Port Wings, 10 July 2019:
Indian economy will become a 3-trillion dollar economy in the current year and is on the path of achieving the Prime Minister Narendra Modi’s vision of a 5 trillion dollar economy by 2024-25, statement by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman emphasized in the Union Budget 2019-20 in Parliament.
As per data presented by the government, it took over 55 years for the Indian economy to reach 1 trillion dollar and in the last 5 years, the government has added 1 trillion dollar to reach about 2.7 trillion dollar. India is now the sixth largest economy in the world, up from 11th position five years ago.
Setting pace for the vision for India in the next decade, the Finance Minister stated that mega programmes and services which were initiated and delivered during the last 5 years will now be further accelerated. The Government plans to simplify procedures, incentivize performance, reduce red-tape and make the best use of technology to achieve the desired goals. “Gone are the days of policy paralysis and license-quota-control regimes. India Inc. are India’s job-creators. They are the nation’s wealth-creators”, she said while emphasizing the substantial role of India’s private industry in growing our economy.
Citing its genesis in the Interim Budget 2019-20 presented in February 2019, the Finance Minister flagged ten points of the Government’s ‘Vision for the Decade’: Building physical and social infrastructure; Digital India reaching every sector of the economy; Pollution free India with green Mother Earth and Blue Skies; Make in India with particular emphasis on MSMEs, Start-ups, Defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices; Water, water management, clean Rivers; Blue Economy; Space programmes. Gaganyan, Chandrayan and Satellite programmes; Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables;
Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens; Team India with Jan Bhagidari. Minimum Government Maximum Governance.
Elaborating on the above points, Finance Minister emphasized on an investment-driven growth model to achieve the goal of 5 Trillion dollar economy. She stated that the Government recognizes that investment-driven growth requires access to low cost capital. It is estimated that India requires investments averaging Rs. 20 lakh crores every year (USD 300 billion a year).
Further, the Finance Minister stated that it is estimated that Railway Infrastructure would need an investment of Rs. 50 lakh crores between 2018-2030. She proposed to use Public-Private Partnership to unleash faster development and completion of projects and to make available a blueprint this year for developing National Highway Grid, gas grids, water grids, i-ways, and regional airports.
Regarding Industry sector, Finance Minister stated that under the Interest Subvention Scheme for MSMEs, Rs. 350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself. Further, the Government is proposing to streamline multiple labour laws into a set of four labour codes, which is expected to reduce disputes, she added.
Summing up the vision of the Government, Smt. Sitharaman stated, “Marking 75 years of our Independence, We should place emphasis on our ‘Duty’ towards India, without undermining ‘Rights’.”