India awakens to Big Bang reform
PM Narendra Modi launches GST at midnight ceremony
It was a starry midnight in the historic Central Hall of Parliament on Friday as the Narendra Modi-led NDA regime ushered in the country’s most sweeping tax reform, the Goods and Services Tax (GST).
“We are deciding the way forward for the nation tonight,” Prime Minister Narendra Modi said in his speech ushering in the reforms. “This is not a victory for one party or government, this is the result of the efforts of all of us. GST is the culmination of the efforts of Team India,” the PM added.
“GST is economic integration of India just like what Sardar Vallabhbhai Patel had done decades back to integrate the country,” the Prime Minister said.
On Friday morning, Finance Minister Arun Jaitley chaired a meeting of the GST Council that took the decision to slash the rate on fertiliser from 12 per cent to 5 per cent to reduce the burden on farmers. Watched by a galaxy of politicians, industrialists and bureaucrats, Prime Minister Modi sounded a gong at midnight, marking the launching of one market.
Unlike the last midnight event held in 1997 to mark the golden jubilee of Independence at a special session of Parliament, it was a gala event at the circularshaped hall for the launch of the historic reform.
Both President Pranab Mukherjee and Prime Minister Narendra Modi were present at the event. Former Prime Minister HD Deva Gowda, too, was in attendance, but Manmohan Singh, the original architect of financial reforms, was missing as the Congress party had decided to boycott the ceremony. The Left and the Trinamool Congress, too, stayed away.
But there were too many stars on the dais to make up for those who were missing. Lok Sabha Speaker Sumitra Mahajan, Vice-President Hamid Ansari were there along with the President and the PM. Megastar Amitabh Bachchan, business tycoon Ratan Tata, legendary singer Lata Mangeshkar were also there to lend colour to the proceedings.
GST has been dubbed as the most significant economic reform since BJP government came to power and is expected to add 2 percentage points to the GDP growth rate besides raising government revenues.
GST has been dubbed as the most significant economic reform since BJP government came to power in 2014 and is expected to add as much as 2 percentage points to the GDP growth rate besides raising government revenues by widening the tax net