Rahul Gandhi said on Saturday that Congress party will simplify the goods and services tax (GST) and take “rational economic decisions” to attract foreign investment if voted back to power in a general election due by May. GST was initially hailed as Prime Minister Narendra Modi’s biggest economic reform as it replaced more than a dozen central and state levies and unified Asia’s third largest economy.
However months after a shock ban by Modi on high value bank currency aimed at unearthing untaxed wealth,the chaotic implementation and complexities of GST badly hurt small businesses and led to millions of job losses in the cash-driven economy which presents the biggest challenge to Modi’s re-election chances.
During a visit to Dubai, Rahul Gandhi said that the foreign investment was at a multi-year low in India due to the ill-advised and badly thought out economic moves such as the currency ban and a poorly designed GST.
He told in a press conference that Congress will take some rational economic decisions, restructure the GST and embrace investments from the Middle East and other parts of the world. He stated that Congress is a party of (India’s economic) liberalisation, the party that gave the fastest economic growth in the first decade of the century, and will do that again.
His main priority would be to create jobs, simplify the GST, rebuild confidence in institutions such as the Reserve Bank of India ,whose governor resigned recently after a fight over autonomy with the government, and the Supreme Court.
Four Supreme Court judges held a press conference last year saying that unless this institution is preserved and its equanimity maintained, democracy will not survive in India.
Modi told a BJP convention in New Delhi on Saturday that for Congress “every institution was wrong and only they were right”.
The Congress press conference was organised by the Indian Overseas Congress, which is present in about 35 countries, as Gandhi tries to reach out to rich Indians living abroad for funds and social media support for the party.
But back home, Gandhi received a jolt when bitter rivals Bahujan Samaj Party (BSP) and the Samajwadi Party (SP) announced an election tie-up without Congress in Uttar Pradesh, which sends the highest number of lawmakers to the lower house of parliament.
Gandhi said that BSP and SP have made a political decision. He stated” It’s on us on how to strengthen the Congress party in Uttar Pradesh and we will fight with our full capacity. Whether we do or their alliance does, the BJP is not winning there.”
Modi,at a Delhi convention said that the opposition was working on a desperate alliance, while the BJP would give a strong government
The Hindu nationalist BJP lost power in three key states recently, forcing the government to announce a flurry of measures to woo small businesses and the less well-off since then.
