Union Minister Arun Jaitley
Finance Minister Arun Jaitley on Friday said that the fuel prices are rising because of global reasons.
Jaitley pointed out that while India’s growth rate is higher than many other countries, the inflation in the country is lower than many other nations of the world.
Arun Jaitley was talking to media persons after Prime Minister Narendra Modi reviewed economic scenario with him and other top-ranking officials of the Finance ministry.
“PM held a meeting today in which RBI’s governor and deputy governor, officials of finance ministry and PMO officials were present. In the meeting RBI Guv gave a detailed presentation about the condition of world’s economy & external factors which can affect Indian economy,” Jaitley said.
Jaitley said that in order to address the issue of expanding CAD (Current Account Deficit), the government will take necessary steps to cut down non-essential imports and also increase exports.
“There will be removal of restrictions on Indian banks, market making in Masala bonds including restrictions on underwriting of Masala bonds,” he added.
Jaitley further said that as far as Masala bonds are concerned, there will be exemption from withholding tax for issuance done in this year, that is up to 31st March 2019.
“The suggestion with regard to removal of exposure limit of 20% of FPI’s corporate bond portfolio to a single corporate group, ie, company and related entities, and 50% of any issue of corporate bonds, will be reviewed,” he said.
Jaitley also said that a decision has been taken to review the conditions of infrastructure loans.