Recently, the World Bank’s Ease of Doing Business 2019 report ranked India 77th among 190 countries, apart from it India is counted as one of the world’s most attractive investment destinations. However, in order to become a $5 trillion economy by 2024-25, India certainly needs to improve more on ease of doing the business front. Legislations and Challenges to Ease of… Continue reading Regulatory Roadblock to Ease of Doing Business
Category: Indian Economy
Economic Slowdown and its Fix
Recently, India resolved that it would be a $5-trillion economy in 2024. However, GDP growth slowed to a six-year low of 5 % during the first quarter of 2019. According to NITI Aayog, the present economic crisis is the worst crisis India is facing since Independence. Reduction in growth automatically leads to hampering of development goals… Continue reading Economic Slowdown and its Fix
Merger of Banks
Finance Minister Nirmala Sitharaman has announced the merger of 10 public sector banks into four entities as an effort to revive the economy. Current Economic Status of India: India’s Gross Domestic Product (GDP) growth rate dropped to 5% in the April-June quarter due to a sharp deceleration in manufacturing output and farm sector The Gross Value Added (GVA) growth in the manufacturing sector dropped to 6% in the first… Continue reading Merger of Banks
Adequacy of Counter Measures against Economic Slowdown
The counter measures declared by the Union Government against the economic slowdown may not be adequate for a revival of the economy. The Role of Fiscal Policy in Economics: In 2005, a Nobel laureate in economics claimed that the fiscal policy, associated with profligacy, had no role at all and the problem of depression has been… Continue reading Adequacy of Counter Measures against Economic Slowdown
‘Mauritius Leaks’ and Need for Tax Reforms
Context In July 2019, the International Consortium of International Journalists published over 200,000 confidential documents from the offices of Conyers Dill & Pearman, a Bermuda-based law firm that allegedly aids large Western businesses to set up letterbox companies in Mauritius aimed at making tax-motivated investments in Africa and Asia. The leak has reignited the debate on multinational tax avoidance and how businesses use tax-friendly… Continue reading ‘Mauritius Leaks’ and Need for Tax Reforms
RBI Surplus Transfer to the Government
Context The Central Board of the Reserve Bank of India (RBI) on 26th August decided to transfer a sum of ₹1,76,051 crore to the Government comprising of ₹1,23,414 crore of surplus for the year 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board. The… Continue reading RBI Surplus Transfer to the Government
A New Battlefront in the WTO
Context: U.S. President Donald Trump recently attacked the World Trade Organization (WTO) for allowing countries such as India and China to engage in unfair trade practices that affect American economic interests. World Trade Organization (WTO): The WTO was envisaged as an international trade body to help foster more trading in goods and services between nations. It tries to achieve the goals… Continue reading A New Battlefront in the WTO
Jobs For Locals
Context Nativism, the cry for job protection of locals, is rearing its head again in India. The Andhra Pradesh Assembly recently passed a legislation that reserves 75% of industrial jobs in the state for locals Recently Madhya Pradesh Chief Minister also said that the state government is mulling a law to ensure 70 per cent… Continue reading Jobs For Locals
All you need to know about GST
What is GST? Goods and Services Tax (GST) is a value-added tax at each stage of the supply of goods and services precisely on the amount of value addition achieved. It seeks to eliminate inefficiencies in the tax system that result in ‘tax on tax’, known as cascading of taxes. GST is a destination-based tax… Continue reading All you need to know about GST
All you wanted to know about PARA
What is it? The Public Sector Asset Rehabilitation Agency or PARA will be an independent entity that will identify the largest and most vexatious NPA accounts held by banks, and then buy these out from them. By consolidating problem accounts across banks, the PARA is expected to solve two problems. One, it can effect speedier… Continue reading All you wanted to know about PARA
