FICCI Chairman Sanjiv Mehta has said that consistent tax policy is the key to sustainable growth
New Delhi:
Sanjiv Mehta, newly-elected chairman of industry body FICCI, has said that greater focus on ease of doing business and a coherent tax policy are the keys to achieving sustained growth of 8 per cent in the long run.
Mr Mehta also emphasized the need for regular efforts to promote private investment for higher economic growth in the long term.
He took over as the chairman of FICCI earlier this month. Mr. Mehta is the Chairman and Managing Director of Hindustan Unilever Limited (HUL).
“We need to sustain growth above eight per cent on a sustained basis which will be a challenge. It is expected to achieve more than nine per cent economic growth in the current year as many sectors are already at pre-COVID-19 levels. But have arrived,” said Mr. Mehta said during the conversation.
India will be close to a $3 trillion economy by the end of the current fiscal, he said, and “we need long-term growth on a high ground”.
The Reserve Bank of India has projected GDP growth at 9.5 per cent for the current financial year ending March 2022.
He further said that there are positive signs in the economy as tax collections are increasing, and exports are also close to $400 billion.
He said that Foreign Direct Investment (FDI) is also increasing, which is a positive sign for the economy.
However, Mr. Mehta said private investment is yet to pick up, and as such, the government needs to keep spending money to prop up the economy.
Referring to his meeting with Prime Minister Narendra Modi on Monday, the FICCI president said that during the talks he made a case for accelerating research and development activities with special focus on biotechnology, greentech and digitech.
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