Greater focus on ease of doing business and a consistent tax policy are key towards achieving a sustained growth of 8 per cent in the long run, the newly elected president of industry body FICCI Sanjiv Mehta has said.
Mr Mehta also emphasised on the need for regular efforts to boost private investment for high economic growth over a long period of time.
He had taken over as FICCI president earlier this month. Mr Mehta is the chairman and managing director of Hindustan Unilever Limited (HUL)
"We need to maintain over eight per cent of growth on a sustained basis which will be a challenge. The current year is expected to achieve over nine per cent economic growth as several sectors have already reached the pre-COVID-19 levels," Mr Mehta said during an interaction.
India, he said, will be close to a $3 trillion economy at the end of the current fiscal, and "we need long-term growth on a high base".
The Reserve Bank of India has projected the GDP growth at 9.5 per cent for the current fiscal ending March 2022.
He further said there are positive signs in the economy as tax collections are moving up, and exports are also nearing $400 billion.
Foreign direct investment (FDI) is also going up, which is a positive sign for the economy, he added.
Mr Mehta, however, added that the private investment is yet to pick up, and as such, the government needs to keep spending money to prop up the economy.
Referring to his meeting with Prime Minister Narendra Modi on Monday, the FICCI president said that during the interaction, he made a case for accelerating research and development activities with a special focus on biotechnology, greentech and digitech.