Letter to BS: IMF suggestions, not protectionism, will push $5-trn dream

Your editorial “Reviving economic growth” (December 25) highlights the suggestions from the International Monetary Fund (IMF) for reviving the current abysmal rate of economic growth. Indeed, if we are serious about achieving the $5 trillion target we have to work on constructive suggestions made by the IMF. The goods and services tax (GST) has the primary objective to bring in all industry and trade into the tax net but political wrangling in the successive council meetings seems to have put this on the back burner while issues raised by different states and business sectors are coming centre stage. It is crucial to concentrate on a strong audit trail so that habitual and ingenious evaders are forced to pay the due taxes. This is a wider national cause and any buoyancy in the collections will benefit both the Centre and the states. That the ease of doing business will improve is another advantage. Of course, trade liberalisation is a long overdue need for supporting growth and employment. Ironically — despite stated policy and many public announcements at the highest level — we seem to be drifting towards protectionism rather than concentrating on measures to liberalise trade and get into more trade agreements and regional cooperation mechanisms.

Krishan Kalra  Gurugram

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