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

Multimedia Social Media Documenting, Not Driving, Hong Kong Protests

Unlike in Arab Spring uprisings, pro-democracy protesters in Hong Kong aren't relying on Twitter and Facebook to organize, but social media still plays a role More

Bambari Hospital a Lone Place of Help in Violence-Plagued CAR

Only establishment still functioning in CAR's second city is main hospital More

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.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7866
JPY
USD
109.25
GBP
USD
0.6139
CAD
USD
1.1120
INR
USD
61.428

Rates may not be current.