FICCI welcomes measures announced by the Finance Minister to achieve higher economic growth

Aug 24, 2019

Announcement to remove the surcharge a great relief for investors: Sandip Somany, President, FICCI

We are sure that these will lift the confidence of businesses and investors alike

 

NEW DELHI, 23 August 2019: Commenting on the comprehensive set of measures announced by the Finance Minister earlier today to impart greater momentum to the economy, Mr Sandip Somany, President, FICCI said "This is an extremely welcome move, which will give a major boost to the economy that had started showing signs of a deep slowdown. As these measures take effect, we are sure that these will lift the confidence of businesses and investors alike."

"The stock markets have been volatile ever since the uncertainty with regard to higher tax on FPIs emerged since the announcement of super-rich surcharge in the Union Budget. The announcement to remove the surcharge comes as a great relief for investors and we do hope that the markets will respond positively. Additionally, the decision of the banks to pass on rate cuts through MCLR to benefit all borrowers and to introduce repo rate related loan products should help lower the cost of capital, which has been one of the major asks of FICCI. The move to create an Internal Advisory Committee in banks and by vesting greater powers with the Chief Vigilance Officer within banks should help remove fears amongst Public Sector bankers in taking credit decisions," added Mr Somany.

Decriminalization of the provisions related to CSR is another major confidence booster that FICCI had requested the Government for consideration. We hope that other economic offences will be also be decriminalised going forward.

"The announcement to disburse and clear all pending GST payments to MSMEs within the next 30 days and ensure that all future GST refunds will be cleared within 60 days augurs well for industry. This along with the strict monitoring of the delayed payments by Government and CPSEs would lessen the financial burden on the companies," said Mr Somany.

Measures announced for the auto industry should help address the problem of very high inventory build-up in the sector and give a boost to the sector.

Other measures related to NBFCs, bond market, access to global markets through ADRs / GDRs will help improve access to funds at a lower cost.