What could be Narendra Modi's next move after demonetization?
Narendra Modi's next moves after demonetization have been shaped by the need to address the informal economy, boost economic growth, and create jobs. Here are some potential strategies that could align with his vision:
1. Formalization of the Economy
- Digitalization: Encourage a shift towards a more digital economy to reduce cash dependency and increase transparency. This could involve expanding digital payment systems and promoting e-commerce24.
- Regulatory Measures: Implement policies to reduce the size of the informal sector by making it easier for businesses to operate formally. This could include simplifying tax compliance and reducing bureaucratic hurdles2.
2. Economic Growth and Job Creation
- Infrastructure Development: Invest in infrastructure projects to stimulate economic growth and create jobs. This could include expanding transportation networks, enhancing energy infrastructure, and developing urban housing1.
- Production-Linked Incentives (PLI): Continue and expand PLI schemes to encourage domestic manufacturing across various sectors, such as electronics and pharmaceuticals5.
3. Social Welfare and Financial Inclusion
- Financial Assistance Programs: Expand programs like the Pradhan Mantri Awaas Yojana to provide housing for the poor and enhance access to credit for farmers and small businesses4.
- Digital Financial Tools: Promote the use of digital financial tools, such as RuPay debit cards, to increase financial inclusion among rural populations4.
4. Tax Reforms
- Simplification of Tax Regimes: Simplify tax structures to encourage compliance and reduce evasion. This could involve streamlining corporate tax and individual tax regimes1.
5. International Trade and Diplomacy
- Trade Agreements: Pursue trade agreements that enhance India's position in global markets, potentially focusing on sectors like agriculture and manufacturing3.
- Diplomatic Efforts: Engage in diplomatic efforts to ease tensions with other countries and improve trade relations, which could help stabilize the economy3.
These strategies would aim to build on the goals of demonetization by fostering a more formal, digital, and inclusive economy while promoting economic growth and international competitiveness.