Rahul Gandhi discusses economy with FIIs

Gandhi told the investors that his party was in favour of GST and it was for the government to accept the demand to cap the tax rate at 18% under the Constitution Amendment Bill

Congress Vice-President Rahul Gandhi on Friday met a group of foreign institutional investors (FIIs) in a closed-door interaction.

In a candid conversation, Gandhi sought FIIs' opinion on the veracity of economic growth figures (GDP numbers) being projected by the Narendra Modi-led government, a source who attended Friday's meeting told Business Standard.

Representatives of Morgan Stanley, Capital Group, Fidelity, Canadian Pension Fund as well as several Hong Kong and Singapore-based institutional investors were among the participants.

Gandhi told FIIs his party was of the view that Reserve Bank of India Governor Raghuram Rajan was doing a fine job and should get a second term.

Gandhi accepted the United Progressive Alliance (UPA) government had made mistakes in its second tenure. "Letting the impression gain ground that cronyism had ruled the government was one such mistake, he told FIIs," said the source.

The issue of goods and services tax (GST) and the Congress' opposition to it was flagged by the FIIs as an issue of concern. Gandhi told the investors that his party was in favour of GST and it was for the government to accept the demand to cap the tax rate at 18 per cent under the Constitution Amendment Bill. He categorically said that Congress supported the idea of a pan-India indirect tax.

An investor who attended Friday's meeting said he was happy to know that Congress was giving a lot of thought to the way the economy is developing. "It was a healthy discussion because Gandhi was so candid and it was away from media glare," said the investor. No wonder, more such interactions are being planned.

Gandhi has had regular interactions with different stakeholders in the economy since January 2015. This was the ninth such meeting. In earlier sessions, Gandhi had met start-up leaders, economists and top businessmen. Last week, he met representatives of small banks and small enterprises.

According to sources, Congress' unconditional support to the Bankruptcy Code during the Budget session of Parliament was a result of Gandhi's interactions with the business community. "It was after getting feedback on the anxieties and reservations voiced by some of the FIIs that Congress formulated its stand on the Bankruptcy Code," said the source.