India is at a crucial inflection point in its economic and investment journey, backed by strong macroeconomic fundamentals, a thriving domestic market, and progressive policy reforms. As the country strives to achieve its goal of becoming a developed economy by 2047, its investment landscape is shaped by robust infrastructure development, foreign direct investment (FDI) inflows, industrial reforms, and digital transformation. India’s investment roadmap is built on the pillars of economic stability, infrastructure expansion, policy reforms, and digital transformation. With its young workforce, growing consumer market, and commitment to sustainability, India offers an unparalleled opportunity for investors.To revitalise Foreign Institutional Investor (FII) participation in both primary and secondary markets, the government should prioritise investor-friendly tax reforms and regulatory easing, fostering a more conducive investment climate. Strengthening the ease of doing business through streamlined compliance frameworks and policy simplifications will further accelerate entrepreneurial activity and attract global investments across key sectors, unlocking fresh capital flows and reinforcing India’s financial markets.
The next decade will be crucial in shaping India’s trajectory as a global economic powerhouse, and investors who align with this growth story will be at the forefront of one of the most dynamic economic transformations of the 21st century.The Economic Survey 2024-25 underscores the remarkable progress achieved under the GST regime. A striking testament to this success is the increased average monthly gross GST collections, with an average of ₹1.66 lakh crores in FY24. This robust growth reflects strengthened tax compliance and an expanded tax base, reinforcing the efficacy of GST in driving fiscal resilience. Moreover, state tax buoyancy has witnessed a significant uptrend, rising from 0.72 during the pre-GST era (2012-2016) to 1.22 in the post-GST period (2017-2023), highlighting more efficient revenue mobilisation. As Budget 2025 approaches, there is widespread anticipation for policy measures aimed at further refining GST processes. Key expectations include initiatives to streamline compliance—particularly for MSMEs—and a rationalisation of tax slabs to reduce structural complexities. Such reforms would be in sync with the government’s ongoing commitment to enhancing the ‘Ease of Doing Business’ and fostering a dynamic economic landscape. It is widely expected that the Finance Minister will address these pivotal aspects in the forthcoming budget speech, potentially unveiling strategic GST refinements designed to stimulate consumption, boost investment, and accelerate economic momentum.—The author, Krishan Arora, is Partner and India Investment Advisory Services Leader at Grant Thornton Bharat. The views are personal. (Edited by : Unnikrishnan)
Source link
