Timing of implementation of GST

Government demonetisation of 95 percent of notes in circulation on 8 November 2016 has already damaged the white economy in the short term though it is good for the economy in the long term. The pain is felt across the Nation and it is felt across the all sectors of the economy. Common man who could not understand pros and cons of demonetisation, is already feeling the pain.

Demonetisation is a big exercise and involves all the people of the country and it is a painful one. It will take some time to recover from the pain. Bring India GST is also a big exercise. It also involves pain for people across the Nation. So the gap between Demonetisation and GST implementaion should at-least be 2 years. Implementation of it within 6 months have aggravated the pain of the common man though both are good for the economy in the long term

Will there be a boom in Indian Economy?

Economic growth cannot be kick started in single decision or by strong government alone. It is a collection of decisions towards the growth taken at the right time. Building or breaking an Economy may take long time. The base for economic growth, we saw in India from 2003 to 2008, was established by Narasimharao government and Vajpayee government. The base was made for more than ten years for the 2003 – 2008 growth.

UPA-1 and UPA-2 reaped the benefits of this base. Now, the economy is contracting. After an expansion, the contraction phase will follow. This contraction phase will surely take its time and its course. In this period, a strong government can only reduce the impact a little bit.