The term “economic reform” refers to the foundational changes that were launched in 1991 to broaden the economy and rapidly increase economic growth. This is the seventh year of the Modi Govt, and it seems like COVID 19 Pandemic has brought a big hurdle in the journey to “acche din.” Well, what better time than now to analyze and dissect the Economic Reforms introduced by the Modi Govt over the past years.
Let’s dive into some of the major moves that helped the Indian Economy to rise once again:
Make In India Strategy
PM Modi launched the campaign to attract foreign investment and build the Brand India. The essential objective behind this strategy was to make India a worldwide assembling center by empowering both global and homegrown organizations to make their products inside the country. The Foreign Investment Promotion Board (FIPB), the panel set up during the 1990s to organize and endorse foreign investments, has been rejected as a feature of PM Modi’s endeavors to help funding of local industries from overseas.
GST
The government’s super change to get rid of a knot of taxes and levies and club them under one kicked in on July 1, 2017. This intends to cut down charge spillages by eliminating the backhanded taxes forced by the central and state governments.
Under GST, the viability of Input Tax Credit has altogether expanded. It disposes of the falling taxes and boosts the seller to profit more advantages after uncovering his transactions. This adds straightforwardness and goes about as a self-policing instrument, as the financial motivation for avoiding tax has descended.
Despite the heavy criticism, the economy seems to be picking up pace and hopefully the benefits of GST will become even more prominent. A proper analysis of GST’s impact on the economy can only be done once the policy has fully taken shape.
Passing Major Port Authorities Bill:
The Major Port Authorities Bill was passed in the Lok Sabha by Modi government. There are 12 major ports that the Central Government controls. The Major Port Authorities bill outrayed the other Port trusts and provided the implementation of Major Post Authority for every major port.
Reduction of corporate tax from 35% to 25%
In September 2020, Finance Minister Nirmala Sitharaman reduced the corporate tax rate from 30% to 25%. They also reduced the corporate tax rate of new manufacturing industries from 25% to 15%. This reform greatly impacted the Indian economy and had a great reach among the people.
Labour Law
Labour LawLabour law and its benefits have been the talk of the town since 2019.
Three key labour reform bills was approved by Parliament. The bill will remove restrictions on companies and allow dismissal of staff without government permission in organizations with up to 300 workers from the present 100, a strategic move aimed at attracting more investments and job creation.
With the passage of these three bills, 29 central labour laws have been added into four broad categories as contemplated by the government under labour reforms to improve ease of doing business and provide universal social security to workers.
Economic Reforms contain policies that help improving the economy, by eliminating errors in individual sector of the nation. Modi government has achieved a reasonable victory in improving the economic condition of our nation. They have increase a reasonable amount of revenue. The government could have achieved a lot more achievements in the Indian economy, but the small achievement they have done till now is exemplary.
