The economic reform in the form of cutting down the corporate tax from 30% to 22% by Modi government has not only boosted the confidence of the corporate but also the investors. Considering the large number of social reform initiatives undertaken by PM Modi in various sectors which has been denied and dismissed for several decades by congress government, the above decision of the government to cut the corporate tax is bound to increase the physical deficit and affect the great initiatives. But PM Modi has taken the bold step with confidence that the corporate that benefits from such tax bonanza would pump back the money in the market, would cut the cost of their products and increase the enthusiasm and purchase intent of the customer. Further the bonanza the corporate also should use to provide various perks to the employees, new appointments etc., so that automatically our economy would get the much needed boost as well as the problem of unemployment would decrease significantly.
Only a leader with extraordinary wisdom, leadership charisma, understanding and commitment for people can take such a bold and brave step. PM Modi never engage in politics but how to serve people better and how to develop the country further only always PM Modi would give importance to. Fiscal deficit can be easily managed once the economy becomes erect and the purchase enthusiasm of people is elated. That is how those who know economy and business would think and act.
Definitely the corporate also must reciprocate to our country and must support the commitment and extravagant graciousness of Modi by pumping back the money into the market than put into own pocket. The festival season is around the corner and people normally itself would show great purchase intent during festivals like Navaratri, Diwali, New Year etc. If the automobile industry brings down the cost of their products by a lakh or more, a new, rejuvenated enthusiasm they can inject upon the customers and thereby can augur vibrancy in the market. Only when the corporate pump back the money ensuring some portion of the bonanza reaches the customer and market than the shareholders, the intent of the government will fulfill.
If the corporate really reciprocate the same sagacity of Modi and boost the market, then the corporate has every right and legitimacy to ask the government for more such bonanzas in future and government also will be more willing than refuse.
If Modi had only weighed political interest and winninirmalang election, he could have be tougher with corporate and generous in social welfare schemes. But Modi never believes and want politics in governance and for Modi India comes first. India must be developed, governance must be freed from corruption and nepotism, politics must be full of accountability, responsibility and not dynasty and sycophancy.
Several lakh crores of money is been put into the pocket of big corporate to boost the market and not put into own pocket. Industry, manufacturing sector and job creation all must happen in our country and at the same time social welfare measures and not politics of freebies must happen. Modi has clearly differentiated both and that is why he came forward of give such tax bonanza to the corporate.
The corporate also must recognize the truth that the series of structural economic reforms and closing down all doors and windows of corruption has caused phony economy in our country to suffer. How the country was ruined by mis and mal governance by UPA 1 and 2 and caused great loss to the exchequer by way of gifting NPA to our banks. The above fact, every Indian must remember every day and only then India can defeat congress party in all future elections. Corruption and scams were only happening before 2014 but today India is witnessing reforms, development, sab ka vikas, national safety etc., under Modi. Hope the corporate would act responsibly and would pump back the bonanza to the customers.