The meeting of PM Modi with industrialists was held at the PM’s office in the afternoon on behalf of stimulating the economy.
The country’s top industrialists, including Mukesh Ambani and Ratan Tata, were called by Prime Minister Narendra Modi for the economy discussions, on Monday (06.01.2020) to brainstorm on ways to create jobs and revive the economy as the Budget draws near. After the discussions, a group photo was taken, which showed, PM Modi with Reliance chairman Mukesh Ambani, Tata patriarch Ratan Tata, Mahindra Group chairman Anand Mahindra, telecom boss Sunil Bharti Mittal and Gautam Adani besides others.
Over the past few days, PM Modi has been meeting with various groups and industrialists. Monday’s meeting was held with subject to discussions in the run-up for the Union Budget due next month.
The rate of economic growth dropped to 4.5 percent, in the latest GDP data for the July-September quarter, the weakest in six years. The fall in manufacturing output and consumer demand has played a big role in the slowdown.
In an endeavor to investigate the slowdown, the government slashed corporate tax to 22 percent from 30 percent in September and also lowered the tax rate for new manufacturing companies to 15 percent to attract new foreign direct investments. The tax rate reductions bring India on equivalence with rates in other Asian countries.
The government has also taken various steps for other initiatives like the merger of 10 public sector banks into four, bank recapitalization, support for the auto sector, plans for infrastructure spending, as well as tax benefits for startups. The Reserve Bank of India (RBI)’s had responded to ease policy rates significantly in the last year, with a series of rate cuts since February 2019.