Executive Director of the International Monetary Fund (IMF) and Former Chief Economic Advisor to the Government of India, KV Subramanian lauded India’s impressive GST (Goods and Services Tax) revenue collection in November 2023. Speaking on the matter, he expressed optimism about reaching two lakh crores rupees per month within the next 1.5-2 years, attributing this success to sound tax policies implemented by the government.
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.”
He noted a remarkable 7.6 per cent GDP growth in the second quarter, following the 7.2 per cent growth in the fiscal year 2022-23 and the 7.8 per cent growth in the first quarter of the current fiscal year.
Assessing the first-half performance, he declared an impressive 7.7 per cent average growth, considering the challenging global economic landscape.
Subramanian characterized India’s economic performance as spectacular, especially given the significant global headwinds.
He commended the resilience and dynamism of the Indian economy in the face of these challenges, emphasizing its substantial growth in the midst of a complex international economic scenario.
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