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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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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