Wednesday October 16, 2019
Home Business Finance Minis...

Finance Minister Nirmala Sitharaman Measures To Boost Export and Housing Sector

With GDP growth sliding to six-year low of 5 per cent, Finance Minister Nirmala Sitharaman on Saturday announced a fresh set of measures to boost exports and the housing sector.

0
//
TV, LED panels, Finance Minister, India, import duty
Finance Ministry has abolished the import duty on open cell LED TV panels from 5 per cent to zero. Wikimedia Commons

With GDP growth sliding to six-year low of 5 per cent in April-June quarter and several sectors facing low demand, Finance Minister Nirmala Sitharaman on Saturday announced a fresh set of measures to boost exports and the housing sector.

The key measures include extending the scheme of Reimbursement of taxes and Duties for export promotion, fully automated electronic refund for Input Tax Credits (ITC) in GST, revised priority sector lending norms for exports and expanding the scope of Export Credit Insurance Scheme (ECIS). An inter-ministerial working group has also been formed to monitor export finance.

Accordingly, the Scheme for Remission of duties or Taxes on Export Product (RoDTEP) was announced which will replace Merchandise Exports from India Scheme (MEIS) for textiles. In effect, RoDTEP will more than adequately incentivise exporters than existing schemes put together.

Revenue foregone on this account is projected at up to Rs 50,000 crore.

Existing dispensation in textiles of MEIS plus old ROSL scheme will continue up to December 12, 2019. Textile and all other sectors which currently enjoy incentives upto 2 per cent over MEIS will transit into RoDTEP from January 1, 2020.

Finance, Minister, Nirmala Sitharaman, GDP, Measures
There is concern about the speed and nature of the government and industry’s response, and will these actions turnaround things immediately, or not. Pixabay

Sitharaman also announced to reduce turnaround time for exports by leveraging technology and benchmarking it to Boston and Shanghai ports.

She said that priority sector lending norms for exports is being examined by the RBI and the guidelines will come out soon. Further, government will provide Rs 1,700 crore for export guarantees and to cut credit cost for the exporters.

The minister came out with several measures to prop up country’s housing sector which is considered one of the main job creators. Now, there would be relaxed ECB norms for housing sector. Further, interest on house building advance would be lowered by linking it with 10-year government securities.

ALSO READ: India has Over Time Become Hub and Spokesperson for World Cricket

Sitharaman said that there would be special window for affordable and middle-income housing. Under this, a special window to provide last-mile funding for housing projects which are non-NCLT, non-NPA cases to complete unfinished projects. For this, a fund of Rs 10,000 crore would be contributed by the government and “roughly the same size by outside investors.”

The fresh set of measures to boost the economy has come in the wake of sinking business sentiment across the industry.

With most engines of growth stuttering, the Reserve Bank of India recently lowered its GDP forecast and pegged it at 6.9 per cent in 2019-20. Several rating agencies and research firms expect the growth to be in the range of 6.5-7 per cent.

Besides domestic consumption slowdown, the external factors remain adverse threatening to pull down the economy. A lingering US-China trade war and fears of a global recession could make things worse. (IANS)

Next Story

5G Carries Potential to Contribute to India’s GDP Growth by the Year 2025

AR, VR and AI will all come together to form ‘extended reality', it added

0
5G, huawei
"5G is the promise of a better quality of life for all and exceptional opportunities. It will allow to adapt life to our needs," he said. VOA

A KPMG report on Monday said that 5G technology has the potential to add 0.35-0.5 per cent to India’s gross domestic product (GDP) by 2025.

The report further said that India Inc has the potential to unlock $48.69 billion (Rs 3,408 billion) in four years through the deployment of 5G.

The government has set a target of becoming a $5 trillion economy by 2024-25. In 2018-19, the Indian economy stood at $2.72 trillion.

“We estimate that the 5G contribution to annual GDP will likely be in the range of 0.35-0.5 per cent by 2025. The absolute value unlocked is expected to be highest in the retail sector, followed by finance and then the technology sector,” said the report released at the India Mobile Congress 2019.

It further said that IT will be the “most immersive, intelligent and inventive of all technologies”.

Intel
Top Intel Executive said that India needs to roll out 5G faster in order to take advantage of the economic benefits it can bring to the nation. Pixabay

“Blockchain is a technology trend that has seen wide implementation during 2019 and its applications will continue to expand beyond cryptocurrency, it said.

The survey ranked artificial intelligence (AI), augmented reality (AR)/virtual reality (VR), cognitive computing and machine learning as the top technologies that will have the highest potential to generate immersive experiences, but noted that they are nascent in terms of their evolution and adoption.

AR, VR and AI will all come together to form ‘extended reality’, it added.

Also Read: Users Clueless on Snapchat’s Global Outage

Commenting on the report, Purushothaman K.G., Partner and Sector Lead for telecom at KPMG in India, said: “The future value that will be delivered through telecom operators is not by being the provider of ‘connectivity’ but as being a trusted partner and platform provider offering value and services and experiences to customers.

“We are living in exciting times where new technologies like 5G, IoT, AI and AR/VR promise to revolutionise connectivity and unlock value by creating better, more secure and personalised experiences for everyone.” (IANS)