Nirmala Sitharaman said India will be a $3 trillion economy by this year
Finance Minister Nirmala Sitharaman said that Indian economy will grow to become a $3 trillion economy in the current year itself, adding it is now the sixth largest in the world.
She said Indian economy was at the 11th position five years ago and it took us over 55 years to reach $1 trillion dollar economy.
"It took us over 55 years to Indian economy to reach $1 trillion but the people's hearts filled with Vishwas and Akansha (hopes of the people of the country) has helped us achieve the next couple of trillions within a short span," she said.
"I am confident we will achieve our goals. With determined human effort, the task must be completed," Sitharaman added.
The Indian economy grew at 6.8%, a five-year low, in 2018-19 and fourth quarter growth slumped to 5.8% which was a 17-quarter low.
Highlights from Finance Minister Nirmala Sitharaman’s speech
-Increase custom duty on gold & other precious metals from 10% to 12.5%.
-To provide further impetus to affordable housing, an additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to Rs 45 lakhs.
-The fiscal deficit this year is 3.3%, brought down from 3.4%.
-At present startups are not required to justify the fair market value of their shares issued to certain investors including category 1 alternative investment funds. I propose to extend this benefit to category 2 alternative investment funds also.
-The Government proposes to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel.
-All companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies.
-To resolve the so-called Angel Tax issue, the startups & their investors who file requisite declarations&provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.
-Those having annual income up to Rs 5 lakhs are not required to pay any income tax. We are thankful to tax payers who play an important role in nation building.
-To discourage the practice of making business payments in cash I propose to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
-Strategic disinvestment of select Central Public Sector Enterprises will continue to be a priority; strategic disinvestment of Air India will re-initiate; Rs 1 lakh 5 thousand is disinvestment target for 2019-20.
-More than 120 crore Indians now have Aadhar card, therefore for ease of taxpayers, I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN.
-Direct tax collection increased by 78%; Tax collection rose from 6.38 lakh crore rupees in 2013-14 to 11.37 lakh crore rupees in 2018.
-A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released by the PM on 7th March 2019. These coins will be made available for public use shortly.
-Government has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%. Also to make EVs affordable for consumers our Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs.
-The Government has been following policy of disinvestment in non-financial public sector undertakings, maintaining govt's stake not to go below 51%.Govt is considering,in case where undertaking is still to be retained in govt control,to go below 51% to an apt level on case to case basis.
- India's sovereign external debt to GDP is among the lowest globally at less than 5%. Govt will start raising a part of its gross borrowing program in external markets in external currencies.
-The government intends to open another 4 embassies, new ones, in the year 2019-20. This will not increase the footprint of India's overseas presence but also enable us to provide better and more accessible public services especially to the local Indian communities in these countries.
-'Gandhipedia' is being developed to sensitize the youth about positive Gandhian values.
-Non-performing asset(NPAs) recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.
- I propose to consider issuing Aadhaar Card for Non-Resident Indians (NRIs) with Indian passports after their arrival in India without waiting for the mandatory 180 days.
-To give further impetus to India's growing influence and leadership in the international community, Govt decided to open Indian embassies and high commissions in countries where India doesn't have a resident diplomatic mission as yet.
-To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India.
-Under PMAY (Urban), over 81 Lakh houses with investment of about Rs 4.83 Lakh Cr have been sanctioned of which construction has started in about 47 Lakh houses. Over 26 Lakh houses have been completed of which nearly 24 Lakh houses have been delivered, to beneficiaries.
-To further encourage women entrepreneurship, Women Self Help Group(SHG) Interest Subvention Programme to be expanded to all districts in India.
-Drawing attention to the women of India, 'Naari tu Narayaani'. This Government believes that we can progress, with greater women participation.
- Happy and satisfied to report that India will be made Open Defecation Free on October 2nd, 2019, as per the dream of PM Modi.
-This new Ministry will look at the mgmt of our water resources and water supply in an integrated & holistic manner and will work with states to ensure 'Har Ghar Jal', to all rural households by 2024 under 'Jal Jeevan Mission'.
-Ensuring India's water security and providing access to safe drinking water to all Indians is a priority. A major step in this direction has been the constitution of Jal Shakti Ministry.
- To provide Non-resident Indians (NRIs) seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route.
-A total of 9.6 crore toilets have been constructed since October 2, 2014. More than 5.6 lakh villages have become open defecation free. We have to build on this success. I propose to expand the Swachh Bharat mission to undertake sustainable sold waste management in every village.
-The government will invest widely in agricultural infrastructure. We'll support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy. Ann daata ko kyun oorja daata bana nahi sakte?
-India has emerged as a major space power. It is time to harness our ability commercially. To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.
-With the changing economic scenario, it's important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
-Annual Global Investors' Meet to be organized in India, using National Investment and Infrastructure Fund (NIIF) as the anchor to get key sets of global players to come and invest in India.
-It's the right time to consider increasing minimum public shareholding in the listed companies, I have asked SEBI to consider raising the current threshold of 25% to 35%.
-The FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure.
-To deepen corporate tri-party repo market in corporate debt securities, govt will work with regulators RBI and SEBI to enable stock exchanges to allow AA rated bonds as collaterals.
-Government will invite suggestions for further opening up of FDI in the aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. 100 percent FDI will be permitted for insurance intermediaries.
-Rs 350 crore has been allocated for 2 percent interest subvention for all GST-registered MSMEs on fresh or incremental loans. Pension for shopkeepers and retailers with a turnover of less than Rs. 1.5 crore to be launched under Pradhan Mantri Karma Yogi Maan Dhan Scheme.
-Railway infrastructure would need an investment of Rs 50 lakh crores between 2018 and 2030. PPP to be used to unleash faster development and the delivery of passenger freight services.
-Launched UDAY in 2015 for financial and op turnaround of DISCOMs. We're examining performance and it will be improved. We will work with state governments to remove barriers, cross-subsidy, surcharges, undesirable duties on open access sales, or captive generation for industrial and bulk power consumers.
-A comprehensive restructuring of National Highways Programme will be done, to ensure the creation of National Highways Grid of desirable capacity. The government envisions using rivers for cargo transport, it will also decongest roads and railways.
-We don't look down upon legitimate profit earning. Gone are the days of policy paralysis & license quota control regime. India Inc is India's job creators, nation's wealth creators. Together with mutual trust we can gain, catalyse past & attain sustained growth.
-The ambitious project of Bharatmala will enhance road connectivity and Sagarmala will help port and waterways connectivity. These along with other such initiatives such as Udaan scheme will improve India's infrastructure and enable connectivity and bridge the rural and urban divide.
-Quoting Chanakya Neeti sutra, The Finance Minister said, 'Kaarya purusha kare na lakshyam sampa dayate'. Meaning with determined human efforts the task will surely be completed.
- It took us over 55 years to reach $1 trillion dollar economy. But when the hearts are filled with hope, trust & aspiration, we in just 5 years, added $1 trillion.
-The Indian economy will grow to become a $3 trillion economy in the current year itself. It is now the sixth largest in the world. 5 years ago it was at the 11th position.
-The last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik.
-The average amount spent on food security per year approximately doubled during 2014-19 compared to preceding five years.
-We provided rejuvenated centre-state dynamic between 2014 and 2019, cooperative federalism, GST Council and a strident commitment to fiscal discipline; we have set the ball rolling for a New India.
-The people of India have validated their two goals for our country's future: national security and economic growth.
-Every section came to stamp their approval for a performing government, the voter turnout was highest.
-The recent Lok Sabha election was charged with brimming desire for a bright and stable New India.
