Thought you might be interested in an article I posted on another thread. I personally think this is very relevant to some of our delays.
"I read an interesting article in the financial review today, entitled - Biggest tax reform in 70 years set to transform India's economy.
For those who don't know, PM Modi want's to implement a reasonably modest GST throughout India - by 1st July. Businesses are in a spin. Guess many of them aren't so used to the digital economy. They want the deadline pushed out to the 1st of September. It's a "tax revolution" the article states and with only 1% of India's population paying tax at the moment, the implementation of the GST will add plenty to government coffers. PM Modi wants to spend big on infrastructure, yadayada. This is all coming on the back of PM Modi's Demonetisation. I can certainly see why there is a lot of uncertainty in India at the moment.
The article also talked about how the GST will also simplify India's tax and make it easier for foreign companies to do business there - I know the Chinese are certainly looking at India's Iron Ore industry. Companies and SMEs will contribute more than 30% of India's GDP but are struggling to become tax compliant with the new system. I guess POS machines will be implemented throughout retail stores and not only in the cities but spread out into all regional areas eventually. The digital age will be a revelation to many but I think it will help stamp out corruption on a far grander scale than demonetisation ever did!
One thing I'm sure of, is that all this upheaval in India's financial sector is causing a huge stir within India's banks. I don't think you have to be from the industry to imagine how all institutions - tied to the financial sector - would be searching for a position they can take, including local and foreign banks. This transformation of India, "The GST" promises to be a huge turning point in India's history. Turbulent times are ahead but for those swinging on the coat tails of successful companies - fortunate enough to find their position - will surely be well-compensated beneficiaries.
Anyway, that's what I'm hanging in here for. I believe that the banks we're associated with are living with just as much uncertainty us smaller guys, but the prises for success could be staggering. So whether the GST arrives on the 1st of July or the 1st of September, we don't have much longer to wait to see what direction the country goes in."
BTW, in the same paper there was also an article about China's call for higher grade iron ore. To me, things are shaping up nicely in India. Great time to have a foot in the door.
Cheers
Rhama
PS Sorry to see you go Gyro but reckon you'll be back
NSL Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
(20min delay)