Centre readies booster dose to rev up economy Chief economic adviser Arvind Subramanian gets oneyear extension
SLOWDOWN BITES Thrust on MSME, infra, banks and job creation
NEW DELHI: The government’s expected measures to revive a stuttering economy could mainly target the MSME sector and involve a re-look at public-private project norms to boost investment without breaching its fiscal deficit target for the year, officials involved in the process told HT.
Besides, the government is looking at recapitalisation of banks, issuing infrastructure bonds, and a package to boost manufacturing of electric vehicles in India.
Different ministries are working together to chalk out measures to rev up the ailing economy, once hailed as the “only bright spot” in the world. In a series of meetings over three days since September 16, Union finance minister Arun Jaitley met ministers Suresh Prabhu and Piyush Goyal, along with officials from the ministries of finance, rail and commerce. Officials from NITI Aayog and PMO were also present.
Earlier this week, the finance minister was quoted as saying that the government has taken note of the economic indicators MSME sector likely to be key thrust area
Govt could double working capital requirement norm from 90 to 180 days
Govt may have a re-look at public-private project norms to and measures would soon be taken to address them.
“I have had a series of discussions with some of my ministerial colleagues, secretaries and other experts within the government,” Jaitley told reporters after a cabinet meeting on Wednesday. He refused to divulge details saying that the plan would first be presented to PM Narendra Modi.
India’s economic growth slumped to a 3-year low of 5.7% in boost investment
Bank recapitalisation, infra bonds, package to boost electric vehicles other items on table
Measures unlikely to disturb govt’s fiscal calculations. the April-june quarter, which many experts attributed to last year’s demonetisation of 500 and 1,000-rupee notes that sucked out 86% of the currency in circulation from a largely cash-reliant economy.the MSME sector has been in focus as it’s still reeling under the effects of demonetisation and GST. NEW DELHI: India’s chief economic adviser Arvind Subramanian —whose three-year term was to end in October — has been given an extension of one year, finance minister Arun Jaitley said on Saturday.
Subramanian, a senior fellow at the Peterson Institute for International Economics, was appointed chief economic adviser in October 2014.
Addressing the media, Subramanian said, “We have lots of challenges ahead. We have seen growth slowing down and investment not picking up... so we have to attack the problem on many fronts — exchange rate, public investments while maintaining macroeconomic stabiliity.”