The Indian economy in 2019 had experienced a slowdown in some of its sectors. For example, the real estate sector struggled with growth and investors moved away from housing realty to commercial reality. The stalled projects in the housing realty led to a lot of issues for the sector which also affected the Indian economy as a whole since this sector is one of the major instruments for the growth of the economy. Although the report of the economy going through a recession was false, it didn’t just hit the expected growth. The Indian economy experienced more of a slow progression, but it wasn’t a recession for India. The reasons for this slow down are due to a lot of reasons such as demonetization, goods and services tax (GST), etc.
According to the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva stated that the growth projections had to be revised and a downward fall to four percent was experienced in the year 2019. However, the expectation for this year is at a 5.8 percent growth rate and for 2021, the expected growth rate should be at 6.5 percent. Also, the non-banking financial institutions in India went through a lot of unsteady and uncertainty, in which the union budget 2020 is supposed to provide relief to the sectors as banks are not supporting the proposal of the government to grant the non-banking finance sectors loans and monetary funds. Also, the demonization and unified tax system proposed by the government proved to have short term impact, there is no denying that they do have long term benefits after a period of time. Even though, they may have been disruptive for the short term.
The IMF has stated to remain optimistic on the growth of India, as the budget session goes on what could be hoped for is that the government procures remedial measures to help find solutions to the problem that led to the slowdown of the economy in 2019. The process of regaining back the economy to a stable and progressive point, towards the end of last year, the government had pumped in crores of rupees to revive the real estate sectors and provide funds to developers.
Several measures have been taken in other sectors and various sectors have put in place demands in policies that would be revised in the union budget. For example, the gold industry expectations for the budget in terms of import duties to ease the illegal smugglings and also revive consumer demand through the hallmarking policy, etc. The budget revenue collection has been below the target and it is necessary to increase budgetary revenues so as to improve the fiscal positions. Tight spending won’t be the right way to go about it this year, there should be a way to improve collections from the revenue side.
Mohit Kamboj is the author of this article. Find more information about Mohit Kamboj.
According to the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva stated that the growth projections had to be revised and a downward fall to four percent was experienced in the year 2019. However, the expectation for this year is at a 5.8 percent growth rate and for 2021, the expected growth rate should be at 6.5 percent. Also, the non-banking financial institutions in India went through a lot of unsteady and uncertainty, in which the union budget 2020 is supposed to provide relief to the sectors as banks are not supporting the proposal of the government to grant the non-banking finance sectors loans and monetary funds. Also, the demonization and unified tax system proposed by the government proved to have short term impact, there is no denying that they do have long term benefits after a period of time. Even though, they may have been disruptive for the short term.
The IMF has stated to remain optimistic on the growth of India, as the budget session goes on what could be hoped for is that the government procures remedial measures to help find solutions to the problem that led to the slowdown of the economy in 2019. The process of regaining back the economy to a stable and progressive point, towards the end of last year, the government had pumped in crores of rupees to revive the real estate sectors and provide funds to developers.
Several measures have been taken in other sectors and various sectors have put in place demands in policies that would be revised in the union budget. For example, the gold industry expectations for the budget in terms of import duties to ease the illegal smugglings and also revive consumer demand through the hallmarking policy, etc. The budget revenue collection has been below the target and it is necessary to increase budgetary revenues so as to improve the fiscal positions. Tight spending won’t be the right way to go about it this year, there should be a way to improve collections from the revenue side.
Mohit Kamboj is the author of this article. Find more information about Mohit Kamboj.
No comments:
Post a Comment