SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 15 Aug, 2019  

Sitharaman.9.Thmb.jpg Modi meets Sitharaman, reviews economy

Sitharaman.9.jpg
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
SME Times News Bureau | 15 Aug, 2019

Prime Minister Narendra Modi on Thursday took stock of the prevailing economic situation of the country with Finance Minister Nirmala Sitharaman on Thursday.

Official sources, however, said such meetings are routine, emphasising that any stimulus would be through policy intervention rather than through any fiscal incentive directly.

All the five Finance Ministry secretaries were present present during the meeting.

Sources said it is difficult to expect some specific outcome from the meeting, adding Sitharaman briefed the Prime Minister on the feedback she has received from the industry through a series of meetings with them.

There was no official comment on the meeting between Modi and Sitharaman.

Officials declined to comment if there would be a rollback or reconsideration of the surcharge on the super rich where FPIs not registered as companies are being affected.

According to latest depositories data, foreign portfolio investors (FPIs) withdrew Rs 11,134.60 crore from equities during August 1-9. Overseas investors have been on a selling spree ever since a higher tax on FPIs registered as trusts and association of persons was announced in the Budget.

The surcharge has taken effect after presidential assent to the Finance Bill, but the government is yet to notify it. The Finance Minister held a meeting with market participants, including FPIs, to take stock of the issues they face. FPIs pitched for a rollback of the increased surcharge and removal of long-term capital gains tax on equities to perk up market sentiment.

Earlier in the week, the auto industry reported that in July 2019, sales have hit rock bottom, recording the biggest year-on-year (YoY) sales decline of 30.98 per cent which the auto industry has witnessed in almost two decades. It was in December 2000 that the industry had faced a bigger YoY decline than the current slippage. The downturn is a result of the overall economy slowdown which has taken a toll on the customer sentiment and the passenger vehicle (PV) segment which was the fastest growing segment in terms of sales has taken the strongest blow, as per SIAM data.

Auto industry is unanimous on its demand for GST cut to 18 per cent from the current 28 per cent to tackle the slowdown.

Sources said given the limitations of the government finances, a stimulus would not have any revenue impact on the economy and would be more of a policy intervention.

On Tuesday, the government notified 'Partial Credit Guarantee Scheme' for state-run banks to provide a one-time partial credit guarantee to public sector banks for purchase of pooled assets of financially-sound NBFCs. This is expected to open credit line up for NBFCs and also free the NBFCs of the dud assets.

The RBI also has also taken the unprecedented step of cutting 35 bps in repo rate which is equally aimed at lowering cost of borrowing for auto, housing and consumer loans which are at the core of consumption revival.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter