Year 2017 could well be a ‘make or break year’ for the NDA government, depending on how it manages to utilise the likely gains of Rs 2.20 lakh crore on account of demonetisation to spur economic growth to over 8 per cent, say experts.
Government needs to cut corporate tax, clean up bank balance sheets, and pump in more money into infrastructure if it wants to propel India to 8 per cent growth trajectory in near term, they said.
“2017-18 could be a make or break year for the government and all will depend on the success of demonetisation drive. If black economy can be converted to white, then interest rates would come down in long run and push India to a 8-8.5 per cent growth trajectory,” KPMG (India) Partner & Head of Tax Girish Vanvari said.
