New Delhi : World Bank chief Junaid Ahmad termed GST a structural change in the country’s taxation policy. He said that this has increased the possibility of achieving of more than 8 percent GDP growth rate.
This statement of the World Bank is definitely going to relieve the Narendra Modi government, who has been criticized for the downfall of country’s growth rate after the demonetization and implementation of Goods Service Tax.
India’s GDP growth rate is 7.1 percent in 2016-17 and 5.7 percent in the first quarter of the current financial year.
“India is on the way of achieving more than eight percent growth rate. As India has taken a very bold step to transform the country into a market,” Ahmad said in a program of industry board. Therefore, implementation of GST is a structural change.”
Addressing the members of the Board of Industries, PhD Chambers of Commerce here, he said that if the goods and services tax (GST) is implemented efficiently then the GDP growth rate will get a satisfying speed.
Since the first quarter GDP growth figures of the current financial year, there is concern in the Modi’s central government. Economic growth in the first quarter of fiscal year 2017-18 was 5.7 per cent, which is the minimum level of three years. In the first quarter of this financial year, it was 7.9 percent and in the last quarter of the January-March quarter it was 6.1 percent.
The Growth Rate of Gross Domestic Product (GDP) has decreased in the sixth quarter in a row. In the Economic Review-2, it has been estimated that due to deflationary pressure, it will not be possible to achieve an economic growth rate of 7.5 percent in the current financial year.
For more latest news visit here