A stronger contract enforcement agency is needed for India, a simplified GST compliance, and an easier taxation procedure within the stable policy environment to significantly rectify the ease of processing the business, Sumant Sinha, the newly elected president of Assocham.
India’s economy is balanced for sustained high economic evolution in subsequent times, he added while considering the Covid-19 wave as well as the risk of the Russia-Ukraine.
Sinha, who is chairman and managing director of ReNew Power, took charge as president of the industry body on Monday. Also, Ajay Singh, chairman and managing director of SpiceJet, took over as the new senior vice-president of Assocham.
After Covid impacted economic activities for a year and a half, there has been a very nice bounce back and the expectation for next year’s GDP growth is about 7.5-8%. The decisions and implementations opted for effective exports and regulated inflation would give assurity that the momentum will be maintained in the subsequent year and beyond.
He had warned about the impact of the external environment on India’s development. There would always be a risk and growth in the subject he added. One is the external environment in which there is some uncertainty seeing towards the conflict.
The second one is the pandemic i.e arrived from Covid-19. We should watch the same, the economy was in a very robust shape at the current time and that would be predicted for several years of sustained high growth.
On the subject of delay in contract enforcement under infrastructure projects, Sinha certified for the setting up of a central contract-enforcement authority. It requires to be a central contract-enforcement authority that will be needed to be set up by the central government and run by the people who are chosen by a central mechanism. This body must be able to make decisions fairly on decisions and problems, he told.
For revamping down the ease of doing the business ranking by building the roadmap. Sinha added that multiple GST rates and heavy taxation processes were some of the problems that are required to be resolved to assist India in the 20s or 30s with respect to the present situation. India was 63rd in the last report of the World Bank.
Corporate taxation is a tough process. It just requires some simplicity whereas the focus must be on speeding the whole bankruptcy procedure.
Toward GST, India requires a much more stable policy. There must be a flat GST towards everything, and there must be no discretion of the GST Council on tweaking numbers up and down so that nobody has any doubt or any issue and there is a very predictable environment, he added.
If concerned about India’s dependence on China for solar equipment, Sinha added that the government is now thinking to build the equipment so there was no more dependence on the external side.
Sinha indeed gives some special importance to the need for further twisting the MSMEs, rise the credit provisioning for them, and greater technical assistance to MSMEs to assist them to develop the operation.
Various Indian MSMEs are the basic assembly or simply basic product manufacturing. We require bigger development as it can lead to higher quality products and more R&D in the country.
