I have my own understanding of Indian economy. I don’t know whether it is recognised in formal economics or not.
When people earn more (whether they declare it or not is irrelevant), they tend to spend more. They consume many more services and also buy luxuries & unwanted things

. For example, that person who earns well is likely to go for more outings, would spend more on food, travelling, would tip people serving him handsomely. In the process all are earning more. He will spend a fortune on his daughter’s/son’s wedding. Again that is redistribution

of wealth. Caterers, waiters, chefs, shamiana walas, grocers, green grocers, ultimately farmers, milkmen, cab agencies, drivers are a few to mention who will get employed or earn more than usual due to that fat Indian wedding.
With the same money, dharamshalas, temples,

hospitals etc. are built. In India maximum charity happens with THAT money only.
The circulation of money is very fast. Same money circulates & does value addition for many people. So, the logic (it’s rather no logic)that a few accumulate wealth when the economy is informal is

ill-founded & not suitable in Indian context. One doesn’t keep big cash in his/her lockers (that’s why no hoards of cash went undeposited during demonetisation). If he/she buys a house or a piece of land, ultimately the money gets circulated. Indian economy as I understand

(being a Marwari by birth though middle class & a CA with an experience of 7 years) worked well even (during 2007-08 & 2012 global slowdown periods) due to these chain of value additions by the informal economy.
Fanatics of formalisation of economy are either fooling themselves

or trying to impose something which is destroying the economic basics of this nation. Formalisation is a process that is happening gradually. Forcible formalisation is bearing no fruits.

I am in no way promoting unaccounted wealth. But the kind of scare the Government has instilled in the minds of businesses is making people (not businessmen alone) poorer. The value addition layers are getting wiped out. A few “start ups” are not India. Go & visit a market of

of a tier II city. Understand how it’s economy works. Then frame policies. Too many consultants sitting in North Block along with babus (who receive credit SMS on the last working day) headed by a super rich FM ended up creating a system which expected small traders to file 3

returns a month & an annual return above that along with e-way bills, separate filing of intimation to the superintendent for every consignment of goods he/she sends to a job worker! This is the shit that gets printed on paper in the name of reforms & policy!

Government is now considering scrapping of Annual Return for GST assessees with turnover below 2cr. Do you know that these guys had originally expected your local kiranewala (grocer) to file (3*12) + 1 = 37 returns every year?