Government mulling policy options for stressed sectors
The PMO, Finance Ministry and the RBI are in constant discussions over a sectoral policy package for stressed sectors. For instance, the auto industry’s demand for a separate refinance window under the RBI is a part of the deliberations. FPI surcharge is also being discussed as they continue to withdraw funds from the Indian market. The RBI and the government are in talks with public sector banks to have more flexibility in lending for auto and its ancillary sectors.
However, sources point out that there are no measures with direct revenue implications under consideration. The industry’s demand for GST rate cut from 28% to 18% may also not be fulfilled.