This will be worst in comming days and months with stupid election hanging in the corner. Electin will suck more money from the market and with uncertanity.
It's been almost for a decad the Tax System and Political system sucked money from the market. Inflation gone too high. So is the Indirect Taxes in the country, perhaps the highest in the world. With this the market base shrinked and no money in the hands of masses to spend...
Whatever justification you give to generalise or to be political friendly the industry spends more money on bribes, delays, cost over run, favours to Babus and Netas, System complications cost more then the actual Cost of Production. Over and above you have multiple Indirect Taxes which are at times almost in equal amount to actual cost of production on the final cost.
If you look at the common man in India you will surprise that they pay more tax (indirectly) compared to the rich and higher income group in terms of percentage on income/spendings. This is shrinking the consumer base in India making masses poorer and poorer..
India is perhas the only country in developing world which has so many layers of taxes... Import duty, Excise duty, Sales Taxes, Service taxes, Entry taxes (no body even realize that they are paying this even and at times as high as 12.5% under table), road taxes, Tool taxes, Octroi duty, Gunda taxes(shared by everybody), Surcharges, Education surcharges(goes to swisbank) and many more..