Rajiv Memani, Chairman of EY India, Advocates for Aggressive Divestment, GST Simplification, and Initiatives in Labour-Intensive Sectors

The upcoming Union Budget presents the Modi government with a pivotal opportunity to bolster the narrative of economic stability. Key areas of focus should include reducing tax rates, adopting a more proactive approach to address the challenge of low-cost imports from China, simplifying the Goods and Services Tax (GST), and introducing new initiatives in labour-intensive sectors. End Quote

(1888PressRelease) January 20, 2025 - The upcoming Union Budget presents the Modi government with a pivotal opportunity to bolster the narrative of economic stability. Key areas of focus should include reducing tax rates, adopting a more proactive approach to address the challenge of low-cost imports from China, simplifying the Goods and Services Tax (GST), and introducing new initiatives in labour-intensive sectors.

Rajiv Memani, Chairman of EY India, shared his insights with Moneycontrol, emphasizing the need for the government to adopt a more aggressive stance on disinvestment. This approach could provide greater fiscal flexibility, paving the way for increased capital expenditure. Here are edited excerpts from his comments:

Reflecting on 2024, what were the key events, and what changes would you like to see in 2025?

At a broad level, 2024 has largely mirrored previous years in terms of economic policy. From a government perspective, there has been consistent emphasis on macroeconomic discipline, with efforts to reduce the fiscal deficit whenever possible. The reform journey remains ongoing, with some areas seeing more effective implementation than others. However, certain reforms have faced delays, potentially due to political challenges or the time required for execution. The pace of implementation, in some cases, could be questioned.

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