How to make Indian economy tick again

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Various sectors of the economy are facing different kinds of challenges.

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How to make Indian economy tick again


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GST is coming, and DeMo has happened. Budget 2017 for FY 2018 is Modi government’s last chance to bring in reforms to stamp out corruption and truly destroy the black economy. After this, it will be election mode. The global economic environment is suddenly turbulent, and more direct tax reforms are needed. The Finance Ministry has 3 pluses to work on (a) Higher fiscal space available due to DeMo, (b) Greater indirect tax collections, (c) Recommendations of FRBM Ã  Can use these to announce major public capital expenditure. For the government, there are five focus areas – (1) Infrastructure and Housing, (2) Employment, (3) Exports, (4) Cashless economy, (5) E-commerce. (1) Infrastructure and Housing – India needs $ 1000 billion till 2023-24 for infra and housing demand. Government will need to bridge the funding gap through innovative methods, and bond market development. (2) Employment – The scene is not good at all. More than 10 lac young people enter workforce each month.
Unless a drastic change in skilling and education is achieved, we won’t be able to realize the Demographic Dividend. (3) Exports – Indian exports have grown poorly for many years now. Additional problems are costly logistics and poor productivity. If our manufacturing falters, then growing demand (consumerism) will only help foreign companies and  our trade deficit will grow. Our saviours will be Defence and MSME sectors. (4) Cashless payments – As per eTaal website [ http://etaal.gov.in/ ], electronic transactions are growing manifold. It is the right moment for us to take the big leap by right incentivisation.  [Refer eTaal documents on Bodhi Resources page] (5) E-Commerce – Incentivising e-commerce companies and employees in a big way is a sure way of generating entrepreneurship and wealth.
  
 


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Bodhi Booster: How to make Indian economy tick again
How to make Indian economy tick again
Various sectors of the economy are facing different kinds of challenges.
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