“But the developments attached with it, things which go into the making of that number, they're all voiced by you (industry), between July and September, so many times frequently to me, and to the various other ministers, that we were able to… respond in time,” Sitharaman said at the Economic Times Awards for Corporate Excellence in Mumbai. “Maybe on many occasions, not really adequately but (the government) did respond in time.”
The government has already indicated its willingness to address sectoral stress.
“We are willing to hear, willing to react, willing to give interventions when necessary,” she said & asked the industry to “feel absolutely free to convey your sense of what is going on so that the government is a responsive government.”
Stating that “it has been a scattered attempt over the three months,” she listed at least 10 of the 36 major steps that the government has taken to boost the economy and spur growth.
Separately, a task force has begun reaching out to companies that want to move out of
China, especially with India having lowered the corporate tax rate to 22% from 30%.
“The last count I came to know was about 12 of them have already been spoken to, their minds understood, their expectation listed out so that the government can come up with a concrete offer for them to shift from where they are now,” she said.
On the issue of liquidity, the minister said it wasn’t a question of fund scarcity. With the Reserve Bank of India at the side of the government, it’s clear that business didn’t have enough access to credit.
Referring to public sector banks disbursing loans worth Rs 2.5 lakh crore in October as part of the outreach programme in 400 districts, she said: “I can see somewhat that that kind of spend has helped in somewhat reviving the consumer spirits and purchases (have) gone up.”
Her statement assumes significance in the wake of private consumption slowing to 5% growth in the September quarter against 9.8% a year earlier, though that’s an improvement over 3.1% in the June quarter this year.
“I also hope that will lead to a lot more improvement in tax collections,” she said.
On the partial credit guarantee (PCG) scheme under which pooled assets of nonbanking finance companies (NBFCs) can be bought over by banks, Sitharaman said “things have been a bit slow”.
Emphasising anonymous assessment with respect to direct taxes, the minister assured that tax administrators will not do anything which can be construed as harassment.
She also said that the government is seeking to simplify the goods and services tax (GST) system by rationalising the many slabs even as items of essential use are kept at the lowest rate if not exempted.
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29 Comments on this Story
Indan at heart326 days ago
Acche Din Aaenge, Nirmala leke aaenge, Sensex Nifty aur upar jaenge, Amit Shah aaenge, aur MLA/MP kharidke laaenge, Feku ke aur Jumle aaenge, sabki nend udaenge, Aam aadmi aaenge, pakoda chai khaenge, batti bujaenge, khuja ke so jaenge
Sheo Nandan Pandey326 days ago
It is great that the Indian FM has at least changed her wordings much less stance on the issue of Indian economic slow down/ recessionary spiral. He was earlier on denial track. Govt. step in the present form was too little and too late. Worst that the demoralization of the economic actors does not seem to revert back.
Umesh Agrawal327 days ago
Madam please resign citing some personal reason and get replaced by Subramanyam Swami