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The Times May Be More Exciting! Here’s Why

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In two earlier articles, published last week we had a look at a discussion with Mr. Mehta where I first showed him some similarities of current times with the slow growth times of 2000-2003 & then explained to him the reforms initiated by the government back then. Read the 1st article here and the 2nd article here.

But now comes the most important part – why do I feel the future could be almost as exciting if not more.

Economic reforms undertaken by the current government from 2014 to current date 

Goods and Services Tax (GST):

Implementation of GST tax on July 1, 2017, replaced a complicated tax system comprising of a variety of central and state levies with one set of tax rates.

Insolvency and Bankruptcy Code (IBC) :

The total recovery made under the IBC process stood at Rs. 1.08 trillion as on 12th August 2019 with a recovery rate of 42.8%.

Real Estate Regulatory Authority Act, 2016 (RERA):

The provisions of act aim to ensure timely completion and delivery of projects to the buyers as well as making the information of the projects available to them.


The current government raised Rs. 2,79,622 crore from the divestment of public sector undertakings (PSUs) during 2014-19, which helped in reducing the fiscal deficit to a large extent.

Banking Reforms:

Over the last four years, the BJP-led government has taken wide-ranging steps under its 4R\’s strategy of recognizing NPAs transparently, resolving and recovering value from stressed accounts, recapitalizing PSBs, and reforms in banks and financial ecosystem. As a result, the bad debt of banks stood reduced by Rs 89,189 crore on as June 2019.

Massive Infrastructure Development:

Infrastructure development has been the current government\’s bright spot. From expediting highway constructions to the new Bharatmala, Sagarmala and smart cities projects as well as increasing regional air connectivity, the government has done commendable work.

Pradhan Mantri Mudra Yojana

Launched in April 2015, the PMMY scheme offers loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises. As on November 1, 2019, more than Rs. 10 lakh crore have been disbursed under this scheme.

Make In India Scheme:

PM Modi launched the Make in India initiative in September 2014 as part of a more comprehensive set of nation-building initiatives and transforming India into a global design and manufacturing hub.

Pradhan Mantri Kisan Samman Nidhi:

Announced in the year 2019, the objective of the scheme is to provide minimum income support of Rs. 6000 to small and marginal farmers.

“So you see the government has implemented a lot of economic reforms the effects of which will be seen in the next few years,\” I told Mr. Mehta.

“But these are long term economic reforms” pointed out Mr. Mehta.

I smiled, \”Exactly. But there are few other economic reforms too whose impact will be evident in short to medium term.”

“Such as?” asked Mr. Mehta.

“There are many. From slashing corporate tax rate to 22% from 30% for existing companies, and to 15% from 25% for new manufacturing companies to capital infusion of Rs. Rs 70,000 crore in state-run banks. Also, the government has setup Rs. 25,000 crore alternative investment fund (AIF) for the realty sector. And if you know, Government has made the GST refunds of micro, small and medium enterprises (MSMEs) faster with payment within 30 days. Also, significant steps are taken to boost credit flow to NBFCs and revive auto sector. Government has directed banks to launch loan products linked to the repo rate and external benchmarks to provide reduced easy monthly instalments for housing, vehicle and other retail loans. This will allow banks to pass on RBI rate cut benefits to borrowers through MCLR reduction. And the list goes on.”

After deep thoughts, Mr. Mehta replied, “I agree with what you say.”

“Right from day one when the current government came to power in 2014, it was quite evident that the government would be taking some serious measures to clean up a lot of systems, processes, laws, etc. Whether it is demonetization or implementation of GST, IBC, etc., the government has taken some massive steps to achieve what it had set out to do. And based on this, there is very little doubt in my mind that if a government that believes in taking progressive steps would surely work towards their committed target of making India a $5 trillion economy in the next 4-5 years.”

Mr. Mehta was now speechless.

“I got your point, Harsh.”

“Glad I could be of help to you. Well, so now you think this is the best time to invest?”

“Well, after hearing to you, I guess the best time was yesterday!” said Mr. Mehta.

“Mr. Mehta, nobody can change the past. But anyone can start today and make a new beginning. The best part is golden opportunities exist even today which will grow and outperform as Indian economy grows.”

Read more:  How Long-term investing helps create life-changing wealth – TOI.

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