SME Times News Bureau | 18 Oct, 2019
Finance Minister Nirmala Sitharaman on Friday
called on G-20 nations, , comprising 19 countries and European Union, to
undertake steps to revive global growth and create second wave of reforms.
The minister said G-20 nations must "navigate the global policy
coordination" by taking strong steps towards "building buffers and
catalyzing a second wave of reforms".
"Sitharaman emphasized that the G-20 has the responsibility to navigate
the global policy coordination in effective fashion by identifying and taking
strong measures for building buffers and catalysing a second wave of
reforms," a Finance Ministry statement said.
"She gave a clarion call for concerted action in the face of global
slowdown. She also highlighted that the emerging market economies, in
particular, face the challenge of achieving economic growth and inclusive
development while pursuing sustainable financing," said the statement.
The minister is leading the Indian delegation to the International Monetary
Fund (IMF) annual meeting in Washington DC.
The FM re-emphasized the need for G-20 to ensure collective action so as to
enable global growth to regain pace.
Sitharaman led the Indian delegation at G20 Finance Ministers and Central Bank
Governors as well as the BRICS Finance Ministers and Central Bank Governors
meetings on the side-lines of the IMF/World Bank Annual Meetings.
Earlier this week, the IMF downgraded global growth for 2019 to 3% which is the
slowest pace since the global financial crisis. At the same time, it also
slashed economic growth forecast for India to 6.1% for the current fiscal from
its July projection of 7%, citing weaker-than-expected outlook for domestic
demand.
Rising protectionism and uncertainty around trade and geopolitics has affected
the growth prospects of several emerging economies, it said.
Sitharaman on Thursday said countries must pursue structural reforms to counter
the slowdown.
Under this, last month, the government announced corporate tax cut for
companies. The effective tax rate, including cess and surcharges, for the
existing companies will come down from 34.94% to 25.17%, while for new
companies it will fall from 29.12% to 17.01% to put India back on growth track.
"India has reduced the corporate tax from 30% to 22% thereby making India
one of the lowest corporate tax imposing countries in the world today. This
will spur investment," a finance ministry statement quoted Sitharaman as
saying.
"Alongside the corporate tax reform, government of India's measures pertaining
to Aadhaar-based Direct Benefit Transfer as well as Universal Health Care
policy received special mention from the Finance Minister," the statement
said.