The Economic Survey 2018-19 and the Union Budget 2019-20 have indicated the government’s goal of making India a US$ 5 trillion economy by 2024-25. To achieve this goal, the economy needs to grow at high and robust rate.

To boost the economic growth of the economy, Government has announced various measures in the Budget 2019-20; which, inter alia, include, further liberalisation of Foreign Direct Investment policy, increasing the annual turnover limit from ₹ 250 crore to ₹ 400 crore for a lower corporate tax rate of 25 percent, additional income tax deduction of ₹ 1.5 lakh on the interest paid on affordable housing loans and moving the GST council for reduction of GST rate on electric vehicles from 12 percent to 5 percent. The budget provides a push to infrastructure development with the intention to invest ₹ 100 lakh crore in infrastructure over the next five years and by restructuring of National Highway Programme. Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) has been started to facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities. Customs duty on certain raw materials and capital goods has been reduced to promote domestic manufacturing. Government had expanded the cash transfer scheme “PM-Kisan” providing an income support of ₹ 6000 per year to all farmers, which was limited to farmers with a land holding of less than 2 hectares. Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister.

The Government, in the spirit of cooperative federalism has asked the States to work towards achieving the US$ 5 trillion economy of India by 2024-25.

This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Rajya Sabha today.

Economic growth strategy aims to mobilise tax, trade and investment measures to achieve a national high-growth target. The policy objective is attainment of a US$ 5 trillion economy by the target year through measures in Budget 2019-20: liberalisation of Foreign Direct Investment, expanded eligibility for a lower corporate tax rate, additional tax relief for affordable housing loan interest, GST rate reduction proposals for electric vehicles, customs duty reductions to promote manufacturing, large-scale infrastructure investment and restructuring, cluster-based support for traditional industries (SFURTI), continuation of farmer income support, and a cabinet committee plus state-level coordination under cooperative federalism to align implementation.