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Small units prefers to remain small... A proud Madrasi Russi Mody – a tribute MHC should not return to its old indisciplined ways Mersal magnified Strengthen the base... Cutting the nose to spite the face No Maha Koottani in TN... Marketing expert Balagopal is no more Welcome focus on core competence The why of tax incentives Diamond jubilee of Egmore Samskrt School PPP mode for upgrading Corporation Hospitals EEC at the National Media Centre SoA @ 80 The balancing act Tax agriculture Modi and the lady ONGC at KG Basin The sea- saw battle continues... Editor's Says Whistle-Stop Tour of Raghuram Rajan Tough task taking states together A friendly business group All eyes on Sankara Nethralaya Reliance’s TV – 18 ready to launch Tamil News Channel Like Hinduism: many paths to reach God... Align crops to agro climate endowments… The ‘Ayyo-yes’ is no more Online not in line with brick and mortar businesses... Demise of a media baron... CII projects higher growth… TGS- The king storyteller PC’s preference for professionals Tribute – M V Murugappan Dr C Rangarajan returns to Chennai Permanent secretariat for TN GIM Plummeting profits of PSBs Paytm karo... Delhi Chalo... Colour-Chem’s colourful KRVS Recognition to role of NBFCs.... Poor representation for Kerala and TN in Cabinet TIAM turns a full cycle Secularism and anti-Hinduism Bihar – Nitish Kumar adopts the Lalu model Poor quality of university VCs S V Raju – a ‘good’ true liberal Intellectual of rare qualities Streamlining mandatory third party cover For whom the MIDS bell tolls? When TN politicians can emulate Kerala's Waning interest in public discussions… More Shakti to resource mobilisation... The star of Spencers is no more Cleaning Ganga – relocate tanneries and install electric crematoria When Ratan Tata visited SRM Solar, solar everywhere … Alexa – Talking Wikipedia Muffled voices for merit… GNS - 100: our first subscriber When the President was rendered homeless… Bihar elections - the Rajaji formula worked Measuring roof tops in terms of KW/MW Fortune for Indian Airlines Polls and promises Not just in-laws (and outlaws); they’ve renowned academics at the helm! IPL - no surprise this scam A think tank for Chennai Building loyalty through the stomach Shipping woes of Chennai companies Shaming of Tamils by Tamil farmers at Delhi London, London Narayan Adharma of opposition politics Quality silica from Neyveli Cement prices continue to rise… Making ‘my Amaravati’... Modi storms Silicon Valley Of course, Gujarat is vibrant TN-leverage strength of BHEL, NLC... S Ramanathan – a versatile musician, musicologist A glass full of corruption Kudos to NDTV... 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WTO Meet: resolved to meet again Infrastructure funding – lessons learnt Scientists urged to take up farmer-oriented research Breaththrough in malaria control Rs.1600 crore paper board plant of TNPL Music happens Lalu’s envy, India’s pride Road development slows down Make standards certification mandatory... …and of a popular trade leader The few handicaps... The Ports’ Pasha expands into Tamil Nadu Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Where is Rajaji? CIPET hqrs to stay at Guindy – for the present? GM Technology at last! Delhi returns to BJP For whom the bell tolls? The Swadeshi Trump This scant respect for Law Rahman at CIC Multi-faceted Venkat Sri Lanka votes for change How Air-India loses customs... CRS, a jewel among managers, is no more. Boy, can you beat these? Where a state respects its litterateurs… Quality education through the PPP mode Limit foreign borrowings to hi-tech, export potential projects... Wanted: a second airport for Chennai When nations steal growth from one another… Discoms deserve better… A yen for wastage… The rise and rise of KCP TN – agglomerate land holdings without alienating ownership Tribute – UCAL Selvan… A Grand Finale for SN’s MS centenary at the US… Build close rapport with business leaders Engineering seats go abegging Naidu’s return augurs well for Seemandhra Padma Bhushan for A Ramakrishna Gas is the way forward The Gulf aviation boom Contrarian cousins More Shakthi to Das’ elbow Tribute A Grand Finale for SN’s MS centenary at the US… The nuclear option When small is no larger beautiful.. A welcome initiative by the judiciary No engine for this car Silver Years of Madras Musings IAS invades NDDB... Return to king coal for urea... Airlines in India: cost and space R Sridhar steps down as CEO of Shriram Capital Protest masters... Editor's Notes Shale gas and its shallow future No mega rail project for Tamil Nadu Godspeed, Chief Minister JJ Air Asia India will set new benchmarks for budget travel Welcome GST Put expensive assets created to use... Medical costs hit the roof... More heat than light Wise Presidents When online building permits work…. Parliament in paralysis... Towards speedy justice L&T: focus on infrastructure and more infrastructure… Pharma – overdose of copying New IT products of Ramco in the pipeline… to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Delhi is distant… A rich pool of talent not utilised…. TN accounts for the largest recruits by the IT sector Haul over the coal Preserving for the future There was flood of milk. Reason: no milk commissioner! Tatas moving out of urea production... Fuel for thought He continues the focus on social amelioration EVM is tamper-proof China invests in India The power-full Hindujas Gay abandon in pricing Auto components surge… Tihar, Puzhal not different from Parappana Agrahara An inexplicable neglect Lesson from Chandrababu Naidu Five star activism stalls development activity Fall in crude prices help in oil sector reform TELANGANA at last…BUT Remembering Indira Sivasailam... Delhi is distant Naidu will soon build a new Hyderabad Maximising the micro pricing … Welcome changes that testify to Jayalalithaa’s return to health He saved millions from starvation... Roaring Ro-Ro facility Increasing non co-operation of state leaders The Jan Dhan bonanza Focus on quality of power - its only around 170-180V Why land prices zoom in TN? Adapt Vajpayee dinner diplomacy Kulandai was a giant Sweeter prospects for sugar Inflation: are we emulating Argentina and Brazil? Nuclear power at the nucleus Tatas moving out of urea production... West Bengal: mindless malignancy Fortune 500 review Welcome thrust on trade in Modi’s foreign visits... Another Indian music maestro at the UN Kinetic Karnataka Readers' Mail The brown list of Venkitaramanan The ‘Jayanthi Tax.’ IPL type auction for VCs? A professional at the helm of IRDA... Computation of GDP – conundrums continue CSR and CMI: promise of another Srinivasan Ramanujan... Odisha: spectacular win by Naveen Patnaik Land reclamation from sea appears cheaper! Banning booze... More tributes to GR Which side are you, Montek? A more liberated TN… Moily’s bold thrust Sweet news for TN sugar mills Tribute – Manikam Ramaswami Why this malaise in medical education? Insurance companies bleeding, yet no decision on increasing FDI limit! Things happen by accident and not by design... Shanti and Sadhana through Music
 
Welcome GST

Strong leaders of regional political parties like J Jayalalithaa and Karunanidhi could defy attempts by the Centre to bring about significant policy changes. With the over-emphasis on welfare measures that result in the proliferation of freebies and massive subsidies, Tamil Nadu’s finances were in bad shape. Remember the state, refusing to reform the power sector? The state delayed the formation of the State Electricity Regulatory Commission, resisted separation of generation and distribution through separate companies (neighbouring Andhra Pradesh did this to great benefit)... The finances of the electricity board were in a mess with regular losses and mounting debts. Jayalalithaa as Chief Minister routinely resisted several proposals of the Centre to the detriment of the state’s economy. She was also unmindful of the harm done to the state’s economy by such an attitude. 

A weak Centre under the UPA, dependent on the support of several regional parties, was unable to prevail over such strong local leaders. Such an attitude has also been giving rise to agitations by special interest groups. We witnessed these in recent times in the opposition to the hydrocarbon project in Vadivasal, the constant agitations by lawyers, farmers and more recently, by government doctors and transport workers. One can witness the impact of a strong Central government with a single party commanding majority in the Lok Sabha. The Modi government has been able to stand firm and not yield to demands considered unfair. One hopes pressure groups would realise the futility of protesting issues that had received extensive support on the national plane. The state leadership should also weigh the overall benefits to society not influenced by demands of sectoral interests. 

The traders’ lobby has gained considerable support and clout in recent years. On 5 May of every year, traders’ associations across the state observe the traders day and show their solidarity by closing all shops! The association presents a list of demands seeking special favours. 

The services sector that includes such trading is estimated to account for over 60 per cent of the GDP, but it has been accounting for less than 10 per cent of total tax revenues. Despite substantial growth traders have been successfully resisting attempts to bring their operation under the tax net. 25 years ago Dr. Manmohan Singh, as finance minister, proposed a simple presumptive tax ,of just Rs. 1400 pa, with no questions asked on books kept. The trader lobby successfully resisted and forced the government to withdraw this tax. State governments also lack efforts in bringing this huge section, quite a portion of this prosperous, under the tax net. 

The GST system, one hopes, would address this issue. This single factor can increase tax revenues substantially. This is yet another area for the Centre to focus. 


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