Union Finance Minister Nirmala Sitharaman on Tuesday addressed the Lok Sabha and stated that several important indicators have emerged in the recent past, pointing towards green shoots in the economy. The indicators include improved global sentiment, rising net portfolio investments, rebound in industrial activity, an increase in forex reserves and an increase in GST collection.
While replying to the debate on Union Budget 2020-21 in Lok Sabha, Sitharaman laid emphasis on how the size of the Indian economy increased from two trillion dollars in 2014-15 to 2.9 trillion dollars in 2019-20.
"Are there green shoots? It is a pertinent question. Seven important indicators show green shoots," she said.
Adding further to her statement, Sitharaman stated that global sentiment was in favour of India and the country received foreign direct investments of 24.4 billion dollars from April to November 2019 compared to 21.2 billion dollars in the corresponding period of the previous year. The Union Minister also expressed her confidence in the recently announced National Infrastructure Pipeline for further boosting foreign investment in India.
The Finance Minister also informed the parliament that the industrial activity is rebounding and the Index of Industrial Production (IIP) rose by 1.8 per cent in November compared to a contraction in the previous two months. The Purchasing Managers' Index (PMI) also showed steady improvement from 51.2 per cent in November to 52.7 per cent in December and to 55.3 per cent in January 2020.
Sitharaman also announced that the foreign exchange reserves have also grown from 413 billion dollars at the end of March 2019 to over 456 billion dollars in January this year.
"Gross GST collections in January totalled Rs 110,828 crore," said Sitharaman adding that GST revenue has crossed Rs 1 lakh crore six times between April 2019 and January this year. According to the Finance Minister, GST collections were nine per cent more compared to December last year and 12 per cent more compared to January last year. "We are on a positive growth trajectory," Sitharaman said. The secondary market continues to remain upbeat and the BSE Sensex has also seen a rise. A total of 98 people participated in the budget debate. The Union Budget was presented by Nirmala Sitharaman on February 1.
(With inputs from ANI)