“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” - Ronald Reagan

Indian tax system is a diversified system with numerous types of taxes. Tax is a compulsory levy by the Government on the consumption of goods and services as well as on income that we earn. It is the payment that we make to the Government which it utilizes to provide us basic facilities such as defense, telecommunication, infrastructure etc. and for the betterment of the society and nation at large. The Indian Taxonomy is bifurcated into two types of taxes namely Direct Tax and Indirect Tax. Direct tax includes personal Income Tax, Wealth tax, Gift tax etc. where the incidence of tax lies on the taxpayer and it cannot be shifted whereas indirect tax includes Service tax, Excise, Customs Duty, VAT etc where the incidence of tax can be shifted. 

The ongoing Euro Zone crisis has already caused much damage to the European economies in the past with the news of Greece exiting from the Euro zone surfacing from time to time. But so far the fate of Greece is still undecided as the country is still in the process of completing the existing bailout agreements with Eurozone and International Monetary Fund.

The news spreading all around across the world, which the readers of this article might also be aware of, is Greece crisis. But, beneath this huge crisis, lies another cause of worry, which may have not received the due attention- CHINA Stock Market Crash. The amount wiped out from Chinese stocks ($3 trillion) has been estimated at around 10 times of Greece’s GDP and the future looks bearish, though the index levels are still 80% up in comparison with last year. Hence the questions remain, whether the Chinese market is really down or was it too overweight earlier and if this crisis can lead to contagion effect globally.

The power sector did not succeed as Telecoms sector despite earlier privatization due to improper liberalization. Only generation was liberalized and not transmission and distribution. Globally, power industry has moved from highly vertically integrated to unbundled structure. It’s like buying any other commodity like soap.  Consumers can choose from which company they want to buy the electricity. This structure has increased competition and brought in more efficiency. But this did not happen in India. Too much political interference and uncertainties have further contributed to this failure.

“Even the tears we shed in this country are not our own? Every tear gas shell used by our security agencies is actually imported!” were the words that our Prime Minister Narendra Modi had said to Mr. Anil Ambani when they met at a conference. These words clearly state the current situation of Indian defense Sector. Indian firms are reluctant to bid for some $15 billion worth of government tenders to make a range of weapons since 2013. The executives cited unrealistic quality demands from a military which was short of planes, tanks and guns as one of the key reasons for their reluctance to bid for projects. Further, the military also does not wish to acquire weapons from Indian firms that have no track record in defense manufacturing.

Steep crude price drop would pose as a boon and a bane at the very same time, depending up on what strategies one appoints. From war fronts to political upheaval Crude oil plays a dominant role in spurious activation of entire economies. Even though OPEC has a strong foot hold on crude oil supply with Saudi acting as the Central bank, monitoring varied interjections and leaving smaller economies to suffer, it would be interesting to see what turn this scenario would undertake. Countries do undertake stringent steps in order to rule and politically influence lesser known economies there are times where smaller economies take a splurging step and overcome their shortcomings. Currently economies like Vietnam and Venezuela are on the verge of collapsing.