The Economic Slowdown Needs Immediate Address
The Buck Stops With the Duo (Courtesy: Bloombergquint) The fracas in Maharashtra notwithstanding, things are at a critical juncture with respect to the economic scenario. Not undertaking critical labour and land reforms in the previous terms of course have contributed; however, the lack of steps is not really the problem right now. The real problem at this stage is a dampened sentiment about the state of the Indian economy. This sentiment has essentially been harmed by a handful of reasons that are not being addressed suitably: GST – yes, it is proving to be a dampener. While I had back then too stated that its benefits were being overstated, the GST mechanism per se needs fixation. While tax collection is immediate and even before payments are received by the suppliers of goods and services, the input credit necessary to keep many businesses afloat and flush with working capital is taking unduly long. Steps have been announced to attempt tax reform; however, this step is y