New Delhi: Addressing the India Energy Forum of CERA Week, Finance Minister Nirmala Sitharaman admitted that the growth rate of the country’s GDP in the financial year 2020-21 is negative or zero. Can stay close. However, during this time, she said that the Indian economy is now showing signs of improvement. She said that in the first quarter of 2020-21, the economy recorded a sharp decline of 23.9 percent, which could lead to a negative growth rate of GDP throughout the financial year.
Now the economic indicators are showing signs of improvement in the economy
Finance Minister Sitharaman said that it was most important to save the lives of the people after the spread of Coronavirus. Therefore, the central government had implemented a strict lockdown in the entire country from March 25. The lockdown gave the government enough time to prepare for the global pandemic. However, due to this, business activities came to a complete standstill and the economy suffered a lot. Now with the opening of economic activities in Unlock, there are clear signs of improvement in the economy from all the economic indicators.
Government’s emphasis on increasing economic activities by increasing public spending
Nirmala Sitharaman said that shopping during the festive season is expected to give a boost to the Indian economy. This is expected to keep the economic growth rate positive in the third and fourth quarters of the financial year 2020-21. He said that overall, the growth rate of GDP in 2020-21 is likely to be negative or close to zero. During this, he expressed confidence that the growth rate will improve from the financial year 2021-22. At present, the government is focusing on increasing economic activities through public spending.
The lowest corporate tax is levied on investing in India
Finance Minister Sitharaman said that during April-August 2020, the country received 13 per cent more foreign direct investment (FDI) as compared to the same period last year. He said that India is the lowest corporate tax collecting country in the world. Corporate tax at the rate of just 15 per cent is levied on investments made in the manufacturing sector of the country. However, this requires that the manufacturing unit should start production from March 31, 2023.
