GST, bankruptcy law to ensure ease of doing business: ADB

04 May '17

2 min read

Reforms such as the Goods and Services Tax (GST) and the new bankruptcy law in India will ensure ease of doing business in the country, said Yasuyuki Sawada, chief economist at Asian Development Bank (ADB). The organisation expects the Indian economy to grow at the rate of 7.4 per cent in the current fiscal and at 7.6 per cent in the next fiscal.

The growth rate of India for the previous fiscal year was 7.1 per cent. Sawada said during a media briefing that a growth of over 7 per cent is high as compared to the economies of other emerging markets as well as China. The new bankruptcy law adopted by the government has improved the business environment of the country and is a short-term and medium-term factor behind India's gross acceleration.

He added that demonetisation led to a short-term decline in cash transactions, but ADB's data analysis shows that its impact was short-lived. ADB still believes that the Indian economy will witness medium-term growth acceleration.

The overall export performance of the country has also been positive so far, in spite of rupee appreciation, added Sawada.

ADB's 4-day 50^th annual meeting has begun in Yokohama, Japan. It is being attended by the Central bank governors and finance ministers of all member nations. (KD)

Fibre2Fashion News Desk – India

More Asian Development Bank News... More Textiles News - Japan...