Modi Government’s Strategic Steps Towards India’s Economic Well-Being

The term “economic reform” refers to the fundamental changes that were initiated in 1991 to expand the economy and rapidly increase economic growth. This is the seventh year of Modi’s government, and it looks like the COVID 19 pandemic has posed a big hurdle on the road to “acche din”. Well, what better time than now to analyze and dissect the economic reforms introduced by the Modi government over the past few years.

Let’s dive into some of the main moves that have helped the Indian economy recover:

Manufacturing strategy in India

PM Modi launched the campaign to attract foreign investment and build the India brand. The essential objective behind this strategy was to make India a global assembly center by enabling global and local organizations to manufacture their products within the country. The Foreign Investment Promotion Board (FIPB), the group set up in the 1990s to organize and approve foreign investment, was dismissed as a feature of PM Modi’s efforts to help finance local industries from abroad. .

GST

The government’s super change to get rid of a knot of taxes and levies and consolidate them under one was implemented on July 1, 2017. It aims to reduce load dumping by eliminating indirect taxes imposed by central and state governments.

Under the GST, the viability of the input tax credit has greatly expanded. It features lower taxes and entices the seller to enjoy more benefits after discovering his transactions. This adds simplicity and works as an instrument of self-control, as the financial motivation to avoid tax has decreased.

Despite the many criticisms, the economy appears to be accelerating and hopefully the benefits of the GST will become even greater. A proper analysis of the impact of the GST on the economy can only be done after the policy has taken full shape.

Adoption of the bill on large port authorities:

The Major Port Authority Bill was passed in Lok Sabha by the Modi government. There are 12 main ports that the central government controls. The Large Port Authority Bill overtook other port trusts and provided for the implementation of the Major Post Authority for each major port.

Corporate tax reduction from 35% to 25%

In September 2020, Finance Minister Nirmala Sitharaman reduced the corporate tax rate from 30% to 25%. They also reduced the corporate tax rate for new manufacturing industries from 25% to 15%. This reform had a tremendous impact on the Indian economy and had a great impact among the people.

Corporation taxLabor law

Labor law and its benefits have been talked about since 2019.

Three key labor reform bills have been approved by Parliament. The bill will remove restrictions on businesses and allow staff to be fired without government permission in organizations with up to 300 workers compared to the current 100, a strategic move aimed at attracting more investment and business creation. jobs.

With the adoption of these three bills, 29 central labor laws were added into four broad categories as envisioned by the government as part of labor reforms to improve the ease of doing business and provide universal social security. to workers.

Economic reforms contain policies that help improve the economy, eliminating errors in the nation’s individual sector. The Modi government has achieved a reasonable victory in improving the economic condition of our nation. They have increased a reasonable amount of income. The government could have made many more achievements in the Indian economy, but the small achievement it has achieved so far is exemplary.