Government takes cover in fastest growing economy theme

New Delhi: Despite reports pointing to economic slowdown gripping almost all sectors, the government on Monday put up a brave face and maintained that India remains the fastest growing economy in the world.

The government has brought in major reforms to boost investment climate in the country for becoming a $5-trillion economy, Finance Minister Nirmala Sitharaman said in Parliament on Monday.

“During the last five years, the government has implemented major reforms to build the investment climate in the country for becoming a $5 trillion economy. Introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 is a significant step towards cleaning and strengthening the financial system of the country,” she said in the Lok Sabha.

The finance minister was replying to questions in the Lok Sabha whether the government has analysed reasons for economic slowdown in the country; analysis of impact of GST and if any study has been conducted on impact of the implementation of the foreign trade agreement.

Sitharaman said India’s gross domestic product (GDP) growth during 2014-19 averaged 7.5 per cent, which was the highest among G-20 countries.

“A number of steps are being taken by the government to strengthen the economy that includes merger of banks and tax concessions to industries. By 2025, India will be a five trillion dollars economy”, Union Minister of State for Finance Anurag Thakur said earlier during the Question Hour.

“Several banks have been merged with bigger banks and ultimate aim of the government is to keep four strong banks and ensure increased economic activities,” Thakur said.