In an unexpected move, the Reserve Bank of India (RBI) has lowered its key policy rate by 25 basis points to 7.5 percent on March 4. This move has come …Read More
With the “world predicting that it is India’s chance to fly,” India’s Finance Minister Arun Jaitley unveiled his first full-spectrum budget that seeks to make India a manufacturing hub and announced a host of policy changes and targets to revitalise Asia’s third largest economy. These include the reduction of corporate tax from 30% to 25% over the next four years, visa on arrival to 150 countries, 46,727 crore (around $8 billion) increase in defence spending, a comprehensive new law to bring back black money stashed abroad, and the setting up of new IIT, IIMs, AIIMS.
Underlining that India is going to take off on a faster growth trajectory, Mr Jaitely presented a robust picture of the India growth story in months to come. “While global growth forecasts have come down, India’s forecasts have either been maintained or scaled up,” Mr Jaitley said in his Budget speech on February 28.
Mr Jaitely reinforced his government’s commitment to greater fiscal consolidation, saying that he will be able to meet the stated 4.1 per cent fiscal deficit target for the current fiscal year.
In a defining policy statement — ahead of its maiden full-spectrum budget — the Indian government sought to buttress its pro-poor credentials by stressing a host of policy initiatives aimed at uplifting the have-nots. The government also conjured up a vibrant picture of the Indian economy, which, it said, is the world’s fastest growing economy at 7.4 per cent growth rate.
President Pranab Mukherjee addressed joint session of both houses of Parliament to begin the budget session of the parliament on February 23. In his address, Mr Mukherjee said that the government was determined to work for the welfare of the poorest of poor, the most vulnerable and disadvantaged sections of society.
Alluding to a host of pioneering initiatives taken by the BJP-led NDA government to stimulate national resurgence and economic rejuvenation, the president said: “A strong beginning has been made. A promising future awaits us.”
“The fundamental tenet of my Government is Sabka Saath Sabka Vikas– All Together, Development of All. Within a span of nine months, my government has articulated and embarked on a comprehensive strategy for unleashing the full potential of our country and its precious resource of 125 crore people,” Mr Mukherjee said.Read More
Ahead of presenting its first full budget on February 28, the Indian government has underlined that the country’s economy is the fastest growing large economy in the world, with GDP …Read More
India’s GDP data has been revised recently and the new figures tell a different story — of robust growth rather than of policy paralysis and industrial decline in 2013-14. According …Read More
Billions of dollars in Foreign Direct Investment (FDI) have been assured to India thanks to Prime Minister Modi’s successful foreign tours and the visit of Chinese President Xi Jinping. Hopefully countries with more wealth and technology than us will help us create jobs. But in his efforts at gathering FDI, the Prime Minister is not any different from the previous government which also staged many road shows with union and state ministers, politicians and even the prime minister going abroad to woo foreign investors.
Everyone knows the advantages of FDI, but there are disadvantages also. One has to remember that FDI in the past has been capital intensive and not labour intensive. Foreign companies tend to use more technology to retain their competitiveness and flexibility than go for hiring more workers. Most are afraid of encountering labour problems. Millions of jobs, however, are needed in India and therefore there has to be a policy of encouraging labour intensive FDI. In mining industry, there is a danger of FDI harming the environment in their extractive manoeuvers. Hence India has to study carefully what kind of FDI it wants.Read More