Vivek Devroy, chairman of the Prime Minister’s Economic Advisory Committee, gave a statement.
Vivek Devroy, chairman of the Prime Minister’s Economic Advisory Committee, said on Friday that the country’s real gross domestic product (GDP) growth rate could be five per cent in the current financial year (2019-20). He said at the Tata Steel Kolkata Literature Conference that it is difficult to achieve the GDP growth rate of nine per cent in the current situation. He said that the ambitious growth rate could be between six and a half to seven percent.
GDP estimated at 6-6.5% in 2020-21: Devroy
According to him, it is difficult to achieve a GDP growth rate of nine per cent at this stage. He said that this year the growth rate will be 5 percent and it is real and not indicative. At the same time, next year (2020 – 21) GDP growth rate can be anywhere between six to six and a half percent.
Devroy said that the environment in which the Indian economy is growing now has the effect of protectionism somewhere and this is causing a decline in exports. He said that when the country was growing at a rapid economic growth rate like nine percent, then the ratio of export to GDP was 20 percent. But now the scenario has changed. After the collapse of the World Trade Organization, developed nations have become protectionist, due to which the major contribution of exports to GDP is not possible.
Government’s revenue reduced: Devroy
Devroy said that India has been strong in the services sector and not in manufacturing. In such a situation, the country will have to lose something to get something. This is a losing position to gain some, especially in regional trade agreements. He said about the tax system that the country is now moving towards a stable direct tax system with no exemptions. He said that the Goods and Services Tax (GST) is still in the process of development.
GST was expected to be decent in terms of revenue. But after the introduction of GST, the government’s revenue has decreased, which is not affordable. He said that when there will be stability in both direct tax and GST in future, a time may come when there will be no need to present the budget in Parliament.