Salient points of press conference : BJP National Spokesperson, Shri Gopal Agarwal

 

 

SALIENT POINTS OF THE PRESS CONFERENCE OF THE BJP NATIONAL SPOKESPERSON SHRI Gopal Krishna Agrawal

 

Economy out of the woods, on path to achieve double digit growth rate

Post covid economy is showing strong recovery and most of the indicators are showing healthy growth. What we are witnessing is a strong V shaped recovery and not K shaped as some naysayers would like us to believe.

There will be base effect in play in this year’s growth rate and we will achieve double digit growth rate this year but we are also on the path to achieve high single digit growth rate on a sustained basis. The confidence for this assertion comes from the spate of reform measures undertaken by the Modi Government.

Recent reports indicating strong economic growth

Agriculture

Situation Assessment Survey of Agricultural Holdings, Land and Livestock Holdings of Households of Rural India, 2019

·         Survey conducted from January to December 2019 shows 59% surge in farmers’ income, from Rs. 6,426 per month per household in 2012-13 to Rs. 10,218 per month per household.

·         Percentage of agricultural households indebted has come down from 52% in 2013 to 50% in 2019.

·         The amount of outstanding credit in the lowest land size class (less than 0.25 acre) has come down substantially from Rs. 31,100 to Rs. 26,883 per household. The decrease in nominal terms is 14% and adjusting for inflation the decrease is more than 50%.

·         In 2013-14 the budget allocation for Department of Agriculture was Rs. 21,933.50 crore. This has been increased by more than 5.5 times to Rs. 1,23,017.55 crore in 2021-22.

Manufacturing

India has overtaken United States to become the second most sought after manufacturing destination globally, according to 2021 report of a leading consultancy firm.

Labour

Key findings from Annual Report 2019-2020 of Periodic Labour Force Survey (PLFS) covering period July 2019 to June 2020.

·         Labour force participation rate was 36.9% in 2017-18, 37.5% in 2018-19. This has increased to 40.1%. The increase in labour force participation rate of female is even more impressive. It was 17.5% in 2017-18, 18.6% in 2018-19 and 22.8% in 2019-2020.

·         The unemployment rate was 6.1% in 2017-18, 5.8% in 2018-19 and has further come down to 4.8% in 2019-2020.

Tax Collection

·         Direct Taxes

The Direct Tax collections, net of refunds, stood at Rs. 5.66 lakh crore as on 16^th September,21 compared to Rs. 3.28 lakh crore in the same period last year. It is important to note that collection in the current fiscal year is 28 percent higher than the corresponding period in 2019-2020 (pre-covid).

·         GST

The GST collection in August 2021 stood at Rs. 1,12,020 crore. This is 30% higher than GST revenue in the same month last year and 14% higher compared to August 2019 (pre-covid). GST collection, after posting above Rs. 1 lakh crore mark for nine months in a row, dropped below Rs. 1 Lakh crore in June 2021 due to second wave of Covid-19. GST collection for July and August 2021 have again crossed 1 lakh crore, showing the strength of the economy.

Global Innovation Index, 2021

·         India has climbed two ranks to 46^th in Global Innovation Index (GII) 2021 prepared by the World Intellectual Property Organisation (WIPO). Consistent improvement in GII is due to immense knowledge capital, vibrant start-up eco system and the work done by public and private research organisations.

 

·         National Blockchain Strategy will further help innovation, AI, big data and service delivery.

 

Export growth

India’s merchandise exports in August 2021, was USD 33.14 billion, an increase of 45.17 % over USD 22.83 billion in August 2020 and an increase of 27.5 % over USD 25.99 billion in August 2019 (pre covid). India’s merchandise exports in April-August 2021, was USD 163.67 billion, an increase of 66.92 % over April-August 2020 and an increase of 22.93 % over April-August 2019.

Recent steps that will boost economic growth in the coming years

Telecom Sector Reforms

Moratorium on payments, 100 % FDI through automatic route, rationalization of AGR (adjusted gross revenue)

National Monetisation Plan [NMP]

Spending on infrastructure, improvement on PPP, contract design, competition, no transfer of assets, 20 years time frame.

Bad Bank

AMC, ARC with target to recover at least Rs. 2 lakh crore.

Retrospective Tax

Removed, was bad in law, major hindrance to foreign investments

Vaccination drive

is impressive, will help in strong positive sentiments and sectors such as services, tourism

Trade Agreements

FTA discussions with US, UK and other countries.

 

PLI –

 

Textiles, automobiles, pharma, defence and other industries

 

Having said the above, I must state that neither Modi Government nor our Party is tone deaf to the economic anxieties in certain segments of the population. The Government is taking measures to support them.

 

BJP has faith in efficient market based economy and is undertaking 2^nd generation reforms and efficient and transparent markets.

The Govt is about to start the budget exercise for the coming financial year.  Our Party will also consult with all the stakeholders like previous years and pass on their concerns and suggestions to the Govt.

 

 

(Mahendra Pandey)

Office Secretary