India is posed for a “big leap” in growth which could touch 8 per cent in the current fiscal on the back of normal monsoon, Economic Affairs Secretary Shaktikanta Das said today.
“India today is poised for a big leap in terms of growth. Last year we recorded a growth of 7.6 per cent. This year with the monsoon, which I hope will be normal, I think we are looking at touching 8 per cent,” Das said at a CNBC TV18 event.
In 2015-16, the country’s economy expanded at 7.6 per cent. The Finance Ministry’s Economic Survey had projected a growth rate of 7-7.75 per cent for the current fiscal while RBI has forecast it at 7.6 per cent.
As regards volatility in currency and equity markets on account of Britain’s exit from the European Union (commonly referred to as Brexit), Das said it would continue for sometime, but India is “well placed” to deal with the situation.
In the aftermath of Brexit on Friday, the Indian equity markets had tanked nearly 1,100 points before regaining some ground and closing 605 points, while the rupee had fallen below the Rs 68 mark against the US dollar.
However, the markets have stabilised since then with the BSE Sensex trading around 150 points higher in the afternoon, while the rupee was at 67.87 to a dollar.
Speaking at the event, DIPP Secretary Ramesh Abhishek said the industry ministry asked its finance counterpart to consider raising tax holiday for Start Ups to seven years to encourage budding entrepreneurs.
“The tax benefit which has been given, which is 3 years to 5 years, we have requested the Finance Ministry to make it 7 years,” Abhishek said.
In January, Prime Minister Narendra Modi unveiled a slew of incentives to boost startup businesses, offering them a tax holiday and inspector raj-free regime for three years, capital gains tax exemption and Rs 10,000 crore corpus to fund them.
India has the third-largest number of start-ups globally. To boost financing, a 20 per cent tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognised venture capitalists is also exempted.