Watch | Business Matters | Why did the Finance Minister compare Indian industry to ‘Lord Hanuman’?

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A video explainning why did the FM Nirmala Sitharaman compare Indian industry to ‘Lord Hanuman’ and is the current scenario so dim as to require the Minister to egg industry on for investments.

A video explainning why did the FM Nirmala Sitharaman compare Indian industry to ‘Lord Hanuman’ and is the current scenario so dim as to require the Minister to egg industry on for investments.

Last month, Finance Minister Nirmala Sitharaman asked captains of industry what was holding them back from investing in manufacturing. She likened industry to Lord Hanuman from the Ramayana, saying industry did realise its own strengths and that it should forge ahead with confidence.

She said, “This is the time for India… We cannot miss the bus”. Why did she say this?

This discussion will look at two aspects: some macroeconomic indicators that indicate a sluggish pace of investments in manufacturing over the recent past; and two, why there is a glimmer of hope that a pickup is likely around the corner.

Clearly, the Finance Minister did not see investments happening at a pace she would have liked. In the hope of revitalising private investment, the government had in Sept 2019 cut the tax rate for domestic companies from 30% to 22% if they stopped availing of any other tax sop. For new manufacturing firms set up after October 1, 2019, and commencing operations, the tax rate was set at 15%.

Is the current scenario so dim as to require the Minister to egg industry on for investments?

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