Retrospective taxation risks: Supreme Court ruling and its economic fallout

To have an accommodating investment climate, it is important to ensure stable governance

Achieving the aspirational target of increasing per capita income to attain developed country status by 2047 requires the economy to grow at an average rate of more than 8 per cent per year over the next 23 years. At the prevailing incremental capital-output ratio, this requires the economy to enhance the investment rate to about 40 per cent of gross domestic product (GDP) from the present estimate of 32 per cent. 

 

This calls for, inter alia, an accommodating, stable, and forward-looking policy environment in which all three arms of the government — the legislature, executive, and judiciary — and the