Seeking private investment, Commerce and Industry Minister Nirmala Sitharaman today said systemic reforms being pushed by the government may have some short term pain but will make India an easier place to do business. The government is committed to systemic reforms, however painful it is in the short run, she said while hinting at recent demonetisation exercise carried out by the government to eliminate parallel economy.
She emphasised that systemic changes have to be brought in for the rapid growth. “So, if you are compressing and also making sure that the baggage of the slow growth is left behind, it means rapidly many systemic changes have to be brought in. And systemic changes are the ones which are going to be painful, systemic changes are going to be time consuming but we have to compress,” she said at the Partnership Summit here.
Citing some of the example of systemic changes carried out by the government, Sitharaman said banking sector reforms, simplifying taxation structure and the proposed roll out of Goods and Services Tax (GST). “GST Council ironing out all the difference between the centre and states. I am near certain to say that we will have GST rolling out from July 1…if that is happening, you have a compressed timeline for systemic reform and that systemic reform what is going to make India the more easy place to invest and to do business in,” she said.
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She further said that the government will undertake more systemic reforms so that the tax GDP ratio improves. “There are more (systemic reform) happening. We do not want a parallel economy, we do not want grey economy, we do not want an economy which does not come under any institutional radar but continue to be cash driven,” she said. “It’s very clear that the government’s commitment lies in doing the reforms, however painful it is, rapidly so that duration of pain is contained and the long-term benefits are there for everybody to see,” she added.
Citing competitive advantages that Andhra Pradesh posses, she said it is a good place for investments. On the global economy, she said, it still going through slowdown phase. As a result trade growth was slow but started picking up now, she added.