The government will continue to intervene to boost India’s economy until it achieves the GDP target of $5 trillion, finance minister Nirmala Sitharaman said.
The government is working on expediting payments due to companies, putting more money in the hands of the people and addressing challenges due to lower tax receipts, which will yield results, Sitharaman said.
The Coal Ministry said it is considering allotment of six coal mines that have been marked for end-uses like power, iron and steel and sale of coal. The ministry had started allotment process for 15 coal mines for various specified end-use such as in power and iron & steel sectors.
India aims to bring down logistics cost to below 10% of the GDP from about 14% at present to increase the competitiveness of the manufacturing sector, Som Prakash, Minister of State for Commerce and Industry has said.
Currently, the logistics cost in India is 30-40% higher than the global benchmarked logistics cost. Therefore it is a big challenge for the government to reduce it. The aim is to reduce it to 10% of the GDP or less,” the Minister said.
India’s headline GDP is expected to grow by 5.5% during the third quarter, according to estimates by rating agency Moody’s while IIP contracted by 3.8% during October 2019, the first month of the third quarter.
This suggests that the growth in GDP at constant prices is nearly 900-basis-point higher than the industrial expansion as captured by the IIP.
According to data by the Central Statistical Organisation (CSO), IIP has now contracted for three consecutive months for the first time since June 2012. Such a divergent trend in the headline GDP and pace of industrial production is rare, and historically, both move together.
India is among the top 10 nations as per the Climate Change Performance Index (CCPI) which is based parameters like renewable power and energy use efficiency, power minster R K Singh said.
This assumes significance in view of India’s resolve to reach 175 GW of clean energy capacity by 2022. The country has already achieved around 84 GW of clean energy capacity, including 32 GW of solar and 37 GW of wind energy. At present, India’s total installed power generation capacity is around 365 GW.