PM takes stock as markets tumble
Economy on sound footing, crisis an opportunity for India, says Jaitley, rules out stimulus package
NEW DELHI: As the Sensex and the rupee plummeted to new lows, Prime Minister Narendra Modi on Monday held a meeting with finance minister Arun Jaitley and other senior officials to take stock of the situation. The Prime Minister has asked his government to take all necessary steps to further strengthen the economy, in order to turn the crisis into an opportunity and step into the vacuum that a slowdown in China is likely to create.
Briefing the media, Jaitley said that the challenge is to convert this situation into opportunity. “Our growth projection is going to be broadly maintained even in the wake of global adversities. Our own analysis is that...But for the impact on the Indian currency and stock markets, all other parameters are on sound footing,” the finance minister said, adding that public expenditure has also increased significantly.
Detailed consultations would be held with all stakeholders, including the private sector, to put in place a mechanism at the earliest to attract investments and position India as the driver of global growth, he added.
Ruling out any immediate stimulus package, Jaitley said: “We are not thinking of any stimulus package as our internal situation is strong, we have had a reasonable monsoon, there has been a pick up in the industrial production... demand will also pick up.”
The Reserve Bank of India and the Securities and Exchange Board of India were closely watching the situation, he added.
Minister of state for finance Jayant Sinha said India will continue to remain an attractive investment destination. “It is a good opportunity given our favourable demography and growth projections as commodity prices come down,” he added.
Chief economic adviser Arvind Subramanian said there is a fundamental reassessment of global markets broadly.