In New Delhi, Prime Minister Narendra Modi On Friday started a two day re-examine of current economic issues such as the rise of fuel prices, fall in the Rupee and the modifications that are required to enhance the growth, said the official sources.
On Friday, Prime Minister met Finance Minister Arun Jaitley, RBI Governor Urjit Patel and other important key officials involved in economic policymaking. The discussions will continue on Saturday, revealed sources. The concern dealing with the economy like a decrease in the rupee and hiked fuel prices are being discussed in the meeting.
Ways to improve exports as well as lifting interest rate to shore up the rupee, which broke the record of a lifetime earlier this week, were discussed in some quarters.
The purpose of the meeting was against the backdrop of the Indian currency dropping around 6 per cent since August and break the record of all-time low of 72 level this week. There was a historical hike in the Petrol and diesel prices too.
The government was under the pressure from the Congress party to stop the Rupee falling prices and demanding to cut the taxes because of hiked fuel prices.
Arun Jaitley the Finance Ministry has denied cutting any taxes to provide any relief to the consumers, he also said that it does not have the elasticity to lose any profits without developmental expenses being cut. He further stated that the government cannot afford this in the 2019 election year.
On Friday the fuel prices scaled to a lifetime hike of Rs 81.28 per litre in Delhi, whereas in Mumbai it hiked up to Rs 88.67. In the national capital Delhi, one litre of diesel was priced at Rs 73.30 and Rs 77.82 in Mumbai.
As per ministry records, every cut of Rs 2 in the price of petrol and diesel would lead to a loss in the revenue of around Rs 30,000 crore. The government has made out clearly that it will not take any harsh decision against the fuel prices hike and fall in Rupee.