The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Confederation of Indian Industry (CII) on Monday said they expect the Indian economy to grow further in the coming years.
Director General, CII, Chandrajit Banerjee told ANI that the country has reasons to believe that it is on a strong growth path.
"Economic Survey is saying that we have reasons to believe that we are on a strong growth path. Reforms which have taken place over the last few years have resulted in growth and the next year seems to be even stronger in terms of growth," Banerjee said.
He, however, added, that the stabilisation of the Goods and Services Tax (GST) is extremely important to maintain growth.
"Another point in the Economic Survey is the spread of the tax net on the indirect tax side and also the collections on the direct tax side, which has gone up. These are strong outcomes. Stabilisation of GST as said in the Economic Survey is extremely important," he said.
Chief Economic Adviser Arvind Subramanian had earlier said that the policy agenda for the government in the next year will be to stabilise GST and head off macro-economic pressures arising due to alarming oil prices, among other things.
"Policy agenda for the year ahead is to support agriculture, stabalise GST, complete TBS actions with reforms, privatise Air-India and head-off macro economic pressures and possibility of a 'sudden stall' from rising oil prices and sharp correction in stock prices," Subramanian had said at a press conference post the presentation of the Economic Survey 2017-18.
"This year, oil prices went up significantly, and affected consumption, government finances and held back real economic activity. If this continues, GDP growth will drop, and inflation will spike in the coming quarters," he had said.
ASSOCHAM President, Sandeep Jajodia said the impact of importing oil can be neutralised, if the government focuses on exports and job creation.
"India imports about 80 percent of its oil needs. The increase in crude oil prices is definitely a casue of concern. This will definitely impact the Gross Domestic Product (GDP) and growth. But, since we are talking about focusing on exports in the Economic Survey, we will be able to counter it to an extent. And, if the overall growth of the economy is good, in terms of demand, in terms of GDP, and if job creation stays, we will be able to manage inflation and the impact of oil will be neutralised," Jajodia told ANI. (ANI)