The Current Indian Finance Minister: Nirmala Sitharaman and Her Economic Agenda
As of the most recent updates, Nirmala Sitharaman continues to serve as India's Finance Minister. Her current role involves steering the nation's economy and implementing various key reforms that are crucial for its growth and resilience.
Nirmala Sitharaman: Background and Role
Nirmala Sitharaman, an Indian economist and politician, is the current Minister of Finance and Corporate Affairs. She has been serving in this high-profile position since 2019. Sitharaman is a member of the Rajya Sabha, the upper house of India's Parliament, since 2014. She previously served as the Minister of State in the Ministry of Finance and prior to that, handled the Ministry of Commerce and Industry. Her diverse experience in various portfolios has prepared her well for the challenges of steering the Indian economy.
Key Economic Reforms Under Nirmala Sitharaman
As the Finance Minister, Sitharaman aims to address several critical issues that affect the Indian economy. Here are some of the key objectives and initiatives she plans to undertake:
Strengthening the Economy
1. NPA Issues and NBFC Support: One of the main focuses is to address Non-Performing Assets (NPAs) and support Non-Banking Financial Companies (NBFCs) to tackle liquidity crises. A special window will be created to provide relief to NBFCs.
2. Job Creation: The government aims to create 8.1 million new jobs annually to meet the demands of a growing population and reducing unemployment.
3. Private Investments: Encouraging private investments is another critical area where the government plans to reform various sectors to attract more investment.
Addressing Economic Weaknesses
4. Boosting Exports: India is vulnerable to crude price shocks, which affects the sector significantly. Initiatives will focus on improving exports to reduce the current account deficit and control inflation.
5. Rural Stress: The declining growth and soft prices in rural areas are being addressed with specific reforms to boost rural livelihoods and infrastructure.
Reforming Specific Sectors
Taxation: Reforms in the Goods and Services Tax (GST) system are planned, including fewer rate slabs and bringing more items under GST. Direct taxes and corporate tax rates are also targeted for reform.
Oil, Gas, and Coal: To boost domestic production, policy reforms will be implemented to attract oil majors and auction coal blocks for private commercial mining.
Telecom: The tax structure in the telecom sector may be reviewed, and investments in broadband infrastructure will be encouraged to strengthen the sector.
Startups: Measures will be taken to resolve the angel tax issue and provide easier listing procedures for startups. A more equitable e-commerce policy will also be introduced.
Additional Sectoral Reforms
Other areas for reform include improving the road infrastructure, labor laws, and the Agricultural sector. The government aims to double farmers' income and develop irrigation facilities and Agri-marketing infrastructure. The focus is on making the country self-sufficient in agriculture and improving supply chain efficiencies.
Companies and SMEs will also benefit from reforms in the Insolvency and Bankruptcy Code, the Foreign Direct Investment (FDI) policy, and the creation of a single regulator for education and skilling programs.
For rural development, the government plans to provide housing for all by 2022 and improve the rural livelihood mission. Railway reforms aim to enhance passenger fares, introduce private sector participation, and explore more corridors for high-speed rail.
The Banking and Finance sector will see PSU bank consolidation, capital infusion, and stronger bankruptcy laws. Investment in renewable energy infrastructure and the Make in India campaign are also on the agenda.
Nirmala Sitharaman's focus is on creating a more robust and resilient economy for the future and improving the lives of Indians through these comprehensive reforms.