India's gross domestic product (GDP) can witness a growth of 10 per cent by fiscal year 2019-20 on the back of tremendous opportunities available in the economy, Confederation of Indian Industry said on Thursday.
"We strongly believe that India can build up to a 10 per cent GDP growth in the next three years. For the current year, CII analysis shows the GDP growth rate can be 8 per cent," Confederation of Indian Industry (CII) President Shobana Kamineni told reporters here.
This can be achieved by targeting 1 per cent additional growth each year that would also lead to creating many more jobs, she added.
"It is eminently possible to create 5 million jobs each year, if the GDP growth rate can be boosted by an extra 1 per cent. CII's analysis shows that as of now, we are creating about 3.7 million jobs annually," Kamineni said.
The drivers for this step up in growth would include the benefits from implementation of GST, and greater participation of women in the labour force, she added.
The urbanisation process will drive greater economic activity in areas such as construction and government spending of up to Rs 30 trillion in various infrastructure projects over the next few years. Growth in service sector and tourism are other important drivers, Kamineni said.
A CII estimate shows that the entire construction sector can add 30 million jobs in the next 10 years, she added.
Stating that industry has been asking for a single national tax, Kamineni said: "Industry is completely ready for the introduction of the landmark tax reform from July 1, 2017.
CII has been calling for a single national tax for the last 10 years and we will try to make its implementation as smooth as possible".
Favouring a reduction in corporate tax, she said: "CII would continue to request the government for quick action in reducing income tax for all corporates."
The 25 per cent rate is currently applicable only for companies with turnover up to Rs 50 crore. Eventually, the corporate tax rate could be brought down to 18 per cent, together with the removal of all incentives. This will lead to much better tax compliance, she added.
"Solution to the NPA issue can no longer be postponed. We are encouraged by the package approved by the Cabinet last night," Kamineni said.