Former Governor of the Indian Reserve Bank (RBI) Ragur Rajan emphasized the need for the Indian government to carry out the best control over its tax authorities to increase business prospects. He claimed that unexpected tax requirements could violate business operations and urge the government to solve these problems immediately. “Stop have tax requirements for business people who come out of blue, which over the years cover all their operations. I mean, it has some control,” Rajan said in an exclusive interview with India today.
Rajan also emphasized the importance of maintaining equal conditions in the rules and rules. He warned of creating rules that prefer Indian national champions at the expense of foreign investors. “Similarly, I think that equal conditions for the rules and rules, you cannot suddenly invent the regulations to benefit the Indian national champions, even if you know, harm to foreign investors who came,” he added. He suggested that this approach would provide more transparent and fair business conditions, which are crucial to stimulate both domestic and international investments.
Commenting on the current state of the Indian economy, Rajan noted that while India’s growth rate is commendable, ViSit Bharat is needed by 2027. This ambitious goal requires coordinated efforts to develop policy and development of infrastructure to maintain such high growth levels.
India’s GDP growth rates were impressive despite global economic problems. The economy increased by 7.4% in the fourth quarter of 225 and recorded an increase of 6.5% per financial year. These figures are noticeable compared to most major economies around the world. Rajan acknowledged this achievement, but warned that self -repairing could interfere with progress. “It may be the moment of India, but we have to capture it,” Rajan said. He emphasized the importance of strategic initiatives for unlocking investment and expanding consumption base, which are vital for long -term economic sustainability.
However, Rajan warned from potential global uncertainty, which could affect India’s economic impulse. He pointed to the growth of global tensions, such as potential tariff changes in the US that could restrain investments. “Some slow down on the cards,” he said, pointing to the need for strategic economic planning. These external factors require a reliable domestic policy frame to soften the risks and maintain growth.
Despite these problems, positive results are raised for the Indian economy. It is expected that a favorable view of the monsoon and signs of revival of rural demand will support the release in agriculture and reduce inequality. “This is positive,” Rajan confirmed, as these factors can contribute to sustainable economic growth. Such events can play a significant role in the balance of urban economic dynamics and increase overall economic stability.
The official forecasts correspond to Rajan’s understanding, since the reserve bank of India and the Ministry of Finance suggest 6.5% of GDP growth for 2024-25 financial year. This projection reflects cautious optimism among constant external problems. The government’s focus on unlocking investment and expanding the consumption base will be crucial for maintaining this trajectory. In addition, it is expected that efforts to streamline the rules and improving the simplicity of business will strengthen the confidence of investors and ensure economic expansion.
