Prime Minister Narendra Modi is expected to hold a check meet coming weekend to examine the physical condition of the economy and deliberate if any involvement measures are essential to stem the fall of rupee and increasing oil prices.
There was a sudden increase in interest rate to shore up the rupee, which strikes a fresh lifetime short Wednesday, is also discussed in some quarters.
According to the sources, the meeting will be held on Saturday in the presence of Finance Minister Arun Jaitley, NITI Aayog Vice-Chairman Rajiv Kumar, PMEAC Chairman Bibek Debroy and Finance Secretary Hasmukh Adhia.
While the arrangement of the meeting is not discussed yet, the motive of the meeting is to reassess macroeconomic indicators, implementation of flagship financial inclusion, government finances and other schemes of development, they said.
The meeting is likely to review the Indian currency dropping down with the record low of 72.91 to a dollar which has reduced 12.3 per cent since the beginning of 2018.
The rupee on Wednesday bounced back from its lowest of 72.91 to gain by 51 paise at 72.18 just after the Finance Ministry guaranteed to prevent its drop to “unreasonable levels”. In addition to having a crash on current account discrepancy, the dip in the rupee made imports costlier and made record-breaking highs to petrol and diesel prices.
The Finance Ministry has negated any possibility of cutting in taxes for the consumers to ease any burden on them, saying it does not have the elasticity to misplace any profits without developmental expenses being cut. The government cannot manage to afford the funds for the coming election year.
The opposition Congress party criticised Modi government and made the matter of hike in fuel prices and fall down of Rupee a political issue and also alleged the effectiveness of the all economic policies by the government. The opposition has been demanding to cut the excise duty and the states ruled by them comprise Andhra Pradesh and West Bengal to cut out the local taxes there.
According to the Commerce Ministry, data trade deficit is better than expected at $17.40 billion in August, down from $18.02 billion a month ago. Exports increased 19 per cent to $27.84 billion whereas the imports gained 25.41 per cent to $45.24 billion.
The retail price of diesel and petrol arrives after the excise duty added to the actual price, which is charged by the Central government, commission paid to petrol pumps dealers and VAT, charged by the state governments.