BackV. Vaidyanathan | If I were FM
Goods and services tax will solve a lot of problems for small and medium enterprises, says Vaidyanathan
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V. Vaidyanathan, chairman and managing director, Capital First Ltd:
What are the challenges in front of the FM?
The challenges are well known—low growth, high inflation, low investments—but that is precisely the reason why this is a great opportunity for the government because people are looking for change.
What are the two-three things you would have done if you were the FM?
This is an extraordinary moment in India’s history because there is a huge mandate and people have rooted for change. You cannot cut subsidies overnight because inflation is high and people can’t take it, it has to be done over time. But barring that one issue of subsidies, I think a whole host of reforms have to be announced, may be to do with foreign direct investment (FDI) in a number of sectors like defence and retail, launching goods and services tax (GST). A large number of reform measures have to be announced here and now, because people are waiting for such announcements.
Any issues for your sector that need to be addressed?
If the economy does well, our sector does well. There are no crying needs from our sector. But for our constituents, there is one key need. Our customers are suffering from inspector raj due to excise, octroi, a large number of taxes and multiple inspection authorities. I would say that if GST comes through, compliance costs will come down and it will become far more seamless. One big expectation is GST, because it will solve a lot of problems for small and medium enterprises.
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