Here are the highlights of Govt's Stimulus Report
Chief Economic Advisor Krishnamurthy Subramanian said in presentation on Govt's Stimulus Report that inflow of foreign direct investment (FDI) reached a record level during the April-June period,
December 13, 2019
A day after the dampening report on country's industrial output India's Chief Economic Adviser
K. Subramanian made a presentation on measures taken to boost Indian Economy. The presentation on Govt's Stimulus Report was followed by a press conference held by Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman. The CEA in his presentation said that a total of Rs 4.47 lakh crore has been sanctioned towards non-banking financial companies (NBFC) and housing finance companies (HFC) to support retail lending. The total sanctioned support includes Rs 1.29 lakh crore for pool-buy-outs of assets. Krishnamurthy highlighted that the first half of the ongoing fiscal, FDI inflow reached $35 billion against $31 billion recorded during the same period last year.
"Continuous liberalisation has resulted in record FDI inflows: $35 billion in H1 2019-20 as against $31 billion in H1 2018-19," he said in the presentation. The CEA also said that the government and the public sector enterprises have cleared their dues that was up to Rs 61,000 in two stages. Dues of 32 CPSEs (Navratnas & Maharatnas) cleared by more than 60% in the last two months. 21 of these 32 CPSEs have set up “Online Bill Tracking” systems to reduce pendency in bill payment and reduce Accounts Payables of CPSEs permanently, he said.
"Continuous liberalisation has resulted in record FDI inflows: $35 billion in H1 2019-20 as against $31 billion in H1 2018-19,"- K. Subramanian in the presentation on Govt's Stimulus Report
On the steps taken to ease liquidity in the market, Subramanian spoke of the Rs 25,000 crore alternative investment fund for stalled projects, which the government recently announced.
He also said that credit expansion has been carried out by public sector banks whereby Rs 60,314 crore equity was invested in the PSBs, which have disbursed Rs 4.9 lakh crore so far.
The CEA also pointed out the recent disinvestment decisions regarding PSU majors BPCL, CONCOR and SCI.
He also said that India has jumped to the 63rd position in World Bank's ease of doing business rankings, adding that the Insolvency and Bankruptcy Code (IBC) has helped the country in this respect.