India Can Become $5 Trillion Economy Through Prudent Fiscal Management, Says Pranab Mukherjee
Signs of slowdown in the Indian economy were visible since last year, leading to lower GDP growth rate, says the former president.
Former President Pranab Mukherjee on Saturday said the government’s ambitious target of becoming a $5 trillion economy by 2024-25 is possible through prudent fiscal management.
While maintaining that signs of slowdown in the Indian economy were visible since last year, leading to lower GDP growth rate, the former president said Goods and Services Tax needs more clarity.
“The target of achieving a $5-trillion economy is possible if finances are managed well and prudently... Without investments, economy will not grow,” Mukherjee said at a session organised by the Association of Corporate Advisors and Executives.
The GDP growth needed for achieving the target should be “deflated by inflation (not taking inflation into account) and the present exchange rate should be maintained”, the former finance minister said.
On GST, Mukherjee said, “The implementation of GST replaced a plethora of taxes. But it needs more clarity from the government so that compliance is better.”
On Friday, the government announced a raft of measures, including rollback of the super-rich tax surcharge for foreign and domestic equity investors, a package to address distress in the auto sector and an upfront infusion of Rs 70,000 crore into public sector banks, to boost economic growth from a five-year low.
To bolster consumption, the central government also said banks have decided to cut interest rates, a move that would lead to lower EMIs for home, auto and other loans.