New Delhi, September 14: Amid the reports of an economic slowdown in the country, Union Finance Minister Nirmala Sitharaman on Saturday claimed that inflation is under control and there is a clear sign of revival of industrial production. She also mentioned that the revival in the FDI flows -- between Fiscal Year (FY) 18-19 and FY 19-20 -- is indicative. Manmohan Singh Presents 5-Point Remedy to Tackle Economic Slowdown, Wants Modi Govt to Look Beyond 'Headline Management'.
Addressing a press conference from the National Media Centre in New Delhi, Union Finance Minister stated, "We see a clear sign of revival in the industrial sector. The revival of the fixed investment rate is also visible." Adding more, she said that she would meet chiefs of public sector banks on September 19 to discuss the issues related with recent bank mergers.
The Finance Minister opined that there is an increased and improved flow of credit from the banks. Sitharaman announced that mega shopping festivals would be held in four places in India across 2020, to attract people from all over the globe in a bid to push Indian business, exports and tourism. Growth of 8 Core Sectors Recedes to 2.1% in July Vis-a-Vis 7.3% Last Year.
Among the slew of measures taken by the Union Finance Ministry to give a boost to the economy, include fully electronic refund module for Input Tax Credit under GST, higher insurance cover to banks lending for exports, new scheme for textile exports from January 1, action plan to reduce turn around time at airport and setting up of FTA (Foreign Trade Agreement) Utilisation Mission -- headed by a senior officer in Department of Commerce, to work with FIEO.
Apart from this, Sitahraman also announced that the Narendra Modi government would set up export houses to utilise concessional tariffs in each FTA and revise priority sector lending norms for export credit. She stated, "Time-bound adoption by Industry of all necessary mandatory technical standards. Effective enforcement will elevate quality and performance, enhance competitiveness and address the issue of sub-standard imports." GDP Growth Slips to 5% in April-June Quarter, Down From 5.8% in Q4 of Last Financial Year
Also, she mentioned, "Rs 36,000 crore to Rs 68,000 crore of credit will be available for exports after priority sector lending tag." Adding on, Sitharaman said that her ministry would offer higher insurance cover to banks lending working capital for exports in a move which will cost Rs 1,700 crores per annum to the government.