FICCI welcomes boost for Indian economy
The new measures for boosting economy, announced by Finance Minister Nirmala Sitharaman on 14 Sept 2019, will provide much-needed stimulus to boost the Indian economy that is now facing the slowdown.
Welcoming the measures, FICCI President Sandip Somany said relaxation of ECB guidelines for affordable housing and reduction in interest on Housing Building Allowance in line with the 10-year G-Securities Yield is a major step towards achieving mission PMAY.
“Provision of Rs.10,000 crores to provide last-mile funding for completion of the ongoing housing projects (which are not NPAs or facing bankruptcy proceedings under NCLT) is certainly a major push to resolve the problem of stalled projects in the country,” he said.
Somany expressed confidence that the new initiatives of export-related incentives, finance, credit and facilitation will help in achieving a turnaround in our exports which have declined by 6% in August.
“The new scheme for Remission of Duties or Taxes on Export Product (RoDTEP) that will be effective from 1 January 2020 will go a long way in addressing the problem of non-compliance of our export promotion scheme. Fully automated electronic refund module for Input Tax Credits (ITC) in GST will speed up the ITC refund and ease the problem of working capital for exporters. Expanding the scope of Export Credit Insurance Scheme, moderation in premium incidence for MSME, and revised Priority Sector Lending (PSL) norms for Export Credit are also encouraging features of the new package,” said Somany.
“Additional funding of Rs.36,000 crores to Rs.68,000 crores as export credit under priority sector is also encouraging, in the backdrop of decline in export credits in recent periods. Annual mega shopping festivals for promoting exports of gems & jewellery, handicrafts, textiles, leather, yoga and tourism are also welcome steps. In view of the critical importance of technical standards, the plan for expanding and developing affordable testing and certification facilities under PPP mode will equip our engineering goods exporters to align with the globally accepted tests and certification processes,” he said.
Further, FICCI President also welcomed the new measures related to Free Trade Agreements (FTAs), in particular setting up of ‘FTA Ultilisation Mission’ as well as setting the goals for FTA ultilisation by Indian business. “This is extremely crucial because so far Indian exporters have not utilised the existing FTAs in a major way,” he said. fiinews.com
