Government giving sector-specific solutions to fight slowdown: FM Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman on Thursday said the government is giving sector-specific solutions to fight the slowdown in economic growth.
Sitharaman, however, parried a specific question on whether the government accepts, if the country is in the midst of an economic slowdown.
India's GDP expansion has slowed to a six-year low of five percent for the June quarter. This has led to a rash of downward revisions in expectations, including from the Reserve Bank of India (RBI), which now expects GDP growth to come down to 6.1 percent in FY20.
The government has taken a slew of measures, including a massive cut in corporate taxes to revive economic growth, even at the cost of sacrificing revenues.
Hinting at other measures like steps to improve exports, easing credit, making more money available by early repayments to vendors and front-loading of banks recapitalisation, Sitharaman said the government has been working on sector-specific measures.
"We are giving relief to all sectors who need help," Sitharaman said.
Her comments came hours after global ratings agency Moody's Investors Service sharply cut its FY20 GDP growth forecast for India to 5.8 percent.
In another development, Finance Minister will hold a review meeting with CEOs of public sector banks (PSBs) next week to discuss various issues, including progress on credit offtake.
The meeting, scheduled to be held on October 14, is expected to review fund flow to stressed NBFC and MSME (micro, small and medium enterprises) sectors, sources said.
Banks are expected to present report card on partial credit guarantee scheme and fund raising from market to enhance their capital base.
This will be the second meeting of Sitharaman with CEOs of PSU banks in less than a month.
Additionally, the Centre will also review loan delivery through 'psbloansin59minutes' portal.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Suman Singh)