The Economic Survey 2018-19 projected India’s GDP growth at 7% for 2019-20 and highlighted the government’s target of making India a US$ 5 trillion economy by 2024-25. To achieve this, the government announced several growth-oriented measures in the Union Budget 2019-20.
Key initiatives include liberalisation of FDI policy, reduction in corporate tax for companies with turnover up to Rs. 400 crore, additional tax deduction on affordable housing loans, and proposed reduction in GST on electric vehicles from 12% to 5%. The government also plans to invest Rs. 100 lakh crore in infrastructure over five years and restructure the National Highway Programme.
Other measures include promoting traditional industries through the SFURTI scheme, reducing customs duty on raw materials and capital goods to boost domestic manufacturing, and expanding the PM-Kisan income support scheme to all farmers. A five-member Cabinet Committee on Investment and Growth, chaired by the Prime Minister, has also been formed to focus on economic growth.
The government has urged states to work together under cooperative federalism to help achieve the US$ 5 trillion economy target. The information was shared by Minister of State for Finance & Corporate Affairs Shri Anurag Singh Thakur in Rajya Sabha.
