Government announces measures to arrest economic downturn

To improve the grim economic situations in India, the Indian finance ministry has announced several measures to arrest the economic downturn in India and promote a healthy investor scenario in India.

These measures were announced the Finance Minister of India, Mrs. Nirmala Sitharaman in a press conference.

Which measures were announced by the Finance Minister?

• The Indian Government has withdrawn the surcharge on the Foreign Portfolio Investors (FPIs). This has reinforced the belief in the Indian Government’s respect for all wealth creators. However, the surcharge would continue to apply on the high net-worth individuals who earn more than INR 2 crore rupees per year.?
• The Indian government has stated that it in favor of penalties rather than prosecution.
• The Indian Government will not treat Corporate Social Responsibility (CSR) violations as criminal offenses.
• For the ailings banks of India, the Indian government has decided to front-load over Rs 70,000 crore of fresh capital in the public sector banks which will allow for a greater credit disbursal by the banks. The government rationalizes that this Rs 70,000 crore will allow the lending out of Rs 5 lakh crore of fresh liquidity.
• For the auto industry, the Indian government has lifted the ban on the purchase of new vehicles by its departments. All vehicles which will be bought till March 31, 2020, will be eligible for an additional 15% depreciation.
• To boost private vehicle sales, the government has postponed the decision to enhance the registration fees for new vehicles until June 2020.
• To prevent the unnecessary harassing of the taxpaying public, it has reined in the discretionary powers of the tax authorities. All summons of the Income Tax Authorities from October 1 onwards will be generated by a centralized computer and would carry a unique code.