Former NITI Aayog chief executive officer Amitabh Kant has described the recent GST reforms as a "bold and visionary step" but emphasises that they are "just the beginning" for India's economic journey.
In a post on 'X', Kant lauded the government's decision to rationalise GST rates into a two-tiered structure of 5% and 18%, while also introducing a 40% rate for luxury and "sin" goods.
This simplification, Kant noted, will boost consumption, raise capacity utilisation, and attract new investment, creating a virtuous cycle of growth. According to Kant, will also fuel job creation and increase household incomes, giving renewed momentum to the economy at a critical juncture.
Reforms In Trump Times
While appreciating the GST overhaul, Kant also cited 10 more areas that require immediate focus to enhance India's economy amid "Trump Times." These include addressing the high cost of logistics, power, and land, as well as bureaucratic and judicial reforms. He stressed the need for a sustained thrust on the manufacturing sector to create high-quality jobs and drive long-term consumption.
The former NITI Aayog chief also highlighted the importance of a greater focus on exports and on simplifying the country's tax administration and legal framework.
Other crucial areas include a rapid shift to renewable energy, development of a robust digital public infrastructure, and a focus on skilling the workforce to meet the demands of a new-age economy.
Kant's comments come in the wake of the 56th GST Council meeting, which saw a major overhaul of the tax structure, including rate reductions on essential items, automobiles, and agricultural inputs.
Kant believes this is a timely move, especially in the face of global economic headwinds and protectionist measures by other countries, which necessitate a new wave of reforms to secure India's autonomy and economic growth.
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