The Indian Finance Minister has balanced the need for fiscal prudence with the imperatives of pushing consumption and demand with a renewed focus on spending big on infrastructure and healthcare – without unduly burdening the economy with new taxes.
India’s goods and service tax has too many rates and too many exemptions. As a result, it has not been able to live up fully to its promise. With revenues showing a buoyancy over the past few months, this may be the right time to roll out an improved GST 2.0.
Many economists and analysts expect the Indian Finance Minister to unveil a massive spending programme to boost the core sector. But finding the money to finance such a large outlay will prove to be a challenge.
With the right priorities and fund allocations, widely expected pro-growth measures will boost post-Covid recovery and make India the fastest growing economy once again.
In financial year (FY) 2020-21, against the capital expenditure (CAPEX) target of Rs 61,483 crore for 10 Central Public Sector Enterprises (CPSEs) belonging to Ministries of Power, Mines and Department of Atomic Energy, the achievement was 39.4 per cent, Finance Ministry said in a statement here on Friday.
India's cabinet approved a proposal to provide production-linked incentives of about 2 trillion rupees ($27 billion) over five years to create jobs and boost manufacturing in the country, the finance minister said.
The Indian economy could grow by an additional 60 per cent by 2025, if women were represented in the formal economy at the same rate as men. But that requires a paradigm shift apart from strong government support.
The 10th UK-India Economic and Financial Dialogue (EFD) between UK Chancellor of the Exchequer Rishi Sunak and Indian Finance Minister Nirmala Sitharaman has brought fresh vigour into closer finance and investment alignment between the two countries.
The government has initiated another package to revive demand and boost investor sentiment in India. An additional $14 billion over the next six months should help India’s Covid-hit economy get back on track.
As the world rapidly moves towards diversifying its supply chains and reduce its reliance on one country while also battling the new set of norms and processes the manufacturing sector is undergoing a makeover like never before.