“Stop Surprise Tax on Companies”: Ribi Raghuram Rajan’s Ruler’s Warning on GOVT’s arbitrary demands

On Tuesday, the former governor of the India Reserve Bank (RBI) Rajher Rajan highlighted the need for the Indian government to exercise better control over its tax authorities to enhance business prospects. He stressed that unexpected tax demands can disrupt commercial operations and urge the government to address these concerns immediately. “Stop obtaining tax demands on businessmen who come out of blue, which spoils all their operations for many years. I mean, some control,” Rajan stated in an exclusive interview with India today.

Rajan also stressed the importance of preserving a stadium in the rules and regulations. He warned against creating regulations that prefer Indian national heroes at the expense of foreign investors. “Likewise, I think the stadium is at the level of rules and regulations, you cannot suddenly invent a list for the benefit of Indian national heroes, even while, as you know, harm the foreign investors who came.” He pointed out that this approach will guarantee a more transparent and fair business environment, which is very important to enhance local and international investments.

Commenting on the current situation of the Indian economy, Rajan pointed out that although the growth rate in India deserves praise, more is needed to achieve the vision of “VIKSIT BHARAT” by 2027. This ambitious goal requires concerted efforts in setting policies and developing infrastructure to maintain high growth levels.

GDP growth in India was impressive despite global economic challenges. The economy grew by 7.4 % in the fourth quarter of the fiscal year 25 and recorded 6.5 % for the entire fiscal year. These numbers are noticeable compared to most major economies around the world. Rajan admitted this achievement, but he warned that contentment may hinder progress. “This may be the moment of India, but we have to consume it,” Rajan said. He stressed the importance of strategic initiatives to cancel investment securing and expand the base of consumption, which is vital for long -term economic flexibility.

However, Rajan warned of possible global uncertainty that may affect India’s economic momentum. He pointed to the high global tensions, such as the possible US tariff changes, which may deter investment. “Some slowdown on cards,” indicated, noting the need for strategic economic planning. These external factors require a strong framework for the local policy to reduce risks and maintain growth.

Despite these challenges, there are positive positives of the Indian economy. It is expected that seasonal wind expectations and signs of reviving rural demand will support agricultural production and reduce inequality. “This is positive,” Rajan stressed, because these factors can contribute to continuous economic growth. Such developments can play an important role in balancing the dynamics of the economy in urban areas, stability and enhancing general economic stability.

Official expectations are in line with Rajan visions, as the Reserve Bank in India and the Ministry of Finance expect 6.5 % of GDP for the fiscal year 2024-25. This projection reflects cautious optimism amid continuous external challenges. The government’s focus on opening investment and expanding the base of consumption will be extremely important in maintaining this path. In addition, it is expected to enhance efforts to simplify regulations and improve the ease of doing business and pay economic expansion.

https://www.youtube.com/watch?