Even as the Opposition leaders including former Prime Minister Manmohan Singh described the demonetisation exercise as a monumental blunder, the Prime Minister’s Office had taken the pains to compile several infographics which highlight the positive impact of demonetisation and Goods and Service Tax on the economy.
Narendra Modi said at a speech at a programme on Ease of Doing Business last week in New Delhi that economic reforms had led to a huge growth in foreign direct investment (FDI) in the country.
“During the current financial year till August, total FDI of 30.38 billion US dollars has been received, which represents an increase of 30% as compared to the corresponding period last year. In August, 2017, India received a total FDI of 9.64 billion US dollars, which is the highest ever FDI received in any month,” Modi said.
These reforms have touched significant sectors like Defence, Railways, Construction Development, Insurance, Pension, Civil Aviation and Pharmaceuticals. More than ninety percent of the FDI approvals have been put on the automatic route.
Among the several positive outcomes highlighted in the report infographics include increase in digital transactions, lower real estate prices, unprecedented increase in tax compliance, massive cleaning of financial system, keeps terrorism and naxalism in check, highest ever unearthing of black money among others.
The implementation of Aadhar for transactions and subsidies have enabled money went for welfare schemes go directly into beneficiary accounts, more people have come under financial inclusion through creation of Jhan Dhan accounts. The proportion of population having access to banking has risen from 58% to near universal.
Contrary to popular belief, the government says that GST would only lower existing tax rates and enable more public welfare.
Modi pointed out that even as we have gone several steps ahead in ease of doing business we must as well make it easier for small and medium enterprises by reducing the cost of doing business.
This sector provides the bulk of employment in the country and to make them more competitive, we have to reduce the cost of doing business. The work on Ease of Doing Business must address the issues of these small businesses and manufacturers.