Finance Minister To Meet Industry Representatives To Discuss Slowdown
Finance Minister Nirmala Sitharaman will hold a series of meetings with representatives from various industries, including the automobile sector, before announcing measures to revive the slowing economy.
The government will look into the issues faced by various sectors of the economy, and come up with appropriate policy responses, Sitharaman said after meeting with heads of public sector banks and some private lenders.
That comes after retail auto sales fell for the eighth straight month during the seasonally weak monsoon period.
The finance ministry today said it will hold a meeting with representatives from small businesses on Aug. 6, with automobile sector on Aug. 7, and with industry bodies on Aug. 8. There will be meetings with stakeholders from the financial sector, and with the real estate sector and homebuyers on Aug. 11.
Sitharaman met bankers today to discuss credit growth to support needs of the economy. Banks were asked to commensurately transmit interest rate cuts to customers, in line with substantial easing by the Reserve Bank of India, according to a ministry statement. Banks have agreed to review lending rates as per RBI guidelines, it said.
Bankers also sought government intervention on show cause notices issued to them
to pay service tax and GST on minimum balance accounts. Banks have been asked to respond to show cause notices issued to them, Sitharaman said.
Government To Meet FPIs
The finance minister will meet foreign portfolio investors to hear their views and the issues they are facing due to the higher tax imposed on them. Economic Affairs Secretary Atanu Chakraborty will also meet FPIs separately to note their views, Sitharaman said.
In Budget 2019, the government proposed to raise surcharge on individuals earning Rs 2-5 crore and above, which covers FPIs and alternative investment funds that are registered as non-corporate entities with the market regulator. The Central Board of Direct Taxes had clarified that these FPIs and AIFs can get registered as corporates instead of a non-corporate structure or trust to avoid payment of a higher surcharge.
On issuance of India's maiden bond sale, Sitharaman said the amount government would raise has also not been finalised.
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