In a recent interview with NewsX, Pralhad Joshi, Minister of Consumer Affairs, Food and Public Distribution shared his insights on the Finance Ministry’s latest announcements on Budget, including the landmark income tax exemptions, sectoral focuses, and the government’s strategic steps to boost economic growth in India.
Income Tax Relief To Boost Savings And Growth
One of the most significant highlights of the budget is the announcement of income tax exemptions up to ₹12 lakh, marking the biggest tax relief since 2005. Joshi emphasized that this will act as a “force multiplier” for the economy. The exemptions are expected to boost savings, investments, and consumption, ultimately contributing to an increase in GDP growth. Prime Minister Narendra Modi has already underscored the potential of these reforms to drive positive economic change, with Joshi reiterating that this move is an essential catalyst for future growth.
Focus On Bihar’s Development
In an unprecedented move, the Finance Ministry has placed special focus on Bihar, announcing the establishment of the Makhana Board and initiatives to boost food processing, technology, and entrepreneurial education in the region. Joshi highlighted that these measures aim to benefit farmers and promote skill development, while also strengthening the food processing sector.
Impetus To MSMEs and Startups: Path To Higher GDP Growth
Joshi also discussed the massive boost given to the MSME and startup sectors, which collectively contribute 45% of India’s exports. By increasing investment and turnover limits for MSMEs, the government aims to expand their scope, generating more jobs, wealth, and revenue for the country. This expansion, in turn, will enhance export activities and contribute to a robust economic future. The focus on MSMEs, according to Joshi, is critical to achieving sustained growth, especially in light of India’s current GDP growth rate of 6.3%. He believes these steps could propel India towards a higher growth trajectory, possibly even reaching an 8% growth rate.
Tariff Cuts To Boost Export Industries
Joshi also elaborated on the government’s efforts to promote exports, particularly in sectors such as toys and leather. With seven tariff cuts aimed at reducing the cost of exports in these industries, India is poised to become a global hub for toys. Joshi pointed out that Karnataka, a major manufacturing hub, will benefit from the recent establishment of a toy cluster in northern Karnataka, making India less reliant on toy imports. This initiative is expected to significantly boost the toy and leather manufacturing sectors, generate employment, and strengthen India’s position in global trade.
With a clear focus on key sectors, targeted reforms, and strategic initiatives, the government’s latest budget promises to propel India towards a more vibrant and self-sustaining economy, laying the foundation for increased exports, job creation, and overall economic growth.
Watch full interview here: