Ad Here  
Airlines in India: cost and space Revive development banks... Alexa – Talking Wikipedia L&T: focus on infrastructure and more infrastructure… Engineering seats go abegging He saved millions from starvation... A proud Madrasi The few handicaps... Tatas moving out of urea production... Tribute – Manikam Ramaswami PC’s preference for professionals When small is no larger beautiful.. The star of Spencers is no more Recognition to role of NBFCs.... Banning booze... Come elections, come advertisements... Editor's Notes The rise and rise of KCP Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated TN – agglomerate land holdings without alienating ownership Measuring roof tops in terms of KW/MW No engine for this car Funding the un-funded Small units prefers to remain small... Paytm karo... Poor quality of university VCs Land reclamation from sea appears cheaper! Shale gas and its shallow future Increasing non co-operation of state leaders Haul over the coal Bihar elections - the Rajaji formula worked F C Kohli - his concerns all embracing Make standards certification mandatory... Welcome changes that testify to Jayalalithaa’s return to health Sweeter prospects for sugar Odisha: spectacular win by Naveen Patnaik Sweet news for TN sugar mills Dr C Rangarajan returns to Chennai Fall in crude prices help in oil sector reform Delhi Chalo... Protest masters... Rahman at CIC Tough task taking states together Quality education through the PPP mode Kulandai was a giant Solar, solar everywhere … More Shakti to resource mobilisation... Strengthen the base... R Sridhar steps down as CEO of Shriram Capital The Swadeshi Trump TELANGANA at last…BUT Godspeed, Chief Minister JJ Intellectual of rare qualities More tributes to GR More heat than light SoA @ 80 Rs.1600 crore paper board plant of TNPL Sri Lanka votes for change Insurance companies bleeding, yet no decision on increasing FDI limit! Fuel for thought Streamlining mandatory third party cover For whom the bell tolls? Towards speedy justice The Ports’ Pasha expands into Tamil Nadu The nuclear option There was flood of milk. Reason: no milk commissioner! Solar thermal shines… EEC at the National Media Centre Boy, can you beat these? IAS invades NDDB... Kudos to NDTV... Delhi is distant… The rise and fall of Annamalai University Welcome GST Which side are you, Montek? An informal presentation - analytical, forward locking... Fortune for Indian Airlines Telangana in top gear… Excel Generators provide the vital back-up Multi-faceted Venkat Vibrant Gujarat Robber barons everywhere The balancing act TIAM turns a full cycle A Grand Finale for SN’s MS centenary at the US… EVM is tamper-proof Remembering Indira Sivasailam... Delhi is distant Tribute IPL type auction for VCs? Eternal support for capitalisation of PS banks Where is Rajaji? TGS- The king storyteller Medical costs hit the roof... The ‘Ayyo-yes’ is no more Shipping woes of Chennai companies MHC should not return to its old indisciplined ways The why of tax incentives A C Muthiah – his munificent bequeaths to science When nations steal growth from one another… The brown list of Venkitaramanan Whistle-Stop Tour of Raghuram Rajan GNS - 100: our first subscriber to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Padma Bhushan for A Ramakrishna How Air-India loses customs... Discoms deserve better… For whom the MIDS bell tolls? Preserving for the future Naidu will soon build a new Hyderabad Shaming of Tamils by Tamil farmers at Delhi A think tank for Chennai A professional at the helm of IRDA... Diamond jubilee of Egmore Samskrt School Secularism and anti-Hinduism Readers' Mail Online not in line with brick and mortar businesses... Tribute – M V Murugappan Return to king coal for urea... A rich pool of talent not utilised…. Align crops to agro climate endowments… Russi Mody – a tribute Inflation: are we emulating Argentina and Brazil? Lesson from Chandrababu Naidu A Grand Finale for SN’s MS centenary at the US… Welcome focus on core competence He continues the focus on social amelioration Convulsions in The Hindu Muffled voices for merit… Limit foreign borrowings to hi-tech, export potential projects... Wise Presidents IPL - no surprise this scam New IT products of Ramco in the pipeline… A yen for wastage… Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai A more liberated TN… Adapt Vajpayee dinner diplomacy Pharma – overdose of copying When TN politicians can emulate Kerala's Of course, Gujarat is vibrant This scant respect for Law Breaththrough in malaria control L&T- the specialty of special purpose vehicles The ‘Jayanthi Tax.’ Demise of a media baron... A friendly business group Infrastructure funding – lessons learnt Why this malaise in medical education? Tribute – UCAL Selvan… Why land prices zoom in TN? The Jan Dhan bonanza Air Asia India will set new benchmarks for budget travel Cleaning Ganga – relocate tanneries and install electric crematoria Roaring Ro-Ro facility The Gulf aviation boom Silver Years of Madras Musings Build close rapport with business leaders CRS, a jewel among managers, is no more. Liberal imports idling indigenous capacities Colour-Chem’s colourful KRVS Not just in-laws (and outlaws); they’ve renowned academics at the helm! WTO Meet: resolved to meet again London, London Narayan Editor's Says Welcome thrust on trade in Modi’s foreign visits... Music happens CIPET hqrs to stay at Guindy – for the present? Moily’s bold thrust West Bengal: mindless malignancy An inexplicable neglect Gas is the way forward Modi and the lady An enemy’s enemy is a friend When online building permits work…. Tax agriculture Nuclear power at the nucleus Mersal magnified Parliament in paralysis... Naidu’s return augurs well for Seemandhra The power-full Hindujas Mu Sigma – is no more Adharma of opposition politics Reliance’s TV – 18 ready to launch Tamil News Channel The sea- saw battle continues... Valli, they are more marginalised Noble nonagenarians... China invests in India GM Technology at last! Delhi returns to BJP …and of a popular trade leader No Maha Koottani in TN... Maximising the micro pricing … No mega rail project for Tamil Nadu B H Kothari - a tribute Computation of GDP – conundrums continue Should we change the official year? Making ‘my Amaravati’... Polls and promises Don’t seem to feel the pulse… Focus on quality of power - its only around 170-180V Kinetic Karnataka Lalu’s envy, India’s pride Another Indian music maestro at the UN Cutting the nose to spite the face Marketing expert Balagopal is no more Auto components surge… A glass full of corruption Tihar, Puzhal not different from Parappana Agrahara TN-leverage strength of BHEL, NLC... Plummeting profits of PSBs When the President was rendered homeless… CII projects higher growth… Road development slows down Where a state respects its litterateurs… Poor representation for Kerala and TN in Cabinet S Ramanathan – a versatile musician, musicologist Cement prices continue to rise… CSR and CMI: promise of another Srinivasan Ramanujan... TN accounts for the largest recruits by the IT sector PPP mode for upgrading Corporation Hospitals All eyes on Sankara Nethralaya Five star activism stalls development activity S V Raju – a ‘good’ true liberal Tatas moving out of urea production... Modi storms Silicon Valley Permanent secretariat for TN GIM Building loyalty through the stomach Things happen by accident and not by design... Fortune 500 review Put expensive assets created to use... Waning interest in public discussions… ONGC at KG Basin More Shakthi to Das’ elbow Contrarian cousins Revving up the manufacturing sector Like Hinduism: many paths to reach God... Gay abandon in pricing A welcome initiative by the judiciary Quality silica from Neyveli Bihar – Nitish Kumar adopts the Lalu model Scientists urged to take up farmer-oriented research Wanted: a second airport for Chennai Shanti and Sadhana through Music When Ratan Tata visited SRM
Welcome GST

Strong leaders of regional political parties like J Jayalalithaa and Karunanidhi could defy attempts by the Centre to bring about significant policy changes. With the over-emphasis on welfare measures that result in the proliferation of freebies and massive subsidies, Tamil Nadu’s finances were in bad shape. Remember the state, refusing to reform the power sector? The state delayed the formation of the State Electricity Regulatory Commission, resisted separation of generation and distribution through separate companies (neighbouring Andhra Pradesh did this to great benefit)... The finances of the electricity board were in a mess with regular losses and mounting debts. Jayalalithaa as Chief Minister routinely resisted several proposals of the Centre to the detriment of the state’s economy. She was also unmindful of the harm done to the state’s economy by such an attitude. 

A weak Centre under the UPA, dependent on the support of several regional parties, was unable to prevail over such strong local leaders. Such an attitude has also been giving rise to agitations by special interest groups. We witnessed these in recent times in the opposition to the hydrocarbon project in Vadivasal, the constant agitations by lawyers, farmers and more recently, by government doctors and transport workers. One can witness the impact of a strong Central government with a single party commanding majority in the Lok Sabha. The Modi government has been able to stand firm and not yield to demands considered unfair. One hopes pressure groups would realise the futility of protesting issues that had received extensive support on the national plane. The state leadership should also weigh the overall benefits to society not influenced by demands of sectoral interests. 

The traders’ lobby has gained considerable support and clout in recent years. On 5 May of every year, traders’ associations across the state observe the traders day and show their solidarity by closing all shops! The association presents a list of demands seeking special favours. 

The services sector that includes such trading is estimated to account for over 60 per cent of the GDP, but it has been accounting for less than 10 per cent of total tax revenues. Despite substantial growth traders have been successfully resisting attempts to bring their operation under the tax net. 25 years ago Dr. Manmohan Singh, as finance minister, proposed a simple presumptive tax ,of just Rs. 1400 pa, with no questions asked on books kept. The trader lobby successfully resisted and forced the government to withdraw this tax. State governments also lack efforts in bringing this huge section, quite a portion of this prosperous, under the tax net. 

The GST system, one hopes, would address this issue. This single factor can increase tax revenues substantially. This is yet another area for the Centre to focus. 

Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236