Centre announces series of measures to boost economic growth

The government has unveiled a series of measures to achieve higher economic growth. It has withdrawn enhanced surcharge on Foreign Portfolios Investors FPIs, restoring the pre-budget position. Surcharge on domestic investors in equity markets has also been withdrawn. 

Briefing media in New Delhi last evening, Finance Minister Nirmala Sitharaman said, in order to encourage investment in capital market, the government has decided to withdraw the enhanced surcharge on long and short-term capital gains arising from transfer of equity shares and units. The government has also decided to withdraw angel tax provisions for startups and their investors. 

It has also decided for the upfront capital infusion of seventy thousand crore rupees into public sector banks generating additional lending and liquidity to the tune of five lakh crore rupees. 

The government has also decided for the upfront release of seventy thousand crore rupees, additional lending and liquidity to the tune of five lakh crore rupees by providing upfront capital to Public Sector Banks. This will benefit corporates and retail borrowers, Micro, Small and Medium Enterprises (MSMEs) and small traders. Banks have also decided to pass on the rate cuts through



Marginal Cost of Funds Based Landing Rate (MCLR) reduction to benefit all borrowers.

The government has reduced EMI for housing, vehicle and other retail loans by directly linking Repo rate to interest rates. Working capital loans for industry will also become cheaper. All pending Goods and Services Tax (GST) refund due to MSMEs will be paid within 30 days. In future, all GST refunds shall be paid within 60 days.

Corporate Social Responsibility violations will now be treated as civil matters and not as a criminal one. All tax notices and orders will be issued through a centralized and computerized system to end harassment of taxpayers. All old tax notices will be decided by 1st of October this year. 

Measures to boost the Automotive Sector include, lifting the ban on purchase of new vehicles for replacing all old vehicles by government departments.The government will also allow an additional 15 per cent depreciation, taking it to 30 per cent, on all vehicles acquired from now till March 2020.

Ms Sitharaman said India's growth in comparison to other countries is relatively better. She said, reform has been the top agenda for the government since 2014.