India needs to grow at 11% nominal cagr to move from a 2.9 trillion economy to 5 trillion by 2025. This means an ideal growth of 7% GDP & 4% inflation.
But can we reach 5 trillion with the present set of systems & legislations? No. @narendramodi @PMOIndia
@nsitharaman
But can we reach 5 trillion with the present set of systems & legislations? No. @narendramodi @PMOIndia
@nsitharaman
Can we do it with Big Bang reforms - especially on the taxation and capital markets front ? Yes
The capital markets are the life and blood of our financial dreams. Maharashtra elections would have swung the other way had the Govt. given our capital markets a better treatment.
The capital markets are the life and blood of our financial dreams. Maharashtra elections would have swung the other way had the Govt. given our capital markets a better treatment.
High ticket agriculture income which can potentially raise thousands of crores in taxes is painfully exempt while Long Term Capital gains which raises zero revenue for the Govt. is taxed at 10%. We can’t reach our targets with such brutally biased anomalies.
Additionally, this gives rise to creating system inefficiencies which includes cheating the exchequer. How many industrialists and rich business men own agriculture land? Has any survey been done ? Let’s do it and see the results. The outcome will be appalling.
The Govt needs to do a serious rethink on its overall policy framework. Balakot, 370 and Ayodhya are momentary. Jobs, livelihood and happiness are permanent. We can’t create a permanent vote bank on the basis of religion and national security. Those days are gone.
We have to think fast if we want to reach the mark of 5 trillion USD. A simple example is how we let the ILFS crisis go into cold storage. The resultant impact on the NBFC space had its ramifications on the auto and two wheeler numbers. The SME and the MSME space.
We are doing the same with our capital markets. Nifty hitting the highs doesn’t benefit the ordinary invetor who has been left out of the game - long back. We need serious effort to help revive the overall sentiments in the market. Mere tinkering won’t help much.
P.S: None of the big economies in the world have reached that level by keeping the capital markets unhappy. And we are no exception.
DDT and LTCG are the need of the hour. Why wait till February 01?
DDT and LTCG are the need of the hour. Why wait till February 01?
