India on track to move to a $5tn economy by 2024

26 February, 2020 12:00 AM printer

NEW DELHI: Commenting on the Indian economy, Ambassador of India Mr. B. Vanlalvawna said that India, the 5th largest economy in the world, remains on track to move to a US$5 trillion economy by 2024.

Fundamentals of India’s economy remains strong with solid structural reforms, inclusive growth and well-contained inflation, report agencies.

The country has achieved an all-time high accumulation of foreign exchange reserves of US$457.5 billion as of December 2019.

He highlighted the budget proposals for the Financial Year 2020-21, which is structured on the theme of “Ease of Living”, presented by the Finance Minister of India on 01 February 2020.

The budget allocated US$28.18 billion to 16 action points in agriculture, irrigation and rural development.

Allocation for health sector was US$9.72 billion whereas US$13.99 billion was allocated for Education Sector.

According to the Ambassador, the Indian Budget 2020-21 also gave a boost to the development of industry and commerce with an allocation of US$3.85 billion for development and promotion of Industry and Commerce.

Five new Smart Cities have been proposed to be developed with States in Public Private Partnership mode.

Investment on infrastructure over the next five years is expected to touch US$1.4 trillion and 100 more airports are to be developed by 2024 to support ‘Udaan’ Scheme.

The budget put emphasis for nutrition-related programme and allocated US$5.01 billion for the programme and US$4.03 billion for women specific programs.

The budget made significant relief to Middle-class Tax-Payers and this is expected to jump-start consumption.

To encourage investment, the budget proposes to bring in transparency and greater professionalism in Public Sector Banks.

Certain govt securities will be open for foreign investors. The budget envisages a US$140 million scheme for Export promotion of Micro, Small & Medium Enterprises (MSMEs) for pharmaceuticals, auto components and other sectors.

The Indian economy has experienced growth due to strong foreign investments and continuous improvement of its business environment.

To incentivise investment by Sovereign Wealth Fund of foreign governments, it has been decided to grant 100% tax exemption on interest, dividend and capital gains income on investment made in infrastructure and priority sectors before March 31, 2024 with a minimum lock-in period of 3 years.