Economist Surjit Bhalla Urged Policymakers To Reduce Interest Rate, Corporate Tax, Free Up Agriculture
Economist and author Dr Surjit Bhalla said that the agenda for the new government should include the elimination of government intervention in agriculture sector, reforming labour laws and lowering the cost of capital through a reduction in the interest rate and corporate tax.
Speaking at FICCI National Executive Committee Meeting, Dr Bhalla said that the first thing the new government should do is free up agriculture sector as every developing country in the world has first reformed its agriculture sector.
“We have got too much intervention by the government in agriculture,” he said. While advocating elimination of MSP and PDS, he recommended expanding the income support system to the farmers.
Dr Bhalla further suggested major cut in corporate tax by about 500 basis points across the board reducing the cost of capital which is one of the highest in the world.
Mr Sandip Somany, President, FICCI said that the priority of the new government should be to bring back the economy on the high growth trajectory. “The next government will have to plan for a robust reforms agenda that would not only boost consumer sentiment but will also create conditions for higher private sector investments and exports.”
Delivering the vote of thanks, Ms Sangita Reddy, Senior Vice President, FICCI expressed hope that the new government would take corrective measures to boost the economy.
In another NECM session on ?’ndia’s Elections: Journey/Verdict’, Dr Prannoy Roy, Founder and Executive Co-Chairperson, NDTV noted that the country witnessed higher number of women voters compared to men in the just concluded Lok Sabha elections for the first time.