India’s $450 billion supermarket sector may be opened for foreign direct investment that may help to increase capital inflows.It may help to strengthen the rupee which is going downwards.Investor confidence in the economy is very low and may change if more foreign investment is allowed.

diesel, kerosene and cooking gas are sold below market price with government subsidies. Civil aviation sector is facing huge losses.Goods and services tax is not introduced yet which may increase india’s GDP by 1-1.5 %. Goods and services Tax will transform India into a single fiscal union.It may help to cut business costs.

 Implementing Goods and services tax needs approval by two-third’s of federal lawmakers and needs to be passed by at least half of 28 state legislatures.

This is not going to be easy as it is opposed several times .

Cutting subsidies for diesel,petrol and kerosene will backfire as it will increase price of every product and it will lead to a decrease in sales affecting cash flow. 

Allowing more foreign investment in retail market will back fire as only high class and middle class are more used to retail shopping, while middle class will start to cut their expenditure due to rise of prices in essential commodities triggered by a hike in fuel price. 

 

Advertisements