Will there be a negative impact of GST on GDP of India?

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Will there be a negative impact of GST on GDP of India?

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Will there be a negative impact of GST on GDP of India?

GST Negative Impact on GDP

In a report, DBS bank noted that initially, GST will lead to the rise in inflation rate which will remain for a year but after that GST will affect positively on the economy.

As we know Real Estate also plays an important role in Indian economy but some expert thinks that GST will impact the Real Estate business negatively as it will add up the additional 8 to 10 percent to the cost and reduce the demand about 12 percent.

GST is applied in the form of IGST, CGST AND SGST on the Center and State Government, but some economists say that there is nothing new in the form of GST although these are the new names of Central Excise, VAT, CST and Service Tax, etc.

As every coin has two faces in the same way we tried here to familiarize the things related to GST with both perspective i.e. positively and negatively in this article. Despite having some factor which is being expected to affect the Economy adversely there are so many other things which are expected with a positive impact on GDP.

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

View answer

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Why do the analysts expect that the international price of oil will not increase substantially?

View answer

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Why do the analysts expect that the international price of oil will not increase substantially?

View answer

India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Why does the author believe that the heightened tension (fourth paragraph) could jeopardise jobs of Indian working abroad?

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Will there be a negative impact of GST on GDP of India?

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