India to take more steps to boost consumer demand, economic growth: CEA Subramanian

India plans to take more steps to boost consumer demand including injecting liquidity through banks and simplifying personal taxes, a top government economic adviser said on Friday, in a bid to raise economic growth from six-year lows New Delhi: India plans to take more steps to boost consumer demand including injecting liquidity through banks and simplifying personal taxes, a top government economic adviser said on Friday, in a bid to raise economic growth from six-year lows. Krishnamurthy Subramanian, Chief Economic Adviser at the finance ministry, said the government had slashed corporate taxes to attract investment and was looking for ways to boost consumer demand to support that investment. “The direct tax code task force has submitted its report,” he said, adding that the steps that have already been taken to streamline the tax administration are likely to help in improving the tax buoyancy. “The government will do all that it takes to take back the growth on the high trajectory.” Referring to banking reforms, he said, the government was focussed on the merger of some state banks, aiming to cut down the number of state banks to 12 from 27 in 2017, and has asked them to take corporate default cases to bankruptcy courts only above a threshold limit.