Economy and Business
It was as far back as 1990 when I coined the phrase Bis-mil-muflis, or “I begin in the name of the poor” (with help from my good friend, Saeed Naqvi) to characterise the attitude of the government and Left intellectuals towards policy formation and execution (Bis-mil-muflis—And why anti-market policies hurt the poor, SUNDAY, 7-13 January, 1990).
Yesterday, two colleagues in a multinational company were chatting about the recent move of the Narendra Modi government abolishing 500- and 1000-rupee notes. One of them said, “It really is a good move for curbing black money and ending circulation of fake money.” The other one responded saying, “I am already feeling at par with the rich. Our (salaried class) value proposition has increased now!”
Demonetisation of Rs 500 and Rs 1,000 notes will expand the size of economy, increase revenue base and make the system cleaner while preserving its credibility, Finance Minister Arun Jaitley said today.
At the same time, the department of industrial policy and promotion with the World Bank also put out a comparison of Indian states on how their EoDB has been performing. Thus, India has been lately focusing more on the aspect of ease of doing business.
As India achieves a high rate of GDP growth, the highest in the world, will inequality of incomes be reduced? The Gini coefficient that measures inequality has risen from 45 per cent in1990 to 51.4 per cent in 2013 (coefficient of 100 signifies maximum inequality and 0 means perfect equality).
These are sombre times for the department of industrial policy and promotion (DIPP). Two years ago, it had been tasked by the prime minister to haul India’s Ease of Doing Business rank from 142 to the top 50. However last week, when the World Bank declared the latest rankings, India limped up only one spot from last year to 130.
The root of the Indian patent system lies at the heart of the British colonial administration. With the coming of the World Trade Organisation (WTO)-Trade Related Aspects of the Intellectual Property Rights (TRIPS) in 1995, the Government of India had to bring massive changes to its original patent law of 1970.
The World Bank’s Doing Business ranking has unnerved many in the power corridors of Delhi. India’s ranking of 130 out of the 190 countries surveyed, paints a dismal picture.
The problem with multiple rate categories is that it complicates the structure, adds to both administrative and compliance costs, leads to classification disputes and opens up avenues for special interest groups to lobby for lower rates
Regulation — which is based on force and fear — undermines the moral base of business dealings,” said Alan Greenspan, American economist (former chair, Federal Reserve of United States)