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India Still Projected To Be The Fastest Growing Economy Among G-20 Nations

India is still projected to be the fastest growing economy in FY20 among the G-20 nations, says Finanace Minister

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Economy, Nirmala Sitharaman
FM Nirmala Sitharaman stated that India is still projected to be the fasteat growing economy. Wikimedia Commons

Finance Minister Nirmala Sitharaman on Monday said in the Lok Sabha that growth has decelerated, but there is no slump and India is still projected to be the fastest growing economy in FY20 among the G-20 nations.

She said the government has been taking several measures to address moderate levels of fixed investment rate in the economy, plateauing of private consumption rate and a modest export performance, with a view to increasing the GDP growth.

In a written reply, Sitharaman said India’s economic growth decelerated but its economy is still the fastest growing among G-20 nations and that the goal of $5 trillion economy will be achieved by 2025.

In a written reply to a question from N.K. Premachandran, MP from Kerala, that despite some recent deceleration in growth, India’s economy was still projected by the World Economic Outlook to grow at the fastest rate among G-20 countries in 2019-20.

“During the last five years, the government has implemented major reforms to build the investment climate in the country for becoming a $5 trillion-dollar economy,” the minister said.

The World Economic Outlook (WEO) of October 2019 projects a significant slowdown in world output and trade in 2019. Yet India, despite some recent deceleration of GDP growth, is still projected by WEO to grow at the fastest rate in 2019-20 among G-20 countries, she said.

On a question whether the government has analysed the impact of implementation of the Goods and Services Tax (GST) on economic slowdown, Sitharaman said the GST reform stands out as the most important measure for improving ease of doing business in the country.

“Further, in the World Bank’s Ease of Doing Business 2020 Report, India’s ranking improved by 14 positions to 63 in 2019 from 77 in 2018 after GST was implemented in 2017,” Sitharaman said.

Indian Economy
Despite the deceleration in economy due to declining GDP , India is still projected by WEO to grow at the fastest rate in 2019-20 among G-20 countries. Pixabay

On the impact of implementation of foreign trade agreements and economic slowdown, she said the government publishes an economic survey of the country on an annual basis analysing various aspects of the economy, including trade agreements and state of the economy. “The government has also been engaging with various stakeholders to understand their concerns and taking appropriate measures for the economy,” she said.

Sitharaman said while taking reform measures, the administration has kept inflation low, fiscal spending disciplined and current account deficit manageable to ensure macroeconomic stability for a healthy investment climate in the country.

India’s economic growth slowed down to 5% in the Q1 and is expected to have declined further in the second quarter for which official data is expected later this month.

In her statement Sitharaman further said the 15% corporate tax rate for new domestic manufacturing companies announced in September was “amongst the lowest in the world”.

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For other domestic companies not availing of any tax breaks, the rate was cut from 30% to 22%.

She also pointed out the recent move to reduce corporate tax rate from 30 percent to 22 per cent complemented by a cut in the repo rate by 135 basis points during 2019 by the Reserve Bank of India and mandating of banks to link their lending rates with external benchmarks for reducing the cost of capital for investors. (IANS)

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Hotel Chains in Rajasthan Contribute in Growing Local Economy

Big hotel chains help boost local economy in Rajasthan

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Hotels Rajasthan
Hotel chains in Rajasthan play a major role in boosting the local economy. Pixabay

BY ARCHANA SHARMA

Big hotel chains in Rajasthan are helping the local economy grow by providing newer employment avenues to the natives.

These hotels are hiring local people to showcase the colourful heritage of Rajasthan to guests coming from different parts of the world.

Ibis, an Accor brand, recently re-launched its property in Civil Lines, Jaipur, in which locals were engaged in the task to design a vibrant and colourful lobby with traditional Pichwai artwork connecting to the ethic charm of the Pink city.

The property also showcases a quirky auto and bike parked outside the lobby which comes in different shades of pink connecting with the theme of the pink City. Again, in this perspective, the local students’ views were taken into account to make the pretty decor of the auto and bike, said Saumitra Chaturvedi, General Manager, Ibis Jaipur Civil Lines.

Further, the hotel had hired a local band, Marudhar, during the relaunch of the property, which has got six local members who shot to fame after displaying their talent in ‘India’s Got Talent’.

Chaturvedi said, “It gives me immense pleasure to showcase the revamped Ibis property in Jaipur which has been designed after seeking services of local artists. We look forward to serving the best blend of local and global in terms of food, delicacies and experiences, he added.

Rajasthan locals
Big hotel chains in Rajasthan hire the local people to showcase the rich culture of that region. Pixabay

The other property pushing local economy to new heights is Alila Fort Bishangarh where locals are engaged in diverse tasks including garden landscaping, housekeeping, driving and even the kitchen for dishes, said Binny Sebastian, General Manager, Alila Fort Bishangarh’s heritage hotel, some 50 km from Jaipur.

As our property is situated on the outskirts, the surrounding villages had people engaged in farming and hence we are training them in diverse tasks to ensure they have a decent source of earning. Now, the villages look changed as there are many shops and businesses coming around, he adds.

These guests are also taken around for a barber shop where they love to get a hair massage done which is called as Champi in local language. Villagers are getting a decent price for it. We have a chai shop where guests are taken and they pay villagers a decent sum for a tea.

Then comes as zero mile cuisine system we have introduced recently where food produced within the vicinity of one mile is being served to guests. This again boosts local economy, Sebastian says.

This Diwali, we gifted paper bag made from newspapers with an earthen pot having tulsi plant grown in our garden. Again local services were taken to make bags and pots, he adds.

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“Our association with locals is quite strong. Our guests also visit the artisans’ houses and sip tea there while watching them make pottery and weave carpet. In this way, we ensure that locals get a decent livelihood,” Sebastian added.

“We have started getting regular income since this property came up a year back. We have been showing our art to the guests here which gives us satisfaction as well as an income,” said Nizamuddin, a bangle maker engaged in Alila Fort, Bishangarh. (IANS)