Mumbai: "If Maharashtra’s economic capabilities were taken into account seriously, the decision regarding the Vadhavan Port would have been made 20 years ago. However, this decision was finally taken after Narendra Modi became the Prime Minister," pointed out Central Finance Minister Nirmala Sitharaman while addressing an event in Mumbai organised to shed light on the Union Budget.
Citing Maharashtra as a prime destination for investment, Sitharaman hailed the state's industry-friendly policies and said these have played a crucial role in boosting exports, particularly in the defence sector, with the state contributing significantly to India's Rs 24,000 crore defence exports.
Finance Minister Sitharaman pointed out that India’s strong economic condition has led to strong stock market performance, assuring investors good returns. "Investors are getting good returns in the stock market owing to strong economic condition of the country. Maharashtra's industry-friendly policies enjoy strong support from the Central Government. We always keep in mind Maharashtra's strategic importance, which in turn benefits the state immensely," said the Finance Minister.
75% of Taxpayers Adopted New Tax Regime Already
Addressing taxation and the new tax rules, Sitharaman revealed that 75 percent of taxpayers have already transitioned to the new tax structure, and the remaining can choose between the old and new systems as per their convenience. She said the old tax structure would eventually phase out as more people switch to the new system.
Sitharaman further expressed confidence that the measures implemented by the central government and the policies announced by Reserve Bank of India (RBI) will help keep country's inflation in check.
Sitharaman On US Reciprocal Tariff
Speaking on US President Donald Trump's announcement regarding imposition of reciprocal tariff, the finance minister said the Indian government is working on reforms related to anti-dumping duties and customs regulations to boost investment opportunities. "Many goods imported from the US already have low import duty, while soon there will be discussion on the goods on which higher duty is levied," she said.
Insurance Cover For Bank Deposits
Sitharaman said that currently, bank deposits up to Rs 5 lakh are insured. A proposal is under consideration to increase the insurance limit beyond Rs 5 lakh, she said, adding that this will provide a financial security in case of bank failures or RBI-imposed restrictions. "If in case the RBI imposes restrictions on a bank or the bank fails, an amount of up to Rs 5 lakh will always be available," she explained.
Regarding cooperative banks, the Finance Ministry clarified that country's Cooperative banking system is stable. "In case banks struggle, RBI being a regulatory body, implements adequate measures. However, it would be unfair to doubt the functioning and status of all cooperative banks in the country due to the performance of one or two banks," she said.
Petrol And Diesel Under GST
Union Minister of State for Finance Pankaj Chaudhary said, "The Central Government has made legal provisions to bring petrol and diesel under the purview of GST, but the final decision lies with the state government(s). Once the state(s) make a decision in this regard, the central government can move ahead accordingly. The GST Council, which comprises the central government and finance ministers from all states, must reach a consensus before any such implementation."
