Are Cong’s Tehseen Poonawalla’s GST Reforms the Key to India’s Rapid Growth?
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Synopsis
Political analyst Tehseen Poonawalla has praised the recent GST reforms as a significant step for India's economy but warns that deeper changes are necessary. He believes that India can achieve its potential as the world's second-largest economy with a growth rate of 10-11 percent, but this requires substantial reforms and a shift in perceptions about industrialists.
Key Takeaways
- Tehseen Poonawalla welcomes GST reforms but calls for deeper changes.
- India must aim for 10-11 percent growth to become the second-largest economy.
- Excessive tax slabs and bureaucratic issues are major concerns.
- Industrialists should be viewed as allies in economic growth.
- Clear policies on emerging sectors like crypto and AI are essential.
New Delhi, Sep 22 (NationPress) Political analyst Tehseen Poonawalla expressed his support for the latest advancements in the Goods and Services Tax (GST) on Monday, labeling it a "promising yet modest initial step" toward comprehensive tax and economic reforms. He emphasized that for India to emerge as the world’s second-largest economy, it needs to achieve a growth rate of 10-11 percent.
In his remarks during the Navratri celebration, Poonawalla acknowledged the positive intent behind the announcement while voicing significant concerns regarding the systemic flaws that still exist.
"Firstly, I extend my Navratri greetings to all Indians. We appreciate the Prime Minister's statement. This marks the beginning, albeit a small one. The current GST framework still has an excessive number of tax slabs. Why is there a 40 percent GST slab? Such a high rate is unreasonable for those wishing to spend their earnings. These slabs need to be simplified as the existing structure creates unnecessary confusion," he criticized.
Poonawalla was particularly vocal about the bureaucratic management of GST.
"The central issue is that GST has morphed into a tool for coercion. Those managing GST are exploiting it to extract money from individuals and businesses. It has shifted from being a reform mechanism to a revenue collection tool," he stated.
When asked if GST 2.0 positions India as a future economic superpower, he maintained that more extensive and courageous reforms are essential.
"India is poised for progress over the next two decades. However, we can only achieve 10-11 percent growth with further reforms. A reduction in bureaucratic personnel by 50 percent is crucial," he argued.
Poonawalla also called for a shift in public perception regarding industrialists:
"We must stop viewing industrialists as adversaries. They are integral to the nation. Their investments in India are vital for job creation and national development. They should be regarded as key players in the country's future," he declared.
He raised critical questions about government policies regarding emerging sectors.
"What is India’s stance on crypto? Is it legal or illegal? If it’s legal, how can individuals be prosecuted? And if it’s illegal, how is the government taxing it? Clear guidelines on AI and Fintech are also necessary. A strategic roadmap is essential," he concluded.
"Only then can India aspire to become the world’s second-largest economy within the next 15-20 years. This transformation requires us to surpass 6-7 percent growth; we must aim for a 10-11 percent GDP growth to facilitate such a change."
The newly launched Next Gen GST reforms aim to streamline the tax structure by reducing the number of slabs and alleviating the tax burden on over 375 items.
Point of View
It is vital to recognize Poonawalla's insights as reflective of a broader narrative on economic reform in India. While the GST reforms are a positive development, they must be complemented by systemic changes to ensure equitable growth and support for all stakeholders in the economy.
NationPress
22/09/2025
Frequently Asked Questions
What are the main concerns raised by Tehseen Poonawalla regarding GST?
Poonawalla expressed concerns about the excessive number of tax slabs and the bureaucratic management of GST, stating it has become a tool for extortion rather than reform.
What growth rate does Poonawalla suggest is necessary for India to become a major economy?
He believes India needs to achieve a growth rate of 10-11 percent to become the world’s second-largest economy.
How does Poonawalla view industrialists in the context of economic growth?
He argues that industrialists should be seen as essential contributors to the economy, emphasizing that their investments are crucial for job creation and national progress.
What is Poonawalla’s stance on emerging sectors like crypto and AI?
He called for clear government policies on these sectors to ensure legal clarity and strategic direction.
What is the aim of the newly launched GST reforms?
The reforms aim to simplify the tax structure by reducing the number of slabs and easing the tax burden on over 375 items.
