India's GDP growth is likely to cross 8 per cent in the next two years and the government is taking a number of steps including formulation of a new industrial policy to double the economy's size to USD 5 trillion in 7-8 years, Commerce Minister Suresh Prabhu said on Friday.

"We are working on few strategies to boost economic growth. We are now seeing an upsurge," he told reporters here while talking about the achievements of the government during the last four years.

Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal.

"I should not be surprised that in the next few quarters, say next 2 years for sure, we will be very close to or cross 8 per cent growth and that is coming out of strong performance of so many sectors," he said.

India's GDP grew at the fastest pace in seven quarters at 7.7 per cent in the January-March quarter of last fiscal, retaining the fastest growing major economy tag on robust performance by manufacturing and service sectors as well as good farm output.

On yearly basis, however, it grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal.

Prabhu said that to facilitate the 8 per cent potential growth, the government is working on several areas including formulation of a new industrial policy, "which is going to make India ready for the fourth industrial revolution and beyond".

"We have created a vision for USD 5 trillion economy in which USD one trillion will come from manufacturing, USD 3 trillion from services and USD one trillion agriculture and allied sector," he added.

When asked about the impact of the RBI's decision this week to raise the benchmark lending rate by 0.25 per cent, the minister said: "I do not think it should hamper investments".

On his US visit next week, Prabhu said that he would meet his counterpart and industry leaders and raise India's concerns about tightening visa regime in the US and its impact on Indian IT sector.

"We will be raising the visa issue because we feel that Indians and their spouses are facing some issues there," he said, adding, "we will explaining our position. It is not a formal trade talk..There is no huge expectations".

On the US challenging India's export support programmes, Prabhu said he would explain that those measures are not subsidies and instead ways to partially offset various additional costs incurred by them.

"Our export support regime is not violating any of the WTO rules," he said.

"We are also working to make sure that there is a proper clarity on this. But what we are doing today is not violating any WTO rule," he added.

On the proposed mega trade deal - Regional Comprehensive Economic Partnership (RCEP), Prabhu said India is actively engaged in the negotiations and also holding bilateral talks with member countries including China, Australia and New Zealand.

"What we are saying in RCEP is that it is a comprehensive economic partnership pact and in this services should be an integral part of the agreement," he added.

Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal.

India's GDP growth is likely to cross 8 per cent in the next two years and the government is taking a number of steps including formulation of a new industrial policy to double the economy's size to USD 5 trillion in 7-8 years, Commerce Minister Suresh Prabhu said on Friday. "We are working on few strategies to boost economic growth. We are now seeing an upsurge," he told reporters here while talking about the achievements of the government during the last four years. Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal. "I should not be surprised that in the next few quarters, say next 2 years for sure, we will be very close to or cross 8 per cent growth and that is coming out of strong performance of so many sectors," he said. India's GDP grew at the fastest pace in seven quarters at 7.7 per cent in the January-March quarter of last fiscal, retaining the fastest growing major economy tag on robust performance by manufacturing and service sectors as well as good farm output. On yearly basis, however, it grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal. Prabhu said that to facilitate the 8 per cent potential growth, the government is working on several areas including formulation of a new industrial policy, "which is going to make India ready for the fourth industrial revolution and beyond". "We have created a vision for USD 5 trillion economy in which USD one trillion will come from manufacturing, USD 3 trillion from services and USD one trillion agriculture and allied sector," he added. When asked about the impact of the RBI's decision this week to raise the benchmark lending rate by 0.25 per cent, the minister said: "I do not think it should hamper investments". On his US visit next week, Prabhu said that he would meet his counterpart and industry leaders and raise India's concerns about tightening visa regime in the US and its impact on Indian IT sector. "We will be raising the visa issue because we feel that Indians and their spouses are facing some issues there," he said, adding, "we will explaining our position. It is not a formal trade talk..There is no huge expectations". On the US challenging India's export support programmes, Prabhu said he would explain that those measures are not subsidies and instead ways to partially offset various additional costs incurred by them. "Our export support regime is not violating any of the WTO rules," he said. "We are also working to make sure that there is a proper clarity on this. But what we are doing today is not violating any WTO rule," he added. On the proposed mega trade deal - Regional Comprehensive Economic Partnership (RCEP), Prabhu said India is actively engaged in the negotiations and also holding bilateral talks with member countries including China, Australia and New Zealand. "What we are saying in RCEP is that it is a comprehensive economic partnership pact and in this services should be an integral part of the agreement," he added.

Economic growth may cross 8% in next 2 years: Suresh Prabhu

The government today announced a reduction in women employees&#39; contribution to EPF to 8 per cent for first three years and extended the fixed-term employment facility to all sectors to create more jobs.

Besides, it also proposed to extend the facility of payment of 12 per cent employers&#39; contribution by government towards social security schemes run by Employees Provident Fund Organisation (EPFO) for new employees for first three years of their employment to all sectors.

&quot;To incentivise employment of more women in the formal sector and to enable higher take home wages, I propose to make amendments in the Employees Provident Fund and Miscellaneous Provision Act 1952, to reduce women employees&#39; contribution to 8 per cent for first three years of their employment against existing existing rate of 12 per cent or 10 per cent with no change in employers&#39; contribution,&quot; Finance Minister Arun Jaitley said in his Budget Speech today.

&quot;The government will contribute 12 per cent of the wages of the new employees in the EPF for all the sectors for next three years. Also the facility for fixed-term employment will be extended to all sectors,&quot; he said.

At present, the fixed term employment facility is available to sectors employing large number of workers like textiles, leather and footware under the the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).

The government pays 8.33 per cent of basic wages as employers&#39; contribution toward Employees&#39; Pension Scheme (EPS) for other sectors and the firms are paying 3.67 per cent as their share of contribution towards Employees Provident Fund under the PMRPY.

The government claimed that such measures in the past have been paying dividends and would result in creation of 70 lakhjobs this year as per an independent study.

&quot;Proposed changes to PF scheme by way of Government PF contributions for new employees and reduced PF contributions by employers for women for first three years will help in promoting employment growth, and more so for employment of women,&quot; said Alok Agrawal, Senior Director, Deloitte Haskins &amp; Sells.

The Budget 2018-19 also proposed to bring in liberalised scope of employment generation incentives available under 80JJAA of the Income Tax Act.

Currently, a deduction of 30 per cent is allowed in addition to normal deduction of 100 per cent in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act.

However, the minimum period of employment is relaxed to 150 days in the case of apparel industry.

The minister said, &quot;In order to encourage creation of new employment, I propose to extend this relaxation to footwear and leather industry. Further, I also propose to rationalise this deduction of 30 per cent by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year.&quot;

Commenting on these budget proposals, Bharatiya Mazdoor Sangh ?Zonal Secretary Pawan Kumar said, &quot;This budget is a total disappointment. The proposal to reduce women&#39;s EPF contribution to 8 per cent from existing 12 per cent of wages would be possible only after the amendment in the Employees&#39; Provident Fund and Miscellaneous Provisions Act.&quot;

He further said that the government had earlier decided to make provident fund contributions optional for employees in apparel and made-ups sector under a policy but it could not be implemented because the Act was not amended for the purpose.

Similarly, he said that the proposal to reduce women&#39;s EPF contribution would require an amendment in the Act and seems more like populist announcement in view Lok Sabha polls due next year.

Under the social security scheme run by the EPFO, the employees contributes 12 per cent of their basic wages which goes into their Empoloyees&#39; Provident Fund account.

Employers also makes a matching contribution of 12.5 per cent out of which 8.33 per cent goes into Employees Pension Scheme and 3.67 per cent is deposited into employees&#39; EPF account. The employer also pays 0.5 per cent of basic wages towards Employees&#39; Deposit Linked Insurance Scheme.&nbsp;

The government claimed that such measures in the past have been paying dividends and would result in creation of 70 lakhjobs this year as per an independent study.

The government today announced a reduction in women employees' contribution to EPF to 8 per cent for first three years and extended the fixed-term employment facility to all sectors to create more jobs. Besides, it also proposed to extend the facility of payment of 12 per cent employers' contribution by government towards social security schemes run by Employees Provident Fund Organisation (EPFO) for new employees for first three years of their employment to all sectors. "To incentivise employment of more women in the formal sector and to enable higher take home wages, I propose to make amendments in the Employees Provident Fund and Miscellaneous Provision Act 1952, to reduce women employees' contribution to 8 per cent for first three years of their employment against existing existing rate of 12 per cent or 10 per cent with no change in employers' contribution," Finance Minister Arun Jaitley said in his Budget Speech today. "The government will contribute 12 per cent of the wages of the new employees in the EPF for all the sectors for next three years. Also the facility for fixed-term employment will be extended to all sectors," he said. At present, the fixed term employment facility is available to sectors employing large number of workers like textiles, leather and footware under the the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). The government pays 8.33 per cent of basic wages as employers' contribution toward Employees' Pension Scheme (EPS) for other sectors and the firms are paying 3.67 per cent as their share of contribution towards Employees Provident Fund under the PMRPY. The government claimed that such measures in the past have been paying dividends and would result in creation of 70 lakhjobs this year as per an independent study. "Proposed changes to PF scheme by way of Government PF contributions for new employees and reduced PF contributions by employers for women for first three years will help in promoting employment growth, and more so for employment of women," said Alok Agrawal, Senior Director, Deloitte Haskins & Sells. The Budget 2018-19 also proposed to bring in liberalised scope of employment generation incentives available under 80JJAA of the Income Tax Act. Currently, a deduction of 30 per cent is allowed in addition to normal deduction of 100 per cent in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. The minister said, "In order to encourage creation of new employment, I propose to extend this relaxation to footwear and leather industry. Further, I also propose to rationalise this deduction of 30 per cent by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year." Commenting on these budget proposals, Bharatiya Mazdoor Sangh ?Zonal Secretary Pawan Kumar said, "This budget is a total disappointment. The proposal to reduce women's EPF contribution to 8 per cent from existing 12 per cent of wages would be possible only after the amendment in the Employees' Provident Fund and Miscellaneous Provisions Act." He further said that the government had earlier decided to make provident fund contributions optional for employees in apparel and made-ups sector under a policy but it could not be implemented because the Act was not amended for the purpose. Similarly, he said that the proposal to reduce women's EPF contribution would require an amendment in the Act and seems more like populist announcement in view Lok Sabha polls due next year. Under the social security scheme run by the EPFO, the employees contributes 12 per cent of their basic wages which goes into their Empoloyees' Provident Fund account. Employers also makes a matching contribution of 12.5 per cent out of which 8.33 per cent goes into Employees Pension Scheme and 3.67 per cent is deposited into employees' EPF account. The employer also pays 0.5 per cent of basic wages towards Employees' Deposit Linked Insurance Scheme.

Budget 2018: EPF contributions of women employees cut to 8% for first 3 years

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Economic growth may cross 8% in next 2 years: Suresh Prabhu

Budget 2018: EPF contributions of women employees cut to 8% for first 3 years