{"id":20483,"date":"2021-04-30T15:10:40","date_gmt":"2021-04-30T09:40:40","guid":{"rendered":"https:\/\/plyinsight.com\/?p=20483"},"modified":"2021-05-22T11:10:06","modified_gmt":"2021-05-22T05:40:06","slug":"economy-a-change-in-direction","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/economy-a-change-in-direction\/","title":{"rendered":"Economy: A Change in Direction"},"content":{"rendered":"<p>When Prime Minister Narendra Modi first came to power in 2014, many market participants were convinced that we would see a push for growth through policy liberalization, reducing government involvement in the economy and a more stable policy framework. Rebuilding growth in India has been more challenging than we thought.<\/p>\n<p>The Indian economy has disappointed over the last few years, unable to regain its growth vigor. The government has also not been as probusiness as most had assumed. Corporate churn has never been higher and private investment and profitability never lower than today. The government has reestablished the primacy of economic growth as its top priority and accepted the need to put the private sector at the heart of the growth agenda.<\/p>\n<p><strong>Despite huge temptation, fiscal need and global precedents, the government did not raise taxes. The message is clear: our tax rates are high enough, we can&#8217;t get more money by constantly squeezing the same 20 million taxpayers. We need to expand the base, and growth is the only way to get the tax-to-GDP ratio higher.<\/strong><\/p>\n<p><strong>For markets, this was a refreshing change, braced as they were for higher tax rates or at least a surcharge. For a government, which over the years has raised taxes on dividends, reintroduced capital gains taxes and put in various surcharges on the rich, to not raise any taxes any taxes when their back was to the wall fiscally, indicates a change in approach. Lower taxation incentivizes investment and boosts risk-taking and entrepreneurship. Exactly what we need at this juncture to kick-start the economy. It also improves relative returns on capital in a global context.<\/strong><\/p>\n<p>The whole approach of the government committing to withdrawing from all sectors of the economy except a handful is almost a 180-degree turn from the industrial policy resolution of 1956, wherein the public sector was seen as critical to dive our economic development. The government is committing to divest\/merge or wind down hundreds of enterprises. It is also using strategic sales as the primary route. This will release huge resources, and improve productivity of capital across the economy. Assets will be put to better use and throw up large opportunities for the private sector. This will be a gargantuan execution challenge.<\/p>\n<hr \/>\n<h3 style=\"text-align: center;\"><span style=\"color: #800000;\"><strong>\u0906\u0930\u094d\u0925\u093f\u0915 \u0935\u0943\u0926\u094d\u0927\u093f \u0915\u0940 \u0926\u093f\u0936\u093e \u092e\u0947\u0902 \u092c\u0926\u0932\u093e\u0935<\/strong><\/span><\/h3>\n<hr \/>\n<p>\u091c\u092c \u092a\u094d\u0930\u0927\u093e\u0928\u092e\u0902\u0924\u094d\u0930\u0940 \u0928\u0930\u0947\u0902\u0926 \u092e\u094b\u0926\u0940 \u0935\u0930\u094d\u0937 2014 \u092e\u0947\u0902 \u092a\u0939\u0932\u0940 \u092c\u093e\u0930 \u0938\u0924\u094d\u0924\u093e \u092e\u0947\u0902 \u0906\u090f \u0924\u094b \u0932\u0917\u093e \u0925\u093e \u0915\u093f \u0928\u0940\u0924\u093f\u092f\u094b\u0902 \u0915\u0947 \u0909\u0926\u093e\u0930\u0940\u0915\u0930\u0923 \u0915\u0947 \u091c\u0930\u093f\u092f\u0947 \u0935\u0943\u0926\u094d\u0927\u093f \u0915\u094b \u092a\u094d\u0930\u094b\u0924\u094d\u0938\u093e\u0939\u0928 \u092e\u093f\u0932\u0947\u0917\u093e, 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\u0909\u0924\u094d\u092a\u093e\u0926\u0915\u0924\u093e \u0938\u0941\u0927\u0930\u0947\u0917\u0940\u0964 \u092a\u0930\u093f\u0938\u0902\u092a\u0924\u094d\u0924\u093f\u092f\u094b\u0902 \u0915\u093e \u092c\u0947\u0939\u0924\u0930 \u0907\u0938\u094d\u0924\u0947\u092e\u093e\u0932 \u0939\u094b \u0938\u0915\u0947\u0917\u093e \u0914\u0930 \u0928\u093f\u091c\u0940 \u0915\u094d\u0937\u0947\u0924\u094d\u0930 \u0915\u0947 \u0932\u093f\u090f \u092c\u095c\u0940 \u0938\u0902\u092d\u093e\u0935\u0928\u093e\u090f\u0902 \u092a\u0948\u0926\u093e \u0939\u094b\u0902\u0917\u0940\u0964 \u0932\u0947\u0915\u093f\u0928 \u0907\u0938\u0947 \u0905\u092e\u0932 \u092e\u0947\u0902 \u0932\u093e\u0928\u093e \u090f\u0915 \u092c\u0939\u0941\u0924 \u092c\u095c\u0940 \u091a\u0941\u0928\u094c\u0924\u0940 \u0939\u094b\u0917\u0940\u0964<\/p>","protected":false},"excerpt":{"rendered":"<p>When Prime Minister Narendra Modi first came to power in 2014, many market participants were convinced that we would see a push for growth through policy liberalization, reducing government involvement in the economy and a more stable policy framework. Rebuilding growth in India has been more challenging than we thought. The Indian economy has disappointed [&hellip;]<\/p>","protected":false},"author":1,"featured_media":20484,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1116],"tags":[1025,603,1143,1124],"class_list":["post-20483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-april-news-2021","tag-business","tag-economy","tag-india","tag-indian-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Economy: A Change in Direction - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/economy-a-change-in-direction\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economy: A Change in Direction - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"When Prime Minister Narendra Modi first came to power in 2014, many market participants were convinced that we would see a push for growth through policy liberalization, reducing government involvement in the economy and a more stable policy framework. 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