Demonetisation and the Goods and Services Tax led to a greater formalization of the economy, says Niti Aayog Vice Chairman Rajiv Kumar in a conversation with BW Businessworld’s Suman K. Jha
Do you think the economic slowdown that we are witnessing here is an India-specific phenomenon, or is it part of a global phenomenon?
I would say it is part of a global phenomenon. Even the IMF has brought down its estimate of global growth from 3.6 to 3.2 percent. We are beginning to see a substantial slowdown in the European region as also in Japan. It is also to be noticed that the effect of fiscal measures taken by President Trump for boosting growth in the US has started to wear off. In our case, the slowdown is a result perhaps, because of global factors and the inevitable uncertainty caused before the elections. Also, there is a lingering impact of the problems in the financial sector.
Do you think that demonetization and an imperfect rollout of GST have also contributed to the slowdown, especially a contraction of the informal sector?
I have been a strong supporter of demonetization and I don’t attribute any causation to it. If, however, you mean that demonetization and GST have led to a greater formalization of the economy, I would agree because that is what is required, and it results in more sustainable economic growth. So, the informal economy has contracted and that also means that the nature of economic activity in the country is changing. Therefore, we need more liquidity and facilitation to support the emergence of the formal sector of the economy and in a more robust manner.
There is a school which says that there is less demand in the economy and the government has failed to create demand…
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences