Selected measures proposed and taken by current Indian government

Abstract

India is going to have the second largest population and one of the largest markets in the world, however, trade and investment environment have been unsatisfactory. The economy was being paralyzed between 2011 and 2013 after long-standing problems had appeared. Nevertheless, a paradigm shift can be seen since 2014. In that year, Indian People’s Party won a majority in the general elections and Narendra Modi became the Prime Minister. Under his government, several programs have been introduced and some of them already implemented. The main objective is liberalization, deregulation or computerization, tog-ether calling for higher investment and trade exchange. GST is one of the most discussed reforms since it should have brought a unified tax system across all federal states with more transparent requirements for foreign entities. Subsequently, voluminous programs such as Make in India, Digital India, Clean India etc. have being promoted. Despite the fact that businesses can benefit from the outlined initiatives, common people are often affected in a negative way – which is the actual case of demonetisation.Keywords: Indian economy; Narendra Modi; GST; Make in India; demonetizationJEL classification: F20, H10, 017