GST will lead to economic integration of India: FM

The Goods and Service Tax (GST) will lead to the economic integration of the country, said Finance Minister Arun Jaitley. "We started the process to end the multitude of indirect taxes across the country and took the states along in this, as it would involve a change in Constitution. The entire country will be a single market, it will be the economic integration of India. There will be a seamless transfer of goods and services," he said at the launch of the three social security schemes - Pradahan Mantri, Suraksha Bima Yojana, Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana-- in Mumbai.

The GST Constitution Amendment Bill has been approved by the Lok Sabha and is now pending in the Rajya Sabha. He emphasised that apart from the passage of GST Bill, ironing out the complexity of doing business in India has been another top priority for the government. With this in focus, the corporate tax will gradually be brought down to 25 per cent. Apart from this, the various exemptions from companies will also be removed in order to bring down corruption in the system, said Jaitley.

With unseasonal rain taking a toll, the growth in the agriculture sector is likely to become a major challenge.

He further added that India has a potential to grow at a higher rate. "Today is an opportunity for India to improve growth after the setbacks from global slowdown and the policy paralysis…We have the ability to grow at double digit."

While the service sector has been on the course of growth, the growth in agriculture continues to be a challenge. With unseasonal rain taking a toll, the growth in the agriculture sector is likely to become a major challenge. "Agriculture is the biggest challenge and the unseasonal rains have resulted in an agrarian crisis. Once the resources with the government grow, the biggest component of this will be diverted to agriculture and irrigation for meeting the challenge," he said.