Increase in Economic Growth Rate
Economic growth is high on the agenda of the Government. Various reforms are being undertaken by the government in many spheres to improve GDP growth. Government has announced various measures in the Budget 2019-20 to promote growth of the economy which, inter alia, include, further liberalisation of Foreign Direct Investment policy, increasing the annual turnover limit from Rs 250 crore to Rs 400 crore for a lower corporate tax rate of 25 percent, additional income tax deduction of Rs.1.5 lakh on the interest paid on loans taken to purchase electric vehicles and moving the GST council for reduction of GST rate on electric vehicles from 12 percent to 5 percent. Along with this, government has also increased the scope of voluntary pension scheme for retail traders and shopkeepers to everyone with an annual turnover of less than Rs 1.5 crore. The budget provides a push to infrastructure development with the intention to invest Rs 100 lakh crore in infrastructure over the next five years and by restructuring of National Highway Programme. Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) has been started to facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities. Other growth promoting measures includes reductions of customs duty on certain raw materials and capital goods to further promote domestic manufacturing, allowing one woman in every SHG for a loan up to Rs 1 lakh under the MUDRA Scheme.
Earlier, government had expanded the cash transfer scheme “PM-Kisan” providing an income support of Rs. 6000 per year to all farmers, which was earlier limited to farmers with a land holding of less than 2 hectares. Earlier measures taken by the government for growth promotion, inter-alia, include historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector, expansion and facilitation of MSMEs across the country, fillip to manufacturing via Make in India programme, measures to improve ease of doing business, comprehensive reforms in the foreign direct investment policy, and introduction of the Goods and Services Tax. Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.