2014 - The Year of Challenges and Reforms - Arun Jaitley
FINANCE Minister Arun Jaitley says,
2014 was one of the most challenging years for India. For two consecutive years our GDP growth was sub 5 per cent. Employment generation had declined, the revenue buoyancy was low and the country had become investment starved.
Reforms by Government:
Building a national consensus and introducing a bill to amend the constitution to implement the Goods and Services Tax (GST).
Opening the gates of investment by raising FDI limits in the insurance, defence and the railways. The FDI conditions in real estate have been liberalised.
Deregulation of diesel prices and facilitating the opening up of petrol and diesel sector to private investment.
Rationalizing tax management to end the image of India having an ultra-aggressive tax policy.
Resolving of pending disputes through appropriate mechanisms so that our tax structures do not become a disincentive against investments.
Giving major tax rebates to the manufacturing sectors which is facing a slowdown.
Amending the provisions of the Companies Act to add to the ease of doing business in India.
Despite major reforms steps taken, there are still challenges which the Indian economy faces. Investment needs to be enhanced and encouraged. Infrastructural spending has to be stepped up. Manufacturing sector has to be given a major push. This has to be done both through encouraging public and private investment. This is our resolve for the upcoming year .
Car buyers may not agree.