Perspective

Strangulating the informal economy

Print edition : October 27, 2017

State Cheneta Jana Samakhya members protest outside the 21st round of the GST Council meeting presided over by Union Finance Minister Arun Jaitley, demanding the withdrawal of GST on handlooms, in Hyderabad on September 9. Photo: Nagara Gopal

A serpentine queue in front of State Bank of India, Tolichowki branch, Hyderabad, in November 2016, following the announcement of the demonetisation of 500 and 1,000 rupee notes, which made up 86 per cent of India’s currency. Photo: Nagara Gopal

The current slowdown in the economy, aggravated by the persistent world economic crisis, has much to do with the twin coercive instruments of demonetisation and GST wielded by the state to strangulate the informal economy in a bid to “formalise” it.
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