Quick Fixes to Rev Up the Country’s Commerce, Trade and Industry

Abstract

The country’s economy is at an inflection point, hopefully promising positive results and thus auguring well for the country’s economy. A stable government at the centre and falling energy prices have imparted buoyancy to the capital market, the forex market and by extension, to the economy, to name only a few.  The country’s commerce, trade and industry look forward to better days after the rather long spell of de-growth apparently ended with the macro-economic figures suggesting that the country’s economy did not do as badly as feared and the days ahead augur well for them and the country. But with most businesses reporting  weak financials for the quarter-ending December 2014 and the resultant weak balance sheets  ruling out investment by them either for capex or greenfield projects, it is time that the  government of India chipped in by crowding in investment in the economy. The researcher concludes that the government has to initiate direct tax reforms, withdraw  application of MAT to SEZs, see eye to eye with MNCs on issues like taxation, create an  intermediary between trade and industry on the one side and the revenue on the other side and  tap sources other than tax to raise revenue which can be used to fill the investment breach occasioned by the weak balance sheets of India Inc, amongst other things.  Unbelievably, the government has failed to realise that the solution to the problem could be lying right in its own backyard!