India: FM Nirmala Sitharaman says still in talks with PMO in reviving sentiment

  • Finance minister Nirmala Sitharaman Friday said her officials are in discussions with their counterparts in the PMO and once the talks are over government will figure out what remedial steps should be taken and announce the same.
  • However, she refused to say if government is planning to come out with a stimulus package to arrest the deepening slowdown, or ruled the possibility of one either.
  • On a specific question whether government will announce a stimulus package, Sitharaman quipped: “I have not talked about any stimulus package, and whatever appearing in a section of the media is not given by me.
  • “Discussions are going on about what steps should be taken and we will announce them when we are ready,” was all she would say.
  • In his meeting with Finance Minister Nirmala Sitharaman and her team, Modi has argued for quick alleviation measures.
  • With the FPI surcharge causing cataclysmic corrections in the capital markets, the BSE Sensex has seen a drop of 8% since early-Jun 19, accentuated after the Budget speech which imposed the tax, and the Prime Minister is reportedly concerned about disinvestment receipts which are contingent on a stable equity market.
  • Sector specific sops could be on the anvil as early as this weekend; the auto and realty sectors are in shambles, consumption patterns after a 10-year glut have fallen off the cliff, savings rate is at a multi-year low and overall slowdown fears are rampant with almost all metrics in the negative or having seen huge deceleration.

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