Here's everything that the Indian Government has done to revive the economy
While the country is hotly discussing a crisis situation in the national economy, the slack in the economic growth and the slump in a number of industry sectors like automobiles, housing and MSMEs has triggered widespread concerns not only among the industry stakeholders and the general masses but also in the government. Amidst criticisms and a growing sense of unrest, the government has initiated a series of measures to counter the economic slowdown and put back the nation’s economy on the right track to growth.
The government starts off with a series of announcements
What was talked of as a major boost to save the slowing economy that has come during a crucial hour when the BJP government assumed the power at the center for the second tenure, the Finance Minister Nirmala Sitharaman started off with a slew of announcements on August 23, 2019 that would benefit different sectors including the banking, finance, HFCs, NFBCs, MSMEs and others.
The important line of measures by the government in the lines of saving the country’s economy included the following. The surcharge levied on FPI and DI profits have been lifted thereby restoring the position that was before the budget.
The government also announced 15% more depreciation on the vehicles purchased from the date of announcement till March 2020. The raise in registration fees have been deferred. The finance minister said the CSR violations will no more be treated as a criminal issue and it will be dealt with as a civil matter. Removal of angel tax is thought of as a measure to benefit the startups and investors which will, in turn, lead to more entrepreneurial activity and employment.
One more lifeboat to save the slowing economy
Throwing yet another lifeboat to save the sinking economy, the finance minister Nirmala Sitharaman few more strategic announcements that are deemed significant in the interest of reviving the slowing economy. These announcements that followed on Friday, September 20, 2019, in a press conference contained the following elements.
To encourage overseas investors, Nirmala Sitharaman announced withdrawing the increase on surcharges on foreign portfolio investors that was earlier introduced in the 2019 budget. Also, angel tax on the start-ups has been lifted.
The banks are advised to pass on the benefits of the RBI’s repo rate cuts to the borrowers. This move is viewed to bring down the rates of interests of auto loans and home loans.
To apply an ointment over the wounds suffered by the automobiles industry, the finance minister announced that the BS4 vehicles bought till March 2020 can be operated for their entire period of registration.
In order to revive the auto sector, the government has chosen to lift the ban on the government bodies to replace their old vehicles for new ones.
Summary of Growth Packages Announced by the Government
On the whole, the efforts on part of the government now in the lines of reviving the falling economy seems to focus on boosting up the purchase of houses, vehicles and consumer goods. The additional liquidity facilitated through several moves is expected to see the HFCs and NHB supported thoroughly.
The finance minister has also said the government will make two more sets of announcements in the near future that would again augment the efforts by the venter to alleviate the economic slowdown.