The current coalition government was strong and there were no uncertainties around its functioning or apprehensions of compromising on its principles or objectives, Union Commerce and Industry Minister Piyush Goyal said at an event organised by a broker firm.
“Let me assure you that this is certainly a strong coalition government. All our partners are very strongly aligned with us. And you have absolutely no reason to worry of any uncertainties or any other,” Goyal said.
“This will be a strong government, which will focus on the nation first, which will work for national interests and will never have to compromise on our principles.” India’s recognition in the international market will also be enhanced, he added.
Goyal also said the country would likely reach the $5 trillion economy target in the current term of the NDA government and within the next three years. He stressed that the government would continue on the path laid out over the last ten years.
Saying that the stock markets had contributed significantly to the growth of the Indian economy, Goyal pointed out that stock markets did not seem to have been affected much by the higher securities transaction tax imposed on the derivatives segment.
“The way the markets are going, doesn’t seem like any impact of higher STT,” Goyal said.
The Budget raised the STT in the futures and options segment to 0.02 per cent from 0.01 per cent in an obvious attempt to cool down excessive speculation in derivatives trades. This was supposed to dampen sentiments, but the stocks markets shook it off and ended the week at record levels.
With reference to the hike in taxes - in addition to the STT, the budget also increased short term and long term capital gains on financial assets - Goyal said the government had a responsibility for equitable growth and reach those segments who have not participated in the economic growth so far.
When seen in a wider context the money from increased taxes would be going into infrastructure, employment generation schemes, rural roads, rural housing and urban housing, slum rehabilitation, airports, ports, railways, urban transport systems, digital connectivity, renewable energy and would have a multiplier effect on the economy both in the short and long term, said Goyal.
“The country’s competitiveness will increase through these investments in infrastructure projects.”