New Delhi: Union Finance Minister Nirmala Sitharaman,announced some important decisions, given the reduced economic growth rate and the stunted growth rates in certain sectors. Special announcements have been made to incentivise the export and housing sector. These include financial assistance of ₹500 billion for the export and ₹100 billion for the housing sector. The Union Finance Minister claimed that positive effects of the previously announced decisions, to enhance the growth rate, are already visible. Finance Minister Sitharaman pointed out that inflation under control, clearly indicates that there is a growth in the industrial output.
Fears of a global recession are being expressed against the background of the global trade wars and other developments at the international level. The effects are apparent even in the Indian Economy. The growth rates of the big economies also have plummeted and the Indian economic growth rate is still better as compared to them. But the growth rate has reached the lowest in six years. Against this background, Finance Minister Sitharaman made some important announcements on Saturday. This is the third time in the last 20 days that the Finance Minister has taken important decisions, to provide an impetus to the Economy.
She had announced a capital provision of ₹ 700 billion to the banks and also withdrew the surcharge announced on the investments, coming from the Foreign financial institutions. Announcement of bank mergers was also made. Some other important decisions also were taken in this period.
A few more decisions in the series were announced on Saturday. But while announcing the decisions, Finance minister Nirmala Sitharaman boldly underlined that the prior decisions are already showing encouraging effects. The inflation index is also under control and is under 4%. Sitharaman said that this clearly indicates an increase in industrial production.
At the same time, the Finance Minister made some important announcements for the housing sector. Finance Minister Sitharaman announced financial assistance of ₹ 100 billion for the housing projects 60% completed but currently stalled. This will help complete the stalled projects and will bring relief to the consumer.
Finance Minister Sitharaman clarified that the projects with an NPA tag would not be eligible for this assistance. Moreover, a window will be created for house purchase. This will make it easy to purchase a house and avail home loans. Finance Minister Sitharaman announced that the government would be amending the regulations to provide an impetus to the affordable housing projects. She also said that the policy for including houses costing up to ₹ 4.5 million in affordable housing has shown positive results.
Union Finance Minister Sitharaman announced an incentive scheme for the export sector. The policy Remission of Duties or Taxes on Export Production (RODTEP) was announced for the export sector. This scheme will replace the existing MIAS scheme. The exporters will benefit by ₹ 500 billion, in tax exemptions. Moreover, the Union Finance Minister also announced initiating a mission for special FTA agreements. Under this mission, discussions will be held with various export trade organisations and agreements will be finalised. The information regarding tax concessions offered by the government will be reached to the importers and exporters. Finance Minister Sitharaman also said that the rules would be amended to facilitate a reduction in export time, improving the quality of goods and fresh investments. Moreover, four mega shopping festivals will be organised before the year 2020.
The exports reduced by 6.05% in August to $26.13 billion, as compared to the same period last year. Against this background, the government seems to be focusing on the export sector, as such a big employment generator.