Meeting with PM's big businessmen to discuss poor economy performance

Ahmedabad, Dist. January 6, 2020, Monday

Prime Minister Narendra Modi convened a meeting of top businessmen in the country today to discuss the impact of India's decline on the country's poor performance and the impact on India as a result of tensions between Iraq and the recession. He also discussed with industry experts how to invest in the country and create new employment opportunities.

Among the businessmen received by the Prime Minister today are Ratan Tata of Tata Group, Mukesh Ambani of Reliance, Sunil Bharti Mittal of Telecom Sec., AM Nayak of Larson & Toubro Group, Chairman of Tata Sons. Chandrasekaran, Gautam Adani of the Adani Group, Anil Agarwal, the movers of the mining industry and Veena Srinivas, chairman of the TVS group.

The visit is being considered suggestive before Finance Minister Nirmala Sitharaman presents her second budget on February 1st. It is believed to have discussed what steps could be taken to boost the economy.

Total national yield figures for the July-September 2019 quarter have been weak. The rate of economic growth has come down to 4.5%. The economic growth rate in the last six years is the lowest in the quarter. As the impact of the recession has increased in the manufacturing sector, the growth rate has come down.

Narendra Modi's government has taken a number of steps to curb the recession. In September 2019, the corporate tax rate was reduced from 30 percent to 22 percent, an important step was taken in this direction.

The government has also made efforts to attract new investment by lowering the tax rate to 15% for manufacturing companies. The economy has not accelerated since then. At the same time, the revenues of the government have not increased. GST revenue did not increase as expected.

Income tax revenue is also significantly off target. So the hype of the hypereach assessment is booming. There is a boom in the industry that income tax officials are adding to revenue by making indirect assessments to show that they have created a big demand.

On the other hand, the government is also conducting the exercise of merging 10 nationalized banks and converting them into four banks. Steps are also being taken to ensure startups are encouraged. However, as consumer demand has declined, no concrete steps have been taken as to what should really be done to ease the created situation.

Manufacturing sector cannot make much difference if demand is low. The weaknesses of the economy are likely to be burdensome for growth in the coming years. The ever-increasing NPAs of the banks are also being discussed on the issue. So, the transition to new ideas is daunting.

Impact of poor performance of non-banking finance companies can also be seen on the performance of banks. The issue of why the Reserve Bank has tended to consistently reduce the rate of interest rates is also known to have been discussed.

In view of all these circumstances, the trade industry was asked about the budget provision and their views were taken.