Surjit Bhalla on Monday said that the upcoming government must slash the corporate tax by 5% and must broaden the income support scheme.
The former EAC-PM Member says that the new government must do away with the minimum support price (MSP) scheme within three years and make changes in the agriculture sector. The whole idea behind this recommendation is to have zero interference in the agriculture sector.
Mr Bhalla went on to say that the cost of capital and corporate tax is high in India. The Reserve Bank of India is on a wrong path since 5-6 years. He feels India shouldn’t have the effective real interest rate at 3.5%.
The economist feels that India has the potential to grow at 8.5% per annum and stated that India does not fall in the middle-income trap. This trap is one of the most misunderstood concepts in economics and India is certainly not heading towards it.
Rathin Roy, EAC-PM Member, had recently said that the Indian economy is heading towards a structural slowdown.
Commenting on the USA-China trade showdown, Surijth Bhalla said that China had taken advantage of the World economy and is now paying for it.
He said that Narendra Modi’s government is the ‘most inclusive’ government of any country in the last five years. He feels Modi must have his vision in the same league as that of Former Singaporean Prime Minister Lee Kuan Yew.