India has the potential to become the next growth engine for the global economy. However, it is crucial that the GST Bill be passed. GST has the ability to convert the entire country into one unified market. It can also check corruption

The Chinese stock market crash has been causing tremors worldwide. The massive after-shocks emanating from the collapse of the Chinese stocks has shaken not only the Indian stock market but also led to a deep plunge of stock markets in Europe and the US. As was to be expected, the Congress has blamed the NDA Government for the big crash.

As a matter of fact, the stock market crisis has nothing to do with the domestic economy. In fact, due to the astute handling of the economy by the NDA regime in the  past 15 months, we have become the best performing economy in the world.

Reserve Bank of India Governor Raghuram Rajan categorically stated that the macroeconomic fundamentals of the country are much stronger. What is the basis and evidence for this exuberanceIJ The answer to this lies in a number of facts. let us examine them.

India’s foreign exchange reserves are close to $370 billion. Fiscal deficit and current account deficit (at just 1.3 per cent of GDP) is at all-time low. Similarly, inflation — wholesale price index and consumer price index — are at an all-time low. Foreign direct investment has increased by 40 per cent this year. Indirect tax collections have increased by 37 per cent.

We are the only economy to have seven per cent plus gross domestic product growth rate even in the current turbulent global economic scenario, and we are expected to go higher (as per reports from top financial agencies). Arguably, we are the strongest and fastest-growing economy, given the present economic conditions.

All credit goes to Union Minister for Finance Arun Jaitley. He has managed the economy astutely under the direction and visionary leadership of Prime Minister Narendra Modi.

In the past two decades, China was the growth engine for the world. However, like Chinese products, the Chinese engine is getting out-dated. The world is bound to look for alternative potential growth engines. Can India become the next growth engine of the global economyIJ Yes, absolutely it can.

It was heartening to see that, in these turbulent times, instead of going on the defensive, the NDA Government sensed an opportunity in this adversity. It has been having meetings in the Finance Ministry with experts on how to position India as the world’s next investment destination.

Mr Modi’s initiatives, like the Make in India and the Digital India plans, are timely and hold great potential. In the coming months, they will generate greater interest among the global investors. Initiatives like the ‘Start-up India, stand-up India’ and ‘Skill India’ campaigns are bound to enhance entrepreneurship and innovation and generate employment for the youth.

International factors like the decline of commodity markets augur well for India as we are a major importer of commodities. Further, the weakening of crude oil prices is expected to benefit a net importer like India.

However, there are several important policy measures that should be enacted on a priority basis by the legislature — the most important of them being the Goods and Services Tax. It is unfortunate that the Opposition failed to rise to the occasion to support the much-needed reform measures in the Monsoon Session. The Congress indulged in disruptions to ensure that the GST Bill was not passed.

If the GST Bill is passed, it can convert the entire country into one unified market. It can also abolish about 17 different taxes. Obviously, this will remove corruption and red-tapism substantially. The cascading effect of tax-on-tax will disappear. This in turn is bound to reduce prices of both commodities and services.

The GST is expected to add a significant two per cent to the GDP and has the potential to take us into an era of consistent double-digit growth rate. The Congress regime had announced the GST in 2006 and introduced the Bill in 2011. However, it has now taken a U-turn. The objections raised by the Congress on the GST Bill are self-contradictory and laughable.

The Congress intentionally wants to delay the passage of the constitutional amendment that has been accepted by most of the States, as it will result in at least one year’s delay. It is evident from the party’s actions that national interest is not its priority. The Congress’s priorities is family interest and the diktats of the first family. As it was aptly stated by Mr Jaitley, the Congress is indulging into ‘disruption without a cause’, and it has been strongly disapproved of by the people. It is unfortunate that the Congress is indulging in anti-development politics while the NDA is pushing the agenda of development.

By staging adharna during the Monsoon Session, the Congress made it clear that it wants to hold the country’s economic interest to ransom and promote the petty political interests of the Nehru-Gandhi family. This is the sole reason why it has been indulging in obstructionist tactics. But the people have seen through its game. The BJP-led NDA regime remains on course.

(The writer is a senior advocate practising in the Supreme Court, and a BJP spokesperson)