Executive Director of the International Monetary Fund (IMF) and Former Chief Economic Advisor to the Government of India, KV Subramanian commended the nation for its exceptional Goods and Services Tax (GST) revenue collection in November 2023.
Speaking on the topic, he expressed optimism that two lakh crores of rupees would be earned monthly within the next 1.5 to 2 years. He attributed this success to the government’s adoption of reasonable tax laws.
Subramanian said, “I think, going by the signs so far, in about 1.5-2 years, we can expect to touch two lakh crores rupees in a month. I think the GST collection doing well is part of the overall phenomenon of good policy that has been implemented. So overall, I think the good performance on the GST side is evidence of good policy on taxation.”
Subramanian emphasized that the positive performance in GST collections reflects the broader success of India’s well-crafted taxation policies, highlighting the country’s commitment to effective fiscal management. On the front of India’s Gross Domestic Product (GDP), Subramanian expressed great satisfaction with the growth trajectory.
Subramanian said, “I’m very gratified to note the 7.6 per cent GDP growth in the second quarter. This comes following the 7.2 per cent growth in FY 23 and the 7.8 per cent growth in the first quarter. So on average, in the first half of the year, the economy has grown at 7.7 per cent, which in a global economy that is facing significant headwinds, I think it’s a spectacular performance by the Indian economy.”
After 7.2 percent growth in the fiscal year 2022–2023 and 7.8 percent growth in the first quarter of the current fiscal year, he reported a noteworthy 7.6 percent GDP growth in the second quarter.
Considering the difficult state of the world economy, he declared an impressive average growth of 7.7% for the first half of the performance. India’s economy has performed remarkably well, according to Subramanian, especially considering the considerable headwinds facing the world economy.
He praised the Indian economy’s tenacity and dynamism in the face of these difficulties, highlighting its notable expansion in the face of a convoluted global economic landscape.