Daijiworld Media Network – New Delhi

New Delhi, Jul 4: The Confederation of Indian Industry (CII) has projected India’s GDP growth to be in the range of 6.4 to 6.7 percent for the financial year 2025–26, driven primarily by robust domestic demand and improved liquidity conditions. The forecast was shared by newly appointed CII President Rajiv Memani at his first press conference since assuming office.

While expressing optimism over economic momentum, Memani also flagged geopolitical uncertainty as a key downside risk that could impact growth. “A good monsoon, liquidity from the Reserve Bank’s recent CRR cut, and lower interest rates are all factors that support our growth outlook,” he stated.

The Reserve Bank of India has similarly forecasted a 6.5 percent growth rate for FY26. Last month, the central bank had slashed the cash reserve ratio (CRR) by 100 basis points, releasing ?2.5 lakh crore into the banking system. The benchmark interest rate was also cut by 50 basis points, now standing at 5.5 percent.

CII Bats for GST Simplification

On the indirect tax front, Memani strongly advocated for a simplified three-tier GST structure under the proposed "GST 2.0".

He proposed the following structure:

• 5% for essential items

• 12–18% for the majority of goods

• 28% for luxury and sin goods

Currently, GST is a four-slab system—5%, 12%, 18%, and 28%—with multiple classifications causing compliance challenges for businesses and confusion among consumers.

“Rate rationalisation is crucial, especially for products consumed by lower-income groups. A simplified structure will boost compliance and ease of doing business,” he added.

The industry body’s remarks come as policymakers are in talks over possible reforms under GST 2.0, aiming to enhance efficiency and address structural anomalies.

As India eyes consistent growth amid global challenges, the CII’s pitch for reform and stability is seen as a timely reminder of the importance of policy clarity and inclusivity in driving the economy forward.