India: Strong growth has raised incomes and reduced poverty, but challenges remain, OECD says

India: Strong growth has raised incomes and reduced poverty, but challenges remain, OECD says

The Indian economy is expanding at a fast pace, boosting living standards and reducing poverty nationwide. Further reforms are now necessary to maintain strong growth and ensure that all Indians benefit from it, according to a new report from the OECD

The latest OECD Economic Survey of India finds that the acceleration of structural reforms and the move toward a rule-based macroeconomic policy framework are sustaining the country’s longstanding rapid economic expansion.   

The Survey, presented in New Delhi by OECD Secretary-General Angel Gurría and India’s Secretary Economic Affairs Shaktikanta Das, hails India’s recent growth rates of more than 7 % annually as the strongest among G20 countries. It identifies priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between India’s various regions.

 

India A

 

“India provides a welcome counter-point to a global economy that has been under-performing for years,” Mr Gurría said. “Reforms are historic and are bearing fruit, growth is strong and other macroeconomic indicators are improving. Maintaining the reform momentum will be critical to boosting investment and creating the quality jobs needed to ensure strong and inclusive growth for future generations, with all segments of society benefitting from it.”

The implementation of the landmark GST reform will contribute to making India a more integrated market. By reducing tax cascading, it will boost competitiveness, investment and job creation. The GST reform – designed to be initially revenue-neutral – should be complemented by a reform of income and property taxes, the Survey said.

India B

The latest OECD Economic Survey of India finds that the acceleration of structural reforms and the move toward a rule-based macroeconomic policy framework are sustaining the country’s longstanding rapid economic expansion. 

India D
  

The Survey, presented in New Delhi by OECD Secretary-General Angel Gurría and India’s Secretary Economic Affairs Shaktikanta Das, hails India’s recent growth rates of more than 7 percent annually as the strongest among G20 countries. It identifies priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between India’s various regions.

India C

“India provides a welcome counter-point to a global economy that has been under-performing for years,” Gurría said. “Reforms are historic and are bearing fruit, growth is strong and other macroeconomic indicators are improving. Maintaining the reform momentum will be critical to boosting investment and creating the quality jobs needed to ensure strong and inclusive growth for future generations, with all segments of society benefitting from it.”

India E

The implementation of the landmark GST reform will contribute to making India a more integrated market. By reducing tax cascading, it will boost competitiveness, investment and job creation. The GST reform – designed to be initially revenue-neutral – should be complemented by a reform of income and property taxes, the Survey said.

www.oecd.org


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