Govt Giving Sector-specific Solutions to Fight Slowdown in Economic Growth, Says Sitharaman
Finance Minister Nirmala Sitharaman on Thursday stated that the government is providing sector-specific resolutions to combat the slowdown in economic increase. She, however, avoided a particular question on whether the government believes if the country is amid an economic slowdown.
India’s GDP development has reduced to a six-year low of five percent for the June quarter. This has directed to a wave of downward changes in expectations, including from the Reserve Bank of India (RBI) which now demands GDP growth to get down to 6.1 percent in FY20.
The government has taken a slew of measures, including a massive cut in corporate taxes to revive economic growth, even at the cost of sacrificing revenues.
Hinting at other measures like steps to improve exports, easing credit, making more money available by early repayments to vendors and front-loading of banks recapitalization, Sitharaman said the government has been working on sector-specific measures.
“We are providing support to all the sectors who need help,” Sitharaman said.
Her remarks came hours after global ratings agency Moody’s Investors Service clearly slashed its FY20 GDP growth projection for India to 5.8 percent.