As a most unusual year comes to an end, finance minister Nirmala Sitharaman is confident that the government’s interventions to revive the economy are working and says reforms will continue with a strong focus on infrastructure.
Finance Minister Nirmala Sitharaman on Monday assured the industry that momentum of economic reforms will continue to make India a hotspot of global investment. India has turned the crisis created by COVID-19 pandemic into an opportunity to push the economic reforms, which remained pending for decades, she said while addressing the National MNC's Conference 2020 organised by industry chamber CII.Nirmala Sitharaman assures industry, says momentum of reforms will continue in future as well
“As we move towards digital transactions, we expect that the temptation for dealing with cash will be brought down, and if each of these transactions is brought into a monitorable network, the GDP calculation can be much closer to the actual strength of this Indian economy,” Sitharaman said at the national conference of All India Federation of Tax Practitioners .
“I have not closed the option to come up with another stimulus package,” Sitharaman said in a virtual interaction at an ORF event.
For payment to credit card holders, the relief will be calculated using the interest rate charged by the bank for converting outstandings into EMIs and not the rate charged to those who revolve their balances.
Nirmala Sitharaman said India’s foreign direct investment between April and August had risen 13% compared to the previous year, despite the disruption caused by the pandemic. She said investors were attracted by various factors including low tax rates and automatic approvals for 95% of the economy.
Sitharaman highlighted the G20 Action Plan as the mainstay of the G20's economic response and shared that it not only coordinates our immediate response but also guides our long-term recovery efforts.
PM Narendra Modi to meet FM Nirmala Sitharaman today at 6:30 pm. Stuimulus package on agenda.PM Narendra Modi to meet FM Nirmala Sitharaman today
Union Finance Minister and Bharatiya Janata Party (BJP) leader Nirmala Sitharaman on Saturday slammed Congress for its "selective outrage" in wake of the alleged rape and killing of a six-year-old girl Hoshiarpur district of Punjab and questioned the silence of "tweet friendly" Rahul Gandhi and asked if the incident didn't shake the conscience of the "brother and sister who rush to every place that can help them politically."Hoshiarpur rape: Nirmala Sitharaman slams Congress, questions Gandhi siblings silence
The government brought in Vivad Se Vishwas, the direct tax dispute resolution scheme, earlier this year, which stemmed from the success of the Sabka Vishwas scheme for the indirect tax regime introduced last year.
The Reserve Bank of India has projected the Indian economy to contract 9.5 per cent in the current fiscal, while the International Monetary Fund (IMF) and World Bank estimates the contraction at 10.3 per cent and 9.6 percent, respectively.
Hailing the government's move, CITI chairman T. Rajkumar in a press statement said “PLI scheme is extended for 10 key specific sectors, of which textile is one of the sectors and has been allocated Rs 10,683 crore of the total estimated outlay of Rs. 1.46 lakh crore, mainly for MMF and technical textile segment”.
She said the grant does not cover the actual cost of vaccine and distribution expenses, which will be made separately as and when the vaccine is available.
FM said Rs 65,000 crore is being provided to ensure adequate availability of fertilisers to farmers and to enable timely accessibility of fertilisers in the upcoming crop season.
“I would think ideally by December, if not by 31st March, 2021, every account should have a PAN where needed and applicable and Aadhaar in every case,” Sitharaman said during the virtual annual general meeting of the Indian Banks’ Association on Tuesday.
The meeting also involved discussions on the outcomes of G20 Saudi Presidency in 2020 and a digital platform to encourage infrastructure investments, a finance ministry statement said.
India needs a largish dose of stimulus to come out of the economic slump and create the jobs that young entrants to the workforce seek by the million, not the consolation is something is better than nothing.
Finance Minister Nirmala Sitharaman also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.
Finance Minister Nirmala Sitharaman on Monday announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy. She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown. At a news conference, she said the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year.
Finance minister Nirmala Sitharaman has announced an additional outlay of Rs 18,000 crore which will be provided over the budget estimates for 2020-21 for the Prime Minister Awaas Yojana Urban (PMAY-U) through additional allocation and extra budgetary resources.
This is over and above Rs 8,000 crore already provided this year. The FM said the move would help start work on 12 lakh houses as well as complete 18 lakh houses. This would create 78 lakh new jobs as well as demand for steel and cement.
Sources tell ET NOW that the much-anticipated third round of government stimulus is likely soon. The size of the pegged at Rs 3 lk cr. FM Nirmala Sitharaman will address the media at 12:30 pm today. Here's ET Now's Ruchi Bhatia with moreThe much-anticipated third round of government stimulus is likely soon: Sources tell ET NOW
Addressing a press conference here, Finance Minister Nirmala Sitharaman said: "MSP is there, it was there and it shall continue to be there."
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on September 11 said that Atmanirbhar Bharat at a time of COVID-19 is a voice which PM gives to every Indian that the people have the capability within this country in terms of both skills and sources to build a very strong India. She said that Atmanirbhar Bharat will let India gain prominence in having a say in global dynamics, like in ancient times.Atmanirbhar Bharat will strengthen India globally: Nirmala Sitharaman
Former finance secretary Subhash Chandra Garg has blamed a messy stint with finance minister Nirmala Sitharaman for his abrupt exit in June last year. In a blog post, Garg claimed Sitharaman had insisted on his transfer from the north block, a month after she took over as the finance minister. "She has a very different personality, skill-set and approach for economic policy issues and also for the officers working with her. It became apparent very early that working with her was going to be quite difficult," Garg, a Rajasthan cadre officer of the 1983 IAS batch, wrote in his post.Nirmala Sitharaman didn't want him in finance ministry, claims Subhash Chandra Garg
Sitharaman was speaking after launching PSB Alliance-Doorstep Banking Services. The minister further said banks have to introspect on their core business and also focus on welfare.
Working with her was going to be difficult: Former finance secretary claims Nirmala Sitharaman didn't want him in her ministry
Garg was 'removed' a day after the parliamentary approval for the second Narendra Modi government’s first budget, which faced some criticism on account of the apparent absence of details and a definite plan to tide over the slowdown and counter falling demand.
Over ₹1.32 lakh crore of loans have been disbursed to more than 2.7 million non-individuals and individuals under the ₹3 lakh crore Emergency Credit Line Guarantee Scheme by public and private sector banks and non-banking financial companies.
Finance Minister Nirmala Sitharaman says the government is looking at various ways to provide support to the economy.
Finance Minister says the government is looking at various ways to provide support to the economy, including a fiscal stimulus, won’t wait for Covid situation to improve before taking more measures.
Union Finance Minister Nirmala Sitharaman attended 4th Annual India Energy Forum by CERA Week on Oct 27. She said, “India's growth this year will be negative or near zero. Next year India can be one of the fastest growing economies. Festival season has commenced in India, as a result of which I expect the demand to go up and therefore, be sustainable also.” She further said, “Foreign Direct Investment (FDI) inflow between April and August of 2020, grew by about 13% compared to non-COVID 2019's comparable period. Globally, we are one of the lowest in terms of Corporate Taxation. For any investment which comes into manufacturing and which commences production by 31st March 2023, they shall be paying only 15% Corporate Tax.”India’s GDP growth will be negative or near zero this fiscal year: FM Nirmala Sitharaman
Prime Minister Narendra Modi reviewed the state of the economy with finance minister Nirmala Sitharaman on Tuesday to identify possible policy action including need for another stimulus to push up economic activity in the country. After announcing the demand generating measures earlier this month, the finance minister had hinted at another stimulus package. PM Modi meets FM Nirmala Sitharaman, discusses state of economy and stimulus package
There was a "very firm lockdown" imposed beginning March 25 as the government put lives before livelihood. The lockdown also gave time to do preparatory work to deal with the pandemic. But with unlock, macroeconomic indicators have shows signs of revival, Sitharaman said.
Jobs, tax relief for home-buyers and a message for China: Who got what in Nirmala Sitharaman's 12-point Stimulus 3.0
Twelve new measures were announced as the third leg of the Atmanirbhar scheme championed by the Modi government.
The FM held a virtual meeting with secretaries of coal and petroleum & natural gas, along with the chairman and managing directors (CMDs) of 14 CPSEs belonging to these ministries, an official statement said.
Collective global action key for an effective response to pandemic: Finance Minister Nirmala Sitharaman
As a responsible member of the global fraternity, India stands ready to share its experience and play a leading role in the South Asian region as part of its ‘Neighbourhood First’ policy, Sitharaman said at the virtual meeting.
In letters sent out to chief ministers, the Union finance minister has elaborated that the special window being provided to states and that Centre will undertake the borrowing and pass on to states via back to back loans. Further, principal and interest was being paid out of the compensation cess fund, such that states are not burdened.
Nirmala Sitharaman mentioned that recovery and rehabilitation efforts in these countries must not be allowed to be undermined in any manner, a Finance Ministry statement said.
The government termed the credit product under which the guarantee would be given as Guaranteed Emergency Credit Line (GECL), in the guidelines released along with a set of 127 frequently asked questions (FAQs).
“The cabinet took an important decision for Rs 6,000 crore of capital infusion in the National Investment and Infrastructure Fund in next two years,” said Prakash Javadekar, union minister of information and broadcasting, during a briefing on Wednesday.
The move will affect a sizeable number of government sector employees as it covers organisations ranging from the Central Bureau of Investigation to the Board of Control for Cricket in India.
According to a report by ET, Finance minister Nirmala Sitharaman announced measures to stimulate consumer spending and capital expenditure that would generate demand of Rs 1 lakh crore, including the private sector, and in turn help growth of gross domestic product (GDP). The scheme offers tax exempt payment of leave travel concession/allowance (LTC/LTA) to employees without the need for them to travel if the amount is spent as per specified conditions below. This benefit is available till March 31, 2021.
Central government employees that have not been able to avail leave travel concession (LTC) – air or rail fare as per scale and tax exempt leave encashment of 10 days plus dearness allowance – due to travel restrictions the Covid 19 pandemic, will be allowed to spend the money with riders.
Multiple locations, Oct 19 (ANI): Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, on October 19 said that the government is open to another stimulus package to deal with the blow of COVID-19. “We have not closed the option for another stimulus package,” She said at the launch of a book by Chairperson of 15th Finance Commission NK Singh, which she attended via video conferencing. GOI not opposed to another stimulus package: FM Sitharaman
According to a statement issued by USISPF, the finance minister held a virtual discussion with the US-India Strategic Partnership Forum’s Board of Directors on the sidelines of its 3rd Annual Leadership Summit.
As per industry estimates, India currently has a manufacturing capacity of 3,000 MW for cells and 10,000 MW for modules.
Providing LTC benefits, festival advance to employees mere announcements, fraud with people: Congress
They said the minister has given the government employees their own salary and money and has now directed them to spend according to her wishes.
While the legal opinion made it clear that the Centre did not have to bear the compensation burden, states pointed to the assurance given by former FM Arun Jaitley and provisions in the Constitution to make their claim and were pressing that the Centre should borrow from the market.
The government in May had increased its market borrowing programme for the current financial year by more than 50 per cent to Rs 12 lakh crore to meet the increased spending due to the COVID-19 pandemic.
Sitharaman said that the LTC funds could be used to spend on goods and items in 12 per cent GST category i.e. the government would give cash to employees in lieu of LTC ticket fare component for buying items attracting 12 per cent or more GST.
Finance Minister Nirmala Sitharaman said the employees could buy items that attract 12 per cent or more goods and services tax (GST). These purchases will have to be made in digital mode from GST-registered outlets.
Opposition-ruled states of Kerala, West Bengal, Chhattisgarh, Punjab and Jharkhand have fired a fresh salvo on the GST shortfall saying the Centre must borrow the entire amount of ₹1.7 lakh crore.
FM Nirmala Sitharaman asks banks to prepare cadre of officials well versed in local languages to better serve customers
Sitharaman asserted that there is no point in banks claiming that they have pan-India presence when in some pockets, where Hindi does not work, their executives still need to learn native language to serve the customers.
"Strategic disinvestment of BPCL progresses: Now moves to the second stage after multiple expressions of interest have been received," Finance Minister Nirmala Sitharaman also tweeted.
The economy has been in tatters ever since the pandemic set in, leading to all-encompassing lockdowns. As of now, jobless rates are hovering around double digits. GDP has just witnessed it worst trough in decades, with equally dire — if not worse — numbers forecasted for the rest of the year. Yet, the stock markets seem to be on an entrenched bull run.
West Bengal finance minister Amit Mitra has written to Union finance minister Nirmala Sitharaman saying that the state will take the option due to acute fiscal stress on the state’s finances. He also sought that the GST Council meeting be convened at the earliest to discuss the alternative borrowing mechanism.
The cabinet note will be moved in the next 15 days,” the official said, adding that work had begun on framing the rules for the scheme that will be issued soon after.
"The ECLGS is the only respite that the hospitality industry has received from the government so far. We cannot stress on this enough; hospitality is not like other industries," FHRAI VP Gurbaxish Singh Kohli said. He added that it is highly capital- and labour-intensive sector, and without a specific stimulus, the sector will continue to bleed.
Under the stimulus package, an additional Rs 10,000 crore has been set aside for the PM Garib Kalyan Rozgar Yojana in the current financial year, while Rs 73,504 crore has been released for rural jobs guarantee scheme NREGS and 251 crore person-days of employment have been guaranteed.
The fertiliser industry said it expects major gains from finance minister Nirmala Sitharaman’s announcement of a Rs 65,000 crore stimulus for the sector in the upcoming crop season.
The government also announced a Rs 1.10 lakh crore platform for infra debt financing with a Rs 6,000 crore equity infusion in the National Investment and Infrastructure Fund to provide a boost to infrastructure financing.
Additional expenditure would ‘stimulate’ the economy. It would create demand and raise production where there was surplus capacity. But capacity on this scale is just not available. Such a huge deficit would cause enormous inflation — maybe 10-15%.
Boosted by the success of its first round of credit guarantees in reducing bankers' worries, it has been extended to firms in the healthcare sector for bank loans under the guarantee scheme and 26 stressed sectors as listed out by the K.V. Kamath Committee. The scheme would remain operational till March 2021.
The finance minister announced tax relief on select home sale deals, enhanced credit guarantee programme for small businesses and provided incentives for new job creation as the government widened stimulus measures to boost the economy.
Jobs creation scheme, tax relief in housing, fertiliser subsidy: Highlights from stimulus 3.0 announcements
Union Finance Minister Nirmala Sitharaman Thursday announced 12 measures in the next set of stimulus under Atmanirbhar Bharat package aimed at boosting employment, credit and manufacturing. The additional stimulus steps amount to about Rs 9 lakh crore, taking the total virus relief to almost Rs 30 lakh crore, or 15% of gross domestic product (GDP). Watch top announcements from FM Sitharaman's stimulus 3.0 presser. (Text: ET Online)Jobs creation scheme, tax relief in housing, fertiliser subsidy: Highlights from stimulus 3.0 announcements
Sitharaman announced tax relief on select home sale deals, enhanced credit guarantee programme for small businesses and provided incentives for new job creation as the government widened stimulus measures to boost the economy. The measures that also include additional fertiliser subsidy and already announced production-linked incentive scheme for manufacturing units, totalled Rs 2.65 lakh crore.
The Atmanirbhar Bharat 3.0 measures announced by the government included the launch of ECLGS 2.0-Guaranteed credit for supporting the 26 stressed sectors identified by the Kamath committee.
New announcements under Aatmanirbhar Bharat 3.0 will make road to recovery stronger: Niranjan Hiranandani, ASSOCHAM
Niranjan Hiranandani, president ASSOCHAM, was reacting to the announcement of the 7th major stimulus package after pandemic by the Union finance minister, Nirmala Sitharaman on Thursday.
The wholesale price index (WPI) based inflation rose to a seven-month high of 1.32 per cent in September, while retail inflation was at eight-month high of 7.34 per cent on spiralling prices of food items, especially vegetables.
A few believed a muted market reaction was due to the sharp run up in recent times, which has factored in all positives, even as the FM’s package would boost productivity in the economy going ahead.
Sensex snaps 8-day winning streak, drops 236 pts despite 3rd stimulus package; Nifty ends below 12,700
Snapping its 8-day winning run, equity benchmark Sensex ended 236 points lower on Thursday, tracking losses in financial counters as profit-booking emerged amid lackluster global cues. The new set of stimulus measures announced by the government also failed to enthuse investors, traders said. After dropping 466.12 points during the day, the 30-share BSE index ended 236.48 points or 0.54 per cent lower at 43,357.19. Similarly, the broader NSE Nifty slipped 58.35 points or 0.46 per cent to 12,690.80.Sensex snaps 8-day winning streak, drops 236 pts despite 3rd stimulus package; Nifty ends below 12,700
The additional stimulus steps amount to about Rs 9 lakh crore ($120 billion), taking the nation’s total virus relief to almost Rs 30 lakh crore, or 15% of gross domestic product, Finance Minister Nirmala Sitharaman told reporters in New Delhi Thursday. That equals the total spending envisaged in the government’s budget for the year to March.
Until now, any deal with value lower than the existing ready reckoner or circle rate by 10% or more, would result in additional tax burden for both the parties. Now the government has increased the differential to 20%. The move is expected to boost the demand for residential real estate further with relief to homebuyers and developers.
The Rs 65,000 crore subsidy is being provided to ensure adequate availability of fertilisers to farmers in the upcoming crop season.
The Nifty Realty index was up 0.8 per cent.
The current five-year PLI scheme has now been extended to ten more sectors to support domestic manufacturing and promote the country as an alternate global manufacturing hub in Asia, with special focus to draw businesses away from China.
MSMEs to benefit as Sitharaman extends Rs 3-lakh crore collateral-free ECLG scheme, provides support for stressed sectors
The Finance Minister said a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been disbursed.
Gross domestic product contracted 8.6% in the quarter ended September, the Reserve Bank of India showed in its first ever published ‘nowcast,’ which is an estimate based on high-frequency data. The economy had slumped about 24% in April to June.
The package being worked out could also include support for employment generation by taking over the burden of provident fund contributions for new hires.
The Union Cabinet Wednesday approved Rs 2 lakh crore worth of production-linked incentives (PLI) for 10 more sectors to boost domestic manufacturing. Incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltaic and cell battery. Union Ministers Prakash Javadekar and Nirmala Sitharaman briefed media on the decision. Watch highlights. (Text: PTI)Cabinet okays Rs 2 lakh crore PLI scheme for 10 key sectors to boost manufacturing
While the Centre will continue to fund 20% of the total project cost (TPC) for economic infrastructure, it will also provide 30% of TPC for social infrastructure in the waste water treatment, water supply, solid waste management, health and education sectors, finance minister Nirmala Sitharaman said during a virtual briefing on Wednesday.
“Based on the 15th Finance Commission interim recommendations, the Govt has released Rs 6,195.08 crore to 14 states on account of the eighth equated monthly installment of Post Devolution Revenue Deficit Grant,” finance minister Nirmala Sitharaman’s office said in an update via Twitter.
As a society, we owe it to ourselves that each and every segment of us is treated with dignity and given opportunities to succeed. Thus, it is upon all of us to change our arrangement with political and economic stakeholders and change it from being a compromising one to a collaborative one. The Covid has given us an opportunity to bring humans at the centre of economic growth, for the larger benefit of humanity.
The 14 states are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal. A similar amount was released as grant in April-October period of the current financial year.
A consultant will be appointed soon to carry out the restructuring, PFRDA chairman Supratim Bandyopadhyay said. PFRDA is the regulator for the pensions sector and also oversees the National Pension System.
The report titled ‘Finance Commission in Covid Times’, contained four volumes each pertaining to an area of the terms of reference of the FC, the statement said.
There is monetary, fiscal space to provide economic support, says Principal Economic Advisor Sanjeev Sanyal
Sanyal said the government had made it adequately clear during the lockdown that emphasis was on providing a cushion and a safety net for the poorest sections and for the most vulnerable parts of the business system.
Not fresh fiscal stimulus, more important is to spend committed amount: Former RBI Governor Bimal Jalan
"I think the fiscal stimulus is already there... What you need is to spend the total amount of expenditure that you have already announced and implement what has been announced so far. That is much more important than increasing the fiscal deficit target again," Jalan said.
New Delhi, Nov 6 () The government on Friday allowed submission of preliminary bids for acquisition of BPCL electronically through e-mail in view of the restrictions placed due to the COVID-19 pandemic.
While improvements in rural demand will increase the sector’s share in quarterly figures of gross domestic product, those are insufficient to further cushion the impact of the pandemic and take the economy to ‘near zero’ growth this fiscal year, according to economists ET spoke to.
"All the major global investors, including sovereign wealth funds and pension funds of the world, would be participating. We have confirmation from such investors who would be participating in this virtual conference," Economic Affairs Secretary Tarun Bajaj said while sharing details of the event.
The government will soon come out with a new public sector enterprises policy that will define strategic sectors which will not have more than four PSUs, Finance Minister Nirmala Sitharaman said on Saturday.
Last month, the International Monetary Fund said the Indian economy, severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 per cent this year.
“The focus is on restructuring. Finance ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken,” she said.
Lending institutions under the scheme have sanctioned loans amounting to Rs 2.03 lakh crore to 60.67 lakh borrowers and disbursed loans totaling Rs 1.48 lakh crore as of date.
Finance secretary, Ajay Bhushan Pandey said to ANI that GST rate cut sends a wrong signal to domestic business/industries as well as international investors and should be done once in a year that too after intensive analysis of all sectors. On GST rate cut, he said, “It is not necessary that industries will always benefit from a rate cut.GST rate cut sends wrong signal to domestic business: Finance secretary
In an interview to ET, Finance Secretary Ajay Bhushan Pandey said economic activity was returning to normal and that certain stressed sectors were being identified for targeted intervention. Edited excerpts.Economy has almost reached pre-Covid level in most sectors: Finance Secretary
Stressed sectors are being identified; interventions will be announced at right time: Ajay Bhushan Pandey, Finance secretary
"We have announced PLI (Production-Linked Incentive) scheme for some sectors. We have received some suggestions about whether PLI can be expanded to some more areas. The government will respond, as this scheme is differently designed," Bhushan said.
Stimulating the economy is a continuous exercise, he said on the next round of booster measures. Finance minister Nirmala Sitharaman “has also said that we are constantly monitoring and interventions, as required, would be announced at the right time,” Pandey said.
Addressing BJP Tamil Nadu unit party workers via a virtual rally, she said: "People's rights were completely rejected. Why did the Congress party do it?It was hankering for power, it was for the sake of office. The law was broken and an emergency was declared." The emergency era witnessed several atrocities, she alleged.