HDFC Chairman Deepak Parekh on Friday said the Goods and Services Tax (GST) regime can push up the country’s growth by as much as 150-200 basis points (bps). “If we have a good GST system, lot of experts say GDP could go up by 150-200 bps,” Parekh said at the India Today Conclave here. India’s GDP for the third quarter ended in December 2016 recorded a growth of 7 per cent. The estimate of GDP growth for the full fiscal 2016-17 is 7.1 per cent.
Noted industrialist Adi Godrej said that once GST was in place, it would give a tremendous boost to GDP. “Once we are in the GST framework, lot of things will change for the better. Evading indirect taxes will become difficult, which will lead to higher revenues and hopefully … to lower taxes,” Godrej said. “Introduction of the GST will curtail black money. It will be a major step to reduce unaccounted money,” he added.
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On private investment, Godrej said it has decelerated over the last couple of years and is expected to pick up only in the second half of 2017-18.Parekh said the revival of private investment was “round the corner” and is likely to pick up in the fourth quarter itself. “Our macro-fundamentals are so strong.” Praising demonetisation, Godrej said the impact of the move had been more than expected and the consumer demand was back.