GST an important structural reform, says Noted economist

Indore, Jul 27: Noted economist Montek Singh Ahluwalia has termed the Goods and Service Tax as an important structural measure which is an extension of the economic reforms started in the country in 1991.

"In my view, the GST is an important structural reform. It is a good example of continuity in the economic reforms since 1991 despite a change in political leadership," said the former deputy chairman of the erstwhile Planning Commission. He was speaking at a programme organised by the Indore Management Association last night.

India has the capacity to achieve higher growth rate through good economic management, said Ahluwalia, who was a key voice in policy matters during the rule of Congress-led UPA. "It would be good if Indian economy grows at 7.5 per cent for the next three-four years. Then, the country would be able to join the club of top countries in terms of gross domestic product (GDP)." Ahluwalia said taking the current state of global economy into consideration, India should open its market for other Asian countries, in addition to strengthening its infrastructure and banking system.

In reply to a question on note ban asked by a member of the audience, he said, "In my view, demonetisation was not a structural change. "The people got new currency notes in place of old notes. If a person can become corrupt by amassing old notes, he can equally be dishonest when possessing new currency notes."

PTI