Indian Economy, GDP growth rate is 5%, as recorded in the second quarter of 2019, which is by far the lowest since the first quarter of 2013.
Indian Economy, Well there’s no play in the bush that our economy is in VERY bad shape!
We have been dethroned with the title of ‘one of the fastest-growing economies in the world.’ The king of the most developed countries, the United States, is growing at a steady growth rate of 3%. While we are just +2 ahead of them, it is not worth all the seas that businessmen have to swim to do business in this country.
The dynamic tax structure that is constantly on the rise!
In India, its not easy to be rich. Because practically with this mindset, every ‘rich person’ in India is either a mafia or a tax chor. You will not be praised for your achievements but gouged with the taxes. First with income tax, plus surcharges, plus all the other surcharges. Oh, did you just buy a car and above that you are so-called ‘rich’? Get ready to pay another chunk of your already super-taxed income to the government!
Well, I am not over-exaggerating. This is exactly the current stature of the Indian economy. But wait till the GDP figures roll out – and you wonder why aren’t we growing? How do you expect us to grow with all the investors fleeing away to places with zero or atleast bearable tax rates? No, that’s not on the shoulders of investors, it’s on us! We have developed a culture that vigorously speaks an anti-investor and anti-wealth language.
I know you are probably already making opinions about me, that how my language sounds synonymous to the anti-nationalists. But here’s something, I love my country, as much as you do. I started with a few suggestions in my mind for the revival of the economy, let me give you a hint of that –
Suggestions to re-start the dead economy
1. Remove ‘Extra’ taxes
I know it’s a bold statement to make but I am going to say it, nonetheless, remove capital gains tax. It’s a major turn-off for the investors. One GST with a simplified tax structure. Instead of constantly changing rates, one GST rate that justifies the return will not require the extra ‘granting relief’ to the auto sector. Income and corporate taxes must be free of surcharges and cess.
2. Alter the ‘anti-rich’ mindset
‘The rich is getting richer, and the poor is getting poorer’– but that doesn’t mean the rich is making the poor, poorer. Instead, look at the investors/rich as people who gauge job opportunities, bring in capital and keep the economy rolling.
3. Welcome 100% Foreign Investment (in all sectors)
Apart from the national security industries, there’s no reason why we should not be accepting 100% Foreign investment in any other industries. Let India be accessible for all the businessmen who are looking to tap one of the biggest markets in the world. It is not only a source of investment for the country but also a job opportunity for the youth.
4. Don’t fear the drop in tax collections
Celebration on gouging more taxes from the rich is not an achievement. Decrease the tax rates, and let the collections drop. It will be later compensated with the growth in the GDP and increased number of taxpayers (ofcourse, due to low taxes!)
5. Fix the traffic in the cities
The young generation is no more fond of the metropolitan cities. Why? Because the traffic chokes our daily lives and obstructs the efficiency. Cities are like the rich in the economy, the hydra generator. If we let them hang out in the dry, the traffic is most likely to jam our own growth. The best rescue is to fix the metros, adjust the traffic and make the cities more people-friendly.
India has a history of recording a GDP growth rate of 13.3% in the first quarter of 2010 (highest of all time!). That figure just said our capability to climb the stairs, if only we are traveling in the right direction.
Being the holder of the second-largest population in the world, with the largest youth percentage, we deserve to be a rich nation. Let’s get started!