Falling Rupee value: Govt to cut down non-essential imports
New Delhi, Sep 14: In the wake of falling value of Rupee against Dollar, the Central Government on Friday announced a series of steps it would take shield the Indian Economy from external factors.
"Prime Minister held a meeting today in which RBI's Governor and deputy governor, officials of the finance ministry and PMO officials were present. In the meeting RBI Governor gave a detailed presentation about the condition of world's economy and external factors which can affect Indian economy," Union Finance Minister Arun Jaitley told the media.
Jaitley said that India's growth rate as compared to other countries of the world is quite high, adding that the Inflation of the country stays in a range.
"To address the issue of expanding CAD (Current Account Deficit) the govt will take necessary steps to cut down non-essential imports and also increase export," he said.
India's CAD widened to a four-quarter high at 2.4 per cent of gross domestic product (GDP) in the April-June period from 1.9 per cent in the January-March quarter of 2017-18.
The rupee has depreciated more than 12 per cent so far this year on a widening CAD and higher oil prices.
"Mandatory hedging conditions for infrastructure loans will be reviewed to permit manufacturing sector entities to avail external commercial borrowing upto 50 million with minimum maturity of 1 year," he added.