August 24, 2015 12:51:46 am
Amidst global slowdown, finance minister Arun Jaitley on Sunday expressed confidence that 8-10 per cent growth rate is achievable on the back on increased investment and right mix of policies.
“I do believe it is (8 per cent and above growth) achievable… if we take right steps in right direction and hopefully we don’t have too many adverse global trend. It could be reasonably achievable. In order to achieve it is extremely important that we open ourselves for investments,” he said.
In his address at the Indian Chamber of Commerce event here, Jaitley said roadmap for phasing out of exemptions to corporate will be announced soon.
India has to accept that higher direct taxes are not in larger interest of the economy, he said. “I have announced in Budget with effect from next year over next few years I will bring down the rate of corporate tax from 30 per cent to 25 per cent. I stand by that commitment. Simultaneously, even though the rate is 30 per cent the effective rate is 22. The reason is there are as large number of exemptions,” he said. So, slowly a number of these exemptions are going to be phased out, he said.
“Very shortly I will be putting the first set of exemption to be phased out in public dodmain for discussion. And therefore returns will become simpler,” he said.
On growth potential he said, even between 6-8 per cent growth, the thinking India believes that this is not our potential. The entire battle in terms of policy battle is to evolve ourselves from this 6-8 per cent growth to 8 per cent growth upwards towards a double digit.”
Meanwhile, on the topic of GST bills Jaitley held Congress responsible for disrupting Parliament. “The maturity of our political system is being tested. The last session of Parliament was somewhat disappointing but reasonably educative.
Disappointing because we should have moved forward in what was broadly consensus moves. But it was educative because not only the government in power but most regional parties also supported the GST move,” Jaitley said.
“One political party wanted to use the disruption tactic to prevent what otherwise could have been a consensus. Having gone through the long process I have no doubt that people will eventually see reasons,” he added.
“We had slowed down in the past few years and the reason was that we tried an alternative growth model in the last one decade, which was to concentrate on redistribution of resource without any emphasis on increased productivity. I don’t think it was an option. It looked attractive in terms of slogans. But eventually on the ground it didn’t work,” he said and suggested that under the present circumstances right steps towards the right direction needed to be taken and if there were not too many adverse trends, a growth rate of eight per cent and upwards was achievable. WITH PTI
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