Cheaper Credit? is it the cure for all?

Cheaper Credit

It is true that high interest rates hurt and it hurts some setions more than others.

But if the government and the industrialist do come together and initiate steps which can cut down costs then there may be not an immediate need to reduce this impost. As your leader correctly points out there are sections such as realty, which have absorbed this impost (through external flows), which is once again hurting the same industrialist. Any early redemption of this impost could hurt the sections it is wishing to protect by causing runaway inflation.

As a first step the government can authorise free movement of goods across states to recognized Logistics providers who will be responsible for the movement of goods and the sales tax compliance there off. Given the ground reality of the infrastructure bottle necks, the least government could do is to reduce the transit time of goods and thereby reduce inventory and costs there off. Cost of compliance will also be low as the logistics provider can be authorised to ensure compliance.

The other area is that of the exorbitant taxation on fuel. The taxation on fuel be it used for the industry or as a part of the executive compensation should be vatable / modvatable. This will provide significant relief to the industrialist and int he long term act an incentive to the government to reduce the taxes per s