One year after GST, India’s smaller companies are on the backfoot

On July 1, 2017, India introduced the Goods and Services Tax to replace the patchwork of indirect taxes that existed at the time and to improve tax compliances. As the tax regime completes its first year, Scroll.in reporters interviewed people running a variety of businesses: handicraft-makers in Guwahati, textile manufacturers in Surat and Tirupur, paper-goods […]

On the six factors which cumulatively added up to India’s unprecedented cash squeeze

India’s current cash crunch is a real enigma. To begin with, there is its sheer unprecedented nature. In all the years since Independence, India has never seen something like it. “We have heard of coin shortages but never a cash shortage,” said MS Sriram, visiting faculty at the Indian Institute of Management-Bangalore’s Centre for Public […]

‘This government is killing our businesses’: What small, medium enterprises think of GST revisions

After Friday’s GST Council meeting, which decided to cut the goods and services tax rate on two dozen commodities and announced relaxations for exporters and small and medium companies, Prime Minister Narendra Modi said the changes brought in an early Diwali. The business press was bullish as well. “Three months on, GST now good for […]

Why small businessmen in Gujarat are quitting industry and turning to financial speculation

Two major trends are playing out in Gujarat’s economy. On one hand, small industrial units are shutting down. This is not a recent development. Micro, small and medium units in the state started getting into trouble about five years ago, well before the central government demonetised high-value currency notes in November and introduced the Goods […]

Two months in, How is GST affecting Surat’s textile hub?

Three months ago, when the central government was getting ready to roll out the Goods and Services Tax, the textile industrial cluster of Surat, Gujarat, India’s biggest manufacturer of synthetic fabrics, was distinctly nervous. At play were two conflicting views of how the new tax regime would affect India’s predominantly informal business sector. The government […]

In Surat’s textile hub, small businesses are afraid of GST – but big companies are not

Rajesh Mehra is desolate. A big-boned man in his mid-fifties, he is a trader in women’s blouses. Until ten years ago, Mehra used to take orders from garment wholesalers in big cities like Mumbai, Kolkata and Bengaluru, buy the cloth and thread he needed from garment clusters like Silvassa, and get the blouses stitched in […]