India can hope for double digit growth with GST implementation

India could hope to touch double digit GDP growth with the proposed implementation of the proposed Goods and Services Tax (GST) in a few years, TVS Motor Company Chairman Venu Srinivasan said here today.

"After rolling out GST, if we can add one per cent growth each in automobile, agriculture, pharmaceutical and many other industries, there is no doubt that we can reach 11-12 per cent GDP over the next few years," he said at a seminar on GST, organised by Confederation of Indian Industry (CII) here.

Small and Medium Enterprises (SMEs) in the automobile industry would also get a fillip if GST is implemented, Venu Srinivasan, also a former National President of CII, said.

Besides, the automotive industry, the manufacturing and food sector has a vital role to play in making the country competitive and much ahead of China, he said.

Describing the food sector as an 'undiscovered goldmine', he said, manufacturing sector can play a vital role in national growth, higher input costs, increasing interest rates and power cuts were some of its problems.

On implementation of GST and Direct Taxes Code (DTC), he said both taxes would have 'significant impact' on implementation.

"Reforms are essential for political stability. GST is one of the most significant reforms, much more than DTC," he said.