NITI Aayog Member Bibek Debroy has stated that it is not reasonable to connect the Goods and Services Tax (GST) regime with slowdown in manufacturing output as the issues that the sector is facing goes beyond the tax reform. He also said that these are very temporary things which they don't need to worry about because it is a blip that will go away once the transition is complete.
Debroy has said that about manufacturing, there is a long list of problems that are ailing the sector such as physical infrastructure, including power and transport, procedures, tax issues -- direct as well indirect -- and credit-related issues. He noted that these problems were not new and had been ailing the sector for a long time.
The NITI Aayog Member further mentioned that there are several significant measures taken by current government to improve the sector's performance but it would take some time for them to bear results. He also said that none of them will solve things in six months. He pointed out that most of what this government has done on manufacturing is what economists would call supply side measures, so it takes time and there is no instant fix.
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