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I refer to this article in this blog post essentially to
complete my series of posts which began with the Note Ban that made specified
high denomination currency notes invalid currency from a specified date. There
was a question of what costs and benefits could be expected of this policy decision.
Many experts view the slow-down mentioned above as evidence of the effect of the
Note Ban on the Indian economy.
It would be interesting to watch if tax compliance has
improved because of the Note Ban and if it will result in a sustained growth in
income tax collections year after year. There are other decisions taken by the
Government such as introduction of the Goods and Services Tax (GST) that will
impact future growth.
A major decision that is on the anvil could eliminate future
losses through Air India. We must wait to see if the Government shows the
political will necessary to push through this reform. However, the Government
has started planning for it. Visit
