Thursday, 14 February 2019

India now 6th Largest Economy in the World with High Growth

India under the leadership of the Prime Minister,  Narendra Modi, has witnessed its best phase of macro-economic stability, becoming the sixth largest economy in the world from being the 11th in the World in 2013-14. Presenting the Interim Budget for the year 2019-20 in Parliament, the Union Minister for Finance, Corporate Affairs, Railways & Coal, Piyush Goyal said “India is the fastest growing major economy in the world” with an average GDP growth  of 7.3% per annum, the highest ever achieved by any Government since economic reforms began in 1991.


New India would celebrate its 75th Independence year in 2022 when every family would have a house with access to water, electricity and toilets; farmers income would have doubled; and the country would be free from terrorism, communalism, corruption and nepotism,Goyal added.

Goyal said the fiscal deficit has been brought down to 3.4% in 2018-19 Revised Estimates from the high of 5.8% in 2011-12 and 4.9 % in 2012-13,outlining the broad picture of the State of the Economy. The average inflation has been brought down to 4.6% from the high of 10.1% during 2000-2014. The inflation was only 2.19% in December 2018.  The Current Account Deficit (CAD) is likely to be only 2.5% of GDP this year, against a high of 5.6% six years ago.

Due to strong fundamentals and stable regulatory regime,  the country  attracted $239 billion as Foreign Direct Investment (FDI) during the last five years.  Goods and Services Tax (GST) as a path breaking next generation structural tax reform undertaken by the Government.

Goyal said the Insolvency and Bankruptcy Code has institutionalised a resolution-friendly mechanism and  nearly Rs. 3 lakh crores  has been recovered by Banks and creditorswhile highlighting the Banking Reforms. He said high stressed non-performing assets (NPAs) amounted to Rs. 5.4 lakh crore in 2014.  Since 2015, numerous Asset Quality Reviews and inspections were carried out, and the 4Rs approach of recognition, resolution, re-capitalisation and reforms has been followed.  Highlighting the restoration of the health of the Public Sector Banks, the Finance Minister said that recapitalisation has been done with an investment of Rs. 2.6 lakh crore.

The Finance Minister mentioned about The Real Estate (Regulation and Development) Act, 2016 (RERA) and Benami Transaction (Prohibition) Act. He said the Fugitive Economic Offenders Act, 2018 is helping to confiscate and dispose off the assets of economic offenders, who escape the jurisdiction of the country.  The Government conducted transparent auction of natural resources including coal and spectrum.

Swachhata Mission launched by the present government led by Narendra Modi, the country achieved nearly 98% rural sanitation coverage with  as many as 5.45 lakh villages being declared open defecation freesaid Goyal.

To ensure 10% reservation in educational institutions and Government jobs for economically weaker sections, the Government will provide for 25% extra seats i.e. around 2 lacs, while maintaining the existing reservation for SC/ST/Other Backward Classes.

The Finance Minister said about Rs 1,70,000 crore was spent in 2018-19. Rs 60,000 crore has been allocated for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in the Budget Estimate of 2019-20 to provide food grains at affordable prices to the poor and middle classes.


Latin Manharlal Group

No comments:

Post a Comment