Centre eyeing more reforms as growth could turn sluggish
NEW DELHI: Government officials are working on reforms to be implemented post polls, fearing a sluggish growth period in the year ahead. Several ministries are holding review meetings and asking officials to plan ahead on infrastructure development, tax reforms both in GST and direct taxes, measures to promote the industry as well as export promotion.
The plans come in the wake of reports suggesting that global headwinds and domestic factors would hurt India’s growth story. Global credit ratings firm Fitch has trimmed India’s growth forecast for the financial year beginning April 1 to 6.8 per cent from an earlier 7 per cent. The RBI too has cut its GDP growth forecast from 7.4 per cent to 7.2 per cent for the current fiscal.
Economist and former National Statistics Commission chairman Pronab Sen said “there will be a slow growth period mainly because a lot of investments have been put on hold … how fast the turnaround happens depends really on measures taken to promote growth.”
Infrastructure ministries such as railways have slotted review meetings despite the ongoing elections, while North Block has been working on a blueprint of changes in direct taxes as well as GST for some time. Officials said plans to perk up Micro, Small & Medium Enterprises sector with more assistance as also regulatory tweaks that could help improve ‘ease of doing business’ parameters were in the pipeline.
“Among other things, India has to work out reframing of export promotion measures; otherwise, we may face many more challenges at WTO,” said Prof Biswajit Dhar of JNU, who was formerly the director-general of RIS.