The Indian economy is growing fast and is currently the 6th largest economy in the world. But there is more to be done to propeller the economy. A thorough inspection of the Indian economy shows that the country has failed to reach its maximum economic potential. This is mainly due to the fact that the Indian government has failed in the regulation of some of its high profit yielding industries. We take a look at these industries below.
The Indian Cosmetics Industry covers hair care, skin care, color cosmetics, shower products, fragrances and oral care amongst the various areas of makeup. In diverse cities such as Bangalore, Delhi or Mumbai, various unregulated private clinics which carry out cosmetic surgeries and beauty adjustments for the “ideal look” have been springing up. According to the UBM India MD, Yogesh Mudras, he stated that the Indian cosmeceutical and cosmetics industry had an overall market of about $6.5b and was expected to grow to $20billion by 2025.
Cosmetic surgery needs to be subjected to strict research protocols and regulated as they affect the health of patients, this would also be a stone killing two birds as regulation would also be another form of tax revenue.
There are various credit agencies for personal loans within India which are not regulated by any authority. These agencies have a separate mode of operation from the regulated banks. The loans from the unregulated credit industry complement banks as they offer users loans which can be made use of for reasons which may not be permitted by the Indian banks; however, this negates the aims of credit control in the country.
It is important to consider regulating this market as they attend to a large part of the capital requirements in various sectors of the Indian economy. It is estimated that up to 30% of total credit made use of in the urban economy is provided by these unregulated credit markets, while rural areas get credit from money lenders.
The real estate sector in India has grown speedily; however, it’s mostly unregulated. This has led to delayed completion of projects which most buyers had to complete on their own.
However, the Indian government has taken some steps to regulate this industry. In 2017, it implemented the Real Estate Regulatory Act which protects consumers by an online system where information is exchanged between the developers and buyers. This has prompted developers to concentrate on the completion of projects before commencing new ones; as well as placed the sector under the Goods and Services Tax (GST). Also, the Affordable Housing Schemes implemented in 2017 projected 1 crore houses to be completed in the Indian rural areas by 2019, another positive is the Smart City mission which the Union government publicized.
With proper regulation of these multibillion-dollar industries, the Indian economy will experience a rapid growth and attain its maximum potential.
Online gambling may not be done overtly in India, but this is one industry which is heavily thriving. Currently, based on data received from KPMG, the online gaming market in India has experienced a huge growth over the years, with a generated revenue of Rs. 4,380 crore in FY18, majority being from fantasy sports which is regarded as a game of skill which the Indian central laws permit. However, online betting in India even boasts of more revenue generation; sadly, this does not go to the Indian economy as online betting is not regulated within India. Considering the popularity of online betting across the nation, rather than ban it, the wiser decision would be for India to regulate it.
Based on reports from the Federation of Indian Chambers of Commerce & Industry (FICCI), it was estimated that due to a lack of regulation, up to 3 lakh crore was spent yearly on underground sports betting by Indian bettors on offshore sportsbooks and the Indian government consequently lost up to Rs 19,000 crore tax revenue.