India to touch 8% growth rate this year: Das

The Dollar Business Bureau

Economic Affairs Secretary Shaktikanta Das said on Tuesday that India is ready for a ‘big leap’ in growth which could reach 8 percent in this financial year on account of normal monsoon. 

“India today is poised for a big leap in terms of growth. Last year, we recorded a growth of 7.6 percent. This year with the monsoon, which I hope will be normal, I think we are looking at touching 8 percent,” he said at an event in New Delhi, organised by CNBC-TV18. 

In the last fiscal of 2015-16, the economy grew at 7.6 per cent. The Economic Survey by Ministry of Finance had estimated 7-7.75 percent growth rate for 2016-17 whereas Reserve Bank of India has projected a growth of 7.6 percent. 

With regard to uncertainty in currency and share markets, in the wake of the UK’s exit (Brexit) from the EU, he said that it would remain for some time, but the country is ‘well placed’ to handle the situation. 

Post Brexit on June 24, India’s share markets had dropped around 1,100 points before recovering a little and closing 605 points below. On the other hand, the rupee fell below Rs.68 against the dollar.

While speaking at the event, Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion (DIPP) said the Ministry of Commerce and Industry asked the finance ministry to think on increasing the tax holiday for start-ups to 7 years to motivate the potential entrepreneurs. 

"The tax benefit which has been given, is 3 years to 5 years and we have requested the Finance Ministry to make it 7 years," he said. 

In January this year, Prime Minister Narendra Modi revealed a slew of incentives to encourage startups, by giving these businesses a regime free from inspector raj and a tax holiday for 3 years, tax exemption on capital gains and setting up a corpus of Rs.10,000 crore to fund these startups.