
'Govt needs to control its tax authorities': Raghuram Rajan's message to improve Indian business prospects
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The former RBI governor and economist Raghuram Rajan while speaking on possible uncertainties arising due to China-US trade tensions asserted that India needs to 'control its tax authorities' to help domestic businesses."Stop having tax demands on business people which come out of the blue, which vitiate all their operations for many years. I mean, have some control. I mean, this is something that even within the government, you hear sort of worries about this kind of tax demand coming, but the government needs to control its tax authorities," said Rajan in an exclusive interview with India Today."Similarly, I think the level playing field on rules and regulations, you can't suddenly invent a regulation to benefit Indian national champions, even while, you know, hurting foreign investors who've come in. Of course, we also need to do homework for domestic firms, you know, easier rules and regulations, more transparent, as well as focus on things like land acquisition and so on," added the former RBI governor.Commenting on India's growth, the former RBI governor said "India's growth is good, but we need more...we need 8%-9% growth to become Viksit Bharat by 2027 because we are a relatively poor nation".The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed on Friday.According to NSO's second advance estimates, the country's economy was projected to grow at 6.5 per cent in 2024-25.The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25.In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy.According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.The Ministry of Finance, in a report in March 2025, anticipated that Indian economy would achieve a growth rate of 6.5 per cent in 2024-25, despite considerable external headwinds.

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