Here's the sour part for the centre: it has signed a blank cheque to reimburse states for not only revenue losses post-GST, but also guaranteed a 14 percent growth annually.
The Union Budget may unveil details on the net result of demonetisation, and also the expected additional income from the ferreting out of black money
What is clear is that the real estate system is squeezed. In future, the cash element in property will come down.
While former PM Manmohan Singh is right to say that such restrictions do not happen except at times of crises or bank failures, surely temporary restrictions at a time of policy change can be justified?
The only answer to deflationary psychology is to deliver more cash to more wallets than ever before. This is the challenge before Modi.
While government ads talk about fighting black money, fake currency and terror funding, it is private businesses that are focusing on shifting focus from hard cash to virtual money.
Now that the rates are finalised, hundreds of different product items must have to be force-fitted into the structure. One would be naïve to presume that this will be easy, for every business will try to ensure that it stays in the lower band.
The Tatas will not find it easy to get the Mistrys out of their hair
The moral of Mistry’s blast against the Nano and Tatas’ aviation investments is simple: promoter passions cannot dictate business decisions
In the messy exit of Cyrus Mistry as chairman of Tata Sons, it is still not clear why he had to leave through a boardroom coup rather than being given a graceful exit when his initial term ended
Clearly, automation is going to change India IT forever. It will create a new binary class structure where there will be a very highly paid IT elite, and a reducing but still large complement of lower-wage pool facing an uncertain future.
India's rise in global competitiveness vindicates Modi efforts, but continued rise depends on faster reforms
The key point to underscore is this: we have done well, but improvement in the competitiveness rankings is a treadmill. If we don’t continue to run harder, we can fall back again.
By going after soft targets like actors and ghazal singers, we may be forcing all of Pakistan to band together behind the army’s agenda of eternal hatred towards India.
If we had one, by now the costs of Uri could have been clear to Pakistan.
At the The Economist India Summit 2016, Arun Jaitley remarked that low rates were vital to a revival in housing.
The CNN News18 interview of Narendra Modi, telecast on 2 September, did not tell us anything new about the Prime Minister’s known positions on issues, including anti-Dalit violence, communalism in the run up the Uttar Pradesh elections, or other social issues.
The ostensible reasons for shifting the budget date to January next year are two-fold. One, since it takes till mid-May for the budget to pass, effectively two months of the financial year (April-March) elapse, giving the budget only 10 months to work its wonders. Shifting the budget to January means the whole budget will be done and dusted before the financial year begins.
The ideal would be a Saarc minus Pakistan; since that is not possible, we must ensure that Saarc is not hijacked by Pakistan.
Even though 20 percent is a stiff GST rate, it seems to be the appropriate level at which all considerations merge: inflation and revenue loss risks will be tolerable, and the political fallout minimal.