Slowdown fears: PM Modi to maintain meeting that is crucial .
Amid fears that economic expansion might be slipping into an extended period of slowdown, Prime Minister Narendra Modi has been learnt to have convened a crucial two-day meeting, beginning Saturday, to review street maps for the market and outside, ready by 10’sectoral groups’ containing secretaries of several departments. Key ministers — including corporate affairs minister Nirmala Sitharaman, finance and dwelling minister Amit Shah and commerce and industry ministry Piyush Goyal — are expected to attend the meeting as well, a senior government official told FE. The review will concentrate on ways to boost private investments as well as growth and assist as pictured by the Prime Minister, said a second source India turn by 2024.
‘The groups are expected to submit suggestions for additional deliberations. Some of those ideas might find reflection ‘ one of the sources mentioned. A succinct review of a raft of measures taken by the government recently to perk up growth — including the corporate tax rate decrease, push credit offtake, recapitalisation of state-run banks, a WTO-compartible scheme to increase exports, and a Rs 25,000-crore finance (including contributions by LIC and SBI) dedicated for housing — is also expected. Steps required to ensure’ease of living’ is also likely to feature in the talks.
Finance secretary Rajiv Kumar is expected to give a demonstration on behalf of this sectoral group on finance and Corporate occasions.
The composition of the classes has changed over time, since a number of the bureaucrats have since retired.
The meeting comes at a time when economic growth already struck a low of 5% in the June quarter and economists believe the rate of expansion may have dropped since the last quarter of FY13.
Citing expansion issues, Moody trimmed India’s sovereign rating outlook to’negative’ from’secure’. Provincial production happened in September while eight core infrastructure businesses witnessed their worst contraction at least in September. Exports dropped in four of their first seven weeks of this fiscal, and banks’ non-food credit expansion was hovering to a two-year low of 8.79percent in the fortnight during October 25.