The government is working on an action plan to reduce the impact of a steep rate increase of 50 percent imposed by the US on Indian shipments, said Secretary of Economic Affairs Anuradha Thakur.
“There are certain sectors in employment that have heavy sectors that can be influenced by the US and to the extent that the government is well aware of it and assesses the possible impact and working on possible solutions,” she said PTI in an interview.
By the way, the Ministry of Economic Affairs (DEA) Secretary said that the government has taken a few steps and that more is popping up near the domestic demand, which can also offer some support to production units that feel a heat of American rates.
The government in the budget had announced zero income tax for income up to £ 12 lakh under the new tax regime that offers considerable savings to taxpayers. The government has also announced that GST reforms must be carried out in terms of rationalization of the rate, which is expected to lower the prices of many raw materials.
Moreover, better than the expected monsoon will stimulate agricultural production and, in turn, further raise the national demand.
Thakur radiated the confidence that the government is on its way to achieving the tax -shortage objective of 4.4 percent in the budget, despite temporary mismatches that may have been exhibited in the latest monthly numbers.
The statement presupposes the meaning in the light of the tax deficit of the center to 29.9 percent of the purpose of the entire year at the end of July against only 17.2 percent of the budget estimates in the same period of the last financial year.
“So this question (to achieve the goal) was discussed because of the latest figures. I would like to say that from a quarter to a quarter or month per month assessments of tax deficit numbers may not give a correct picture because of temporary mismatches, which can come to the reception and expenditure side.
“About the general tax deficit that our assessment is so far is that we can reach the target,” she said.
The center estimates the tax deficit in 2025-26 on 4.4 percent of the gross domestic product (GDP) or £ 15.69 Lakh Crore.
Thakur emphasized that the basic principles of the economy remain strong and even private consumption figures that came out on Friday show positive movement.
The gross capital formation numbers also showed that both the public and private capex are strong and there is an expectation that they should also be steadfast in the coming quarters.
“Government Capex has been a big factor to maintain our figures so far and not only on the side of the tax deficit, but the growth numbers remain robust from now on,” she said.
Thakur said it reflects the broad nature of economic expansion.
“Q1 figures reflect the basic spring power of our economy. It reflects the reinforcement of the momentum in the economy and it is anchored in strong macro -economic Fundamentals,” she said.
In the future, Thakur said: “We believe that the basic characteristics or factors that come in handy in the first quarter are good performance of the production, construction and service sectors and strong growth on the agricultural side, as well as domestic demand factors that have strengthened growth.” The Indian economy grew with a stronger than expected 7.8 percent in April-June, the fastest pace in five quarters.
The GDP growth in the first quarter of the current financial year was mainly driven by a good show by the farm sector, and also helped by services such as trade, hotel, financial and real estate, according to the last government data released on Friday.
The previous highest pace of growth in GDP of the country was registered at 8.4 percent in January March 2024, according to the data.
India remains the fastest growing large economy, because the GDP growth of China in the period of April-June was 5.2 percent.
Published August 31, 2025
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