Prime Minister Narendra Modi today high-level economic review meeting with the Finance Ministry. After the 3-hour-long meeting finance minister, Arun Jaitley hat immediate steps will be taken to limit the current account deficit. The deliberations will continue tomorrow, as per reports.

ASLO READ: What are Masala Bonds?

WHAT ARE THE KEY DECISIONS TAKEN AFTER THE ECONOMIC MEET:

The government will take steps to reduce non-essential imports

The government will remove curbs on Indian banks issuing Masala bonds

Manufacturing entities will be allowed to access ECB of up to $50 million for maturity of one year

The government will review mandatory hedging conditions for infra loans with respect to External Commercial Borrowings

HERE ARE THE LIVE UPDATES OF ECONOMIC REVIEW MEETING:

 

Highlights

Current Account Deficit

https://twitter.com/ANI/status/1040648732289769472

Subhash Chandra Garg, Secretary DEA, on Economic review meet

Today’s discussion focused on current account & what can be done in capital account to finance the current account. There will be constant review on the current account side, probably next week, said Subhash Chandra Garg, Secretary DEA

Masala Bonds

There will be removal of restrictions on Indian Banks market making in Masala bonds including restriction on underwriting of Masala bonds: Finance Minister Arun Jaitley in Delhi

Masala Bonds

Two decisions have been taken on Masala bonds. In this financial year (2019) in relation to Masala bonds there will be exemption from withholding tax for issuance done in this year (March 31, 2019): Finance Minister Arun Jaitley in Delhi

Foreign portfolio investment

https://twitter.com/ANI/status/1040639831921983488

Infrastructure loans

Mandatory hedging conditions for infrastructure loans will be reviewed to permit manufacturing sector entities to avail external commercial borrowing upto 50 million with minimum maturity of 1 year, announces Jaitley

India's growth rate high

Our growth rate as compared to other countries of the world is quite high. Inflation in our country stays in a range & that range is moderate, says Jaitley

Economic review meet

https://twitter.com/ANI/status/1040635218632364034

Surging fuel prices

The government has been under pressure from the opposition to stem the rupee fall and cut taxes to check surging fuel prices.

Current Account Deficit

India’s CAD is under intense pressure due to the falling rupee and rising crude oil prices and in the first quarter of the FY19 widened to 2.4% of the GDP, says Jaitley

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