HYDERABAD: Welcoming the various reforms taken by the government to steer the economy, Hero Enterprises chairman Sunil Kant Munjal said on Friday that the economy and businesses will need more time to get adapted to the new GST regime. According to him, the benefits of reforms will show up by 2018.
“Initiatives like demonetisation and GST are structural changes, which need six months to two years for the results to show up. The first cycle of reporting itself needs three months under GST. Therefore, we should give another one year for the GST to get fully established and reap the benefits,” said Munjal, speaking to reporters here on Friday. He added that by 2018, demand will increase and the benefits of GST will be visible in the economy.
“Demonetisation was a fantastic idea and one of the major structural changes that brought massive disruption. Post-demonetisation, black money generation decreased, and tax returns and revenue increased. Even GST will lead to streamlining of system,” he noted.
He highlighted that after these reforms, the incentive to do business in Indian economy has increased. As the demand is set to increase over the next six months, even investments will flow into economy next year, he noted.
Munjal stressed that the government should continue its forward-looking reforms without hampering them during the general elections to be held in 2019. Munjal was in Hyderabad to participate in the Mindmine Conversation, a thought leadership conversation programme initiated by Mindmine Institute, an independent think tank set up by Hero Enterprises. The conversation was held on the theme of ‘India@75: Is this the New India?’ in which captains of industry, thought leaders, academicians, and policy makers participated.