India’s economy is expected to grow at 6.8 per cent in the financial year ending March 2020 (FY20) and 7.1 per cent in FY21. The accommodative monetary policy, an easing of bank regulations, and government spending will support economic growth.
Finance Minister Arun Jaitley on Thursday made it clear that if the Modi Government is voted back to power, it will continue to lower the tax rates, mainly GST on cement.
It is noticed that barring one, all other inputs in the real estate sector now have GST at 12 or 18 per cent, while under-construction flats under affordable and other categories have GST at 1 and 5 per cent respectively. Only item left, that is cement, will soon have lower GST rate.
The government and the Reserve Bank will have to bring in a new set of regulations to ensure that borrowers repay their debt on time following the Supreme Court striking down an earlier rule of the monetary authority.
A move ensuring timely repayment and resolution of stressed assets is essential for long-term growth. And a lot of work has been done by the government and the RBI to bring in financial discipline and good regulation to end capitalism.
The Reserve Bank of India on Thursday cut the repo rate by another 25 basis points to 6 per cent. It is the second consecutive rate cut by the RBI.
It has maintained the policy stance neutral and lowered the retail inflation and GDP forecasts.
The move will be good for markets and investors.
RBI in its last policy revision on February 7 cut the repo rate by 25 basis points to 6.25 per cent and changed the monetary policy stance from calibrated tightening to neutral.
The benchmark indices extended their losses at mid-session after the RBI cut the benchmark repo rate by 0.25 percentage points. The Sensex was trading at 38,772, down 105 points on its previous close. The Nifty was quoting at 11,616, down 27 points or 0.24 per cent lower.