Post GST, one major announcement made by the government has been the launch of the Ahmedabad-Mumbai Bullet Train project. The GST and the Bullet Train both have generated immense public interest or public debate. This is so because of the many similarities they share especially in the complexity of their implementation. Both these ambitious projects require massive infrastructure, although of different kind. There is also a very huge amount of public money involved in both of these decisions.
Let’s assume the GST to be a Bullet Train. Then it is very clear that the government has already built this train and also built all the required tracks on which this train has to run. Infosys was awarded a Rs 1,380 crore contract to build GST Network (GSTN) system in Sept. 2015 that involved building and maintaining the technology network crucial for implementing the GST across the country for five years. By and large, the travel path of this train (i.e. starting point and the end point) has also been put in place. All the taxpayers, who qualify to be registered under the GST system, have to be the passengers of this bullet train. It is compulsory for them to catch this bullet train and travel the applicable distance without fail or face penal action for missing any ride. Continue reading Goods and Services Tax (GST) Vs. Bullet Train (Shinkansen)
“Same Side of Two Coins”
Which Coin Do You Have?
Reference: Continue reading GST & Textile Industry in India Today
GST – Goods and Services Tax – which will be a single destination based consumption tax – is all set to replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. from July 1, 2017. According to the Empowered Committee of State Finance Ministers, constituted by the Government of India: “GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the producer’s point and service provider’s point up to the retailer’s level. It is essentially a tax only on value addition at each stage, and a supplier at each stage is permitted to set-off, through a tax credit mechanism, the GST paid on the purchase of goods and services as available for set-off on the GST to be paid on the supply of goods and services. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.” Continue reading “The Ghost Of GST will be Set Free On July 1. Are You Ready?”
First the official factsheet on Indian Textiles (Source: Textiles India 2017 to be held in June in Gandhinagar). Fibre: 2nd largest fibre producer in the world (9 mn tonnes of fibre production in 2015-16); 2nd largest producing in silk and MMF; One of the major producers of wool. Yarn: 2nd largest installed spindle and rotor capacity in the world with more than 52 mn spindles and approx. 8,70,000 routers; Spun yarn production approx. 5700 mn kg in 2015-16; Filament year production approx. 1200 mn kg in 2015-16. Fabric: Biggest installed weaving capacity in the world with more than 4.9 mn looms including 2.4 mn handlooms; Fabric production approx. 66 bn sq. meters in 2015-16; Diverse fabric mix with focus on cotton based products. Apparel: Garment production for exports estimated at 3400 mn pieces annually and for domestic market at 5600 mn pieces annually; 12.9 mn workers employed out of which 70% are women. Continue reading “Indian Exporters Must Seriously Explore Japan”
If the global events of the first three months of 2017 are any indication of the kind of future to be expected then it is hard to dismiss the reality that we’ve entered a new era. The new geopolitical instability and uncertain economic landscape are very scary. The uncertainty has always been an integral feature of the world we live in. After all, it is our own creation. However, the stakes were never so high if one looks in terms of the reverse globalization. Every nation wants to be safe, independent, prosperous and be respected by others but sadly, does very little to appreciate that others also have these very same wish list. Continue reading “World Trade in an Uncertain World”
The race for development, among nations, using globalization as a major tool is slowing down thanks to the recent signs of the revolt against globalization. Ironically, this revolt is being seen in countries that initiated, propagated and, to some extent, monopolized the rules of globalization. It is no secret that despite many advantages of globalization in terms of growth in opportunities and skill development, the fact remains that largely, there has been a jobless growth in most countries. Also, the gap between the rich and the poor has widened to an unimaginable extent creating widespread unrest among those disadvantaged populations everywhere that feel being left out or not being looked after well by their respective governments. Continue reading India’s Job Creation & Race for Development in Asia
China’s colossal growth of textile and clothing industry has contributed to the rampant pollution prevailing today. The wastewater emissions from dyeing and printing in China are estimated about 3 × 106 to 4 × 106 m3 per day, i.e. 3 – 5 tons wastewater a day from dyeing 100 m fabric. The wastewater is characterized by intense color, high pollutant concentrations and poor biological degradability. It contains large amounts of harmful substances like formaldehyde and chemical auxiliaries that could cause headache, skin allergies and other health hazards. Some aromatic amines, heavy metals and preservatives are found to be “possibly carcinogenic” to humans, and they can destroy the equilibrium of ecosystem and also the aquatic life. The exhaust gases lead to serious harm to the atmospheric environment. Continue reading China’s Anti-Pollution Law has Fast & Furious Actions & Targets
The fashion world is redefining what it means to be really fashionable these days. Fashion experts have discovered a new medium, termed ‘sustainability’, to express their ideas with respect to the apparel designing, usages plus their recycling and reuse. The redefined fashion is supposed to be such that the garment, which is at their centre stage, must be given the respect it deserves, by producers and retailers, and also by consumers. That means any garment that, if worn, gives some positive message and expresses our support for sustainable consumption behaviour. Continue reading Fashion Designers Playing Key Role in Sustainability Awareness
The theory of trickle-down economics, as propagated worldwide by economists of repute everywhere, has not worked the way it was supposed to have worked in theory. According to this theory, benefits given to the wealthy, and also the wealth created by them, trickle down to everyone else. The governments all over the world tend to provide such benefits in the form of tax cuts on businesses, high-income earners, capital gains, and dividends. Even subsidies of various kinds are also negotiated by governments to attract investments from outside to enhance the industrial activity and to boost industrialization and modernization in various priority sectors. Continue reading Globalization is Irreversible. ….And it is Dying!
Prime Minister Narendra Modi, in his Address to the nation on November 8, made a surprise announcement that the currency notes of Rs 500 and Rs 1,000 would not be legal tenders from the midnight of November 9. In a single stroke of his major policy decision, he cancelled 86% of country’s all banknotes, equivalent to $207 billion, the results of which are slowly emerging as people rush to manage their cash. For general public the announcement was a big surprise but those connected with the banking circle and having a watch on monetary policy reports of various banks, there was hardly any reason to get any shock. The State Bank of India in it’s report of March 2016 had talked about the rumors in their circles that these notes might be withdrawn. This was precisely the reason the SBI research team attributed to the unprecedented amount of cash with public in these denominations that, according to them, was not contributing to industrial output or in any positive way to the economy. It was, perhaps, lying idle except, the trend they observed, there was steep rise in the bullion market. However, later we saw increase in the bank deposits, diversion of money in the greenback, real estate and in other routes. Continue reading India’s Currency Demonitization : B&W Or Technicolor?