Speaking at an interactive seminar at IMC, Dr Subramanian Swamy, senior BJP leader and member Rajya Sabha called for abolishing Income Tax, saying it will lead to more saving and thus more investment by the household sector. He opined that loss of revenue due to this could be offset by pragmatic spectrum and coal block auctions. According to Dr Swamy, “investment linkages to the infrastructure spending will not add to inflation, but will lead to growth in employment and income levels, improve the capital output ratio and bring efficiency of capital, which could see India growing at 10% each year for the next ten years”.
On the economic front he opined that MSMEs and small scale enterprises, which give impetus to growth, employment and entrepreneurship need to be supported with lower interest rates. Currently, in order to keep the inflation levels low, RBI is treading on high interest rates, which is detrimental to India’s long run progress.
He said India’s demographic young population offers tremendous scope to the country rising economic success. He opined that India’s climatic conditions can enable it to grow 3 crops a year, and there is an urgent need to increase input investments in seeds, technology and irrigation. Linking rivers could help boost produce and also tackle the flood and drought conditions across the country. As the cost of agriculture products was low, India could integrate its agriculture into a globalized economy by being a net exporter of all major crops. He called for banning of forward trading which has resulted in cartelization and hoarding which distorts prices and is detrimental to Indian agriculture.
On the issue of black money, Swamy said India should adopt a mechanism whereby it integrates with the UN Convention on Corruption to bring back the vast illegal amounts stored in foreign banks. Towards the close, he said politically the country is stronger and self-confident with a largest single national party like BJP instilling nationalism and with few changes in policy framework the party and the country is poised for long period of prosperity.
Earlier, Dilip Piramal, President IMC, while welcoming the dignitary, thanked Dr Swamy for coming to the chamber once again to share his views. He opined that at present India’s economic growth is looking bright with all contributory factors being positive.