S.N. Sahu 
The nation was outraged seeing the outlandish spectacle of a video showing a respected entrepreneur, Srinivasan, managing director of Sri Annapurna Restaurant in Coimbatore and the president of the Tamil Nadu Hotel Owners’ Association, tendering an apology to the Union finance minister Nirmala Sitaraman a few hours after he had legitimately raised the issue of differential GST rates on sweets and spicy food items on September 11.
In a meeting, Srinivasan had flagged the five per cent GST on sweets in contrast to 12% on savouries and 18% on cream-filled buns whereas buns were spared of any tax. When he said that customers preferred tax free bun and separately ordered for jam or cream to put it in bun on their own to avoid the burden of tax, the audience burst into laughter.
When he asked for forgiveness from Sitaraman for no fault of his she displayed no trace of bad feelings on her face for the humiliation faced by a widely admired entrepreneur. Very defensively he said, “I spoke only about those that were discussed in the association I do not belong to any political party. Sorry, if I have said anything wrong.”
Even Prime Minister Narendra Modi who as Gujarat chief minister in February 2014 had once forcefully remarked that the bravery shown by a trader in pursuing business is more than that of a soldier of the army, never uttered a word disapproving his own finance minister keeping quiet when Srinivasan apologised for raising a legitimate issue.
Even earlier in July 2022, Modi had proclaimed that the his government was ready to make necessary policy changes to encourage entrepreneurs in that sector which play a key role in the realisation of the government’s ‘Atmanirbhar Bharat’ (self-reliant India) initiative.
Also read: Tamil Nadu BJP’s Self-Goal: Video of Restaurateur’s Apology to FM Nirmala Sitharaman Sparks Outrage
Therefore, his deafening silence on the humiliation suffered by Srinivasan speaks of his shallow commitment to uphold the dignity of entrepreneurs to boost India’s economy, generate employment and above all serve the cause of customers.
The apology of Srinivasan is a manifestation of the employment of doctrine of frightfulness by Modi regime while exercising power and authority to rule the country. The phrase “doctrine of frightfulness”, often used by Mahatma Gandhi to explain the basis of British rule following the Jallianwala Bagh massacre in 1919 is getting replayed in our country in 2024.
The Electoral Bond Scheme providing for anonymity of donors contributing money to political parties and declared by Supreme Court as unconstitutional horrified the nation when startling revelations were brought to the public domain that several business establishments had donated money to the Bharatiya Janata Party (BJP) after repeated raids conducted against them by the Enforcement Directorate and the Income Tax Department. That unconstitutional legislation struck fear among entrepreneurs that the Modi regime could extract money to the tune of hundreds of crores for BJP’s coffers.
Can business flourish and contribute to take forward the economy with the “doctrine of frightfulness” writ large across the country? Srinivasan’s apology can be attributed to fear gripping his mind that his chain of restaurants might face coercive action from central agencies because he spoke truth to power and asked for streamlining the tax structure which would only provide a fillip to business and customer friendly.
Even earlier in September 2020 when Shekar Viswanathan, vice chairperson of Toyota’s India unit, flagged the punitive tax regime for the automobile industry as a major factor behind the company’s failure to expand operations in India, the then Union minister Prakash Javedkar rebutted those charges. He claimed that the company had since issued a clarification that it would invest more than Rs 2,000 crore in the Indian market in the next 12 months. Such a turn around by Toyota was linked to the pressure exerted on it to make a favourable statement for pleasing the Modi regime.
The scare in the minds of companies caused by pressure exerted by the government in complete disregard of business principles and the fear of raids they harbour make them dread to give any honest feedback to the government about what is wrong with economic policies. Chairman of Rockefeller International, Ruchir Sharma’s coinage of the term ICED (Income tax, CBI, ED) in the context of apprehensions and the horror writ large on Indian businesses over the last 10 years testify to the sad state of affairs plaguing our economy.
The restaurant owner in Coimbatore is the latest example of an entrepreneur bending backwards to please the Modi regime by reversing his earlier stand that the government of India should pay attention and take corrective measures, with regards to GST rates. It underlines the deep malaise caused by the muscular approach of the Modi regime adopted vis a vis our economy. It should consider abandoning this approach so that it generates a fearless atmosphere in the business community for the growth of the economy.
S.N. Sahu served as an officer on special duty to former President K.R. Narayanan.
This piece was first published on The India Cable – a premium newsletter from The Wire & Galileo Ideas – and has been updated and republished here. To subscribe to The India Cable, click here.