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GST can boost economic growth by 1.5 per cent: Adi Godrej
April, 20th 2012

The roll-out of the Goods and Services Tax (GST) will boost economic growth by around 1.5 percent, Adi Godrej, president of the Confederation of Indian Industry (CII), said Thursday.

"GST is the biggest proposed reform. It can contribute 1.5 percent to the GDP growth," Godrej told reporters here.

Godrej said CII has been working at all possible levels to build consensus for early implementation of GST. "In the coming months you will see further deepening of this engagement."

The indirect tax regime is likely to be passed by the end of this year.

Bihar Finance Minister Sushil Modi, who heads the panel of state finance ministers, Wednesday said the much-awaited indirect tax reforms are likely to be implemented from the beginning of next fiscal.

Godrej said Indian economy was likely to grow by 7.5 percent in the current financial year.

India's gross domestic product (GDP) is estimated to slump to 6.9 percent in 2011-12 as compared to 8.4 percent in the previous year.

Godrej, chairman of Godrej Group, said there was need for structural reforms at both centre and state levels to boost growth.

He said CII has been continuously engaging with the government and political parties in advocacy efforts to promote reforms in critical areas such as taxation, financial services, land acquisition, manufacturing, energy, mining, and several others area of importance to the economy.

The Massachusetts Institute of Technology-educated Godrej took over as president of CII Wednesday.

 
 
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