Related Topics: Government Policies & Interventions, Indian Economy
Why in News
Finance Minister Nirmala Sitharaman announced a slew of measures to boost private sector sentiments and to reduce the burden on the sector.
Highlights of the Announcement
[Image Courtesy: The Hindu]
Need for the Announcement
- India’s GDP growth plummeted to nearly five-year low of 5.8 per cent in January-March and it is widely believed that the growth might not have picked up in the first quarter of the current fiscal also.
- The auto sector is facing the worst crisis in about 20 years and reports suggest job losses in thousands.
- In the real estate space, the number of unsold homes has increased while fast-moving consumer goods companies have reported a decline in volume growth and lending to job-creating MSMEs by banks have actually slipped.
- Since the announcement of enhanced surcharge on foreign portfolio investors, there has been a significant outflow of funds from the Indian stock market.
- Industry players had raised concerns about penal provisions in the Companies Act, 2013 for non-compliance with CSR requirements.
[Source: The Hindu]