GST Passage can lead to 8% GDP Growth over Next Few years

Leading credit risk research firm S&P Global Ratings on Tuesday said that passage of the GST (Goods and Services Tax) bill can lead to India's eight per cent GDP (gross domestic product) growth over the next few years. 

 

According to the firm's report "Asia-Pacific Steadies While China Goes Silent", "India's GST passage gives us additional conviction around our 8%-ish GDP growth forecast over the next few years." 

 

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"The GST passage is arguably the most important structural reform to date by the Modi government, and will improve efficiency, cross-state trade, and tax buoyancy." 

 

The report pointed out a trend of reasonably firm pick-up in Asia-Pacific's macro momentum indicators. 

 

"Retail sales offer the clearest sign of pickup and is currently above trend in most of the region's economies," the report said. 

 

"This stems from rising incomes, which, in turn, is part of the region's evolving growth dynamics, with consumption playing a larger role." 

 

The report elaborated that trade momentum in Asia-Pacific region-- both exports and imports -- has been on the rise.