Seeking to dispel doubts over the economy and government’s growth agenda, Finance Minister Nirmala Sitharaman on Friday said the India’s GDP continues to grow at a faster pace than the global economy and 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.
Here are some highlights from her speech:
- Banks to make home, auto loans cheaper.
- BS-IV vehicles purchased up to March 2020 will remain operational for entire period of registration: Finance Minister on the continuation of old vehicles.
- Ban on government departments lifted for purchase of vehicles to replace old ones.
- All tax notices to be issued from centralised system to 'end harassment of taxpayers'. All old tax notices will be decided by October 1 or will be uploaded again through the centralised system.
- Withdrawal of enhanced surcharge levied on FPIs announced , restoring pre-Budget position. It is being done to encourage investment in the capital market, the finance minister said.
- Government to infuse upfront ₹70,000 crore into public sector banks to enable release of ₹5 lakh crore liquidity in the market.
- Banks have decided to pass on rate cuts by RBI to borrowers; launched repo rate or external benchmark-linked loan products.
