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Centre determined to bring economic growth to 7-8 pc: Union minister

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Press Trust of India Jalandhar
Last Updated : Sep 25 2019 | 9:25 PM IST

The Centre is determined to bring economic growth to 7-8 per cent at the earliest, asserting that the government has taken many steps to boost the economy, Union minister Som Parkash Wednesday said.

On the present economic situation, the minister said the slowdown in the economy is not only in India but is prevailing across the world.

"Prime Minister (Narendra Modi) is determined to bring the economic growth between 7 per cent and 8 per cent at the earliest possible," the Union commerce and industry minister was quoted as saying in an official release.

Referring to a recent decision on reducing corporate tax rates, Parkash said tax cuts will now have a positive impact will benefit the poor and the unemployed.

The minister said, "The message behind tax cuts is more money with firms creates more investments which will lead to more jobs in the economy, resulting in higher growth, productivity surge and robust income/wage growth.

He pointed out that India had one of the highest tax rates in the world in 2014.

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"This prevented our companies to grow and compete with global firms affecting our exports and economic growth," he further said.

Parkash also mentioned the "historic" decisions like the GST, corporate tax rate cuts, among others, taken by the government to boost the economy.

The Hoshiarpur MP further said that thegovernment will allow additional 15 per cent depreciation on vehicles acquired from now till March 2020.

The release quoting the minister also said that many companies from China want to move to other countries for many reasons including the current trade war with the US.

"These companies will now come to India because it has one of the lowest tax rates. This will further create more jobs and benefit overall economy," he said.

More jobs in the manufacturing sector will push up the wages of workers both in agriculture and non-agriculture professions, he said.

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First Published: Sep 25 2019 | 9:25 PM IST

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