IMF: GST Will Push India’s GDP Growth Rate up over 8%

In an exclusive interview with the Press Trust of India, Tao Zhang, Deputy Managing Director of the International Monetary Fund said: “The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward.”

 “We expect that the Goods and Services Tax (GST), which is targeted to be applied, starting in July, will help raise India’s medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states.”
“We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future. More could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures.”
The Economic Times reports that Zhang also stressed on the need for labor market reforms in India. “As India persists with its strong reform efforts, labor market reforms should take priority,” he noted.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.


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