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English Release 17-December 2014
Date Month Year
  • President's Secretariat
  • President of India’s message on the eve of National Day of Qatar
  • Prime Minister's Office
  • Call on Prime Minister by Representative Tulsi Gabbard of U.S. Congress
  • Prime Minister Shri Narendra Modi's telephone call to Japanese Prime Minister Shinzo Abe
  • PM greets the people of Bhutan on their National Day
  • Cabinet Committee on Economic Affairs (CCEA)
  • Review of the incentive towards marketing and promotion services for raw sugar production
  • Department of Atomic Energy
  • Nuclear Power Programme
  • Commissioning of Atomic Power Plants
  • Light Water Reactors
  • Department of Space
  • Manned Space Mission
  • Agreement Signed with NASA
  • Private Partnership in ISRO
  • Election Commission
  • Facts at a Glance- Jharkhand
  • Min of Agriculture
  • Minimum Support Price of Toria Retained at Last Year’s MSP
  • Radha Mohan Singh Underlines the Importance of Organic Farming and the Need to Promote It
  • Min of Chemicals and Fertilizers
  • Setting up of Urea Plant by Government of India with Gas Feed in Chabahar Region in Iran
  • Revival of Closed Units and Laying of Gas Pipelines
  • Min of Civil Aviation
  • AI to have Code Share Agreements with Most Star Alliance Members by March
  • Min of Commerce & Industry
  • Nirmala Sitharaman Appreciates FDDI’S Role in Filling Skill Gap of Footwear and Leather Sector
  • Regional imbalance in Industrial Development of States
  • Agreement with China for Setting up of Industrial Parks
  • Make in India Scheme
  • Import of Gold
  • Trade between India and Bangladesh
  • Min of Comm. & Information Technology
  • Infrastructure for Electronics Manufacturing Units in the Country
  • Min of Consumer Affairs, Food & Public Distribution
  • Review of the incentive towards marketing and promotion services for raw sugar production
  • Min of Culture
  • Conservation Restoration and Beautification of Protected Monuments
  • Financial Assistance to Artists of Performing Arts
  • Min of Earth Science
  • Desalination Plants
  • Changes in Weather Pattern
  • Min of External Affairs
  • Statement by External Affairs Minister and Minister of Overseas Indian affairs Smt. Sushma Swaraj on terrorism in Lok Sabha
  • Statement by External Affairs Minister and Minister of Overseas Indian affairs Smt. Sushma Swaraj on terrorism in Rajya Sabha
  • Ministry of Finance
  • Eight Presiding Officers in Debts Recovery Tribunals (DRTS) Appointed
  • Ministry of Finance Issues Clarifications with Regard to Different Aspects of the Pradhan Mantri Jan Dhan Yojana (PMJDY) Including about Availing of Benefits Under the Yojana
  • Min of Health and Family Welfare
  • Shri Shripad Yesso Naik at CII Health Summit: Time to make “Health for All” a reality
  • Min of Home Affairs
  • Declassification of Files Relating to Azad Hind
  • Asylum to Foreigners fleeing Religious Persecution
  • Pakistan helping Al-Qaeda to Advance into India
  • Compensation to 1984 Riot Victims Vis-A-Vis other Victims
  • Attempt by Tehrik-e-Taliban Pakistan to set up bases in India

  • Suicide Committed by Prisoners in Tihar Jail
  • Decrease in Recruitment of SC/ST Category in Para-Military Forces
  • Fake Indian Currency Notes
  • Strengthening of Para-Military Forces
  • Investigation by Central Intelligence Agencies regarding Indoctrination of Young Pupils
  • Laser Wall to Stop Infiltration from Pakistan
  • Change in the name of Aurangzeb Road
  • Min of Housing and Urban Poverty Alleviation
  • No Proposal to merge JNNURM, IAY, RAY and RRY
  • Easing of FDI norms in construction sector
  • Min of Human Resource Development
  • Enhancing access to Higher Education in Unserved or Underserved Areas
  • Ishan Uday Scheme
  • Min of Information & Broadcasting
  • Government Calendar 2015 combines conventional and technological modes of communication – Arun Jaitley
  • Min of Labour & Employment
  • Informal Workers in Organized Sector
  • Centralized Employment Exchanges
  • Comprehensive Employment Policy
  • Labourers in Construction Sector
  • Min of Mines
  • Proposal of License for Iron or Over Notified Area
  • Closure of Mines in West Bengal
  • Mining Activity Areas Declared Forest Reserves in Jharkhand
  • Min of Overseas Indian Affairs
  • Overseas Citizens of India
  • Increase in Emigration of Unskilled Workers
  • Withdrawal of Licence of Recruiting Companies
  • Law to Deal Disputes of NRIs
  • Min of Personnel, Public Grievances & Pensions
  • CBI Investigation Against VVIPs
  • Permission for Prosecution
  • Changes in Reservation Policy
  • Moratorium on Recruitment
  • Prevention of Corruption Act
  • Reservation in NGOs
  • Uploading RTI Applications
  • Min of Petroleum & Natural Gas
  • Unviability of Production of Natural Gas by GSPC
  • Feasibility Studies for Petrochemical Complex in Odisha
  • CAG’s Observation on Expenditure Incurred by Oil Companies
  • Global crude oil price of Indian Basket was US$ 57.76 per bbl on 16.12.2014
  • Ministry of Railways
  • Railways Facilitate Safe Train Travel to a Group of Female Students Stranded Due to Flight Cancellation
  • Commodity-Wise Freight Revenue Earnings of Railways Goes up by 12.09 per cent During April-November 2014
  • Railways to Introduce Modern Technology for Sending Automatic Alert Messages to Road Users at Unmanned Level Crossings
  • Min of Science & Technology
  • Survey in Forest and Hilly Areas
  • Incentives to Encourage Scientists
  • Technology as a Vehicle of Growth
  • Min of Skill Development and Entrepreneurship
  • National Skill Development Agency
  • Rural Job Scheme for Skill Development
  • Entrepreneurial Culture
  • Skill Development of Rural Youth
  • Access to Skill Development Programmes
  • National Policy on Skill Development
  • Min of Statistics & Programme Implementation
  • Methodology of GDP
  • Min of Steel
  • Steel Research and Technology Mission of India
  • New Steel Policy
  • Ministry of Tourism
  • Foreign Tourist Arrivals
  • 29 Tourism projects sanctioned for the North Eastern States in 2014-15
  • Mega Tourism Projects
  • Min of Tribal Affairs
  • Production of Kendu Leaves
  • Fellowships to ST Students under Rajiv Gandhi National Fellowships
  • Min of Urban Development
  • Five Villages of Delhi paying Chullah tax granted ownership rights/ regularization
  • Shri M. Venkaiah Naidu says the Government is working towards a model urban system that can allow the aspirations of all sections of the society; Strongly condemns the barbaric killing of children in Pakistan

  • Min of Skill Development, Entrepreneurship, Youth Affairs and Sports
  • Sports Universities
  • Promotion of sports for persons with disability
  • Potential of sports in tribal areas of Chhattisgarh
  • Medals in Asian Games
  • Matches of World Kabaddi League in India
  • Objectives of Panchayat Yuva Krida Khel Abhiyan
  • Implementation of Urban Sports Infrastructure Scheme
  • Government to seek review of the AIBA decision of banning boxer Sarita Devi

Previous Date

 
Prime Minister's Office07-December, 2008 16:37 IST
Government announces measures for stimulating the economy
The Government has been concerned about the impact of the global financial crisis on the Indian economy and a number of steps have been taken to deal with this problem.

The first priority was to re-assure the people of the stability of the financial system in general and of the safety of bank deposits in particular. To this end, steps were taken to infuse liquidity into the banking system and also to address problems being faced by various non-bank financing companies. These steps have ensured that the financial system is functioning effectively without suffering the kind of loss of confidence experienced in the industrialised world.

Having assured stability of the system, the Government has focussed its attention on countering the impact of the global recession on India's economic growth. On the monetary side, the RBI has sought to pump sufficient liquidity into the banking system to enable bank credit to meet the expanded requirements of the economy keeping in mind the contraction in credit from non-bank sources. Banks have been provided adequate liquidity through a series of reductions in the CRR and additional flexibility in meeting the SLR requirement. Interest rate reductions have also been signalled by reductions in the repo and reverse repo rates, the most recent of which was announced on Saturday when both the repo rate and the reverse repo rate were cut by 100 basis points. Access to external commercial borrowings has also been liberalised so that borrowers capable of accessing funds from abroad are allowed to do so. The banks are being encouraged to counter what might otherwise become self-fulfilling negative expectations by enhanced lending to support economic activity.

These measures in the area of money and credit are being supplemented by fiscal measures designed to stimulate the economy. In recognition of the need for a fiscal stimulus, the government had consciously allowed the fiscal deficit to expand beyond the originally targeted level because of the loan waivers, issue of oil and fertilizer bonds and higher levels of food subsidy. In addition, the following steps are being taken:

1. Plan Expenditure:

In order to provide a contra-cyclical stimulus via plan expenditure, the Government has decided to seek authorisation for additional plan expenditure of upto Rs 20,000 crore in the current year. In addition, steps are being taken to ensure full utilisation of funds already provided, so that the pace of expenditure is maintained. The total spending programme in the balance four months of the current fiscal year, taking plan and non-plan expenditure together is expected to be Rs.300,000 crore.

The economy will continue to need stimulus in 2009-2010 also and this can be achieved by ensuring a substantial increase in plan expenditure as part of the budget for next year.

2. Reduction in Cenvat:

As an immediate measure to encourage additional spending, an across-the-board cut of 4% in the ad valorem Cenvat rate will be effected for the balance part of the current financial year on all products other than petroleum and those where the current rate is less than 4%.

3. Measures to Support Exports

i) Pre and post-shipment export credit for labour intensive exports, i.e., textiles (including handlooms, carpets and handicrafts), leather, gems & jewellery, marine products and SME sector is being made more attractive by providing an interest subvention of 2 percent upto 31/3/2009 subject to minimum rate of interest of 7 percent per annum.

ii) Additional funds of Rs.1100 crore will be provided to ensure full refund of Terminal Excise duty/CST.

iii) An additional allocation for export incentive schemes of Rs.350 crore will be made.

iv) Government back-up guarantee will be made available to ECGC to the extent of Rs.350 crore to enable it to provide guarantees for exports to difficult markets/products.

v) Exporters will be allowed refund of service tax on foreign agent commissions of upto 10 percent of FOB value of exports. They will also be allowed refund of service tax on output services while availing of benefits under Duty Drawback Scheme.

4. Housing

Housing is a potentially very important source of employment and demand for critical sectors and there is a large unmet need for housing in the country, especially for middle and low income groups. The Reserve Bank has announced that it will shortly put in place a refinance facility of Rs.4000 crore for the National Housing Bank. In addition, one of the areas where plan expenditure can be increased relatively easily is the Indira Awas Yojana. As a further measure of support for this sector public sector banks will shortly announce a package for borrowers of home loans in two categories: (1) upto Rs.5 lakhs and (2) Rs 5 lakh-Rs 20 lakh. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.

5. MSME Sector

The Government attaches the highest priority to supporting the medium, small and micro enterprises (MSMEs) sector which is critical for employment generation. To facilitate the flow of credit to MSMEs, RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken.

(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans will be extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.

(b) The lock in period for loans covered under the existing credit guarantee scheme will be reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.

(c) Government will issue an advisory to Central Public Sector Enterprises and request State Public Sector Enterprises to ensure prompt payment of bills of MSMEs. Easing of credit conditions generally should help PSUs to make such payments on schedule.

6. Textiles

(a) An additional allocation of Rs.1400 crore will be made to clear the entire backlog in TUF Scheme.

(b) All items of handicrafts will be included under 'Vishesh Krishi & Gram Udyog Yojana'.

7. Infrastructure Financing

A large number of infrastructure projects are now being cleared for implementation in the Public Private Partnership mode. These projects may experience difficulty in reaching financial closure given the current uncertainties in the financial world. In order to support financing of such projects, Government has decided to authorise the India Infrastructure Finance Company Limited (IIFCL) to raise Rs.10,000 crore through tax-free bonds by 31/3/2009. These funds will be used by IIFCL to refinance bank lending of longer maturity to eligible infrastructure projects, particularly in highways and port sectors. In this way it is expected that IIFCL resources used for refinance can leverage bank financing of double the amount. Depending on need, IIFCL will be permitted to raise further resources by issue of such bonds. In particular, these initiatives will support a PPP programme of Rs.100,000 crore in the highways sector.

8. Others

(a) Government departments will be allowed to take up replacement of government vehicles within the allowed budget, in relaxation of extant economy instructions.

(b) Import Duty on Naphtha for use in the power sector will be eliminated.

(c) Export duty on iron ore fines will be eliminated and on lumps will be reduced to 5%.

The Government is keeping a close watch on the evolving economic situation and will not hesitate to take any additional steps that may be needed to counter recessionary trends and maintain the pace of economic activity.

***

RCJ/AD
(Release ID :45376)

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