Stimulus package: India’s GDP expansion higher than global growth, says Union Finance Minister

PTI New Delhi | Updated on August 23, 2019

Nirmala Sitharaman, Union Finance Minister

Global GDP growth may be revised downwards from the current estimate of 3.2 per cent

Seeking to dispel doubts over the economy and Government’s growth agenda, Finance Minister Nirmala Sitharaman on Friday said India’s gross domestic product (GDP) continues to grow at a faster pace than the global economy as well as any other major economy.

Addressing a press conference, she said reform is a continuous process for her government and it tops the agenda.

Global GDP growth may be revised downwards from the current estimate of 3.2 per cent, she said adding that globally the demand was going to be weak. But the Indian economy was growing faster than the global average and all other major economies, Sitharaman added.

As a result of US-China trade war and currency devaluation, very volatile situation has developed in global trade, she said.

Echoing Prime Minister Narendra Modi’s Independence Day speech talking of respect for wealth creators, she said this was the spirt of her budget for FY20. Sitharaman said she held consultations with different sectors to understand their needs thereafter.

“We haven’t lost reforms momentum,” she said.

Read: Govt rolls back enhanced surcharge on foreign portfolio investors

Here are some of the highlights of her address:

  • Withdrawing of super-rich tax on FPIs, domestic investors to cost exchequer Rs 1,400 crore
  • Angel tax withdrawn
  • Additional credit expansions via PSBs

Read: Govt to upfront infuse ₹ 70,000-cr capital into public sector banks

  • GST refunds for MSMEs in 30 days
  • CSR violations decriminalised

Read: Government not to treat CSR violations as criminal offence: Nirmala Sitharaman

  • Home loans to be cheaper
  • Bond market to be made conducive for investors
  • Future GST refunds for MSMEs in 60 days
  • Rate Cut to be passed on
  • Deferred revision of vehicle registration fee upto June 2020
  • Depreciation of vehicles from now to March 2020 hiked by 30 per cent
  • BS IV vehicles can be used till end of registration period
  • Additional liquidity - from Rs 20K crore to Rs 30k crore to housing finance companies from National Housing Bank in order to boost home loan
  • Aadhar based KYC to be allowed for opening demat accounts and investing in Mutual Funds
  • Ban on govt departments lifted for purchase of vehicles to replace old ones
Published on August 23, 2019

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