FINANCEOUTLOOKINDIAJANUARY, 20249Services Tax (GST) in 2017. GST's kick-off was a big eve nt in our money landscape. At the start, folks said this ne w tax was a big deal for India's money and tax changes. Basically, GST works be cause it's a place-based tax. But, the start of it meant India's money journey was on a whole new path.Imagine a common tax for all unde r the banner "One Nation, One Market, One Tax". That's the ide a behind the Goods and Service s Tax (GST). It transformed many tax rules into one re liable code. The goal? Unity. Be nefits for everyone . In only six years, GST's effect on the economy is a big deal. It's kicked te chnology up a notch. It's a champ against cheating in business.The GST Council cre ated an entire syste m. It includes more than 1300 items and 500 se rvices split into four tax brackets: 5%, 12%, 18%, and 28%. The tax base has doubled since getting starte d in 2017, showing it's growing. It collected nearly 1.65 lakh crore rupees in Dece mber. That shows how much it contributes to the budge t. The council meets ofte n. They talk about ways to streamline things, make it better and broader. Part of that involve s pulling more businesses into the fold of this reform. The Insolvency and Bankruptcy Code (IBC) is part of it too.Insolvency and Bankruptcy Code (IBC)The goal is to e nhance the recove ry process for troubled businesse s. Switching focus, the Insolvency and Bankruptcy Code (IBC) is an e ssential reform in India's economy. It he lps to build a solid financial framework for the country.The IBC was rolle d out in 2015 by then-Finance Minister Arun Jaitle y. It received approval from Parliame nt in 2016. The IBC aims to boost business insolvency rule s. It sets fixed timeline s for sorting out corporate bankruptcy cases.The Insolve ncy and Bankruptcy Board of India provides data. It shows the effe ctiveness of the IBC. It has he lped turn around 2622 companies through differe nt methods: 722 with resolution plans, 1005 through appeals, re views, and settleme nts, and 897 with withdrawal plans.These are accounte d for until June 2023. Examining it differe ntly, the IBC's effective ness has been que-stioned due to falling recove ry percentages and incre asing lengths of resolution times. Eve n with its significant achievements, the se patterns have dulle d the impact of the IBC and its achieve ment of its original aims. A Strong GDP GrowthExamining it differe ntly, the IBC's effective ness has been que stioned due to falling recove ry percentages and incre asing lengths of resolution times. Eve n with its significant achievements, the se patterns have dulle d the impact of the IBC and its achieve ment of its original aims.Looking broadly, the South Asian are-a's total economy (GDP) is expecte d to rise by 5.2% in 2024. This increase is mainly due to India's impressive growth, which secure s its place as the world's fastest advancing large economy. The UN rece ntly forecasted a 6.2% growth rate in India's e conomy in 2024. A strong expansion in various areas backs this view. Shantanu Mukhe rjee, who heads the Economic Analysis and Policy Division, shared that the GDP growth rates for 2022 to 2025 are slated to be 7.7%, 6.3%, 6.2%, and 6.6%.A Robust Roadmap towards becoming The Top Three World EconomiesAt the Gujarat Vibrant Global Summit 2024, India's Prime Minister shared his plan for India to become a top-ranking world economy. He stated, "At pre sent, India stands as the fifth-largest e conomy globally. A decade ago, we we re at the 11th spot. Major global entities pre-dict a bright economic future for India. They se e us rising to a position among the top three economies. While e veryone across the globe is welcome to verify this, I confide ntly affirm that this will indeed be a re-ality.""Everyone knows about the global circumstances. Hence , the strong stand of the Indian economy, the speed of India's progress, is partly due to the major changes made in the past ten years. These modifications have bolstered the size, skill, and rivalry of India's economy," he added.
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