The Indian government under the Leadership of Narendra Modi is trying hard to introduce Cashless Economy in India but it is against the nature of Indian people. They are accustomed to deal with cash in various economic activities for the reasons best known to them. It is reported that the same amount of cash has return to the Indian economy in spite of that Indian government introduced demonetization. It is better to examine the reasons for cash dealings in the Indian economy.
It is reported that hardly 3 to 4% people in India pays Income Tax. Some of the people are not paying taxes by running their major business transaction in cash. It is a known fact that India is having the fastest growing economy which generates lots of new wealth. It appears that newly generated wealth is mostly going out of tax net and it is floating in form of number two Economy. It gets accumulated in the Hands of Business, Traders and Industrial communities.
In short the full advantage of economic development is not reaching to needy people but it is cornered by wasted interest. The question arise where those black money is going ? It is being mostly invested in Real Estate, Diamond, Gold, Jewelry and being spent on luxurious living. It can be seen that people have good buying power but Tax collection is not increasing. Besides that it has increased the Gap between Poor and Rich.
One of the reasons for opposing the 'GST' is that it will cover large number of traders who are not covered under Tax Net. There may be also some procedural problems regarding GST and also of High Tax being imposed on certain items. The said problems are required to be solved by the government
It can be seen that India is facing very complex problems in introducing cashless economy. The people are to be trained and educated for cashless system. Besides that it requires Nationalism, Honesty and Sincerity for success of the said system.
One can see that how much advantage India gained by introducing High Tech Adhara Cards. One Million fake Ration Cards disappeared. 195000 Fake children list of scholarship was detected from Madrassa. 40000 fake NGO were closed. 300000 fake companies were closed. Besides that 30 Million fake LPG connections have ended. In the similar way high tech Cashless System can bring more people in to Tax Net, and the development advantage of economy can reach to the poor people of country. However it is very difficult to introduce Cashless System without cooperation of the people.
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