Liquidity no longer a major
concern, FM Sitharaman assures India Inc
Minister Nirmala Sitharaman on Monday assured India Inc that liquidity is no
longer a major concern for the economy. She said that from October 15 the
government would kick-start a credit outreach programme.
move is likely to give impetus to economic recovery during the festive season
and also ensure availability of credit for sectors like export. The credit
outreach programme is likely to be similar to the credit outreach programme
launched in 2019, through which banks held loan melas across 400 districts and reportedly
disbursed around Rs 4.9 trillion.
a select group of CII members at Chennai, the finance minister expressed
satisfaction that liquidity is no longer a major concern, and that the
Bank-NBFC (Non-Banking Financial Company) -MFI (Microfinance) channel has been
de-clogged and from 15th October there would be a special drive to reach out
credit to those who need it. To tide over the pandemic and subsequent economic
crisis, the Apex Bank had already pumped in liquidity through measures like
open market operations over the last year. This has resulted in a higher
average surplus of over Rs six trillion in the banking system.
added that the announced disinvestment plan was on track. The government is
planning to raise Rs 1.75 trillion from stake sale in public sector companies
and financial institutions during the current financial year. She said that the
government is working on ramping up health infrastructure, including in the
tier two and tier three cities, by supporting the private sector, while it is
ramping up the vaccination drive. The country has so far provided at least one
dose of vaccine to at least 74.38 crore people.
further shared that the Development Finance Institution announced in the budget
would be operational soon. Welcoming continuous feedback and inputs from
industry, the Finance Minister said that the ongoing dialogues with industry
has enabled the Government to take a series of actions, as the pandemic
while sharing CII s perspective on the Indian economy, T V Narendran, President
CII said that the first quarter GDP growth of 20.1 per cent firmly establishes
the setting in of the recovery. He further elaborated that CII expects a GDP
growth of at least 9.5 per cent for this fiscal, provided vaccination continues
to gather pace and there are no further severe waves of the pandemic.
applauded government s initiatives towards preparedness for the third wave and
interventions aimed at catalysing private investments, such as the Production
Linked Incentives and the National Monetisation Pipeline. He urged the
Government to continue frontloading its committed capital expenditure to
support the demand recovery and for the virtuous cycle of private investments
to set in.
leaders from companies like the Hinduja Group, Cavinkare, Daimler India
Commercial Vehicle, Apollo Hospitals, 3M India, Star Health Insurance, Saint
Gobain India, Tractors and Farm Equipment and Chettinad Group participated in