when the Consumer Price Index climbed 1440 per cent. This implies the public sector employees are net gainers with their real income well protected.

Hence decline in the real income cannot be a reason, if at all it is justifiable, for rent seeking from ordinary citizens.

The Indian government must be their policy so that foreign direct investment up to 24 percent in small and medium-sized enterprises (SMEs), while ensuring better credit facility financing and technology for global competitiveness, industry experts said Wednesday.

Direct benefits of FDI have not durchdrang on SMEs “, Prabir Sengupta, director of the Indian Institute of Foreign Trade, said in a Workshop on Technology Financing for SMEs.

He proposed a revision of the current political DI-including the provision of foreign equity up to 24 per cent for SMEs.

Opening a workshop, Sengupta said the SME sector was important for the economy, because about one third of total Indian exports and 7.0 percent of GDP.

Draw the challenges of the industry, which accounts for 95 per cent of industrial units and employs more than 17.8 million people, Sengupta said small businesses should be cheap loans instead of grants.

In an era of globalization techno-brands to the internationalization of technology and the globalization of the economy, Sengupta said the training system must also be the development of the industry. In his speech, Senior Adviser Confederation of Indian Industries, YS Rajan, said while it is important for SME units-specific skills, they must also think globally and work on the world market.

Rajan, co-author of “India 2020 - A vision for the new millennium” with President APJ Abdul Kalam, said that the mere invention of a technology is not enough.

Similarly, it is important to say that technology in production and provide a delivery system, so it can be used, he said.

NIILM Centre for Management Studies, Delhi, the 11 winners in the National Student Games management held on Tuesday.

ICFAI Business School, Mumbai and the Institute of Management Technology, ghaziabad, the first and second runner. On the PSG Institute of Management, nine teams from different regions of the country, competed among themselves for the final Tuesday. The groups were withdrawn from the semi-finals on Monday.

For finalists, play is serious business. With view on the screen of the laptop, they discussed strategies and action plans developed for business nervenaufreibende problems.

Produced by the All India Management Association (AIMA), the games are very popular among students in management, particularly from the southern region. “We have the most number of participants from the southern region - 169 of 263 participants from countries of the South,” said Vikas Gupta, Deputy Director, AIMA. The game, everything revolves around replicate real work situations.

Each group has been Chief Executive Officer, Chief Operating Officer, Chief Marketing Officer and Chief Financial Officer.

Each group receives a company and asked to manage. You must make business decisions with consideration of an economy and fluctuations in market conditions. “Simulation game test the real potential of students. You will have the opportunity of their theoretical knowledge,” says SCTyagi, vice-director of AIMA.

The game is not only for students of management. MCM and engineers can participate. For Suvidh Arora Tripti Agarwal and the Institute of Technology Management, ghaziabad, the game is even more demanding. Two of his teammates could not do, and they are moving toward the battle. “This game is all about handling situations. We are dealing here with a problem, and we are confident of handling,” said Suvidh.

“Each phase of the game is a challenge,” said Vishal Agrawal of ICFAI Business School, Mumbai. Vishal and his friend Abhay Jain participate in this game for the second consecutive year. Sumeet Tiwari and Hitesh Bhagchandani same part of the Institute for the first time. According to them the game is a great learning experience.

India Inc. is getting younger. The basis for that sweeping statement is the fact that the panel Business Today put together to identify India’s hottest young executive talent, a panel that comprised some of the best-known executive search firms in the country, had no difficulty identifying 25 people under the age of 40. The last time this publication embarked on a similar exercise (See India’s Hottest Young Executives, September 29, 2002), the panel was hard-pressed to meet the age constraint, and eventually extended the bar to 42. The times are responsible for the sudden profusion of young executive talent-including reserves, our list numbered almost 40-and, to flip the argument on its head, surely, an economy that presents so many young people with an opportunity to prove themselves cannot be anything but booming?

Sanjay Rishi, forty-something top-flight finance director, under the direction of American Express Global Services Centre in Asia over the past two years. The son of an officer of the Indian Air Force, in Amritsar, he was born and grew up with her two sisters in New Delhi. He went to school in Mussoorie and Delhi.

After his graduation from St. Stephen’s, it registered at the Faculty of Management Studies, where he met his future wife Vibha Paul Rishi, now Pepsi’s high-profile Chief Marketing in India. Rishi started in Asia for colors. His career, click on “Fast-Track, if it is done by American Express during the year 1985.

Rishi and his wife live in Gurgaon Vibha Varun with children (14) and Sanjana (12), animals and Labrador and German Shepherd Nugget Prince Andrew aka Andy.

Are you a spender or savings?

A donor, without question. Through good and bad times, I have always tried my best to consumer spending. I think it will help the economy.

How much money do you have in your wallet?

If people of my business to read this article, I think a lot of money, this is not true. For example, right now, I have Rs 323 and fifty paise in my wallet. The three rupees and paise coins are - they badly when I rest.

Do you have any credit cards?

I take the American Express staff (Gold) Card and American Express Corporate Card. I helped launch both.

Have you ever really hard?

As qu’enfant, I’ve never really had enough money to buy goodies in the school canteen. But it did not matter, and this is an important issue through philosophy, I life: It is never enough, or it is appropriate depending on your perspective. I prefer the latter. I have my parents for that value.

The first four or five years of my life work has been quite tense and I had a girlfriend (now my wife) to promote! For some time, she was in Mumbai and I was in Nagpur. Our parents were in Delhi. Scrounged me, until I had enough to go meet the weekend, and beat my savings expensive restaurant or two. It has borne fruit and taught me the pay-off, that financial discipline.

I remember an extended weekend, I drove to the reservation of Bombay electronics and slept on the floor of the train. I have the station Dadar, and it was raining bucket of water. I’m hanging in turn a PG hollow and completely soaked, his mother for opening the door: she was also visited by his daughter in the same weekend! Planning is everything …

India is emerging as a laboratory for testing out new technologies and business models for narrowing the digital divide between urban and rural people in a developing economy.

Lack of Internet and telephone connectivity in rural India, where over 70 per cent of the Indian population lives, is a major challenge for a number of authorities, NGOs (nongovernment organizations) and multilateral aid organizations. The business sector is also discovered that relays the digital divide could translate into new markets open.

For example, HP Labs, India, which was established in Bangalore earlier this year, Palo Alto, CA, Hewlett-Packard Co., is developing products for markets in rural India . “Our technology has been placed on three areas - information available to the technical means to use Indian languages, improvement of connectivity options, outside major cities are not currently have adequate access to the Internet and affordable devices, “said Srinivasan Ramani, director of HP Labs India.

“For example, we are working to create an Indian language for taking over experimental PC can be used for four users simultaneously,” said Ramani.

HP Labs, India is also to examine how digital photography, you can a second source of income for the village kiosks, access to computers and the Internet, and is also experimenting with techniques developed by its parent company, Palo Alto laboratory, Low bandwidth multimedia communications. “Teachers and students can create their own stories and presentations with such a system,” said Ramani.

Private sector participation in projects to strengthen the digital divide in India is likely to increase, Ved Prakash Sharma, director of information technology (IT) and computer and communication specialist of the National Agricultural Technology Project of the National Institute of Agricultural Extension Management in Hyderabad. “Everyone by moderators, there was a chance to these initiatives, and that is good,” said Sharma. “The growth of the Indian economy of rural areas, a large number of customers for technology companies. ”

Projects in the public sector are also fashion and the establishment of communication infrastructures. Media Lab Asia (MLA), based in Mumbai, is setting up an 802.11 wireless network standard consistent with Internet and voice connectivity to India, the rural masses. Established by the Massachusetts Institute of Technology (MIT) ’s Media Laboratory in Cambridge, Massachusetts, in tandem with the Indian government, MLA focuses on the development and deployment of technological solutions for closing the digital divide in developing economies.

Assessment Project 802.11 for rural connectivity is anchored MLA research centre in the Indian Institute of Technology (IIT) in Kanpur. From four villages around Kanpur, the project plans for a “corridor of information” between the cities of Kanpur and Lucknow in North India, which account for about 25 villages along the road. MLA plans deployment of 802.11, which until now have not been used in rural India, connectivity, because of its lower cost, according to Dheeraj Sanghi, MLA scientists at IIT Kanpur research centre.

While it is premature to the impact of recent initiatives MLA and HP, previous projects to provide solutions to bridge the digital divide, report remarkable success. The telecommunications and computer networks (Tenet) in the group, Chennai-based Indian Institute of Technology, Madras, developed in-house corDECT Wireless Local Loop (WLL) for the provision of technologies and Internet connectivity to 250 votes Community Kiosks offer these services to over 700000 people in rural India, according to Ashok Jhunjhunwala, Professor of Electrical Engineering Department of IIT Madras, and director of the Tenet. The wireless local loop based on micro-mobile, DECT (Digital Enhanced Cordless Telecommunications), standard ETSI (European Telecommunications Standards Institute).

Thiruvananthapuram, on October 1. A study on stress in mid-level executives from 96 companies in India and Kenya showed that tensions in the workplace might also a cascade of negative impact on gross national product (GNP).

Mukunda V. Professor, Faculty of the Indian Institute of Information Technology and Management-Kerala (IIITM K), led by the study was conducted, said that stress Business Line offers negative effects on health, with consequences harmful to individual productivity.

Research at the USA revealed that the opportunity cost of stress because of the offer amounts to no less than 10 per cent of gross national product of the country. Other studies, under the direction of medical experts have shown that 50 to 70 per cent of all forms of physical illness directly attributable to an increase in the burden.

Indeed, if the teacher is a pointer to the nature and intensity of pressure at work because of competition from increasingly in a global economy.

The study, in which a Kenyan scholar, M. Charles M. Zakayo, also participated, found that the causes of the significant jobs in the Indian and Kenyan Manager at the frequent failure final decisions and strategies, poor career growth, mismanagement of time, removes anger and frustration at the workplace hostile and the trade union movement.

While the average in the two nurseries in India and Kenya has suffered from high stress at work, there were differences in the relative stress.

A greater proportion of medium-level leaders of India lived stress compared to those in Kenya.

The study focused on 95 companies from both countries and had 480 managers at the central level, as respondents.

Its main objectives was important causes of stress at work, a relative measure of stress, and to discover if Manager, stress management techniques practiced muted at best manage the situation of these steps.

According to the professor, activities of each agency are all interrelated and lack of mutual understanding between staff would have the effect that stress for all, regardless of the hierarchy.

But a high level of flexibility in their policies and regulations tend their managers at the central level a certain degree of freedom for the tasks assigned to them.

The study suggested that more organizations in India and Kenya are conducting programs to reduce stress jobs not only for their executives at the central level but also all other employees.

Two factors will implement the different environments in both countries. They are (1) The sexual harassment in the workplace is much higher in Kenya, and (ii) trade unions were hostile India curse.

Effective time for planning and management can help reduce stress, “said Prof..

The study found that managers had a clear plan for the use of their time, before the real work begins, and as much as possible, glued to plan their time, had less stress than the others.

Thiruvananthapuram, Aug. 27 The cross also born E-networks (TENs), the first product of the incubation programme of the company in the Indian Institute of Information Technology and Management-Kerala (IIITM-K), has announced its intention to implementation of an employee of participation (ESOP) Programme.

Ten offers products and solutions for e-learning, digital library of knowledge and information portal enables enterprises to the economy, industry, research and development organizations and academic institutions.

Speaking to-Business Line, M. Manjul Sahay, Chief Technology Officer, ten, said that the company has established consultants Deloitte, Haskins and sells the program structure would ESOP programme.The Roll-out within one month for the first When a technology park - undertakings proposed to carry out a concrete plan ESOP.

Mr. Sahay this at the launch of formal operations of the company Techno Park.

Inkubiert and developed in the IIITM-K as the first product of industry and academia, ten was officially supported by the U.S. Technology Group owns the company as the USA and software Toonz Animation of India, the two modes of operation of Techno Park.

At the opening ceremony, Mr. KPP Nambiar, president IIITM-K, said that India was back in an official form between industry and universities to participate in new ideas, drawing on them and through the, where they enjoy.

Dr. K.R. Srivathsan, Director, IIITM-K, said that ten was brought to the activity of constraints dictated that the country could not hope to survive on software services for the continued relevance in a competitive market.

“Requirements of the value chain are now asking that the country immediately places emphasis on leadership and entrepreneurial skills. The challenge is to facilitate IT and India.”

According to Mr. G.A. Menon, president of the U.S. Technology Group, U.S. companies spent $ 8 million for marketing various products group companies.

Ten-products in their repertoire, he said and added that these products have already attracted great interest from some Fortune 500 companies.

“They are 10-20 times less expensive than competing products to the USA, and provide consistent quality and lowest possible cost, large customers.”

Pramati, IIMS between partners: Specializes in e-learning, knowledge management and Enterprise Information Portal Solutions, ten announced a series of partnerships with key industry players.

The company is a partnership with the Hyderabad-based Pramati Technologies offers its solutions on Pramati Application Server. Pramati is an End-End-to-business provider of Java platform.

Indian Institute of Management Ahmedabad (IIM-A) with the help of e-learning platform Acado ten, of course, for the creation, deployment and management of the classroom complement learning.

Chairman and Chief Mentor of Infosys and software symbol NR Narayana Murthy asked today, people resist too rigid, reported the relocation of central government to “dilute” The right to information (RTI).

In response to questions from the public after releasing a book here, Murthy said in regard to the question “…. Bureacracy beat a retreat. It will. They should not shut up. It fights back “.

And then he made a passionate appeal, I .. Please do not allow RTI diluted share. When you click, it is the biggest defeat that the citizens of this country. ”

“We must congratulate the current government to do (the act RTI), put in (through parliament) and a good job,” he said. “Well, it is your responsibility to protect them. Please do not give It Up. ”

Murthy had published the book “the evolution of markets and institutions: A study of an emerging economy”, written by Professor Murali Patibandla, a professor of corporate strategy and policy of the Indian Institute of Management, Bangalore.

There is a great debate regarding the Employment Guarantee Scheme (EGS) and the usual slogans such as “Kick-Start of the economy, increasing the savings rate, reducing tax rates and reducing the budget deficit mouth.

The EGS is expected to reduce unemployment, establish durable asset, to supplement rural incomes, an antidote against inflation and the chain of community efforts. But the biggest segment of the work are independent and government policies are sure that they pauperise.

Grand role in national incomes

Table 1 shows the various groups in the national income pie. The so-called unorganisiert sector, composed of individual companies and partnership (P & P-sector) represents almost 38 per cent of national income, while groups form barely 14 per cent and 24 per cent in government.

The P & P dominates the services sector in areas such as construction, trade, non-Railway transport, hotels and restaurants and other services. These are the sectors with higher growth in the economy. Since the private sector, the drafters of the English-language newspapers and bureaucrats - all members of “groups of workers” - public opinion and policy makers, formulators, the travails of self-employed workers are not yet fully understood discussed.

Losses shares in the bank credit

The share of self-employed savings is significant and India, it is in the household sector.

It is clear from Table 2, it is clear that almost 94 per cent of the savings comes from households and at least 70 percent of non-wage groups, ie the self-employed.

Table 3 gives the various sectors in the credit output banks. Despite the high proportion of household savings and income of their share in the credit off-take fell by 58 per cent in 1990 to 43 percent in 2002. In other words, commercial banks have independent groups.

The largest category in the field of employment

From the viewpoint of employment, Table 5 shows that the independents are more than half of the east, unlike the situation in the USA, where only 7 per cent in this category, as shown in the table 6

Therefore, much of a policy regarding the labour market, are useful in the Western context perhaps inappropriate, our situation.

A significant proportion of independent workers is scheduled for caste / Tribe / Other Backward Classes category. Table 7 contains the most important aspects of the category of self-employed is based on a survey NSS