Industry body Confederation of Indian Industry (CII) on Thursday predicted that India's economic growth rate for 2017-18 will range between 7.5 and eight per cent.
According to newly elected CII President Shobana Kamineni, country's strong economic fundamentals and introduction and implementation of key reforms such as the Goods and Services Tax (GST) system will be the key growth drivers during the current fiscal.
Kamineni, also the Executive Vice-Chairperson of Apollo Hospitals Enterprise (AHEL), said the growth rate band will also depend on normal monsoon and a slight improvement in the global economic environment.
"The growth band that we are looking at is 7.5 to eight per cent. This is based on a normal monsoon, somewhat improved global climate, and India's own strong macroeconomic fundamentals," Kamineni said.
"The global GDP (gross domestic product) growth is a major determinant of our growth, and unfortunately, the world has not fully recovered from the global financial crisis. In this context, the Indian government's proactive reform policies are opening up new opportunities and new space for growth."
Further, Kamineni predicted that India's growth rate can build up to a 10 per cent over the next three years.
"It is possible to target one per cent additional growth each year to reach 10 per cent in the next three years," Kamineni said.
"The drivers for this step up in growth would include the benefits from implementation of GST, greater participation of women in the labour force, the urbanisation process which will drive greater economic activity in areas such as construction and government spending of up to Rs 30 trillion in various infrastructure projects over the next few years."
On the implementation of the GST, She said that the industry is completely ready for the introduction of the landmark tax reform from July 1, 2017.
"CII has been calling for a single national tax for the last ten years and we will try to make its implementation as smooth as possible," the newly elected CII President said.
The industry chamber's observed that investment slowdown needs to be reversed for the economy to move at a higher growth pace.
"CII would continue to request the government for quick action in reducing corporate income taxes for all corporates. This has become urgent given the lowering of tax rates across many other countries," the CII President said.
"The 25 per cent rate is currently applicable only for companies with turnover up to Rs 50 crore. Eventually, the corporate tax rate could be brought down to 18 per cent together with the removal of all incentives. CII believes this will lead to much better tax compliance."
--IANS
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