World Economy

India Reforms Can Boost Growth

India Reforms Can Boost GrowthIndia Reforms Can Boost Growth

Business leaders and analysts are optimistic about what the new year has in store for India’s economy as they look forward to reforms from the government that would help transform the economic landscape.

“We foresee an improved economic outlook for the Indian economy this year,” says Vimal Bhandari, the managing director and chief executive of IndoStar Capital Finance in Mumbai, PTI reported.

“Going forward, policy reforms initiated by the government, lower commodity prices and a surge in investment activity will be the key triggers in propelling the economy on an upward trajectory.”

The IMF is forecasting that the country will continue to be the world’s fastest growing economy in the fiscal year from April 2016 to March 2017 with growth of 7.5%, up from a predicted 7.3% during the previous 12 months.

Businesses and investors are perhaps most eagerly awaiting the long-delayed introduction of the goods and services tax, which would simplify the country’s convoluted tax regime and is expected to boost economic growth. The move would be one of the most significant economic reforms in its history, but the opposition Congress party has been doing its best to prevent it from being passed.

“Key pending legislations such as the GST bill needs to be passed at the earliest to usher in a uniform taxation structure in the country, which will boost trade and commerce activity,” says Bhandari. “A key bill that also needs to be passed in the next parliament session is the bankruptcy bill, which would mitigate the insolvency problems of businesses and ensure a viable investment climate in the country by creating a proper survival mechanism or speedy liquidation of sick businesses.”