Government may announce measures to accelerate economic growth The industry is emphasizing on simplifying some policies to ensure credit availability for them, reducing credit costs and accelerating growth. The Finance Ministry is looking for solutions for these.
– Sources said, the government is not considering a proposal to cut GST rates.
– Work is being done on the advice of industry boards, banks and foreign-domestic investors.
– To ensure the availability of credit, reduction in loan cost, the industry has demanded.
The government is working on several measures to speed up the economy. The government is looking at the points that are hindering the pace of economic development. For this, measures are being taken to ensure easy availability of funds to the manufacturing sector and to encourage gross growth. Sources gave this information.
Sources, however, said that the strategy being worked on did not include a proposal to cut GST rates. Because the government believes that the tax rates are already low. Finance Minister Nirmala Sitharaman is finalizing these measures based on the responses received in meetings with various stakeholders including industry boards, banks, and foreign-domestic investors.
Sources said that in the last few days meetings held with representatives of various sectors including banks, MSMEs and vehicles, some points which are causing problems for these areas have been taken into consideration. “The impediments to speed the increase will be removed soon,” said an official. He said this would address various general concerns of the industry. The industry is emphasizing on simplifying some policies to ensure credit availability for them, reducing credit costs and accelerating growth. The government has set a target of 7 percent growth for the current financial year and figures for the first quarter are in this direction.
Sources said that with the steps the government is taking, it is not difficult to achieve the development goals set in the budget. In the context of a reduction in GST of the vehicle industry, sources said that the government is of the view that the rates are lower than the earlier taxation regime. It added that there is little scope for further reduction in the tax rate as the government has set revenue targets to meet social sector constraints and infrastructure development.
Sources said the reason for the slowdown in vehicle sales is not due to government policies or GST rate cuts, but due to resistance by industries to introduce the BS-VI model in a phased manner.