India to Achieve 8-8.5% GDP in 2015-16, Role for JAM Trinity

India-to-Achieve-8-8.5%-GDP-in-2015-16,-Role-for-JAM-TrinityIndia will achieve GDP growth of 8-8.5 percent in FY 2015-16 and JAM Trinity-Jan Dhan, Aadhar and Mobile will help in implementing direct transfer benefits.

Presenting General Budget 2015-16 in parliament today, finance minister Jaitley said growth in the next financial year is expected to be between 8 to 8.5 percent and aiming for a double digit rate seems feasible very soon.

Arun Jaitley has said that the Indian economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4 percent making India the fastest growing large economy in the world. Jaitley said growth in the next financial year is expected to be between 8 to 8.5 percent and aiming for a double digit rate seems feasible very soon.

Jaitley said that India has now embarked on two more game changing reforms which are GST and the JAM Trinity-Jan Dhan, Aadhar and Mobile to implement direct transfer of benefits. He added that GST will put in place a state-of-the art indirect tax system by 1st April 2016 while the JAM Trinity will allow transfer benefits in a leakage-proof, well-targeted and cashless manner.

Jaitley assured that the country will meet the challenging fiscal deficit target of 4.1 percent of GDP. He added that the journey for fiscal deficit target of 3 percent will be achieved in three years rather than two years.

He said that the rate of corporate tax is proposed to be reduced from 30 percent to 25 percent over the next four years. This will lead to higher level of investment, higher growth and more jobs.

Jaitley proposed to establish the Atal Innovation Mission(AIM) in NITI which will provide Innovation Promotion Platform involving academicians, and drawing upon national and international experiences. A sum of Rs 150 crore is proposed to be earmarked for the mission.

The finance minister said that the government is establishing a mechanism to be known as SETU (Self-Employment and Talent Utilisation) which will support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. Rs 1,000 crore have been initially earmarked in NITI Aayog for the purpose.

Highlighting the need for increasing investments from all sources, the finance minister proposed to allow foreign investments in Alternate Investment Funds. To catalyze investments from the Indian private sector in South East Asia, a project development company will set up manufacturing hubs in Cambodia, Myanmar, Laos and Vietnam.

Jaitley said India is making good progress towards digital India. He said the National Optical Fibre Network (NOFN) programme of 7.5 lakh Km networking 2.5 lakh villages is being further speeded up by allowing willing states to undertake its execution.

All these announcements will be a big booster for Indian economy, helping India to achieve double digit GDP growth by 2017-18.

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