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Bring GST, DTC to spur growth: India Inc

India Inc on  Monday urged the government to introduce the Goods and Services Tax (GST) and Direct Tax Code (DTC) to spur economic growth, which has been declining over a year owing to various global and domestic factors.

‘Early introduction of GST and DTC can revive the sagging economy and help increase the GDP growth by at least 1.5 percent. Allowing foreign direct investment (FDI) in growth sectors such as multi-brand retail, civil aviation and defence sectors will spur growth,’ Confederation of Indian Industry (CII) president Adi Godrej said on Monday.

Admitting that declining gross domestic product (GDP) growth rate (6.5 percent) in last fiscal (2011-12) from 8.4 percent in fiscal 2010-11 was a cause for concern, the Godrej group chairman said the sharp fall in the fourth quarter (January-March) to 5.3 percent from 9.2 percent in same quarter of FY 2011 due to poor performance of the manufacturing and
agriculture sectors was disturbing.

‘Though the GDP growth slumped to 6.9 percent in fiscal 2008-09 due to the global financial crisis, the Indian economy staged a remarkable recovery, thanks to slew of measures, including stimulus the government provided for over two years. The trend, however reversed last fiscal,’ Godrej told the industry members at an interactive session on ‘Agenda for Economic Revival’ here.

Representing the manufacturing and services sectors, the confederation has urged the government to go ahead with the twin growth-oriented measures GST and DTC and reforms to attract more domestic and overseas investments in key sectors.

‘The much-awaited reforms can act as a macro economic stimulus for growth and help reduce fiscal deficit which is projected at 4.2 percent last fiscal, check inflation and put the country back on the growth path,’ Godrej asserted.

As a representative body of India Inc, the CII is working with various state governments across the country to encourage reforms for healthy and uniform growth.
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