NEW DELHI: Chief economic advisor Krishnamurthy Subramanian on Friday said that the government’s economic reforms are showing its impact. Addressing the media, Subramanian also spoke on the road towards the $5 trillion economy and support for the small and medium businesses.
“Evidence of measures to boost investment is actually seen in the record FDI inflows – $35 billion in the first half of 2019-20 as against $31 billion during the same period last year. It’s a good sign of foreigners seeing India as a very important destination,” Subramanian said.
Also, capitalisation of public sector banks and giving last-mile funding to realty projects was announced.
As much as Rs 4.47 lakh crore has been sanctioned to non-banking financial institutions and housing finance companies to support retail lending, he said, adding that 17 proposals amounting to Rs 7,657 crore had been approved under partial credit guarantee scheme.
Also, 66 per cent of budgeted capex of Rs 3.38 lakh crore has already undertaken, he said.
He further added that more than 8 lakh repo-linked loans amounting to Rs 70,000 crore have been sanctioned till November 27.
It is widely believed that finance minister Nirmala Sitharaman may announce more measures to lift the economy. India’s economy grew at its slowest pace in over six years — 4.5 per cent — in the September quarter amid by weak manufacturing, falling consumer demand and private investment.
Replying to a question on whether the economic growth with pick in the second half (H2), Sitharaman stated that “the second half is not over yet”.
(Finance minister Nirmala Sitharaman while briefing the media)
FM on GST rates
On reports of hike in GST rates, she said that “the buzz is every where else, except my office”. Although, the finance minister didn’t rule out the possibility.
When asked to comment on the rising onion prices, she said: “Onions are a fast perishable commodity. Due to rain in some places, flooding in some other, crop extent was less and hence the less output. Due to this it has gone out of certain reasonable level.”
The finance minister also commented on Congress leader Rahul Gandhi’s “rape in India” remark and termed the statement as “horrendous”. “It’s a matter of shame that a senior leader of Congress party speaks forgetting the dignity of women,” she said.
With states not being paid compensation for loss of revenue from implementation of GST since August, Sitharaman on Thursday assured the Centre will honour its commitment but did not say by when the dues will be cleared.
States — that surrendered powers to collect taxes on goods and services after local levies got subsumed into the Goods and Services Tax (GST) from July 1, 2017 — was through legislation guaranteed to be paid for any loss of revenue in the first five years of GST implementation.
(With PTI inputs)