Undoubtedly the Indian economy is passing through a challenging phase. It is always easy to harp on problems and give homilies as solutions. But this hardly changes the situation at the ground. This edition of INCLUSION is focused on concrete recommendations to bring the Indian economy back on the path of recovery.
Eminent economists, policymakers, industry representatives and domain experts from across the country put their minds to list out workable solutions for the problems that have plagued the economy for long. Challenges are at multiple fronts and it needs to be tackled accordingly.
Micro, small and medium enterprises (MSMEs) despite playing a critical role in the economy is among the worst hit. On the one hand, there is hardly any bank credit extended to them and on the other, they have been hit by increased regulatory and tax compliances due to the implementation of GST. A number of implementable ideas have been put together to make MSMEs vibrant. The most important being the GST-based bill discounting and e-Invoicing. This would prove to be a boon for not only the small businesses but also the regulator by eliminating the chances of tax evasion.
Feature on tax reforms argues for the introduction of Direct Tax Code (DTC) in the coming budget alongwith a simpler GST system. While much of the public discourse focuses on the initiatives and actions of the Centre, states playing a critical role in the economy is generally overlooked. The Centre-State relations are guided by the rules and provisions outlined in the Constitution nearly seven decades ago. There is a need for a holistic review of the Centre-State relations.
In total, this issue lists 70 workable solutions to the problems. These have come from those domain experts, who have decades of experience in policymaking and efficiently running institutions. I hope this plays a catalytic role in changing the narratives surrounding the Indian economy for the better and a swift action on the ideas and suggestions put forward would lead to a sustained recovery in the economy.