The Chamber of Indian Industries has today said that the economy is not performing as expected and reforms are on a slow pace. CII’s president Sumit Mazumdar expressed his hope of the economy doing better on the coming days. According to him, a reform like the GST would give the whole industry such a psychological boost that you would see a rapid pack of pick up in the economy. Regarding the lagging pace of economic reforms, he said it will speed up once Parliament knows how to function.
The body has lambasted the GST logjam with Mr. Mazumdar saying that, “GST has been a huge disappointment because everybody recognises the benefits of GST, on how the GDP will be impacted positively and ease of doing business will go up by quite a few notches…This logjam in Parliament has been a very big disappointment and sometimes you have got to draw a line between politics and what is good for the country.”
He also requested that the phased corporate tax reduction to 25 per cent from the prevailing 30 per cent be done in tandem with removal of allowances. “We would like to see him (FM) take some initiatives where demand gets stimulation because that is a major concern right now. We would request that reduction of corporate tax and removal of allowances be done in tandem.”