GST Implementation boots Investor’s confidence; India Soon to Become 5 Trillion Dollar Economy: PM Modi at BRICS Event

Investor confidence has risen in India with the adoption of the Goods and Services Tax (GST) and the execution of the Insolvency and Bankruptcy Code, Prime Minister Narendra Modi stated on the sidelines of the BRICS Summit in Johannesburg on August 22.

The Modi-led governance implemented GST in 2017, replacing the previous indirect taxation structure, whereas the IBC was implemented in 2016 to address the issue of bankruptcy.

The changes implemented in recent years have driven India to become one of the world’s fastest-growing economy, Modi told the audience at the BRICS Business Forum Leaders’ Dialogue.

“Today, India is the world’s fastest-growing major economy. India will soon be a 5 trillion dollar economy,” he said.

In an apparent attempt to entice investors, the prime minister stated that the country has a healthy private sector, with areas such as military and space also being opened up.

“After the implementation of GST and the Insolvency and Bankruptcy Code in India, investor confidence has increased. The defence and space sectors have been made available to the private sector,” he remarked.

Modi also emphasised India’s “leap” towards financial inclusion by leveraging the usage of technology.

“Today, street merchants to those retail complexes utilise UPI…We are actively working to make India a manufacturing hub for solar energy, wind energy, electric vehicles, and green hydrogen,” stated the prime minister.

Modi landed in Johannesburg earlier in the day, having been invited by South African President Cyril Ramaphosa to attend the BRICS leaders’ conference. China’s President Xi Jinping and his Brazilian counterpart Lula Da Silva are also set to attend the event.