The Union Finance Minister, Mrs. Nirmala Sitharaman,has said that the economy was showing signs of coming out of a deep slowdown and that 'green shoots' were visible in some sectors.
In replies to the Budget discussion in the Lok Sabha and the Rajya Sabha, Mrs. Sitharaman also said the Modi government would not repeat the 'mistakes' of the Manmohan Singh regime in the aftermath of the 2008-09 slowdown.
'There are seven important indicators which show that there are green shoots in the economy,' she said in the Lok Sabha. In both the Houses, she listed these indicators.
She said foreign direct investment (FDI) stood at 24.4 billion dollars at the end of November 2019, as against 21.1 billion dollars the year before. Foreign portfolio investment inflows stood at 12.6 billion dollars for April-November 2019-20, compared with an outflow of 8.7 billion for the same period of the previous fiscal year, she said. The minister said Rs 22,000 crore had already been allocated to the National Investment and Infrastructure Fund for investing in projects identified under the Rs 1.3 trillion National Infrastructure Pipeline. She said that the index of industrial production, purchasing managers indices on manufacturing and services, forex reserves, and tax collections had all indicated an economic recovery.
'Gross goods and service tax revenue collections in January was Rs 1.10 trillion. Gross GST revenue has surpassed the Rs 1 trillion mark more than six times in FY20,' she said. She said the government's focus was on four engines of growth which included private investment, exports, private, and public consumption.
On exports, Mrs. Sitharaman said the government had taken several steps to boost the sector, including a tax refund scheme and enhanced credit to exporters.
She said the Remission of Duties or Taxes on Export Product (RoDTEP) scheme would replace the existing Merchandise from India Scheme (MEIS), which is considered as non-compliant to global trade rules.
'In effect, RoDTEP will more than adequately incentivise exporters than the existing schemes all put together,'" Mrs. Sitharaman said in the Lok Sabha. 'I am making it plain that RoDTEP, which is now coming in, will more than adequately compensate and incentivise exporters than all the existing schemes put together.'