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Biggest Confederation of Traders Snubs Rahul Gandhi, stands firmly behind Modi

by IRC-ADMIN - Apr 22 2019 10:48AM

The Confederation of All India Traders on Sunday said seven crore traders would vote as a single block for the BJP and that they were going to start a ‘whisper campaign’ among their customers to do the same. This comes as a huge embarrassment for the opposition parties who were claiming that Modi government reforms broke the backbone of trade. “The Confederation of All India Traders (CAIT), apex body of business community representing 7 crore traders through more than 40,000 trade associations and federations across the country, after closely analysing the manifesto of parties and keeping in view the future of the country, has taken a decision to support BJP & NDA allies in the Lok Sabha election,” it said. The BJP had been mostly blamed by the propagandist media and the Congress for not looking after the welfare of traders. This incident shows the disconnect between reality and what the opposition parties say. Through this article, IRC would like to look into this move by CAIT and how it will make the life of the opposition difficult.

The Confederation of All India Traders (CAIT) is an apex body of the trading community of India comprising of prominent Trade Bodies of different States and having access to more than 20 thousands such Trade Federations/ Associations/Chambers across the Country. The is CAIT came into existence in 1990 with an aim and objective of the development of trade and traders in the country and has brilliantly evolved the understanding and coordination amongst traders throughout the Country. 

The CAIT is the true representative body of more than six crore business establishments operating their activities in the unorganized sector of the Country which is rather self-organized and providing a livelihood to more than 25 crore people of India. It has through its vast National network in almost all States of the Country has undertaken various issues affecting the native trade and worked as the worthy bridge between the Trade and the Government. It endeavored to contribute in mitigating the hardships being faced by traders of the Country on various counts, and it is equally concerned for the development of business prospects in India and generation of revenue to National and State exchequers.

This move by CAIT comes as a massive setback for the collective opposition. The opposition's campaign had mostly revolved over the hysteria that demonetization and GST had killed the economy. They had tried their level best to propagate this idea, even getting many of the Lutyens' media outfits to cover for their propaganda. It is fascinating to particularly note that most of these stories have come in bits and parts mostly as outrages. The outages mainly were by traders from the left and Congress trade unions, who had received orders from their political masters to bring out the narrative against the government. The surveys and rhetoric brought out against the government based on absolute zero facts have been exposed now. The propaganda had been clear, the trail of which begins from the topmost political parties to their propagandists on the ground.

As it is always, its when organizations and associations that do not identify themselves with any political party come out in support for a political party we should believe them. This is what has happened in this case. The CAIT has put its agenda straightforward out there. They have recognized the value of the reforms made by the Modi government. They reckon that their lives have been made far easier than before by these reforms. The Goods and Services Tax has been the most prominent of these. Within one year of GST launch, 48 lakh enterprises have been added as compared with 66 lakh enterprises registered in all these years since Independence. This may be attributed to the simple procedures adopted under GST.

An analysis in the ‘Economic Survey’ explains the reason for this phenomenal increase in indirect taxpayers. Majority of the new registrants come from the business-to-business (B2B) segment and small enterprises who have voluntarily chosen to register — although they could have opted out because of their turnover — as they can seek to get the benefit of an input tax credit. This became possible because GST has integrated the entire value chain, from raw material to retail. The initial concerns were of course born out of the roller-coaster nature of GST collections. But with ₹1 lakh crore in April 2018, those concerns have been finally put to rest.

Most of the States have participated in this revenue gain and have almost retained their pre-GST revenue shares in the total tax revenue. States can improve their revenue collection if they build capacity in their commercial tax departments by using advanced data analytics to identify leakages.

\Although in 2016, CAIT came out against demonetization after three years today it realizes its importance. Economic Affairs Secretary Subhash Chandra Garg says so. Garg explains, Demonetisation achieved its objectives quite substantially. The currency in the system now is 87-88 percent, that is, about Rs 3-4 lakh crore less currency than it would have been if the system would have continued in the old manner.

Another argument has been an assault on the counterfeit notes post-demonetization. However, the RBI report says that detection of fake Rs 500 and Rs 1,000 decreased by 59.7 and 59.6 percent in after demonetization.

There was, though the increase in detection of fake notes in Rs 100 and Rs 50 denominations. The RBI says, "Compared to the previous year, there was an increase of 35 percent in counterfeit notes detected in the denomination of Rs 100, while there was a noticeable increase of 154.3 percent in counterfeit notes detected in the denomination of Rs 50."

On black money, the government had in August 2017 said that nearly Rs 3 lakh crore that had remained out of the banking system was deposited in banks post-demonetization. It claimed that over Rs 2 lakh crore of black money reached banks.

The government has maintained that the Income Tax Department is examining about Rs 1.75 lakh crore of suspicious deposits post-demonetization. The I-T officials have identified around 18 lakh people with disproportionate income. Action against them and exaction of tax with a penalty will achieve the stated objective of fighting black money.

Effectively, the move by CAIT has led to a series of sleepless nights for the opposition which in the coming days will find it difficult to defend this propaganda of traders suffering from the Modi government. The traders are happy, and the economy is growing is what the traders have to say. They are the most satisfied with the Modi government.

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