Umm... what? Are you sure you're replying to the correct thread?
> All this does is demolish that <unorganized> sector - and thus harm the larger economy on which the organized sector depends.
Wrong, this converts a large part of the unorganized sector to organized. Contrary to your assertion, this has helped include the large unorganized sector in the growth story of the country. I believe this is why we're seeing record economic growth.
> but this isn't going to happen quickly.
OK, doesn't mean we shouldn't try to help speed it up.
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No disagreement, but this is not the path, and it really cant be sped up.
The same way its going to take X amount of time for someone to climb rank in an online game, its going to take time for compliance and ability to comply to catch up.
The same way you cant feed jet fuel to a fiat, you cant expect to push the economy beyond its adjustable rate.
Wishes arent horses.
A majority of the indian economy is in the unorganized sector - and India has large tools to ensure that we recover taxes via transaction taxes.
All this does is demolish that sector - and thus harm the larger economy on which the organized sector depends.
Wishes and horses - we may want the whole sector to be organized and transparent - but this isn't going to happen quickly.
Its going to take time, and gradual improvement in laws AND in understanding/education + convenience for compliance.
Theres an optimal path, and nothing else.