Finance Minister Nirmala Sitharaman said in a written response to a question in Lok Sabha on Monday that while the economy has slowed down, India is still the fastest growing country among the G-20 nations. Sitharaman said that India is still projected by the International Monetary Fund to be the fastest growing G-20 country in 2019-20.
She also stated that the government is taking several measures to counter the slowdown. "The government has been taking several measures to address moderate levels of fixed investment rate in the economy, plateauing of private consumption rate and a modest export performance, with a view to increasing the GDP (gross domestic product) growth," Sitharaman said.
The finance minister said in her statement that the government has been engaging with various stakeholders to understand their concerns and to take appropriate measures. She added that the administration has also kept inflation low, managed fiscal spending and current account deficit to ensure macroeconomic stability.
She added that the 15 per cent corporate tax rate for domestic manufacturing firms was amongst the lowest in the world. In another written response FM Sitharaman added that India's corporate tax rate is lower than most nations in South-East Asia including Philippines, Indonesia, Myanmar and Malaysia. She further added that the corporate tax cut is expected to have a multiplier effect on the economy. "Fresh investments into India are expected to not only result in new job creation but also lead to increased incomes and hence increased tax collection in the medium-to-long-run," she said.
Union Minister Anurag Thakur said in Lok Sabha that there was no 5 per cent slump in Indian economy. "Where did you get the figure? Show us," he countered Aam Aadmi Party MP Bhagwant Mann who said the country is facing economic slump.