5 Remarkable Reforms of Vajpayee Government that Reshaped Indian Economy
It can’t be negated that India has suffered an irrevocable loss with departing of a charismatic national leader like Lt. Sh. Atal Bihari Vajpayee. A shrewd diplomat, sagacious economist, forthright statesman, an orator par excellence and a benevolent leader, Sh. Vajpayee has left the whole nation grieving behind him and praying for the peace of the reverend soul.
It is beyond any doubt that the nation had witnessed seamless GDP growth of above 8% during the Vajpayee government. Sh. Vajpayee was indeed the legitimate forerunner of the erstwhile PM Narasimha Rao’s New Economic Policy of 1991. Besides taking pathbreaking decisions in respect of fiscal consolidation, economic stabilisation and infrastructural growth, the Vajpayee administration had laid several guidelines for the successive governments in introducing some exemplary economic reforms and policies. To name some, we have GST Registration, Aadhaar, and Udyog Aadhaar Registration.
Given below are some of the noteworthy economic policies of today’s era that were implemented by former Prime Minister Lt. Sh. Atal Bihari Vajpayee or have now evolved from his proposed schemes.
#1. Goods & Service Tax
GST registration and GST return filing have become integral aspects of every business since the introduction of the CGST Act on 1st July 2017. Irrefutably, GST is one of most ergonomic measures in the history of independent India that has made the system all the more favourable for the trade & commerce of India. However, it is known to very few citizens that the concept of “One Nation-One Tax” was put forward by Sh. Vajpayee and the idea of Goods and Services Tax (GST) were proposed by him.
- Atalji approved this concept in 1999 during a meeting between him and his economic advisory panel, which constituted of 3 former RBI governors IG Patel, Bimal Jalan and C Rangarajan.
- In 2002, the Kelkar Committee was formed under Vijay Kelkar for implementation of this novel idea. The Committee had recommended roll-out of GST in 2005 but it was however delayed.
- It was finally on 1st July 2017 that the 4 GST Acts- CGST, IGST, UTGST & GST (Compensation to States) Acts were passed at the Parliament.
- As a matter of fact, Ravi Dasgupta committee set up in 2000 had proposed back-end technology & logistics for GST. This is now known as the GST Network or GSTN.
The present government has rigorously worked to make the system of GST registration and GST return filing procedure totally conducive for the taxpayers as well as foolproof for the authorities through regular amendments in the subsequent GST meetings.
#2. Trademark Act- 1999
Since long, duplication, adulteration, piracy and other such foul trade practices were a grave malady for the Indian economy. This malice had stagnated the growth of competitiveness and quality. The previous laws had sought to curb the malpractices in trade only up to a certain extent. It was only after the introduction of the Trademark Act in 1999 that a concrete step was taken to check the misleading trade practices.
This comprehensive law that was brought into effect during the Vajpayee administration was the repealing of the Trade and Merchandise Marks Act, 1958.
Today, a Trademark Registration is a necessary requirement before company formation or while launching a new brand. One can use the ™ symbol over his brand after getting the Trademark Registration.
Know more about Trademark application process.
#3. Aadhaar UIN
As one of the essential proofs of identity, Aadhaar has manifold purposes such as a valid ID-proof, Date of Birth proof and proof of address.
- The idea of a Unique Identification Number (UIN) was born after the Kargil War (1999) when the Kargil Review Committee sent its report to Sh. Atal Bihari Vajpayee, in January 2000. It had proposed that citizens residing in villages of border regions must be issued ID-cards. As a result, such ID cards issued to all people of border states.
- Subsequently, the GoM headed by then home minister Sh. Lal Krishna Advani in May 2001 approved recommendation for a "multi-purpose National Identity Card".
- Later on, the Unique Identification Authority of India (UIDAI) was formed in 2009. In 2010, the Aadhaar UIN card was launched. The Aadhaar enrolment process properly began in September 2014.
- Today, Aadhaar has been linked with several other government-run schemes such as-
- Direct Benefit Transfer Scheme, which aims at transferring the subsidy money to the recipient’s bank account directly. This has also been linked with PAHAL LPG Subsidy Scheme.
- Pradhan Mantri Jan Dhan Yojana, that seeks to make affordable access for all citizens to financial services like bank accounts, remittances, credit, insurance and pensions.
- Udyog Aadhaar registration: interlinking of Aadhaar UIN with MSME registration that has been discussed below.
#4. Udyog Aadhaar MSME registration
The idea of linking Aadhaar UIN with MSME registration lead to the introduction of Udyog Aadhaar MSME registration in 2015. Today, you need not get into the tardy paperwork for an MSME registration. Instead, you need to provide information such as your Aadhaar UIN, Name of Owner, Business Name and activity, Type of Organization and Bank account Details, and you will be able to register your firm instantly.
Know more about the MSME registration process.
#5. The Foreign Exchange Management Act-1999
This act was the replacement of the earlier Foreign Exchange Regulation Act (FERA)-1973. The objective of FEMA-1999 was to integrate and amend the laws pertaining to foreign exchange and facilitating rather than mere regulation of external trade & payments. This Act was passed by the Vajpayee government to ensure the orderly growth and maintenance of foreign exchange market in India.
These are some of the unforgettable reforms introduced during Sh. Vajpayee’s tenure as PM that have transformed the notion of economic growth in India. These reforms have laid the foundations for the recent growth-oriented measures that have taken India ahead.
If you need any sort of guidance regarding GST registration in India, GST return filing, MSME registration, or Trademark application process, feel free to contact us at 8881-069-069.