At the time when the Indian economy has suffered drastically due to the Coronavirus induced Lockdown, Union Finance Minister Nirmala Sitharaman has said that the GDP growth may be in negative zone or near zero in the current fiscal. ALSO READ | Coronavirus Pandemic: Lockdown Lifted, Commercial Activities Resumed Yet Global Economy May Take 5 Years To Recover?
Addressing the 4th Annual India Energy Forum by CERA Week, the Finance Minister said that there are visible signs of revival in the economy yet India’s growth this year will be negative or near zero. She added that this is primarily due to a huge 23.9% contraction in the economy in the first quarter of current fiscal (April-June).
Further in her address, Sitharaman said that globally, India is one of the lowest in terms of Corporate Taxation or any investment which comes into manufacturing and which commences production by 31st March 2023, they shall be paying only 15% Corporate Tax
Sitharaman continued saying that Foreign Direct Investment (FDI) inflow between April and August of 2020, grew by about 13% compared to non-COVID 2019’s comparable period
“Festival season has commenced in India, as a result of which I expect the demand to go up and therefore, be sustainable also,” Finance Minister said, adding that the focus of the government is on public spending to boost economic activity.
It is pertinent to mention here that India recently reported a Gross Domestic Product (GDP) contraction of 23.9 percent for the first quarter of 2020-21. It has come as a big setback especially as the country is reeling under the Covid 19 pandemic.
Readings revealed by the government of India reveal that GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at ` 26.90 lakh crore, as against ` 35.35 lakh crore in Q1 of 2019-20. It showed a contraction of 23.9 per cent as compared to 5.2 per cent growth in Q1 2019-20.