The government will take the required steps to not only cut down on non-essential imports but will also boost exports as well. The non-essential imports will be done after consulting the respective ministries in the coming days, said the finance minister Arun Jaitley after the meeting got over.
In the meeting, Urjit Patel the Reserve Bank Governor gave a complete presentation on the current status of the world economy and all the outside issues that can impact the Indian economy. “If we compare with other countries, our expansion rate is much elevated, and the price rise is within a reasonable range, said Urjit Patel. He further stated that keeping fiscal deficit is very important and our attempt is in the direction of the same and we will maintain it for sure. Besides this, Jaitley also revealed that India can be impacted with global crude oil prices and trade wars despite the fact of their domestic fundamental strength.
Later the meeting was addressed by Prime Minister Modi and after market hours, both the stock and the currency market had a sigh of relief. In order to address the issues, a relief rally also took place on Friday which ensured that the government is also keen to solve these issues.
Whereas the rupee had closed at a lifetime low of 72.64 earlier on Tuesday, this week, it climbs over 1 percent or 80 paise greater than the last two trading sessions to close at 71.85 on Friday. Alike, the benchmark Sensex got a hike of 677 points or 1.8 percent in comparison of the last two trading sessions which got close at 38,080 on Friday.
The secretary of Economic affairs S C Garg said that these five methods would definitely have a significant impact. “It is not easy for us to give a precise number. Most probably it should have an impact of USD 8-10 billion,” he said.