India's Semiconductor play-now only semi-final!

We continue to mouth the cliché that Exports are national priority.Exports like Agriculture will be the life blood of Indian economy.
The spin-off or multiplier effects of Exports are hugely beneficial for the Economy.It creates and thrives on  Export Competitiveness Enhancers which are Quality Improvement, Cost Reduction,Delivery improvement. They enable the exporter to emerge as the winner in the global market. International market forces at free play uphold the Darwinian principle of "survival of the fittest". When the Government does its part  of the work on Infrastructure development in terms of Roads, Ports and Power Generation improvements all these provide momentum to the multiplier effect already set in motion and that cumulatively snowballs into better quality of life for the People of India.
Exports contribute not only to earnings in foreign exchange but also to Employment generation, thereby improving the purchasing power of Indians within the country.
The enclosed flow-chart brings out the multiplier effect of exports in the Indian economy.
But the basic question is, are we doing enough to build on the Export Competitiveness Enhancers so that exportable surplus is generated and the rate is sustained.
Is the road to exports without pot-holes? No. The Tax men in general talk about losing revenue due to export incentives. But either they are  oblivious of the multiplier effect of the exports on the economy or exposing their plain ignorance or saying this with ulterior motives India can move up the Value chain only if, only if the tax bears itself less and less on Production/Manufacturing and more money is left in the hands of industry for them to invest in R&D and innovate. The industry only then can build capacities and generate employment. Only this can sustain long term development of this economy. Otheerwise, Wherefrom employment generation can happen when the manufacturing sector is chained and pained. Simple principle of Taxation as defined by Chanakya in Arthasasthra draws inspiration  from the simplest of creature -honey-bee.The message is loud and clear:  a)Honey-bee sucks honey from the flower without damaging it. b)No harassment to flowers and flowers welcome honey-bees. c)honey-bees help in multiplying the volume of flowers and thereby the fragrance. d)When flowers multiply, the honey collection increases. e)Honey-bee never uses its sting against flowers which supply nectar. f)the bee never spares an intruder who tries to steal the honey. g)the bee neither damages the flower nor tries to squeeze the flower of all its honey in one strangulating go. h)Finally, there is no uncertainty as to what the bee should do and flowers should pay The Golden Principle is "Don't kill the goose that lays golden eggs". This canon of Taxation should guide the Taxmen to shun short term revenue  considerations.Instead work like bees,as prescribed by Chanakya in "Arthasastra",inorder  to multiply"the volume of flowers" and generate larger   quantity of nectar.! It is pertinent to note that the Government like a common man should pursue its duty of good governance and not to bother about the outcome or revenue-"Nishkamya karma"-.The revenue should come to it naturally. Good governance will include among other things,nurturing enhancers/facilitators/multipliers  like  Productivity improvement,good Quality,cost reduction , timely delivery of its services in the economy and avoid uncertainties in Taxation .Generally,it should  look after law and order,primary education,health,defence,infrastructure,currency and taxation,external affairs,promotion of agricultural and industrial enhancers. Prof.Stiglitz,Nobel Laureate stresses on Transparency/removing the Uncertainty, providing Flexibility,Fairness and Economic and Administrative Efficiencies as 'Canons of Taxation" These correspond to our ancient methods of Taxation and time is ripe for course correction. 'Thirukkural' and 'Arthasasthra impart us with the knowledge and all important wisdom of Good Governance and Taxation. The collective experience of contemporary India added to that of the entire repository of knowledge and wisdom can help us achieve this . If India has to Shine-Let us harness its Energy!