News / Economy

    India Unveils Roadmap to Revive Economic Growth

    A man looks at the display screen on the facade of the Bombay stock exchange (BSE) in Mumbai, India, July 10, 2014.
    A man looks at the display screen on the facade of the Bombay stock exchange (BSE) in Mumbai, India, July 10, 2014.
    Anjana Pasricha

    India’s new government has unveiled what it says is a roadmap to revive economic growth, which has fallen to its lowest level in nearly two decades. The right-wing Bharatiya Janata-led government, expected to be more business friendly, is promising greater opportunities to foreign investors.
     
    Finance Minister Arun Jaitley says the government will leave no stone unturned to spur growth in a country which he says is “exasperated” after growth has plummeted to less than five percent for two straight years.
     
    He was presenting the annual budget six weeks after the Bharatiya Janata Party came to power on promises of creating new opportunities for the one million people who enter the workforce every year. 
     
    “The steps I will announce in the budget are only the beginning of a journey towards a sustained growth of seven to eight per cent growth within the next three or four years, with the macro economic stabilization which includes lower levels of inflation, less fiscal deficit and a manageable current account deficit,” said Jaitley.
     
    The government’s first budget was watched closely by domestic and foreign investors to see if Prime Minister Narendra Modi, who successfully wooed investors to Gujarat state which he earlier governed, could restore business confidence in the country.
     
    The government did announce several economic reforms to signal its business friendly intentions.
     
    It raised limits for investors in two critical sectors - defense and insurance - from 26 percent to 49 percent. India is the world’s largest arms buyer. The government promised a bigger role for the private sector as the country tries to modernize its dilapidated infrastructure. It also announced measures to revive the manufacturing sector.
     
    The government says it will bring about a uniform goods and services tax making it easier to do business across the country’s 29 states.
     
    Finance Minister Jaitley sought to reassure investors, who had been scared away when the former government raised tax claims of billions of dollars on several companies after changing tax laws retroactively.
     
    “I would like to communicate to this august house and also to the investor community at large that we are committed to providing a stable and predictable taxation regime which would be investor friendly and spur growth,” stated Jaitley.
     
    Promising to curb government spending, Jaitley said that he will contain the budget deficit to four point one percent. That is expected to be a tough task because of costly subsidy programs announced by the previous government.  The government says it will make the subsidies more targeted even as it promised to protect the poor.
     
    Controlling the high deficit is considered a key step for economic revival.
     
    After winning the biggest mandate in 30 years, the government is under pressure to deliver on its promise of returning India's economy to a high growth path.

    You May Like

    Taj Mahal Battles New Threat from Insects

    Swarms of insects are proliferating in the heavily contaminated waters of the Yamuna River, which flows behind the 17th century monument

    Self-doubt, Cultural Barriers Hinder Cambodian Women in Tech

    Longtime Cambodian tech observer Sok Sikieng says that although more women have joined profession in recent years, there remain significant factors hindering women from reaching tech potential

    Trans-Adriatic Pipeline to Boost European Energy Security

    $4.5 billion-pipeline will become operational in 2020 and will deliver gas from Azerbaijan’s Shah Deniz II field to southern Italy

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8971
    JPY
    USD
    110.16
    GBP
    USD
    0.6811
    CAD
    USD
    1.3106
    INR
    USD
    67.378

    Rates may not be current.