The Economic Survey’s estimated growth rate of 6.75-7.6 per cent is on expected lines, according to Confederation of Indian Industries (CII). In a statement to the media, the CII expressed confidence in the projected growth rate estimated by the Economic Survey, while maintaining that the impact of demonetisation on the GDP growth rate will be temporary. “CII is in agreement with the Economic Survey that the impact of demonetisation on the GDP growth rate will be temporary and that once remonetisation is effected, the growth rate would revert to over 7 per cent,” said Chandrajit Banerjee, Director General, CII. “The Economic Survey’s estimate of growth at 6.75-7.5 per cent is on expected lines, and CII believes that this will be achieved,” added Banerjee.
Banerjee echoed Chief Economic Adviser Arvind Subramanian’s statement, where he said the Survey is a forward-looking, comprehensive and objective analysis. “CII congratulates him on a productive and interesting perspective on the Indian economy”, he said.
Banerjee lauded the government’s ‘sound management’ of the economy during challenging global developments. He also highlighted the strong macroeconomic fundamentals brought out in the Economic Survey.
On demonetisation, CII said the Economic Survey has undertaken a deep analysis on economic impact, costs and benefits, and future economic policy. “CII concurs that there are significant long term benefits to demonetisation, including enhanced digitalization, lowering of real estate prices, and higher tax revenues. CII has been calling for rapid remonetisation, faster digitalization, and reducing tax rates and stamp duties as also a universal Goods and Services Tax that would include real estate and land, as mentioned in the Economic Survey,” said Banerjee.
As for the upcoming Budget, Banerjee said CII is hopeful that it would deal with the aspects of creating demand, especially through direct tax interventions on the personal income tax and corporate taxation side.