New Delhi, April 8: Branding over to be as a ‘fragile five’ economy in 2014, India has not only been a bright spot as the fastest growing major economy of the world but also enjoys macroeconomic stability. When compared to all governments post-1991, the government led by PM Narendra Modi has delivered the highest rate of average GDP growth, it being 7.3 per cent over the last five years and maintained lowest rate of average consumer inflation, it being 4.6 per cent.
It is in the last week that Finance Minister Arun Jaitley had said that India by 2030 will be gaining GDP touch upto USD 10 trillion, helped by consumption and investment growth. “Currently, the size of the Indian economy is about USD 2.9 trillion. We keep oscillating between fifth and the sixth largest economy, depending on the dollar rate. As we look at the years ahead, we would be USD 5 trillion by 2024 and USD 10 trillion by 2030 or 2031”, he had added.
Viewing to be amongst the first three major economies, Jaitley also had said that we would be in the rat race of the big three wanting to catch up with much mightier competitors. Stressing at the said economic developments and undertakings, BJP ahead of the Lok Sabha elections released a manifesto that claims to be a roadmap for 5 trillion economy initially.
1. Broadening the tax base by the principle of lowering the tax rate and improving compliance; the government will continue with the policy in the similar manner – lowering of tax rate thereby rewarding honest tax payers and improving compliance.
2. Goods and Service Tax (GST) has resulted in overall lowering of tax rates and increased revenue collection, particularly for States. The said revenue collection for all states has increased by 50% in three years. The manifesto aims at continuing with the simplification of GST process by engaging in dialogue with all stakeholders.
3. While social security net for the poor and farmers will be expanded, the party will take up capital investment in the country to a new height. By 2024, India will make capital investment of Rs.100 lakh crore in the infrastructure secto. This will not only help infrastructure investment but investment also in the wider economy. Thus, new India will be built on the basis of investment driven growth.
4. Aiming to develop India into a knowledge based, skill supposed and technology driven society, the government had launched the ‘Make in India’ campaign. To bring in fast and inclusive growth, the regime has also carried out substantial reforms in the last few years in terms of de-regulation and de-licensing, with an aim to improve ease of doing business. More than 90% FDI approvals are now through the automatic route. FDI has grown by almost 50% in the last five years.
5. In order to incentivize compliance of law and ease of doing business, the party will amend the Companies Act to impose civil liability for technical and procedural defaults of a minor nature thus unclogging the majority of the cases from the courts. New industrial policy to improve competitiveness of manufacturing and services with an eye on Industry 4.0 will be geared up boosting the MSME sector.
6. Technology access and up gradation are key elements in the MSME sector. Modi led government has taken a major step in expanding of ‘Technology Centres’ and aim at achieving more than 150 such centres all over the country by 2024. “These Technology Centres would help in mentoring skilling and prototyping of MSMEs. They will expose MSMEs to Artificial Intelligence, Robotics, Internet of Things, Virtual Reality, Block Chain technology and Zero Defect Zero Effect”, the manifesto claimed.
7. To encourage the spirit of entrepreneurship amongst the youth, the party will launch a new scheme to provide collateral-free credit up to 50 lakh for entrepreneurs. It further guarantees 50% of the loan amount for female entrepreneurs and 25% of the loan amount for male entrepreneurs.
8. In the coming term, the party will continue to promote and encourage Start-ups through creation of a ‘Seed Start-up Fund’ of ₹20,000 crore.
9. The manifesto aims to continue the crackdown on Benami properties and illegal foreign bank accounts to benefit honest taxpayers and the poor of the country. It further aims to expedite actions to bring fugitive economic offenders back to India and prosecute them for their crimes.
10. Ensuring faster customs clearance of international cargo by relaxing clearance procedures, the ruling reigns aim at introducing self-declaration and adopting new scanning technology. “We will also provide adequate financial and institutional support for exporters and export organizations to build capacity and equip them with adequate information to ensure unhindered expos”, the statement claimed.