Over the past decade, the Indian government has pursued a relentless war on informality. The demonetization of high-value currency notes in 2016 was justified in the name of formalization, as was the hasty introduction of the goods and services tax (GST) in 2017. Formalization would improve productivity of small firms, provide secure employment to workers and generate higher tax revenues, we were told.
The government's cheerleaders proclaimed victory soon after the war began. They claimed that the twin shocks of demonetization and GST had managed to purge the Indian economy of undesirable informal elements. Without any credible evidence, they claimed that small informal enterprises were getting registered with the GST network in large numbers. Growth in GST registration itself became a proxy indicator of formalization. To what extent the growth in overall GST numbers reflected the usual growth of corporate enterprises and to what extent it reflected a shift of informal enterprises to the formal sector was never answered.
A nationally-representative survey of unincorporated enterprises released earlier this year provides a reality check: 63% of unincorporated enterprises in the country were not registered with any statutory authority in 2022-23, it found. This is only a marginal improvement compared to 2015-16, when 69% of unincorporated enterprises were found to be unregistered. By definition, unincorporated enterprises exclude firms registered under the Companies Act.
Diese Geschichte stammt aus der October 31, 2024-Ausgabe von Mint Mumbai.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 31, 2024-Ausgabe von Mint Mumbai.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
India's economic performance is pretty robust on most counts
The economy's back on its high-growth path and fiscal consolidation is on track but our labour market remains a concern
We should be more receptive to paradigm-shifting ideas
Do we really have free will? Our brains are not wired to accept radical thoughts easily but we must try
We need to invest in nature for the sake of humanity's future
Money must flow into what saves rather than harms biodiversity
Is gold worth its weight amid our demat assets?
It has been a buzzy buy in recent times, with its price soaring over the past year. Investors, however, are likely to be better served by going for intangible forms of this precious metal
The country needs to map its informal economy better
We need more accurate data on enterprises that play a major role in employing people
Some states have started to slip off their fiscal correction paths
Populist outlays and capital expenditure have widened their budget deficits. They must tighten up
How a businessman in his 50s went gung-ho on MFs
From telecom retail to mutual fund: SIPs have bridged Singh's post-covid business slowdown
Principal disabled? Know your PoA rights
My father has been in coma following an accident. He had granted me a power of attorney (PoA) to manage his money, but the PoA has no specified duration. Is it legally valid for me to withdraw funds or conduct other transactions on his behalf for his medical treatment? -Name withheld on request
HOW SALMA HAYEK IS REDEFIMNG PHILANTHROPY
In the worlds of Hollywood, fashion and activism, there's never been anyone quite like Salma.
WORLD SAVINGS DAY: A REALITY CHECK ON INDIA'S DWINDLING HOUSEHOLD SAVINGS CRISIS
High inflation and easy credit lead to financial instability due to overspending and rising debt