6.7%-7.5% GDP growth for FY 2017-18 achievable: CII

The Dollar Business Bureau

Chandrajit Banerjee, Director General, CII, said that CII is in agreement with the estimations made, of the impact of demonetisation, by Economic Survey 2017. The survey reports that the GDP growth rate will only be temporarily affected by the note-ban and that, post remonetisation, the growth rate will bounce back to over 7%.

CII is of the opinion that the 6.75%-7.5% GDP growth rate that has been forecasted for FY 2017-18 is realistic and will be achieved.

The Economic Survey 2017, while calling for quick remonetisation to ameliorate the short-term negative effect of demonetisation, has adopted a tone that strongly defends the move by stressing its long term positive impact.

"The strong macroeconomic fundamentals brought out in the Economic Survey are commendable during challenging global developments," CII's statement said. 

Congratulating Arvind Subramanian on presenting a productive and interesting perspective of the Indian economy, the Director General of CII agreed to the positive long term effects of demonetisation in terms of falling real estate prices, speedy digitalization and increasing tax collection for the Centre. In tune with the survey, CII has called for rapid remonetisation, faster digitalization, reduced tax rates/stamp duties, and a universal Goods and Services Tax that would include real estate.

Banerjee is hopeful of demand-stirring measures in budget 2017. In his concluding remarks, he said that demand can be boosted by making amends to the direct taxation regime, implying personal and corporate tax.