Prime Minister Modi and IMF Deputy Managing Director Geeta Gopinath
India is moving fast on the path of growth. Prime Minister Modi has mentioned this many times in his speech. The Prime Minister’s dream is to make India an economic hub. He wants India to become a developed nation by 2047. Now, the statement of Geeta Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), has come in this regard.
He said that India will need to carry out further reforms to move forward on the path of economic growth and ensure adequate employment in the country. Speaking at an event, Gopinath said that if India wants to become a major partner in the global supply chain, it will have to reduce import duties. He said that in terms of structural reforms, the government has made important reforms in the last few years.
What does Gopinath say?
Gopinath said the world is in an environment where there are a lot of questions about trade and it is important for India to remain open to global trade. The noted economist said the duty rates in India are higher than in other countries. If it wants to become a major player on the world stage and a major part of global supply, it will have to reduce those tariffs.
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This is how the dream of a developed India will come true
Gopinath said achieving developed country status is a big aspiration but it does not happen automatically. This requires sustained and consistent large-scale effort across multiple sectors. India’s overall growth rate has been good and at seven per cent it is the fastest growing major economy in the world.
He further said that the question is how to sustain this momentum and how to increase it further so that per capita income in India can increase and become an advanced economy. Replying to a question on the tax system, he said that India’s situation is similar to other developing countries where most of the tax revenue collected comes from indirect taxes and not direct taxes. It is not even much more than income tax.
Fanatic of this order of the Modi government
He said that we are also advising other developing countries that it would be beneficial to widen the personal income tax base, so that more revenue can be generated from there. Referring to the Modi government’s cut in corporate tax rate, Gopinath said that it was helpful to a certain extent, but it is important to ensure that there are no loopholes or too much leakage in terms of tax exemptions.
