In a recent data, it was found out that the global market is growing much faster than that of the Indian market.
In the last one month NASDAQ has moved up by 11.87% in comparison Nifty has only moved by 7%.
Other markets like Hang Sang has increased by 9.63%, German DAX by 11.27% and the UK FTSE by 12.39%.
The growth of this market only points out the hard to digest truth that economic growth of India is quite slow in comparison to the rest of the world.
GST Bill details in the limelight:
One of the reason is the mystery surrounding the GST bill, since the time that the current government has pushed for it, it has been under a lot of limelight.
The question remains why market around the world remains quite fascinated by this bill?
Morgan Stanley recently took out a data where it stated that the implementation of GST in the Indian economy would change the entire economic condition of the country. The implementation of this bill will have one of the most far-reaching indirect tax reform in the country.
PM outlines the importance of GST Bill:
The current finance minister Sh. Arun Jaitley of the country and even Prime Minister Sh. Narendra Modi has openly advocated the importance of this bill.
The PM has passionately said that this will be known in the Indian history as one of the biggest reform to come after independence.
Why is GST bill so important for our economy? It is believed that this bill will simplify and unify all the 29 states of the country by simplifying the tax. One of the other positive aspects of the bill is that it will provide the customer with a common marketplace.
What the Corporates think of GST Bill?
The other point is that the corporate sector decision to set up production operation would no more be limited to taxation in a particular state but by business efficiency in the state.
Broking firm Nomura estimates that initially there would be hardly any growth in the Indian market but after a year or two, the growth would kick in the market.
In the first year the prices of electricity, clothing, footwear, medicine and education would go up but with time as the productivity gain and higher investment come in the market, the GST will control inflation in the market.
Morgan Stanley praises GST Bill
Furthermore, Morgan Stanley points out that sectors like Consumption (warehousing consolidation), logistics, building house material and industrial manufacturing will experience growth in the long term because of GST bill.
On the other hand, industries like oil & gas and cigarette manufacturing unit would suffer a huge loss because of GST bill.
But the positive news is that since the announcement of GST bill coming as a reform, the Indian economy has seen a marginal uplift.
But economist remains confused as to whether the Good and Service Tax (GST) will be beneficial for the economy or not.