It is to get the people making the decision reelected. It is to give the government party control of the spending of other political parties that might replace them [1].
This decision had a very specific aim, and achieved exactly that aim. In very predictable fashion it did a ridiculous amount of economic damage to the country in the process, but that shows nothing more than what the priorities of Mr. Modi are.
It was very well received (judging by voting afterwards) and further cemented the current party into power. That was the purpose. That aim was achieved. Why was the timing what it was ? It was election time ... [2]
Immediately before this "make or break" (dixit BBC) election BJP suddenly made itself the only party capable of doling out cash and other direct political favors in that state. Coincidence ?
No.
[1] https://www.forbes.com/sites/timworstall/2016/12/17/this-is-...
Nope. I don’t expect any changes on real estate or corporate taxation, except to help people who have/control them become richer and have even more lax regulation. A lot of real estate is held by politicians of all political parties. So there’s no reason they’d shoot themselves in the foot. One “maverick” Prime Minister cannot overrule hundreds of others with vested interests, however clean or idealistic he may project himself to be.
As for corporates, the NDA government is highly favorable to them. The tax rates are set to decrease as announced a couple of years ago anyway.
Gold is probably a slightly easier target. It has already seen restrictions before, which means the rich and powerful likely don’t hold too much of it or transact a lot with it.
How many? 10? 20? After than what happens? People stop taking bribes? Start paying taxes?
Drive around Bangalore anytime during day light. See how many policemen are standing every 1 km negotiating bribes from motorcycle/car users. Go for property registration anywhere, go see what is the going rate for a single registration...
Things like Demonetization changed/changes NOTHING. You need to change people. And that is next to impossible in India.
>>Even though most of the money made back into system
0 Black Money came back into the system, as per the government's own admission.
>>Expect some drastic policy changes with real estate, corporate taxation and gold.
So we learn nothing from the mistakes?
Only thing this will do, is make millions of people jobless. Destroy family incomes, disrupt their ability to provide for their families and put the economy in tremendous strife.
For any policy to work, People need to cooperate. In India its basically every one, all the time optimizing only for personal profit. The only thing you will end up doing in this set up is harming a lot of innocent people, and end up providing immunity training to the crooks.