With economic slowdown hitting PM Narendra Modi government hard, instead of leaving the reform road mid-course due to the criticism of GST and demonetisation, prime minister must launch another round of major reforms due in labour laws, income tax and multi-brand retail FDI.
Though there are divergent views on the need for interest rate cut to boost growth, the Reserve Bank of India’s stance of holding the rate for now needs to be judged on the basis of its projection of inflation and growth going ahead.
The goods and services tax (GST) implemented today is not an ideal one, but it is the best that could be achieved to begin with.
While the double digit export growth in August is a good sign, the government needs to keep a close watch on gold imports and develop strategy to boost areas like agri-exports to curb trade deficit.
Given that 2018-19 budget to be presented on Feb 1 next year will be the last full-year budget of the current NDA government led by prime minister Narendra Modi, the chances of finance minister Arun Jaitley announcing measures to make the tax system reasonable and simple, are quite high.
Finance secretary Ashok Lavasa says that demonetisation has led to the formalisation of the Indian economy—which will lead to better compliance—and that the GDP growth is expected to pick up in the coming months to clock over 7% for the full year despite the Q1 recording just 5.7%.
While PM Modi’s meeting with president Xi Jinping of China on the sidelines of the BRICS summit has sent a strong message about India’s acumen to deal with bilateral issues like Dokalam effectively, his agenda outlined at the meet for making the next 10 years a ‘Golden Decade’ for global growth has enhanced the country’s global leadership stature.
GST receipts robust but only 11 months’ revenue will be accounted for in FY18.
Even though 99% of the scrapped notes have come back into the system post-demonetisation, Prime Minister Narendra Modi has succeeded in driving home the point that the government is serious about tackling black money and tax evasion with the help of information about the depositors.
Prime minister Narendra Modi tried his level best to show the efforts of his government in the last three years in fighting black money and corruption as impressive in his Independence Day speech, despite the fact that he himself is not satisfied with the results of demonetisation, the biggest move for achieving this goal.
Prime Minister Narendra Modi can utilise the Bharatiya Janata Party’s position of being the largest party in the Rajya Sabha and also the strength gained from Nitish Kumar’s support to push labour, land and FDI reforms.
NITI Aayog vice-chairman Arvind Panagariya says that the debate on jobless growth is because of the inability of the current survey system to capture job growth.
Bihar chief minister Nitish Kumar’s exit from the opposition has killed the possibility of a national Mahagathbandhan against NDA for the 2019 Lok Sabha election.
The Law Commission’s suggestion of creating a central portal for mandatory registration of marriages can be implemented quickly on the lines of passport seva.
Prime Minister Narendra Modi and his team led by finance minister Arun Jaitley has ensured that the state adopts the Goods and Services Tax (GST). They must now ensure its smooth implementation.
Linking of PAN with Aadhaar will make tax evasion extremely difficult, but with this, the government must also look at reducing the high income tax burden that leads to such practices.
Along with the Rs 1,000 notes, that is also on the anvil, Rs 200 notes will take care of the problems due to the big gap at present between the Rs 500 and Rs 2,000 notes in circulation.
Even though the current GST is not an ideal one, this is what has emerged as the best bet for now. There is no reason for former prime minister Manmohan Singh and Congress president Sonia Gandhi to avoid sharing the GST launch moment with prime minister Narendra Modi in Parliament on July 1.
While stabilising and fine-tuning the goods and services tax (GST) regime after its implementation on July 1 would be critical to its success, the government must also ensure that tough reforms like labour laws besides quick NPA resolution are fast-tracked.
Presidential election 2017: The endorsement of Bihar chief minister Nitish Kumar of prime minister Narendra Modi’s demonetisation surprise indicated the possibility of his joining hands with the Bharatiya Janata Party again.
Finance secretary Ashok Lavasa, who was environment secretary at the time of signing of the Paris Climate Accord, says that the US pull out from the agreement will not impact India’s actions, that it is committed to.
Given that gold, gems and jewellery, along with diamonds, are the second most critical area in terms of accumulation of black money after real estate, the Goods and Services Tax (GST) council has done well by fixing a rate of 3% as against the existing 2%, besides imposing a nominal 0.25% on rough diamond.
There is no point in delaying Goods and Services Tax (GST) further, but it is also true that the current structure requires changes till it reaches the ‘moderate rates with minimum slabs’ model.
Prime minister Narendra Modi-led NDA-2 government has succeeded in building public perception in its favour through demonetisation, and NPA resolution ordinance will add to this, but it has to address the concerns related to the ‘control mindset’ going ahead.
Urjit Patel may not be a flamboyant RBI Governor like Raghuram Rajan, but he has displayed that he can effectively balance the monetary policy management with the government’s interests. But his real challenge is to show that he can guide the NPA resolution in an effective manner with the government now empowering the RBI for this.
The National Pension System (NPS) is finally emerging as an alternative to the Employees Provident Fund (EPF) for many, and an additional saving window for even those sticking to the EPF .
The NITI Aayog’s three-year (2017-18 to 2019-20) action agenda is right in pointing out that the government must take up the formulation of a clear policy on net neutrality on a priority basis.