Indian Government are struggling by Economic shutdown:-
Introduction:- To boost the economy the Finance Minister Nirmala Sitaraman has taken some effective steps to solve this problem recently because presently is being effected by economic shutdown.
Causes for the Present Slowdown in the Indian Economy:- The economist are attributes some of the causes to the economic shutdown. These causes are following;
1:- Lake of the demand in automobile sector:- Now the automobile sector is more effected by economic shutdown. Demand of the vehicle (Four, Three and two wheelers) has reduced rapidly. This concern has raised up from the lake of bank loans for vehicles.
2:- Too much debt on Banks:- This is the second factor which are responsible for economic crisis because most Public Sector banks are facing NPAs (Non Performing Assets) problem and now they needs recapitalization to stand again in banking area.
3:- GST:- It’s the one another factor that is being held responsible because many economist are saying that the rate of taxes were not determined correctly.
4: Global issues- Some global situations are playing an effective role to bring economic crisis, such as Trade War between America and Chin, Attack on Saudi Arabia oil refineries and Iran-America relationship etc.
Steps taken by government to boost the economy:- To bring the economy on track the Indian Government has taken some solid steps these are followings;
1:- Rs 50,000 crore scheme to boost exports- To boost the export of goods finance minister has announced 50 thousand crore rupees. For exporters, a new scheme for reimbursement of taxes paid on exports, called the Remission of Duties or Taxes on Export Product (RoDTEP), will come into effect from January 2020 to replace existing dispensations.
2:- Rs 10,000 crore scheme to boost Housing sector:- An another announced was made for house construction.
3:- Dubai-like mega shopping festival to boost exports:- Finance Minister Nirmala Sitharaman also announced that a mega shopping festival, on the likes of the world-famous Dubai Shopping Festival, will be conducted at four places in India in March on themes of gems and jewellery, handicraft/yoga/tourism, textiles and leather.