Customs duty has been reduced to promote domestic manufacturing
As per the estimates available from National Statistical Office, the growth of Gross Domestic Product (GDP) at constant market prices was 5.8 percent in the fourth quarter (January-March) of 2018-19, which is lower than the growth achieved in last five years.
The Economic Survey 2018-19 noted that the base effect arising from a high growth of 8.1 percent in the fourth quarter of 2017-18 and contraction in ‘Agriculture & allied’ sector, growth moderation in Industry sector and stress in non-banking financial companies contributed to this lower growth in fourth quarter of 2018-19.
Economic growth remains high on the agenda of the Government.To boost the economic growth further,Government has announced various measures in the Budget 2019-20; which, inter alia, include, further liberalisation of Foreign Direct Investment policy, increasing the annual turnover limit from Rs.250 crore to Rs. 400 crore for a lower corporate tax rate of 25 percent, additional income tax deduction of Rs.1.5 lakh on the interest paid on loans taken to purchase electric vehicles and moving the GST council for reduction of GST rate on electric vehicles from 12 percent to 5 percent. Government has also increased the scope of voluntary pension scheme for retail tradersand shopkeepers with anannual turnover of less than Rs 1.5 crore. The budget provides a push to infrastructure development with the intention to invest Rs 100 lakh crore in infrastructure over the next five years and by restructuring of National Highway Programme. Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) has been started to facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities. Customs duty on certain raw materials and capital goods has been reduced to promote domestic manufacturing. Earlier, Government had expandedthe cash transfer scheme “PM-Kisan” providing an income support of Rs.6000 per year to all farmers, which was limited to farmers with a land holding of less than 2 hectares.Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs.