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Nirmala Sitharaman press conference : Revival signs in industrial production.

Last updated on October 5, 2019

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Indian Finance Minister Nirmala Sitaraman held a press conference today briefing about the economic situation and the minister also said that the economy was certainly showing signs of revival saying that inflation in India had been kept well below 4 percent and was under control. “The inflation particularly which has been kept very much below and under control so technically you would know between two and a half to three to about four is the bandwidth which all of us are normally considered safe because we’ve kept our top limit of four, but between three and six would be any time better but even then the inflation has always been held well before under four. So one of the very strong indicators for an economy is the level to which the inflation has been held”. The finance minister informed that the fixed investment was also showing a positive picture and India’s forex reserves have been kept at a good amount the minister said that industrial production was also showing clear signs of improvement despite all the concerns. “In spite of all the worries that industrial production indicators showed in the fourth quarter
of 1819 because it reached a level which was fairly concerning most of us we see a clear sign of revival in the first quarter of 1920 and on this second quarter not really second quarter but up to July end so that straight-arrow explains that the revival signs are very very consistent”. And talking about the implementation of the previously announced measures Sitaraman said that the NBF sees were benefitting from the partial credit guarantee scheme whereas the credit outflow from banks had also improved keeping focus on the banking sector the minister would be meeting heads of all public sector banks on the 19th of September a day before the scheduled meeting of the GST Council. In a bid to improve the country’s exports the minister announced an additional funding of 36,000 crore rupees to 68,000 crore rupees for the exporters under the priority sector lending norms ,besides this an annual mega shopping festival will be organized in the country at four places focusing on sectors like handicraft, yoga, tourism textiles, and leather items in a bid to boost the housing sector Nirmala Sitaraman announced a ten thousand crore rupees special window to provide last-minute funding for the completion of ongoing housing projects. All projects which are not NPS are facing bankruptcy proceedings under the norms would be eligible for the scheme. The interest rate on housing building advance will also be lowered. External commercial borrowing guidelines will also be relaxed to facilitate the financing of homebuyers eligible under the pradhan Mantri awaz yojna concluding the press conference the minister took an optimistic tone saying that GDP growth would improve in the next quarter but stopped short of putting a number to it.

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