Video Editor: Mohd Alam Irshad
Video Producer: Hera Khan
A big target has been put forth before the country. A target of building an economy worth $5 trillion in 5 years. We will get the biggest signal when Finance Minister Nirmala Sitharaman presents the Budget on 5 July. This target can only be achieved if we find investors.
Unless private investors invest their money, we will not be able to fulfil our dream of an economy worth $ 5 trillion because if we want to achieve our target we need a growth of at least 10 percent. Currently, our GDP growth is (2018-19) 6.8 percent. In the previous quarter it was 5.8 percent. The country’s economic growth has become slow.
There is a drop in the sales of:
- FMCG
- Passenger vehicles
- Two-wheelers
- Air passengers
- Sale of tractors
- Consumer durables
This makes it clear that the economy is in a phase of slow growth.
India's credit market is destroyed. The government will have to create an atmosphere of private investment to deal with the credit crisis and GDP slowdown.
Tax recovered is 6 percent lesser than tax revenue target. The government has no money.
What Can Happen in the Budget?
The government can ease the Personal Income Tax. Those setting up businesses might get some incentive, while those investing in farming will get some kind of relief. They will also be focusing on public welfare related schemes.
What Steps Will the Government Take to Bring in More Money?
Will the government choose to disinvest? Or take a bigger decision with respect to railways? What steps will the government take regarding manufacturing?
The government has promised that 50,000 new startups will be set up. They will also be focusing and investing in research to execute said plan.
The prime minister is famous for making big promises. So it is possible that he might promise something regarding land, labour, privatisation and disinvestment. Or he might make some small promises which would not get people’s hopes up. Anyway job creation is in a fix.
It is difficult to eliminate poverty, unemployment and inequality. On Budget day, the government will outline their modus operandi. The big decisions might take a while. They may come after the Budget.
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