PM Modi-India Faceless-Tax-1st Country | Income-Tax-Assessment | What is Faceless Taxation??

Faceless Tax Assessment officially launched by PM Modi on 13th Aug, 2020. The transparent, fair and fearless tax system, termed as faceless tax assessment avail from 25thSept,2020.

Only 2% of Indian population paid Income Tax, where as in USA 40% citizens paid IT. 

2019-20 report 1.46Crore people paid means just in 1years 55% decreased. 9.5Lakh Crore rupees of income tax amount collected by Indian govt in the year 2019-20. In this 5.2Lakh Crore from Corporate IT, 4.3Lakh Crore from personal IT. FY 2020-21 target of collecting IT is 13.19Lakh Crore i.e; 6.8Lakh Crore-Coporate IT,6.38Lakh Crore- Personal IT.

Tax Reforms - Modi:

Direct  : GST 

Indirect:Faceless Tax

Why we need Faceless Assessment?
There is wrong notion that if any citizen pays Income tax there is chance of loosing earning freedom. Lack of awareness on tax system and benefits of ITR filing of Indian citizens. Government of India under the leadership of PM Modi trying to erase this wrong notion by implementing Faceless taxation system.

Faceless Systems by means of technology, there are several practical experiences like online ticket of Indian railway ticket booking system,movie ticket booking helps to eradicate black ticketing, like this black market avoided by faceless system.
e-seva also one of the practical example too.
There is no professional required for ITR filing.
 What are the Features of Faceless Assessment?

There are 3 key features for this fair,fearless,faceless and transparent tax system.

1.Faceless Assessment:Main theme of Faceless Assessment is to eliminate human interface between tax payer and income tax department. We don't know the person to whom we are submitting Income tax returns.

2.Tax payers Charter: Mutual trust and respect between tax payer and income tax department. What a tax payer can expect from income tax department and at the same time the expectations tax department from tax payers has to fulfill.
3.Faceless Appeals: Any complaints or any modification required or any appeals by tax payer can openly ask to department but those two are unknown faces to each other.

What are the Benefits of Income Tax Return(ITR) Filing?

Income tax return filing is compulsory for every citizen of India, who are earning more than 2.5Lakhs/annum. If you are not filing ITR, no long you can escape from income tax department. So feel free by filing ITR timely, it helps you to feel stress free

Tax Refund also avail if you have paid excess tax or deducted excess amount then you have right to refund that excess amount.

Capital loss carry forward for 8 assessment years starting from current assessment year in which you lost, so tax deducted because of previous years loss even if you are earning profits.

If you are not filing ITR , nothing but you are living away from Bank loans and LIC Policies.

Bank fixed deposits TDS deducted if you are not filing ITR, otherwise you have right to refund the deducted amount.

If you are planning to migrate to out of India, VISA clearance is easy, other wise for countries like USA,Canada,Australia, etc may reject.

How Faceless Tax System Works?

Processing bodies of the Faceless Assessment National e-Assessment Center

Regional e-Assessment Center

Verification Unit

Technical Unit

Review Unit

Modification

Acknowledgement

Assessee no way related to any officer of the tax department of India, and process done through Artificial Intelligence. 

The flow chart for the process of Faceless Tax Assessment system is under the manipulation of Artificial intelligence.

No professional needed to pay the tax, this is the direct tax reform of India, where as GST is Indirect tax reform. 

Tax payer can freely appeal to department there also Faceless appeal so transparency improved.

What are the Advantages of Faceless Taxation?

No Human Interface.

Ease of Compliance.

Transparency and Efficiency.

Functional Specialization.

Improvement in Quality of Assessment.

Expeditious Disposal of cases.

Final Word:

Faceless tax assessment is to create awareness, transparency, trust, respect, fair, fearless taxation and giving freedom to that facilitate to pay income tax voluntarily maximum possible elimination of forced methods any government can collect income tax. Faceless taxation facilitates all that essential measure to feel every individual that income tax pay is also one of their prime duties. PM Modi government created a Platform for Transparent taxation, we can't collect tax by force, its possible only by "Honouring the Honest" principle.

Independence day of India|73 years|Achievements-Failures|Where does India Stand??

Independence day of India 15th August, every Indian in the world celebrate this day, express their love towards the country, remembering the sacrifices of the great people in freedom movements and protests for independence of India. Today (15th Aug,2020) 74th Independence day celebrations are good to see, but what are the achievements and failures in the period of these 73 years of Indian Independence.

 Is India really overcoming the social inequality which is the characteristic feature of the colonial India?
The first speech of Pandit Jawaharlal Nehru Independence day of India 15th Aug, 1947 stated that India has 3 goals to achieve
 1.Protecting civil rights and democracy in India.
2.Overcoming the Social inequalities which came from colonial India.
3.Achieving Economic progress with an emphasis of quality of life to the poor.
Noble prize winner indian economist Amartya sen wrote in his books of "Argumentative India" and "India's economic development and social opportunity".

• Biggest achievement of India is to maintain civil rights and democracy.
• Biggest failure of India is persistence of social in equalities. 
• Remembering the words of Indian economist Amartya sen on Independence day of India, every individual who think about India's glory may realize that what we have achieved and what to achieve?

What India has achieved so far?
On account of Independence day of India, 73 years of India's independence there are so many achievements by India.

• Multiple party political system: political system of India stands at one of the biggest achievements because multi party political system for subcontinent like India is very essential and have achieved it.
• Periodic elections: Elections has been conducting for every 5 years and 6 years for Rajya sabha periodically. This indicates political and administrative discipline and proper implementation of Indian Constitution.
• Strong Judiciary: In 73 years of independence there is no allegation or complaint about judiciary system, because that much strong judiciary, India have. One of the hallmarks of Indian Constitution is judiciary system.
• Military strength: Globally India ranked 4 in the strength of military, this shows how India protected from boarder side and peace of India.
• Peaceful and healthy Administration and power transfer power transfer from one government to another ,peaceful and democratic manner.

What India to Achieve?

• Still 1/4 the of people of India are illiterates.
• Only 5% of people of India have professional course of education
• 46% Children below 5 years age are dying due to malnutrition
• Annual state of educational report 2019
• Sanitization, slums, medical facilities, woman protection
• Secularism, equality,freedom facing problems of social media haters.
• Indian economy, fall of Indian rupee (₹)

1947: 1$=1₹    ; Independence
1966:1$=7.5₹  ;Indo-Pak,Indo-China wars
1975:1$=8.39₹
1980:1$=7.86₹
1985:1$=12.38₹
1990:1$=17.01₹;Economic Crisis
1995:1$=32.127₹
2000:1$=43.50₹
2004:1$=43₹
2013:1$=57.8₹
2014:1$=62₹
2016:1$=67₹   ; Demonetization
2020:1$=71₹

Indian rupee depreciation depends on imports of crud oil, because 38% of our total imports are crude oil. Increase in crude oil price for example 10$ per barrel increase in crude oil,decreases India growth by 0.3%.
Recent changes like Demonetization depreciates Indian rupee, but GST Goods and Service Tax no way related to rupee depreciation.
Final Word:
Indian rupee depreciation not only the considerable factor to decide the balance sheet of India, compare to Asian, African, Latin american countries we achieved a lot and to be achieved more too. It is the great Indian paradox that greatest achievements and biggest failures too. Great words by Ravindranath Tagore
Where the mind is without fear
Where the knowledge is free
Where the head is held high
Where the country is not decided in to narrow domestic walls.

200 Million Dollar Humanity|Tax Us- Super Rich Tax| Millionaires don't have Humanity??

Millionaires for humanity group formed by world's 200 millionaires like Morris Pearl - MD Black Rock, Walt Disney, Stephen Tindall, Richard Curtis - British Film maker, Jerry Green field, Dr.Mariana Bozesan, Lawrence Benson, Danish Iranian- Djaffar Shalchi, Abigail Disney etc.  Morris Pearl as chairman of Patriotic Millionaires group.
The patriotic millionaires have collective statements to respective governments of  the country to impose super rich tax on millionaires that gave statements Taxes Immediately, Taxes Substantially, Taxes permanently, Tax Us -Tax Us- Tax Us.

Super rich tax on millionaires may help that government to compensate the financial crisis of the country. During these Covid crisis days millionaires contributing in this way to the country, they have not been treating covid infected patients, not been driving ambulances also not been saving lives but can contribute, to over come financial crisis, because they have money, and also feel like Humanity is more important than their money.
facilitating tax also called super rich tax on millionaires was popular, imposing taxes special higher taxes on millionaires and distributing or utilise the money for poor people and activities to save the poor. This is also Shows the humanity, but now unexpected pandemic Covid-19 crisis situations 200 millionaires for humanity group, 80 millionaires in other group like they collective stated that impose super rich tax on us and showed their humanity and patriotism.
Most us on wrong notion that rich people are inhuman, selfish and they don't have mercy like that. Their organisations, industries, companies etc. Creates employment, makes many people to depend on them to survive, so they are respectable persons, please try to erase that wrong notions on rich people and entrepreneurs. Some rich people still they are continue as entrepreneurs not because of profits they are earning, they believe in that an organisation gives employment to survive people.
How Super Rich Tax helps??
Super Rich tax can runs the economy, by facilitating the governments to distribute money in the hands of public to increase purchase capacity of every individual, leads to produce essential goods to industries, implies production increases, economy cycle rotates. During these crisis situation there several procedures like Helicopter money, super rich tax etc.

Here the good thing is that government not only imposing super rich tax, also the millionaires and billionaires voluntarily call for super rich tax. TAX US -TAX US- TAX US, Taxes Immediately, Taxes Substantially, Taxes Permanently. Super rich taxes imposed by different countries India 42.7%, US 37-39%, China 45%, South Africa 45% , currently due to COVID-19 crisis super rich that should revisited for every country.
Final word:
Most of the people have a notion that rich people loves money that's why they reminds rich and they don't have humanity. In reality this patriotic millionaires group indicates that they too have humanity of course they love money but humanity of bigger than their money. 99% of millionaires are entrepreneurs they felt like, giving employment to people by running factories, organisations and industries etc., any ways this is a good move of patriotic millionaires in his Covid Crisis.

Post COVID India Replace China in Manufacturing Sector?

India will be the Super Power:

1000 Companies shifting from China to India

India Will be the factory of the World

India will be the home for Iphone:

Dr.Subrahmanian Swamy- India Replace China.

How 'Make in India' Affects post COVID?: Will India Replace China in Global Supply??

Make in India is a good program, started by BJP govt under the leadership of Narendra Modi. Corona virus epicenter Wuhan located in China, this made a change that world is looking for alternative to China. In that race first country rises in every mind is India.

Because literate work force and young man power possibility,  to developed world top class industrial infrastructure, availability of minerals and resources, cheap availability of goods, all these factors owned by India made to think every country. Every crisis gives an opportunity but only opportunities can't change the country strategy and implementation plays key role.

Former RBI governor Raghuram Rajan rised a slogan of Make for India means manufacturer makes products according to the necessities of the country. In order to develop manufacturing sector in India, first we need to manufacture the necessary goods of country requirements i.e decrease the dependency of other countries on China. Means to achieve self reliance.
 World run after protective economic policies during crisis, there will exists huge trade barriers in such situations India can't dominate China. Foreign manufacturing units in China are looking for relocation. China's global supply domination will not continue.
World suspected China, and neighboring countries like Vietnam attracts companies who are willing to leave China. Previously US was did this. American companies 40%shifted to Vietnam. How India can attract such companies?
Most of the people believes that service sector best suitable for India not manufacturing. This is not true because manufacturing is not new to India.
How China become Manufacturing Hub?

• Started as export hub, currency fall supported this. Currency fall of China facilitate cheaper availability of goods, attracts foreign companies. Then after attracting the foreign companies China's industrial policies, regulations made to grow it as Manufacturing hub.
• Industrial zones with international standard infrastructures, airways, rail ways, road ways,skilling, wages generation work force development. Industrial needs and requirements deeply digested by China government and facilitate as per the company needs.

China allowed foreign companies under strategic conditions that their manufacturing hub has to be in China. The policies followed by China made a strong bond with the companies and helps in transferring knowledge along with economic growth of the country.
Product should manufactured in China and marketed other than China. This type of regulations play a role in increasing foreign exchange reserves of China and stabilizes its economy.
Why Companies Starts Disinvest in China?
Foreign companies started disinvestment in China not due to the COVID-19 Crisis. For last 2years companies has been disinvesting, due to US - China  trade war and to decrease the global dependency on China.

 Global supply chain formation was effectively utilized by China, 20% of US consumption of goods depending on China also in pandemic situation pharma industries depends on China to formulate the needed drugs. Countries trying to derisking and decentralise the dependency that is why started disinvestment.
How Make in India makes India as Manufacturing Hub?

• Make in India or make for India difference can be cleared by the following point on manufacturing.
• Manufacturing consists of two types 1.Real manufacturing and 2.Assembling. If we started manufacturing of a product then every component at least majority of components should be manufactured in India. 
• Assembling means components of product imported by the country and only assembling done by India. This is not enough to grow, the real manufacturing can be followed by India then only the sustainable value addition makes India as Manufacturing hub. i.e from stage-1 to Final stage of manufacturing should be done in India.
• Sustainable Value addition leads to  increase the employment and self reliance.
• Attracting MNC's( Multi National Companies) is good but not the better choice because MNC's can't generate employment compare to MSME and also MNC can concentrate on particular location can't decentralise the industry so there is a chance of many inequalities in the country.
• Promoting MSME sector is the better choice as it contributes 28% of the GDP industrialisation also can generate employment.
• Identifying our Strengths of India and utilizing rural work force and shifting the clan power from  income less sector to industries by developing skilled semi skilled labor. India can become manufacturing hub.
• India has already made policies like SEZ(Special Economic Zone),EEZ(Exclusive Economic Zone),EPZ(Export Processing Zone),NHZ(National Highway Zone) due to lack of proper infrastructure and industrial plots given to already existing entrepreneurs and not utilized by fresh entrepreneurs. This due to the improper governance and system.

Final Word:
Make in India program and opportunities after COVID-19 can't alone do any thing for India. Implementation of strategies by redesigning industrial policies of  India can make it as manufacturing hub.

102 Countries approached(seeking financial help) IMF: Is this a sign of bigger recession??

IMF(International Monetary Fund)received requests from 102 Countries Out of 189 members. Global financial Stability report by IMF, report given IIF, measures of IMF keen observation is helping us in understand COVID crisis. This situation shows how big the recession is. Objectives of IMF are maintaining secure financial stability, international trading, execute its activities towards Sustainable economic growth.

 During this crisis dollar denominated assets are going back to US, means FDI ( Foreign Direct Investments). Scarcity of foreign exchange reserves in emerging economies like India, Brazil, South Africa etc. Currencies are falling. Though US is the highly effected country by COVID-19, economy is strengthening because of the above reasons. In 2008 crisis also all the countries send dollars to US the same picture is showing again.
Measures taken by IMF:

• Emergency financing requests by 102 countries to IMF leads to take quick decisions, for this IMF formed RFI (Rapid Financing Instrument), RCF (Rapid Credit Facility).
• Enhancing liquidity needed globally as  lack of cash in hand drives to liquidity crisis that is why IMF took measures to enhance liquidity.
• Adjusting existing lending arrangements have done by IMF as countries required to reconstruct their economy.
• IMF provides lending capacity of $1trillon to overcome the recession by COVID-19 crisis.
• Issuing SDR(special Drawing Rights) and providing currency Swap facility.

Global Financial Stability report April 2020 - IMF:

• On 14th April,2020 IMF report shows equity prices declined by 15% to 20% across the world.
• Sharpest portfolio  flow reversal observed.
• Capital out flow lost $100billion.
• Central banks have cut rates to ease the economic fallow and protect financial stability.
• Currency swap lines extended.
• Plans designed and announced to expand liquidity provisions by at least $6 trillion.
• Restore market confidence by supporting vulnerable countries also needed close,continuous international coordination needed.
• International transactions possible if the country having US dollar, Gold or SDR (Special Drawing Rights).

Currency SWAP Facility - IMF:

• A temporary reciprocal currency arrangement between two central banks of the countries.
•  IMF handle these lines like suppose India wants US dollars to maintain exports, means to overcome foreign exchange crisis.
• For example if India wants dollars the equivalent Indian rupees should be given to US.
  
   
• These Swap Lines applicable for different countries with rules and regulations.
• Simple and casual rules for the following countries like Central banks of England, Canada, Japan, Switzerland and Europe.

• If the rules and regulations are different little tough, termed as caped swap lines.
• Caped Swap lines for the countries Denmark, Norway, Newzland, Mexico, Singapore and South Korea, the same strategy used in 2008 also.
•  Now in 2020 Reservation Bank of India seeking US for swap facility.

IMF - Issuing SDR(Special Drawing Rights):

• A supplementary foreign exchange reserve assets defined and maintained by IMF.
• SDR has some value determined by IMF and its value declined and reviewed after 5 years. 
• SDR reviewed in 2015, and in 2020 now. Based on the average of 5 currencies SDR value determined in 2015, the Currencies were US dollar, Japan - yen, European - Euro, Britan - pound, China - yuan.
• In 1969 SDR's started, no partiality, no supremacy in issuing SDR to the countries.
• Allocation of SDR according to the share in IMF of the particular country.

IIF Report (Institute of International Finance):

• By March,2020  $83 billion ran away from emerging economies.
• Increasing dollar denominated debts.
• External commercial borrowings increased In 2009 non banking debts were $6trillion according to Bank of international settlements. Now in 2020 non banking debts are $12 trillion. IIF report reflects how big crisis is going to face by world.

US dominance over IMF:

• 70% of votes  in IMF belongs to rich countries in this leading is US, so here the conditions, rule and regulation authority indirectly goes to US though IMF is a global iconic body.
• Liberal Swap facility for US favour countries and Caped swap lines for other countries this type of partiality makes the world difficult to overcome the recession.
• Quantitative easing performed by US in 2008 crisis. The same step US ready to take in COVID-19 crisis too.
• US opposing SDR as it has beneficial measure of Currency Swapping.
• In issuing SDR also US hand 70% of IMF voting belongs to US and its friendly countries.

Final word: 
IMF have the rights to issuing SDR and using SDR most of the countries overcome the crisis if they used in right way. But here the situation is US dominating IMF and opposing issue of SDR. If Swap facility used by countries US get benefits as US dollar is international reserve currency. Global cooperation needed among the countries, supremacy, competition, partiality may not useful to overcome recession.

75 years ago US Dollar($) became International Reserve Currency: Will US Dollar dethrone after COVID-19 Crisis?

Coronavirus disease epicentre located at Wuhan city in China, but recovered from COVID-19, US ranks first in COVID-19 cases, and still fighting against it, nobody knows how long it will take. In this situation so many speculation on US dollar($)
 Is it a death of dollar supremacy?
Is it end of US dollar dominance?

For every crisis there is an opportunity after world war 1&2 European dominance and its currency Euro dominance decreased at that US dollar starts increasing.
 In 1944 after world war-2 US dollar($) declared as global currency by Breton woods. For last 75 years US dollar has been on the center stage, most of the countries reserve currency in US dollar only, hence called as International Reserve Currency.

In 1970 US dollar($) replace gold standards, but in the early 80's and period 1991-93 declined little and recovered.

By the end of 2006 Euro replaced dollar in many areas like foreign exchange reserves 29%-Euros ,66% dollars;cross boarder transactions 39% Euros,43% dollars; in this way Euro was competitor at that time but Euro strength tied to European Union(EU) strength. In the period of 2009-12 Euro strength started falling due to Eurozone Crisis. On 5th April,2020 Euro ahead of dollar i.e Euro/USD=1.0778. Currently for a short while euro starts increasing.
As of now China occupied digital currency place, Peoples bank of China has been working on digital currency for five years. In 2002 China's GDP 4% of the world Scarce disease started in China but that's not spread like Corona, because in 2020 China GDP 16% of the world's GDP, i.e 120 countries including US have trade relationship with it. But China yuan can't beat US dollar.

US former president George W. Bush wrote a book named "Treasure war" in 2013, Russia approached China  in 2008 to coordinate sale of government sponsored debt to generate financial crisis in America, but China declined.
Strength of US Dollar?
Transparency of US fiscal policies are strong aspect of dollar dominance. Natural resources, science and technology, patent rights and innovation of US companies all these dominance will play in strengthening the dollar. Cultural dominance, weapons of mass destruction all these factors make US dollar as supreme of all currencies. Though some European countries raising technical challenges, the countries like China also a good competitor in manufacturing sector, Russia in space mission operations and researches but these countries don't have geo economical supremacy, military supremacy, intellectual, innovations like US. Only few days of  health disaster can't effect the US dollar dominance.
Final Word:
Dollar dominance is not only an economical factor, it includes geo economical strength, political strength,military supremacy etc. Leads to US dollar dominance. Neither Euro nor yuan can not beat US Dollar dominance. US has clear enough to prevent competitors for dollar($).

Coronavirus Disease (COVID-19) Crisis: Is Crisis driving world towards Recession?

Coronavirus disease pandemic (COVID-19) crisis symptoms, remind that's not disease symptoms, crisis symptoms driving world towards economic recession.

 Mr.Antonio Gutters, Secretary- General of  UNO stated coronavirus crisis is a worst crisis since world war-2. This crisis gives a challenge of lives vs livelihood, one side there is a big number of deaths all over the world, on the other hand world economic recession. To know how far worst the current crisis, let us try to understand by these points:

• World Economy
• Role of International Organizations
• Current Scenario of the world Economy.
• Steps to be taken as per Economy Experts.

What about the world Economy?
1/3rd of the world is under lock down and around 70% of the economy is in sleep mode. Coronavirus disease (COVID-19) pandemic eradication takes time, now coming to the worry about economic recession, few sectors are working in this crisis are,

• Work from home: These sectors of economy has not not effected by COVID-19 crisis, even in the lock down situation there is no disturbance for these. Example: IT industries, few online services etc.
• Digital Economy: software, telecom,Networking etc.
• Essential services: Medical, pharma, sanitary, water,Electricity, Transport of essential goods, Ambulance etc.

Except the above sectors remaining economy the world is not working, there is chance of Economic recession, food insecurity, decrease in income of common people.To understand world economy i.e: 50% of the world economy collectively by USA,China,EU.
By March,2020 observations GDP share of world economy, Top GDP Countries are

1. US (23.6% of world's GDP)
2. China (15.5% of World' GDP)
3. Japan (5.67% of World's GDP)
4. Germany (4.25% of World's GDP)
5. India (3.23% of World's GDP)

More than 50% of GDP in world economy comes under the above 5 Countries suffer from crisis now. World Economy refers not only the above 5 countries but  here the question is, Even the top 5 GDP share countries of the world can't fight against crisis then what about the remaining?
For these international organisations has to play crucial role to come out from the recession.
What is the Role and Response of International Organisations?
G20,WTO,IMF,WB and WEF

G20:
Group of 19 countries & European Union which contributes 85% of the world Economy and 2/3 of the world population.

In the recent summit  "An Economic Emergency Council" for Presidents and Prime Ministers the following decisions has taken:

• Established World Premier Economic Crisis Management Organisation.
• Injected $5 trillion to combat COVID-19 crisis.
• Agreement on supply of essential medicines and medical facilities among the member countries.
• Agreement on cooperation of Agricultural sector,products and in the supply of food grains.
• Strengthen World Health Organisation (WHO) and its activities during this pandemic situation.

WTO(World Trade Organization):

• 164 countries as members and Trade negotiations, settling trade disputes, maintain trade flow among members as functions.
• Recently stated that world trade expected to fall by between 13%-32% in 2020, this indicates that COVID-19 pandemic disrupt the normal economic facilities and lives.
• Every country will suffer by double digit declines in 2020.
• Exports from Asia and North America effects more.

IMF(International Monetary Fund):

•  Functions: International trade, secure financial stability,sustainable economic growth, increasing employment, poverty reduction for all 189 member countries.
• Managing Director Kristalina Georgieva gave priorities for global economy, the Secured lending capacity of serve member countries as $1 trillion.
• Quick response to an unprecedented emergency financing requests from 90 countries so far.

WB (world Bank):

• 189 countries and functions comprises of IDA (International Development Association), IBRD (International Bank for Reconstruction and Development), IFC (International Finance Corporation), ICSID (International Centre for Investment Disputes), MIGA (Multilateral Investor Settlement and Guarantee Agency)
• 160 billion dollars over next 15months as a broader program.

WEF (World Economic Forum):

• Said that Cooperation needed among governments, international organisations and business communities, as countries with great recession can't fight alone.

 What is the current scenario of world Economy?

• Global Supply Chain Disruption all over the world leads to decrease in production, increase in unemployment, decrease in individual income, can't buy essential needs, decrease in demand. Again cycle starts decrease in production. According economy terminology this cycle is called economic cycle. Vicious Cycle (vs) Virtuous Cycle.

• Unemployment in Informal Economy increases, based on"Government Respond Stringency Index"  by university of Oxford, ILO (International Labor Organization) declared 200crores of labor thrown into unemployment from unorganized sector who are working in informal economy. 20% of this 200 crores i.e 40 crores of unorganized labor from India alone.

• UNO: As per recent update of United Nations Organization, world economy going to recession, except China and India. Internal market, man power, geographical advantages all these reasons may cause to survive from recession in countries like India and China. As per  India's demographics 40% of Indians i.e 62 crore (620million) are 20-40 year old. Decreases institutional Credit availability, means banks will not ready to sanction loans for unorganized labor leads to poverty and number of people under BPL increases.

Steps to be taken by Government:

• Employment retention schemes should be implemented by Govt.
• Unemployment allowances needed, employment intense sector should be developed in order to protect wages for and to maintain statutory minimum income of the common man.
• Inflation control measures should be taken.
• It's better to concentrate on sectors of mass consumption of goods and service sector.

Final word:

• Every crisis gives an opportunity, Over night growth is impossible. There is no magic pill to boost up the economy. Contribution of economic experts, committees on various sectors needed for every country.