“The announcement of GST was a welcome move and will transform indirect tax. Uniform tax structure will make India as a single market and the way India does business will change forever. Manufacturing sector in particular will be a big beneficiary of GST as the economic system becomes more competitive,” said Dr N Muthukumar, Chairman, CII Mysuru during his address at Special interactive session with CII Members this morning in the city.
The Indian economy was growing at a rapid pace, with a GDP growth of around 7.6% with intro of GST was expected to grow faster. In this juncture, announcement of Demonetization and withdrawal of Rs 500 and Rs 1,000 notes was a big surprise and a significant move which will certainly accelerate economic growth, fall of inflation, affordable products which will create demand and growth of the industries in the long run.
Under Make-in-India initiative a big shift is seen across the sectors, especially automotive, the Automobile Mission Plan 2016-2026 sets the target of becoming the third-largest global sector with $300 billion turnover by 2026. The electronic sector in India has undergone a major shift, at present 280 million smart phone market the government has set goal that every Indian should have an access to smart phone clearing making the country a vibrant destination for electronic investments.
Government steps to support young entrepreneurs using Twitter and the launch of ‘Twitter Seva’ to address various issues of start-ups in a time bound manner, incubation facilities, a fund of Rs. 10,000 crore and tax incentives are commendable.
The reform in the agricultural sector announced like Rupay cards, financial support to pregnant women through Adhaar cards as well as for famers announced by the Prime Minister on December 31 will boost consumption among the rural areas.