Indian government presents budget, cuts taxes on cars, mobiles to boost economic growth

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The Indian government Monday presented an interim budget — its last before the country goes to polls in May — in which indirect taxes on cars, two-wheelers and mobile phones have been slashed in a bid to boost economic growth.

Indian Finance Minister P. Chidambaram announced the populist measures in the Parliament which will be valid from April to June this year, and could be reviewed later when the new government is formed after the general elections.

“The current economic situation demands some interventions that cannot wait for the regular budget. In particular, the manufacturing sector needs an immediate boost,” he said.

The finance minister claimed that the country’s economy has stabilized and showed signs of a turnaround.

“Our objectives were fiscal consolidation, reviving growth cycle, and enhancing manufacturing. I can confidently assert that the fiscal deficit is declining, the current account deficit is constrained, inflation is moderated and exchange rate is stable,” he said.

He claimed that the current financial year would end on a satisfactory note with the fiscal deficit at 4.6 percent of gross domestic product, below the 4.8 percent target set by the government.

The fiscal deficit for 2014-15 has been pegged at 4.1 percent of GDP, which will be below the target of 4.2 percent set by the new fiscal consolidation path. Revenue deficit is estimated at 3 percent.

The finance minister said the current account deficit was expected to fall to 45 billion U.S. dollars in the year to March 31, down from 88 billion U.S. dollars a year earlier. He also added that economic growth for the financial year ending in March was expected to be 4.9 percent.

As part of the vision, he said a developing economy must accept that when the aim is high growth, there will be moderate level of inflation.

“The Reserve Bank of India must strike a balance between price stability and growth while formulating monetary policy,” he said in his vision formula.

The interim budget came as the Congress-led government’s popularity has slumped amid a slowdown in growth and a number of corruption scandals in the last five years.

 

 

 

Source : Xinhua | February 17, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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