The ISIS threat cannot be overlooked, as they pose a threat not only to the security of nations, but also the economy, world wide. This was stated by the¬†Union Finance Minister Arun Jaitley, while issuing ¬†a warning, that, ¬†the increase in ISIS activities across the world in the last few months have made an impact on the world economy.¬†ISIS poses a new danger to civilisation and “therefore its impact on global economy cannot be understated.”
“Meeting the challenges of development will now be increasingly diverted towards security measures and which part of the world is safe itself will become a great question,” he said, while speaking at the annual meet of an industry chamber.¬†The terrorist outfit Islamic State or ISIS, has captured territories in Iraq and Syria, and launched attacks in the western world, including the recent attacks in Paris, that killed 129 persons.
He went on to¬†say that, ISIS activities will have consequential bearing on buoyancy in currency, trade, and tourism.
Jaitley said that, earlier, management of the economy was easier because there was one crisis in a decade or more, “but now, today, you live in a world, which is full of turmoil, full of volatility, and you have to think ahead of others because you are continuously busy dowsing the impact of one fire and trying to put firewalls around your own economy so that you can be saved of that crisis. I do believe the new global norm is volatility and turmoil. It is no longer stability and things can change very fast.”
Moreover, he added, the patchy recovery and occasional green shoots witnessed in BRICS (Brazil, Russia, India, China, South Africa) nations were overtaken by certain geopolitical factors which has created global instability.
Jaitley further said that, global resources which were earlier intended to be spent on poverty alleviation, and meeting the challenges of development, will now be increasingly diverted towards security measures.
“India carves out its own place. Even if we can’t insulate ourselves from global trends, how do we minimise its impact in adversity, and how do we take advantage in emerging global situation. History presents us with this challenge,” Jaitley said.
Referring to the government’s decision to reduce tax exemptions as a prelude to bring down corporate tax from 30 percent to 25 percent over four years, he said, “we have already notified the first slot.¬†Obviously when you bring down the tax rate from 33 percent down to 25 percent, some exemptions will have to go (as) too many of these exemptions eventually make the tax policy of India a rent-seeking exercise.”
Simplification of tax structure, and bringing down tax rates to global levels by reducing exemptions, he said, were needed as the nation aspires to be a global leader.