Mumbai, 9 June 2022
The Reserve Bank of India Governor Shri Shaktikanta Das has said that the success of Indian businesses will depend on how quickly they are able to adapt to the new realities in the post pandemic work.
“Doing business involves risk taking. But before taking the risk, the upside and downside will have to be carefully considered “ Shri Das said while delivering the Key note address on “Indian Business : Past, Present and Future” in Mumbai today.
This was the first of a series of public lectures on nation-building organized by Central Board of Indirect Taxes and Customs (CBIC) as part of their Azadi Ka Amrit Mahotsav Iconic Week celebration.
Avoid short term reward seeking culture
The RBI Governor further said businesses should avoid having an aggressive short-term reward-seeking culture. The RBI Governor advised that business models should be a conscious choice after weighing all pros and cons. “Inappropriate funding structure, asset liability mismatches, unrealistic strategic assumptions and overfocus on business considerations with neglect of risk factors are some of the common characteristics of inappropriate business models that have been observed” he added.
In this connection, he also said that thrust of sound corporate governance is to build an environment of trust and accountability in business entities. “Good governance aims to create trust and inculcate appropriate risk culture and ethical conduct”.
Shri Das said “since 1991 reforms, Indian business has witnessed various transformational changes, our businesses have created global reputation in many sectors, we have shown flexibility and innovativeness and resilience in face of multiple challenges.”
Speaking about the start-ups, the RBI Governor said, disruptive technology like Artificial Intelligence is offering new opportunities to young entrepreneurs and as a result, number of Unicorns is rising very fast. The young entrepreneurs and start-ups should continuously examine the build-up of risks and vulnerabilities for their long-term sustainability, he advised.
Policy Reforms and Indian Business in recent years
The past few years have seen several policy reforms which have created conducive circumstances for businesses, said the RBI Governor.
Shri Das said the high GST collections show the administrative and procedural streamlining which has taken place and demonstrates the inherent strengths of the GST system which reduces the cascading effect and optimizes business returns, therefore being beneficial to both the businesses and the Government both at the Centre and the states. “GST took longer to stabilize in many countries. As we are about to reach 5 years of GST, it is a historic occasion, our experience has been far better in bringing efficiencies, than several other countries” he added
Healthy growth expected in Tax revenues, says Revenue Secretary Tarun Bajaj.
The Revenue Secretary Shri Tarun Bajaj, in his opening remarks said “both RBI and the government have taken a few steps and I hope these efforts will bear fruit and we will be able to see stability in our macroeconomic indicators in the times to come.” Shri Bajaj further said India attained a Tax to GDP ratio of 11% and observed that there exists very healthy level of tax buoyancy “I feel optimistic and I think this year again we will be able to do far better than we thought initially when we were making the budget,” the Revenue Secretary said.
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