LS-FINANCE

'Moderation in India's growth coincides with global situation'

New Delhi, Feb 10 () The moderation in India's growthcoincides with a deceleration in growth of global output andthe IMF has projected the country's GDP growth to pick up to5.8 per cent in 2020, Union Minister Anurag Thakur said in LokSabha.

Thakur said India's growth trajectory over the period2014-15 to 2018-19 is characterised by macroeconomic stabilitywith real GDP growth averaging 7.4 per cent.

"The moderation in India's growth coincides with adeceleration in growth of global output, as estimated by theIMF, in recent years," he said replying a question of CongressMP Abdul Khaleque and TMC's Saugata Roy during Question Hour.

Thakur, union minister of state for finance, said the IMFhas projected India's GDP growth to pick up to 5.8 per cent in2020.

The economic survey 2019-20 has also projected a pick-upin India's growth in the range of 6.0 per cent to 6.5 per centin 2020-21.

The RBI's sixth bi-monthly monetary policy statement,2019-20 has also projected GDP growth of 6.0 per cent for2020-21.

Thakur said as per the National Statistical Office'sfirst advance estimates of national income, 2019-20, India'sreal GDP is estimated to grow at 5.0 per cent in 2019-20.

He said the World Economic Outlook Update (January 2020)published by the International Monetary Fund (IMF) has revisedIndia's GDP growth rate to 4.8 per cent in 2019.

This revision in growth may not cause any stress in theNon-Banking Financial Companies (NBFCs) sector as NBFCs arewell capitalised, he said.

The minister said the government has implemented severalmajor structural reforms in recent years to bolster investmentand growth.

These include Insolvency and Bankruptcy Code (IBC) tostrengthen the financial system, Goods and Services Tax (GST)to simplify the indirect taxation regime, Make-in-Indiaprogramme to boost domestic manufacturing capacity,liberalisation of Foreign Direct Investment (FDI) and JanDhan-Aadhaar-Mobile (JAM) Trinity towards greatertransparency, efficiency and financial inclusion, he said.

Thakur also said recently, the corporate tax rate hasbeen cut to 15 per cent for new domestic manufacturingcompanies, which is amongst the lowest in the world.

In December 2019, he said, the government has announcedthe Rs 103 lakh crore National Infrastructure Pipeline whichwould significantly boost infrastructure and spur growthimpulses in the economy. ACBDV DV