The cry of Indian people drowning in economic misery

Urgent economic policies of Modi government set up angry army of unemployed in India - File photo

Urgent economic policies of Modi government set up angry army of unemployed in India – File photo

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It is 12 noon. The sun is shining from the climate a mob of laborers is gathering in Harola area of ​​New Delhi, the Indian capital. The intense heat has kept them in the sweat, but they are awaiting anticipation. They are expected to get some work today so that they can earn some money and take it home and the wife can arrange for the children to starve. These workers are ready to do all kinds of work. But the work is short lived the last employer came at 9am. He took some of the workers along. He had to go to the factory. 3 hours have passed since then and no employer has stepped in the area. Four, five years ago, workers had a good job available. Every hour five, six employers would come in and take the workers along. Then two and a half days, three thousand workers would get work and they would earn good income. But now a thousand laborers are no longer able to find work. This is the case of unemployment in every city and town of India, not just Delhi. Millions of Indians are forced to work daily temporary and part-time jobs to keep the cars of life flowing.

Policy on the ban of Rs 500 and Rs 1000:

The unemployment wave in India was born after November 2016. This month, the Modi government banned the use of Rs 500 and Rs 1,000. The aim was to document India’s undocumented economy. The reason is that the documentary economy in India has become a disaster. India has a workforce of more than 500 million people. 90% of them were part of the undocumented economy. As if they were paying some indirect taxes, they would have avoided direct taxes. Thus the Indian government lost billions of rupees every year due to tax evasion. The Modi government has decided to eliminate the big notes so that the hidden capital comes out and becomes part of the documentary period.

Eight months later, the Modi government introduced the General Sales Tax (Goods and Services Tax in India) to hurt the undocumented economy. General sales tax is indirect tax. The Modi government introduced various slabs in this tax. The final slab rate is 28 percent. This is the highest GTS rate worldwide. Experts say the general sales tax introduced by the Modi government is very complicated. Plus it hurts small businesses, industrialists and investors economically. That is why, Rahul Gandhi, the Leader of Opposition in India, has called this tax Gabor Singh tax. They claim that the tax destroyed small businesses and small businesses. If India’s unemployment rate is seen in the last two years, then Rahul Gandhi’s claim seems correct.

Planning without action:

In fact, thousands of investors withdrew from the undocumented economy due to the rupee ban and the new general sales tax. He wanted to keep his money hidden from the government and tax agencies. As a result, hundreds of businesses closed down, companies collapsed and Indians lost their jobs while working in them. That is why; the unemployment rate in India has reached 8.1%.This is the highest rate in the last 45 years. The army of more than 40 million unemployed appears in India. Not only is that, the majority of the unemployed also doing small jobs because getting a good job has become a very difficult process. The situation is clear that the Modi government has suddenly hit the undocumented economy without taking care of the millions of Indians belonging to the lower and middle classes. In the chaos, investors closed their businesses and companies. But nothing was worse because they play billions of billions of rupees. They are living a comfortable life. The real calamity struck the lower and middle classes of people who had become unemployed by the closure of businesses and industries. The situation is that the body and soul are barely maintaining their relationship with millions of Indian charity hotels. Their lives have become hell. He, who cannot bear the problems, takes his own life. That is why the annual suicide rate in India has also increased.

Things are very bad:

The situation is clear that the Modi government’s war against the undocumented economy did not succeed, but it weakened the Indian economy. The main reason for this failure is that the Modi government did not give any information to the big investors involved in the undocumented economy to include them in the tax system; they were not mentally prepared to neither be part of the documentary economy nor give them any incentive to integrate themselves into the legal system. So investors panicked and withdrew their capital from the undocumented economy. Not only did this process stagnate on economic activity, but many Indians lost their jobs and livelihoods. In the past, illiterate, semi-skilled, skilled and educated Indians belonging to the poorer classes joined the undocumented economy and found jobs. In this way, they started to get lentils. But the Modi government drone strikes on the undocumented economy, depriving the poor and middle-class of their jobs. Millions of them voted to bring Narendra Modi to power. Now they are very remorseful. Often the unemployed say the economic conditions in the Congress government were good. Sorry, good days have passed. Now we have hard time getting even bread. Things are very bad.

Strange punishment:

Raju Prajapati, 39, lives in Mumbai with his mother, father and wife. After matriculating he started doing minor jobs. Finally he learned the work of Rajagiri. He then got a job in construction companies. He would earn Rs. 15,000 per month. Life began to go smoothly. Raju’s father, Ganesh, is also a daily worker. He gets the job he gets daily. He also had a monthly income of 13, 12 thousand. Thus father, son was able to save a reasonable amount of money each month. But a ban on Rs 500,100 changed the life of this family and made it the target of unemployment storm. Most construction companies stopped working after the notation and sales tax were imposed. Now father, son, got work for one, two days a week. Monthly income, which was earlier close to Rs 25,000, has now dropped to 12, 10 thousand. Economic problems deepened them. They left a two-room rental house and rented a room in a cheap area. Its rent is Rs 1100 per month. Ganesh and Raju both leave early in the morning to look for work. Good luck if you get a job or you have to return home empty handed. This is the sad story of millions of people in India. With the Modi government’s hasty, unthinkable economic measures, they were subjected to a strange torment.

Works at Chandni Chowk:

Chandni Chowk is the largest commercial and commercial center in the Indian capital, New Delhi. Experts say that initiatives like notation and sales tax have cut off 70% of business and business activity there. Most small factories, companies and companies in the area were part of the undocumented economy. When the Modi government cracked down on them, 70% of businesses and businesses were closed. Thousands of men and women worked in them. Due to the closure of institutions, he too joined the army of millions of Indian unemployed. Factories and factories made in New Delhi, Mumbai and other cities have also become the victim of a new problem. The smoke emanating from these factories has polluted the atmosphere of Indian cities. Therefore, the Modi government wants these factories to be set up on the outskirts of cities. The factory owners, who did not accept the decision, are now fighting the Modi government in the courts. But this judicial process also locked locks in several factories, and workers working there lost their jobs.

Cash Transaction Closure:

Due to hostile business situation, thousands of Indians became poor, who earned good money five years ago. Take for example 50-year-old Mahesh. Mahesh came to Delhi from Lucknow 15 years ago. He then became a contractor of labor. He used to collect daily labor and supply to the factories. He would earn 50,000 a month from this job. But when the factories closed, Mahesh’s work was stopped. Now he is driving by taxi. His wife and children have been re-written so that they can save huge amounts of rent by staying in their home. The spirit of the undocumented economy is actually hidden in cash transactions. When the Modi government closed cash transactions through notation, economic activity in the undocumented economy stopped. In the meantime, the government attacked it for sales tax. The attack also brought out a serious deficit. Maya is located all over West Delhi. It is the largest iron ore market in India. There are several small factories, businesses and companies dealing with the iron ore business. Thousands of them worked. But a ban on Rs 500, 1000 and sales tax also severely damaged business activities in the area. Chetin Sharma, 52, a scrap iron trader, says the filing system in general sales tax is too complicated. We small entrepreneurs and entrepreneurs do not have the time and energy to devote to filing systems. Nor do we have enough capital to file a tax deduction for a professional.

Lessons for Pakistan:

Like India, Imran Khan’s government is taking various steps to document its undocumented economy. Some experts have recommended the government change the notes of 5 and 1 thousand. Thus, the issuance of an identity card has been imposed to document cash transactions. These measures also stymied economic activities in Pakistan. As a result, thousands of Pakistanis belonging to the poor and middle classes lost their jobs. The undoing of the undocumented economy is necessary because it hurts the country and the nation. But the PTI government, like the Modi government, should not make policies in a hurry and without planning to end it. They should take care of the interests of millions of Pakistanis belonging to the poor and middle classes. The undocumented economy provides them with jobs. After all, the Prime Minister wants to raise the standard of living of these Pakistanis. But without planning, the immediate actions will hurt them and will hurt the government.


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