By alexandreFinance

FinMin Nirmala Sitharaman confident of ‘good’ growth in June quarter

FinMin Nirmala Sitharaman confident of ‘good’ growth in June quarter

The Finance Minister of India, Nirmala Sitharaman, expressed her confidence in a ‘good’ economic growth rate for the June quarter. Speaking at an event, she cited positive indicators such as higher tax collections and improved manufacturing output as reasons for her optimism.

Steady increase in tax collections

Sitharaman highlighted the steady increase in tax collections as a positive sign for the economy. The government’s efforts to boost compliance and curb tax evasion have resulted in higher revenue collection. This demonstrates an expanding tax base and a more efficient tax administration system.

Moreover, the implementation of the Goods and Services Tax (GST) has also played a crucial role in improving tax collections. The GST regime has simplified the taxation structure and reduced the complexity for businesses, leading to increased compliance and better revenue generation for the government.

Overall, the rise in tax collections indicates a healthier fiscal position, which is an essential driver for economic growth.

Manufacturing sector on the rise

Sitharaman also highlighted the positive growth in the manufacturing sector, which is another factor contributing to her confidence in the June quarter’s economic performance. The government’s initiatives such as Make in India and Atmanirbhar Bharat have aimed to promote domestic manufacturing and reduce dependency on imports.

These initiatives have started showing positive results, with increased production and exports in sectors like automobiles, electronics, and pharmaceuticals. The manufacturing sector is a key contributor to job creation and overall economic growth, and its upward trajectory bodes well for the Indian economy.

Additionally, the government’s focus on infrastructure development and investment in sectors such as renewable energy and digital technologies has further boosted the manufacturing sector’s growth potential.

Challenges and way forward

Despite the positive indicators, Sitharaman acknowledged that there are challenges that need to be addressed for sustained economic growth. The COVID-19 pandemic continues to pose uncertainties, and the global economic landscape remains volatile. The Finance Minister emphasized the importance of continuous policy support and reforms to mitigate these challenges.

She stressed that the government is committed to implementing structural reforms to attract investments, improve ease of doing business, and enhance the overall business environment in India. These reforms aim to create a favorable ecosystem for businesses to thrive, thereby stimulating economic growth.

In conclusion, Finance Minister Nirmala Sitharaman’s confidence in a ‘good’ growth rate for the June quarter is supported by positive indicators such as increasing tax collections and the upward trajectory of the manufacturing sector. While challenges persist, the government’s commitment to reforms and policy support provides a promising outlook for the Indian economy.