On Saturday, Congress leader Anand Sharma attacked the Centre over the country's economy, stating that this year the statistics of the economy in the third quarter were the 'lowest in seven years.' In a marginal increase, India's gross domestic product (GDP) for the third quarter FY 20 (Q3) (October- December) on Friday, stood at 4.7%, according to the latest figures released by Central Statistics Office seeing a 0.2% increase from Q2 GDP numbers where India's growth stood at 4.5%.
Speaking on this Anand Sharma stated that usually Q3 results were strong and that this year's results were 'concerning.' In comparison to FY19's 6.6% growth rate, this quarter saw a continued slump in the economy with the RBI predicting a growth rate of 6% for FY 20-21.
Anand Sharma also stated that the country's nominal GDP should be much higher than it is as of today. While releasing the Union Budget 2020 this year, Union Finance Minister Nirmala Sitharaman had announced that the country was expecting nominal GDP growth of 10 per cent in the next fiscal year as compared to the usual 7-7.5%. She had also announced that the nominal GDP growth rate was only expected to grow with 12.6 percent and 12.8 percent in FY22 and FY23, respectively.
The Congress leader, on the other hand, called the 'ambitious' budge-- 'directionless' and claimed that it did not provide any incentive to either the investors or the manufacturers. He also raised concerns about the manufacturing sector saying it is in the negative and that jobs and performances in this sector were dismal.
In a bid to encourage more consumer spending, Union Finance minister Nirmala Sitharaman tabled the Union Budget for the year 2020-2021 announcing an optional tax regime offering major cuts to individual taxpayers who forego reductions and exemptions. Apart from this, the Finance Minister announced a Life Insurance Corporation of India (LIC) will be listed as part of the government disinvestment initiative and the government will sell also its stake in the IDBI bank. Apart from a new 'NRI tax', she also announced a slew of policies aimed at education, infrastructure, agriculture etc.