GST Helps India Climb the Second Spot in Global Business Optimism Index
The latest Grant Thornton International Business Report was a herald of good news for the Indian business sectors. India rose to the second position in global business optimism index as GST is being realized along with many policy reforms. The ranking progressed from third place in the second quarter (April-June) to the second place in (July-September). Indonesia beat India to the top spot while the Philippines came third. The report was prepared after a survey of 2,500 organizations across 36 countries.
Harish H V, partner at Grant Thornton India LLP, confirmed that the rank improvement is a result of government’s business-centric agenda. He further added that building relationships with major economic powers around the globe has put India in an advantageous spot.
The story of India’s success doesn’t end here. The developments boosted India to the 39th place in World Economic Forum’s (WEF) global competitive index. Prime Minister Narendra Modi’s ambition for a ‘Digital India’ depends on how readily the country adapts to technology. However, the report illuminates India’s weakness in technological readiness, labour market efficiency, higher education, and health.
Contrary to popular opinion, 59% of the respondents blame heavy rules and regulations for difficulty in business. On the basis of profits, India slipped to the third position from the first in the previous quarter. But in hindsight, the prospects will increase job opportunities and GDP of the world’s seventh largest economy. The global business optimism is currently 33%. This is after an 11% fall over the year.
GST will stabilize the tax system with the consolidation of a single value added tax for goods and services. GST council established four rates of tax levy, which are: 5%, 12%, 18% and 28%. The bill will be introduced in the Parliament’s Winter Session, from November 16. It is expected to be implemented by April 1, 2017.
This Global Business Optimism Index is a good news for Indian economy.
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