Sending positive signals, Finance Minister Nirmala Sitharaman has on Thursday said that the government will announce more measures to boost the economy in the coming weeks.
Addressing a press conference, she said that the government recognised that consumption required a boost. The government will increase the spend on infrastructure as this is a priority sector, she said.
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The initial response to the government's initiative has been positive and encouraging, said the finance minister adding that the interaction with the industry stakeholders and others would be a continuing process.
The government may next announce a package for the realty sector which has been hit hardest due to current slowdown and credit crunch due to NBFC issues, said a report in The Economic Times.
On Wednesday, the government allowed 100 percent foreign investment in coal mining and contract manufacturing, eased sourcing norms for single-brand retailers and approved 26 percent overseas investment in digital media as it looks to boost economic growth from a five-year low.
Coming within a week of Sitharaman unveiling a raft of measures to boost growth, the Union Cabinet headed by Prime Minister Narendra Modi liberalised foreign direct investment (FDI) rules in the four sectors.
"The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment, and growth," Commerce Minister Piyush Goyal told a media briefing after the meeting of the Union Cabinet.
Last week, Sitharaman had announced the rolling back of recent tax hikes on foreign and domestic equity investors and also the acceleration of a capital infusion of $10 billion into state-run banks, she said late on Friday, in an attempt to boost market sentiment and revive the slowing economy.
Echoing Prime Minister Narendra Modi's Independence Day speech talking of respect for wealth creators, she said this was the spirt of her budget for FY20.
The government also outlined a raft of measures including some for the crisis-hit autos sector, small businesses, and the troubled shadow banking sector to calm nerves of investors and lift consumer sentiment ahead of the Indian festive season that begins next month.
On 23 August, the finance minister had announced a slew of measure, from the ease of doing business to faceless scrutiny of tax returns, for startups.
Seeking to dispel doubts over the economy and government's growth agenda, Sitharaman said India's GDP continues to grow at a faster pace than the global economy and any other major economy.
Global GDP growth may be revised downwards from the current estimate of 3.2 percent, she said adding that globally the demand was going to be weak. But the Indian economy was growing faster than the global average and all other major economies, Sitharaman added.
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Updated Date: Aug 29, 2019 20:12:07 IST