No. PR- 137 November 18, 2020 New Delhi Recent Government reforms has laid strong foundation for a higher growth trajectory in the coming times, says Dr Arvind Virmani at PHDCCI The economic growth trajectory is expected to be strong and positive in the coming quarters on the back of recent Government reforms. These reforms have laid a strong foundation for a higher growth trajectory in times ahead and shows Government’s intent to re-accelerate GDP growth and put India on a significant position in the world economic system, says Dr Arvind Virmani, Renowned Economist and Chair, EGROW (Foundation of Economic Growth and Welfare). Dr Arvind Virmani discussed about the history of economic reforms since 1980s. He highlighted a few noteworthy economic reforms undertaken by the Government during last 5-6 years, including GST implementation, reforms in Insolvency and Bankruptcy Code (IBC), reforms in natural resources sector, emphasis on digitization, among others. He characterized the recent Government reforms, including corporate tax rate cut, increase in private competition, strategic industry policy framework, new education policy, among others as big bang reforms. In regard to the difficult times amid COVID-19, he suggested a few potential reforms for 2021, such as simplification of GST, rationalization of direct tax code, preference to direct cash transfer schemes, focus on ease of doing business, strengthening financial sector, among others. He was of belief that the factors such as de-globalisation, supply chain diversification, need for dualistic trade policy, digitization, etc. reflects a huge opportunity for India to emerge as strong global player. He estimated the GDP growth for India at (-)7.5% for FY2021 and double digit growth of around 10% for FY2022. Industry body PHD Chamber of Commerce and Industry (PHDCCI) organized an Interactive Session on Economic Reforms and Post COVID-19 Growth, today. Renowned Economists Dr Arvind Virmani, Chair, EGROW (Foundation of Economic Growth and Welfare and Dr Charan Singh, Non-Executive Chair of Punjab & Sind Bank and Chief Executive, EGROW, participated in the Session. Shri Sanjay Aggarwal, President, PHDCCI, appreciated Government of India for undertaking proactive and fast track measures to safeguard its people, economy, trade and industry against the wild tide of pandemic COVID-19 in this extremely difficult time. He mentioned that the series of stimulus announcements by the Government in last 7-8 months under the AatnmaNirbhar Bharat Abhiyaan 1.0, 2.0 and 3.0 along with the measures undertaken by the RBI has taken the total of stimulus package to the level of around Rs 30 lakh crores. Shri Sanjay Aggarwal stated that the recovery in the key economic and business indicators on the back of string of economic reforms announced by the Government in last 7-8 months, have instilled the expectations of a strong, sustainable and even positive growth in Q3 FY2021 with robust resumption of the lost economic activity. He was assertive that the economy will be back on its high growth trajectory sooner than later. He concluded by suggesting that there is a need to enhance the share of actual cash benefit of the stimulus and infrastructural investments by the Government, going ahead. Dr Charan Singh, Renowned Economist, Non-Executive Chair of Punjab & Sind Bank and Chief Executive, EGROW, said that MSMEs have a significant role to play in the coming times and therefore, they need to be facilitated effectively. He advocated that government should plan and execute establishment of India institute of Entrepreneurship on the same lines of Indian Institute of Management to tap young demography of India to start their enterprises. He stated that non-banking financial institutions (NBFCs) have a crucial role in supply chain of finances. He emphasized that there is a need to have an alternative for China at the global front. He suggested that the India should work on attracting foreign companies into the country and in this regard, Indian embassies in various countries should be vocal about potential of India. He then highlighted the importance to create clusters, especially in the North and Northeast India to cater to USD 5 trillion economic size in times ahead. Shri Pradeep Multani, Senior Vice President, PHDCCI, said that the Government along with RBI has announced various bold monetary and fiscal measures in a calibrated manner to help country fight against the COVID-19 and support the robust resumption of the lost economic activity. He emphasized that focus is required on enhancing ease of doing business in the country. In the post-COVID scenario, there would be noticeable changes in the global supply-chains and India should focus on capturing a significant share in the world economic system. He appreciated and thanked esteemed panelists for putting across their valuable viewpoints and practical suggestions on way ahead for the economy. He said that PHD Chamber greatly value involvement of experts on the panel in Session and appreciate their valuable contribution in the PHD Chamber’s work towards nation building. Ends Media Division PHD Chamber of Commerce and Industry
PHD Chamber of Commerce and Industry, established in 1905, is a proactive National Apex Chamber working at the grass-root level and with strong national and international linkages.