India is facing one of the worst economic crisis at present. The government has taken several significant decisions to revive the economy of India in this year. While we are waiting for 2020 come, here are key steps taken by the government that matters to the business world;
- One of the biggest news that made the corporate lobby happy was the announcement made by the Union Finance Minister Nirmala Sitharaman on corporate tax cut from 30 per cent to 22 per cent for existing companies and 15 per cent from 25 per cent for new manufacturing companies. President of Assocham, B.K. Goenka has called this the most significant reform in the last two decades.
- Another major step by the government was to infuse INR 70,000 crore to the PSBs in FY20. Under this bank recapitalisation, the Punjab National Bank received the highest injection of INR 16,000 crore followed by the Union Bank of India which got INR 11,700 crore. While presenting her first Union Budget, Nirmala Sitharam said that the infusion would help in the credit growth.
- Since the real estate bubble got burst, the sector is facing a steep decline majorly in the residential segment. Throughout India, people have been complaining about the halt in the housing projects happened. To give relief to the distressed homebuyers, the government announced the setting up of INR 25,000 crore alternative investment fund (AIF) to revive the stalled housing projects.
- The change in foreign direct investment (FDI) regulations by the government through a Press Note issued on 18th September 2019 -for single-brand retail, contract manufacturing, coal and lignite mining and digital media are seen to attract foreign investments from the west amidst the US-China trade war. Preliminary data reflect an increase in the infusion of FDI in India.
Most of the core industries in India are facing severe slowdown at this time. Demonetisation and GST are said to have affected the economy adversely. Several experts believe that the slowdown is just temporary, and the economy will revive soon. Interestingly, above-stated steps by the government have helped the revival of the economy to some extent.