CA and Economic Patriotism

Amidst, the pandemic with a firm hope to come out from this unexpected spell of hitting the world economies, Prime Minister Narendra Modi Ji addressed the nation on 12 May 2020 and declared to fight the pandemic coupled with the opportunity to be self-reliant. Thus, he has marked the national goal to become self-reliant with a clear intent to speed up the economic development of the country. He intends that the living standard of the people would improve, further to create a community of 138 million Indians that appreciate their cultural heritage and would be capable of creating new things with a strong feeling for modern civilization. The move was set to build a generation that will be self-reliant, and participate with their head high in worldwide affairs. We will show to the world how well we can cope with and overcome a crisis like the unprecedented one brought on by the pandemic and lockdown.

Patriotism refers to the passionate love of one’s country. This virtue pushes to citizens of a country to work for their country selflessly and make it better. A patriot wants every man to do his duty by the country. Now, India expects every man to do his duty. Whenever anyone laid his life, he must be quietly satisfied with his life that he has done his duty. A truly India is made up of true patriots. In other words, Patriotism means keeping the country’s interest first and then thinking about oneself. Patriotism helps in building the nation stronger. The real patriots are the soldiers who risk life and limb to defend our national security and our most fundamental liberties and our families. These liberties make us exceptional and include our precious free speech, freedom of worship and other protections embodied in our Constitution. There are other significances is Economic Patriotism, where Chartered Accountants fall in the first line of defence against Economic Patriotism.

Significance of Economic Patriotism

Economic Patriotism does have great prominence in developing the country. It eradicates any self-centred and destructive intentions, which, in turn, lessens corrupt practices by its countrymen. When it becomes free of corruption, the country develops with a much faster way. There is a need to have the spirit of brotherhood among the citizens, they will support one another. Hence, it will make the country more pleasant-sounding. Also, it boosts the citizen’s life worth. When everyone works for the betterment of the country, there would be no conflict of interest. Thus, a happier atmosphere will prevail.

Economic Patriotism is a term used to describe policies which emphasize internal control of the economy, labour and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labour, goods and capital. It opposes globalization in many cases, or at least it questions the benefits of unrestricted free trade. Economic Nationalism may include such doctrines as protectionism and import substitution. Thus it is the coordinated and promoted behaviour of consumers or companies (both private and public) that consists of favouring the goods or services produced in their country.  In India, we are talking about the Swadeshi from the Gandhian Era. Gandhi practised Swadeshi through demand stimulation and encouraging countrymen to purchase the goods and services of their own country. Now, this can also be achieved through supply protection, the shielding of the domestic market from foreign competition through imposing tariffs. A recently emerging form of economic Patriotism is financial protectionism, the hostility against acquisitions by foreign groups by companies considered of “strategic value for the economy of the country. Recently, the countries annexed to the borders of India, have been debarred from autoroute to acquire the stakes in India. This has come up amidst China- India war-like situation.

The objective of Economic Patriotism

The objective of Economic Patriotism is to support economic activity and promote social cohesion. The supporters of economic Patriotism describe it as a kind of self-defence of local economic interests. This Economic Patriotism is correlated to the Rashtrawad. Rashtrawad is a strong word used too indiscriminately. The most popular word emerged in 2014-2020 is the Rashtrawad.  Rashtrawad is Patriotism should not be restricted to saluting the Indian flag, buying Indian goods, reducing income inequality only. The preference for local goods gives local producers more market power, affording them the ability to lift prices to extract higher profits. This is a viable strategy because the line between foreign-made and locally-made is blurry.

Suppose we try to restrict patriot term for Indian economy. Will this be a justified comparable as soldiers don’t fight to protect economic Patriotism? A billion-dollar question arises, who are the soldiers of Indian economy patriotism or say Rashtrawad. Can Chartered accountants be called patriot for their day to day working for the economy? Our unique Constitution protects fundamental economic liberty. Our government control economic activities forced our actions and catalyzed our nation.

Economic Patriotism versus Nationalism

Many people associate economic Patriotism with Nationalism.  They have to understand that no social cohesion can be implemented without a national strategy based on an intelligent economic patriotism concerned with the reciprocity of commercial and financial behaviour. Economic Patriotism allows us to build a shared culture of power and national success. The protection of strategic enterprises is the first objective of economic Patriotism.

Few people think that Economic Patriotism has nothing to do with economic Nationalism and a refusal of globalization. It is based on the notion that it must benefit as many as possible and not just a privileged hyper class, protected from its most negative consequences. Nations have a right to claim a sort of industrial sovereignty which in no way means protectionism but rather the capacity of states to promote the economic development of their territory and the preservation of a strategic economic perimeter that is indispensable for national security.

It is possible to speak of the national interest. Our economy is not just based on large enterprises but also on SMEs that represent the industrial network of a country and considerable innovation potential. Economic Patriotism means helping SMEs develop within a competitive environment so they can reach a critical size necessary to go and hunt up external markets.

Will Chartered accountants Step up to the PM Challenge?

Addressing Chartered Accountants at an event on the occasion of Chartered Accountants day organized on 1 July 2017 by the Institute of Chartered Accountants of India, Prime Minister Narendra Modi called chartered accountants a “big pillar” of the Indian economy and urged them to bring technological innovations to meet global standards. PM Modi said, “You (C.A.s) take care of the economic health of the country, and you are famous world over for your knowledge and financial skills.” The said remarks continued with the need for introspection of their working for the nation. Was he trying to refer the term of economic Patriotism or Rashtrawad? Here, “Economic patriotism” is more of a stylistic device than an economic theory. There is no textbook definition. He appealed to Chartered Accountants to be vigilant for economic behaviour or economic policy based on “Indian values. Probably he also thought that this would be essential for the credibility of the Indian economy and the nation. “That’s what makes this country great – a sense of common purpose and patriotism, an economic patriotism.”

His speech carried a statement that can be directly associated with the spirit of Patriotism. He mentioned the famous names of Big 4 Chartered accountant firm across the world. He called for the Big 8 firms by adding four Indian Chartered Accountants firms rose to the world level. Technically, the Big 4 firms which are operating on Indian Soil are having blanket coverage of Indian firms. Though unethical still that’s the reality that they are operating in the guise of Indian Firms. However, the thought of a Prime Minister and his call to raise the calibre of our C.A. firms to operate at world level was a welcome step. His intention was of a true patriot who sought to serve all humankind while serving his country as Prime Minister.

 Can Chartered Accountants raise themselves for economic Patriotism?

Does CA do economy activity through their professional assignments? Yes, they do because they formulate financial statements for corporate audits. They constitute the first layer of vigil mechanism through their audited financial statements before placing the general public. C.A.s play different roles among them a prominent role in corporate governance, risk management, financing and taxation.  They help the government in revenue collection concerning accounts and audit, that’s why they are considered the most proficient persons. All the government audits, be it C.A.s conduct an Income Tax audit, GST audit, bank statutory  audits, forensic audit, PSU audit  through CAG , almost all of them.  They also help the government to find fraud in revenue collection, and they do it in their day to day working.

Chartered Accountants can support “economic patriotism” if it means honouring economic soldiers by hiring them at the various level of governance and meeting their needs. Chartered Accountants can also support economic Patriotism if it means honouring the principles our economic soldiers risked their lives for by making the tough decisions for our economic future. I am for economic Patriotism if it means that all Indians are asked to make sacrifices so that our children will have an economic future. They are the leading consultants of SMEs as they watch the growth of many sectors closely. They give consultation to such enterprises not only in their day to day operations but also on legal matters as well. C.A.s often provides valuable suggestions to help them grow.

Chartered Accountant role into Economy and Patriotism

Dr APJ Abdul Kalam well said that Chartered Accountants are partners in the nation-building. “Chartered Accountancy is not only about Debit and credit of accounts. Scope of Chartered Accountancy has grown at a gigantic level. Chartered Accountants are the backbone of the nation’s economy, and due to their financial expertise, they can guide the nation by suggesting various economic and financial measures to uplift the deteriorating Indian economy and boost up the economic as well as industrial growth exclaimed. A Rational person can see the participation of Chartered Accountants in every field. Whether it is related to budget forecasting, Tax planning, preparation of books of accounts, capital budgeting, financing or any other activity, need of Chartered Accountants are in every field.

Their expertise knowledge is required in every area. As we know that the trending topic of the current scenario is the implementation of GST and Chartered Accountants are playing a vital role in its implementation. Starting from drafting rules and provisions for GST act till the implementation of GST, knowledge of Chartered Accountants is a prerequisite. Chartered Accountants play an essential role in various fields. The knowledgeable advice of Chartered Accountants is prerequisite in the formation of any law relating to commerce, taxation or legal fields. While forming a law or any act, Chartered Accountants is one of the most critical committee members. They have comprehensive knowledge of various essential aspects which is essential in the formation of any law.”

In setting up a new business, the first step is to find out a chartered accountant firm in London that can assist you in your financial as well as legal matters. Accounting services include various fields of expertise; it’s an important task to select the specific service you want for your business. In India, we have undergone tremendous reforms, which results in an increasing demand for chartered accountant services. C.A. firms offer a wide range of services some of them are:-

• Auditing services which generally includes the evaluation of firm, enterprise or product. Auditing is done to express an opinion after working on the evaluation of the business.
•  Tax advisory service is related to verifying the balance sheet of companies. C.A. firms provide you experts in the tax law, which looks after value-added tax, service tax and assessment tax planning.
• Project financing service is related to the evaluation of the project in terms of capital needed in the establishment of the project.

Chartered Accountant role in Revival or strengthening of the economy

A chartered accountant’s work involves auditing, taxation, accounting and financial planning hence core to all businesses. It can be a very challenging and rewarding job. An extensive discourse is needed to connect the role of an accountant for Revival or strengthening of the economy. This piece identifies some areas where Chartered accountants by their working can be leaders to revive the economy of a country. They can contribute significantly by their dedication for the noble mission of Revival of Economy, especially after the Covid-19 impact on worldwide economies. They can assure the Financial Statements of timely, relevant and credible nature serve as a basis of accountability. Through Transparency, the secret deals of financial detriment to the economy will be unfolded through transparent Transparency. They can support the economy through efficiency and effectiveness.

Further, an accountant’s role in pushing ahead the productivity on three fronts, namely, Men, Material and Machine are inspirational, and accountants provide logistics in these respects. Above all, they can play a significant role in the Revival of the Economy of a country follows by concentrating on two vital aspects of financial management, namely, minimizing risks and maximizing returns. An accountant plays a significant role. They can share the vision of challenges and issues, a precise perception of threats and opportunities.