India's Economic Long Game

MIN READDec 19, 2016 | 09:15 GMT

Indian Prime Minister Narendra Modi wants to promote economic growth and job creation through his land, labor and tax reform bills.


India's winter parliamentary session ended without agreement on the elephant in the room: the pulling of the 500- and 1,000-rupee notes last month. Parliament also failed to pass the three remaining parts of the Goods and Services Tax (GST), a sweeping tax reform advocated by the ruling party to simplify the tax code, boost interstate trade and unite India's isolated state economies into a single national market. The two items are related: The ire and panic provoked by the demonetization scheme -- 500- and 1,000-rupee notes will be worthless come the first of the year -- worsened parliamentary gridlock and prevented lawmakers from coming to agreement on GST. But, angling for re-election, Indian Prime Minister Narendra Modi is unwilling to compromise on demonetization, even if it comes at a hefty economic cost....

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