India’s growth trajectory is being actively supported by a series of coordinated policy measures aimed at boosting consumption, investment, and exports, according to Navneet Munot, Managing Director and CEO of HDFC Asset Management Company Limited.
Speaking to ANI, Munot emphasised that the government has consistently focused on increasing capital expenditure, particularly in areas such as physical, social, and digital infrastructure, which has laid a strong foundation for long-term growth.
He noted that the recent GST rate cuts, personal income tax reductions, and simplification of tax rules are all part of a broader effort to stimulate domestic consumption.
“There has been a push through the GST cut, combined with the personal income tax reduction that the government has done, and simplification of tax rules. Along with that, the RBI has been cutting interest rates, injecting liquidity, and trying to spur credit growth. All of these measures by the policymakers will ensure that India continues to remain one of the fastest-growing economies in the world,” Munot said.
Highlighting India’s multi-pronged growth model, he pointed to the balanced emphasis on domestic consumption, infrastructure investment, and export promotion as key drivers of economic momentum.
According to Munot, the government’s policies are designed to ensure that growth reaches all segments and sectors of the economy.
After the rate rationalisation of the GST tax slabs, government sources stated that India has recorded its highest Navratri sales in over 10 years, driven by a combination of festive demand and the GST reforms.
The rationalisation of GST slabs and targeted measures to make essential and aspirational goods more accessible have significantly boosted consumer confidence, resulting in record-breaking consumption across key sectors, they said.
India has adopted a simplified two-tier tax system, effective from September 22, under which the majority of goods and services are taxed at 5 per cent and 18 per cent, instead of the four tax slabs previously in place. A 40 per cent tax is levied on ultra-luxury items.
