current situation in India's economy
CURRENT ECONOMIC SITUATION OF INDIA
The state of world economy has been the most decisive factor affecting the fortunes of every developing country. The economic challenges faced by India are common to all emerging economies despite these challenges; India has successfully navigated through this period of crisis.
The fiscal deficit for 2013-14 contained at 4.6 percent. The current state of the economy makes it necessary for the government to put in place a robust and implementable plan of action for its revival. The economy has experienced a consistent fall in the quarterly GDP growth since the beginning of 2013, alarmingly high levels of twin deficits viz. Current Account Deficit (CAD) and fiscal deficit as well as worrying volatility in the inflow of foreign investments. Though inflationary pressure has receded in the last quarter of 2013, it still remains above the target level of Reserve Bank of India (RBI). This along with other worrying economic indicators has put the Indian economy in a challenging pathway in the short term. Strengthening fundamentals and boosting growth inducing investments is the foremost consideration at this stage.
In order to revive Indian economy and make it superpower economy certain reforms are really necessary in the fiscal budget for the year 2014-15. In light of structural constraints and below level growth performance, it is imperative to address the issues by taking certain necessary steps.
Key Expectations in Fiscal budget 2014-15 from new government
Reforms in Taxation – Taxation system in India need structural, operational and administrative reforms to foster growth.
Goods and Service Tax (GST) should be implemented in order to boost the GDP. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. It is expected to help build a transparent and corruption-free tax administration. GST will be is levied
The state of world economy has been the most decisive factor affecting the fortunes of every developing country. The economic challenges faced by India are common to all emerging economies despite these challenges; India has successfully navigated through this period of crisis.
The fiscal deficit for 2013-14 contained at 4.6 percent. The current state of the economy makes it necessary for the government to put in place a robust and implementable plan of action for its revival. The economy has experienced a consistent fall in the quarterly GDP growth since the beginning of 2013, alarmingly high levels of twin deficits viz. Current Account Deficit (CAD) and fiscal deficit as well as worrying volatility in the inflow of foreign investments. Though inflationary pressure has receded in the last quarter of 2013, it still remains above the target level of Reserve Bank of India (RBI). This along with other worrying economic indicators has put the Indian economy in a challenging pathway in the short term. Strengthening fundamentals and boosting growth inducing investments is the foremost consideration at this stage.
In order to revive Indian economy and make it superpower economy certain reforms are really necessary in the fiscal budget for the year 2014-15. In light of structural constraints and below level growth performance, it is imperative to address the issues by taking certain necessary steps.
Key Expectations in Fiscal budget 2014-15 from new government
Reforms in Taxation – Taxation system in India need structural, operational and administrative reforms to foster growth.
Goods and Service Tax (GST) should be implemented in order to boost the GDP. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. It is expected to help build a transparent and corruption-free tax administration. GST will be is levied