Monday, August 10, 2020
Home India RBI will work prudently on monetary policies, hopes Jaitley

RBI will work prudently on monetary policies, hopes Jaitley

Hong Kong: Indian Finance Minister Arun Jaitley on Sunday conveyed hope that RBI (The Reserve Bank of India) would judiciously work on the monetary policies of the nation as the same plays a major role in defining the economic growth of a country.

Picture credit: businesstoday.in
Picture credit: businesstoday.in

“RBI historically has been a very responsible institution. Now, as somebody who wants India’s economy to grow and who wants domestic demand to grow, I will want the rates to come down,” Jaitley told media persons here.

“But then, having entrusted RBI with this responsibility, I am sure they are certainly very well informed of the developments taking place within and outside the country. RBI will appropriately act with a sense of responsibility,” he said.

The RBI’s next monetary policy review is scheduled for September 29.

Noting the government has fixed a monetary policy target, he said: “We are well within that
target at the moment and therefore, RBI will take note of that.”

“Real estate, for example, can give a big push to India’s growth and this is a sector which is impacted by high policy rates. Therefore, if the policy rates come down over the next year or so, certainly this is one sector which has a huge potential to grow,” he added.

To a question on the pending tax disputes involving Vodafone, Cairn and Shell, the finance minister also said the best way to get an early resolution is being worked out.

“The best way to get an expeditious disposal is being worked out, these are related to the companies you have mentioned. I am seized of the matter and we are very eager to reach a resolution,” he said.

“The resolution can be by way of judicial tribunals, by way of discussions within or by way of some other methods that we have used in other cases.

“You cannot have a common solution for all and therefore, each of those cases were dealt with separately. Some of them we tried to adjudicate, we had adjudications expedited. The government lost some cases and I accepted the verdict without going for appeal so that the issue gets resolved,” he said.

At an event here earlier on Sunday, he said India is currently a better investment prospect than many other countries.

“India will give better returns than many other countries,” Jaitley said at a meeting with investors and business leaders here.

He said that foreign investments can give great additional resources and the country’s infrastructure sector required major investment.

“Railways, highways and power sectors are among those that require funds and the success of projects in these areas would largely depend on bankability.

“Special focus is being given on improving ease of doing business. Investors have felt in the past that the procedures have been difficult in India,” the minister added.

Noting that stalled projects have impacted the balance sheets of private companies in India, Jaitley said the proposed national investment and infrastructure fund would be a “great enabler” to attract investment, as well as help repair the firms’ balance sheets.

The fund would be independent of the government, and would operate just as another investor, he said.

He said some states were not charging adequate tariff for electricity as a result of which the health of power distribution companies (discoms) is being affected.

“These states can not expect the PSU (public sector undertaking) banks to fund the deficit of discoms,” Jaitley said.

Jaitley, who is on a two-day visit to Hong Kong, would be addressing the investors at the Capital Markets and Institutional Investors’ Summit organized by the Asia Pacific Investors Cooperation (APIC) on Monday.

The summit will present to select Asian institutional investors the developments in India’s capital markets and investment opportunities.

Jaitley will also hold meetings with Hong Kong Trade Development Council (HKTDC) and Greater China Chamber of Commerce, as well as small group meetings with financial sector investors and fund managers.

He will be meeting the chief executive of Hong Kong on Monday and also address an event organized by Indian community.

(IANS)

STAY CONNECTED

18,958FansLike
362FollowersFollow
1,781FollowersFollow

Most Popular

Redecorating Your Home Amid Pandemic

By Puja Gupta After coping with the sudden disruption caused by the lockdown, families across India are now settling down to make the best of...

94% People Feel Happier When Outdoors: Survey

By SIddhi Jain Social distancing norms is the ''new normal" and it has the world spending more time indoors than ever, but a new survey...

Assisted Living Homes and Their Importance for Elderly People

By Siddhi Jain Shrinking family sizes, lack of awareness about age-related conditions and availability of specialised care homes for the elderly are some of the...

Understand the Procedure and Importance of IVF

By Puja Gupta According to WHO, every 1 in 8 couples (or 12 per cent of married women) has gone through complexities getting pregnant or...

Try These Recipes to Get Super Charged with Nutrients you Need

By Simrun Chopra 2020 is unlike any year we have seen and in parts of the country this monsoon is unlike any we have seen. Staying...

Sidharth Malhotra has Felt a Wide Range of Emotions this Year

Actor Sidharth Malhotra has felt a wide range of emotions over the past few months. When the year 2020, started, he enjoyed some relaxing time,...

How Relevant Is The Existence Of Censor Board Of Film Certification?

There is a curious situation vis a vis the Censor Board of Film Certification! How relevant is its existence now? The Board, which was...

Vidyut Jammwal Reveals Secret of his Upper Body Strength in a Video

Action star and fitness enthusiast Vidyut Jammwal has revealed the secret of his upper body strength. Vidyut has uploaded a video of him performing Kalari...

Recent Comments