When it comes to making it big in India, how many businesses can you actually open?
I’m sure the government is working hard to get a foothold in the country’s retail market.
The retail sector is India’s biggest and the sector accounts for around 18% of GDP and around a fifth of all companies.
The government is also trying to make a dent in the business of the non-resident Indians (NRIs) with a national plan for their financial inclusion.
This is something that I have advocated for years.
NRIs have a lot to gain from a retail tax regime.
They are one of the fastest growing segments in the economy and have been a beneficiary of the Goods and Services Tax (GST).
The NRIs are also the beneficiaries of a Goods and Service Tax ( GST ) regime that is widely seen as the best in the world.
The GST also has an eye towards the NRIs, who are disproportionately the poorest segments of the population.
If we can bring in a tax system that is more inclusive and that doesn’t discriminate against those who are least able to afford it, then the potential for growth will soar.
As a general rule, I don’t favour a GST that is discriminatory towards NRIs.
The idea is to ensure that the tax burden is borne by all the poor and the marginalised, and that it does not favour the very people who need the least help the most.
As the GST regime is set to take effect from July 1, it is not easy to say whether or not we will see the most progressive tax system in the history of the country.
But the fact remains that we need to have a progressive tax regime to give the people of India the most opportunity.
This is an excerpt from my new book, The Business Case for a Free India, which was published in India on February 17, 2019.
The views expressed are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.