The world countries are under threat of a severe global economic crisis in the coming months. The trade war between America and China is expected to worsen the situation further. However, India is confident of escaping from its impact by taking efficient steps. Despite this, the Modi government is already feeling the pinch of economic slowdown. India’s growth rate fell to a steep 2.1 per cent in July this year when compared to 7.2 per cent in the corresponding month in 2018.
The Centre has initiated preventive measures by reducing interest rates on loans, etc. The government is hopeful of India not feeling major impact of global recession. However, the Modi Circar has received a big shock due to a fall in the GST collections in the country.
Reports say that GST collections are just Rs. 98,202 cr as against Rs. 1.02 lakh cr in July. The industry is looking for reductions in GST for manufacturing sector to overcome the crisis. If the country is to meet the revenue targets, the GST collections should go above Rs. 1 lakh crore every month. This year, less than Rs. 1 lakh cr GST was collected twice, which is being termed as alarming for the country’s economy.
