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India’s new government is developing a plan to increase economic growth, which has fallen to its lowest level in nearly 20 years. The government led by the Bharatiya Janata Party of Prime Minister Narendra Modi is expected to be more friendly to business. And it has promised greater opportunities for foreign investors. Finance Minister Arun Jaitley recently presented the new government’s first budget. The Indian economy has grown at only five percent for each of the last two years. Mr. Jaitley presented the yearly budget six weeks after the Bharatiya Janata Party came to power. The party is trying to find chances for the 1 million people who enter the workforce every year. Mr. Jaitley said the new budget would set the government on a path to higher economic growth. Indian and foreign investors closely examined the government’s first budget. They questioned if Prime Minister Modi could raise business support in the country. He had been popular with the business community in Gujarat State where he served as chief minister. The government announced several economic reforms to show that it plans to help business. One permits more private investment in the defense and insurance industries. That amount was increased from 26 to 49 per cent. The government also promised a bigger part for private industry in the improvement of roads, railroads, airports and other systems. It also announced measures to help manufacturing. The government said it will establish a simpler goods and services tax to make it easier to do business across the country’s 29 states.
