Tehseen Poonawalla hails GST reforms as a precursor to India’s fast-paced growth, but with a rider

Political analyst Tehseen Poonawalla has given a cautious thumbs-up to India’s latest GST reforms, calling them a “positive but small first step” toward bigger changes in taxes and the economy. He believes India could rise to become the world’s second-largest economy, but only if it ramps up growth to 10-11% annually.

Poonawalla shared these thoughts on Monday during Navratri celebrations. He started by sending greetings to fellow Indians and praising Prime Minister Narendra Modi’s announcement on next-generation GST reforms. “This is the first step, a small step,” he said. But he quickly pointed out flaws in the current setup, especially the confusing mix of tax slabs. “Under GST nationalization, there are still too many tax slabs. I don’t understand why there is a 40% GST slab. If an Indian earns money and wants to spend on something, 40% is too high. These slabs must be removed. Right now, there is too much confusion within the slab system.”

He saved his sharpest criticism for how officials handle GST. Poonawalla accused the bureaucracy of turning the system into a “tool of extortion.” “The officials managing GST are using it to extort money from people, from businessmen. It has become a tool for collection rather than for reform,” he said.

To truly position India as an economic superpower, Poonawalla stressed the need for bolder moves beyond these GST updates. He predicted steady progress over the next 20 years, but hitting that 10-11% growth rate would require tough choices. “First, we must reduce the number of bureaucrats by 50%,” he urged.

Poonawalla also called for a shift in how the public views business leaders. “We must stop treating industrialists like enemies. They are part of the country. If they invest in India, only then can jobs be created and the nation progress. They must be seen as essential stakeholders in the country’s future.”

He raised key questions about government policies in fast-growing areas like cryptocurrency, AI, and Fintech. “What is India’s crypto policy? Is it legal or illegal? If it’s legal, how can someone be prosecuted for it? And if it’s illegal, how is the government collecting taxes on it? There must be clear policy on AI and Fintech as well. A forward roadmap is necessary.”

In Poonawalla’s view, these steps are crucial for India to leapfrog to the world’s second-largest economy within 15-20 years. “This won’t happen with 6–7% growth; India must achieve 10–11% GDP growth for such a transformation.”

The new GST reforms, announced this week, aim to simplify things by cutting down the number of tax slabs and easing the burden on more than 375 items. These changes come as India pushes for stronger economic growth amid global challenges.


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