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

Video Obama to Send 3,000 Troops to Liberia in Ebola Fight

At Centers for Disease Control and Prevention, President says US will take leadership role for a global response to deadly Ebola virus that is ravaging West Africa More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa 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.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.