Tuesday, September 17, 2019 | ePaper

India seeks to kickstart sagging economy

  • Print
AFP, New Delhi :
India said Friday it would pump in nearly 10 billion dollars into government banks to ease a liquidity crunch in Asia's third-largest economy, as it goes through its worst slowdown in five years.
"We are releasing 70,000 crore ($9.7 billion) upfront into public sector banks…. This will benefit all corporate and retail borrowers," Finance Minister Nirmala Sitharaman said at a news conference in New Delhi.
She also said she would roll back an extra fee that had been introduced in the July budget on profits from equity sales that had spooked foreign investors and sent Indian shares sharply lower.
Sitharaman announced a slew of other steps to revive the misfiring economy, including an agreement by lenders to pass onto borrowers interest rate cuts by the central bank.
"People were saying that the benefit of rate reductions don't reach them at all, or reaches in trickle. There was an across the board grievance," Sitharaman said.
"This will result in reduced EMI (equated monthly installments) for housing, vehicle, retail and other loans."
Earlier this month, India's central bank cut interest rates for the fourth time this year to a nine-year low in an attempt to boost growth, but credit has remained tight for firms and consumers.
India's economic growth has slowed in the past three consecutive quarters, losing its status as the world's fastest-growing major economy to China, with unemployment at its highest since the 1970s.
The automotive sector is particularly stricken, with car sales plunging 31 percent in July, the ninth consecutive monthly drop, prompting manufacturers to halt production at some plants.
In an effort to boost car sales Sitharaman said the ban on purchasing new vehicles by government departments would be lifted.
Industry figures had been calling on newly re-elected Prime Minister Narendra Modi's government to provide more of a fiscal boost as signs multiply that numerous sectors are suffering a painful slowdown.
On Thursday shares fell sharply after the government's chief economic advisor K. Subramanian indicated he did not favour government sops in a market-driven economy.
Gross domestic product (GDP) for the world's sixth-biggest economy grew 5.8 percent in the final quarter of 2018, down from 6.6 percent in the previous quarter.

More News For this Category

Md. Quamrul Islam Chowdhury, CEO of Mercantile Bank Limited, receiving the 'Bill Collection Award' as one of the top bill collector bank among 33 banks in collecting Dhaka WASA's bill in fiscal year 2018-19 from LGRD & Cooperatives Minister Md. Tazul Islam, MP at Sonargaon Hotel in the city recently. Dhaka WASA organized the programme.

Md. Quamrul Islam Chowdhury, CEO of Mercantile Bank Limited, receiving the 'Bill Collection Award' as one of the top bill collector bank among 33 banks in collecting Dhaka WASA's bill in fiscal year 2018-19 from LGRD & Cooperatives Minister Md. Tazul Islam, MP at Sonargaon Hotel in the city recently. Dhaka WASA organized the programme.

.

Xiaomi brings portable Mi Pocket Speaker 2

Business Desk :Mobile hand set company Xiaomi on Monday introduced Mi Pocket Speaker 2 in Bangladesh, a portable Bluetooth speaker with powerful audio capabilities. Mi Pocket Speaker 2 sports

Pixmama, Roar (BD) Ltd sign MoU

Business Desk :Digital content marketplace, Pixmama, have signed a MoU with Roar Bangladesh Limited. Under the deal, both the companies to collaborate for infusing fresh breath of vitality into

BREB to set up 7.5 lakh more prepaid meters by Dec next

Economic Reporter :As part of the government plan to replace 2.0 crore traditional meters by prepaid ones within 2025, Bangladesh Rural Electrification Board (BREB) will set up 7.50

Md. Shahjahan Shiraj, DMD of Shahjalal Islami Bank Limited, inaugurating its 127th branch at Moheshpur in Jhenaidah on Monday. Md. Abdur Rashid Khan, Mayor of Moheshpur Municipality, Foshier Rahman, President of Moheshpur Bazar Bonik Samity and other officials of the bank were also present.

Md. Shahjahan Shiraj, DMD of Shahjalal Islami Bank Limited, inaugurating its 127th branch at Moheshpur in Jhenaidah on Monday. Md. Abdur Rashid Khan, Mayor of Moheshpur Municipality, Foshier Rahman, President of Moheshpur Bazar Bonik Samity and other officials of the bank were also present.

.

PM to open 'Rajhangsha' today

BSS, Dhaka :Prime Minister Sheikh Hasina is set to inaugurate "Rajhangsha", the 4th Dreamliner of Biman Bangladesh Airlines, today (Tuesday)."Prime Minister Sheikh Hasina will formally commission the newly-procured state-of-the-art

Onion importers to get loans at lower bank interest rate

Al Amin :The Government has taken different measures to control onion market as the prices of the cooking ingredient have increased following India's decision to curb exports.Among the measure,

DSE, CSE edge higher amid cautious trading

Economic Reporter :Stocks edged up marginally on Monday amid cautious trading as some institutional investors came forward to support the market.DSEX, the prime index of the Dhaka Stock Exchange,

Capital market to be taken to sustainable level: Kamal

Economic Reporter :Finance Minister AHM Mustafa Kamal on Monday said that the existing hurdles and challenges of the capital market would be overcome to take the market to a

State Minister for ICT Division Zunaid Ahmed Palak, along with Ali Reza Iftekhar, CEO of Eastern Bank Limited (EBL), launching EBL's journey with the Government's National ID Real-time Verification Portal porichoy.com.bd at a ceremony held at the ICT Division auditorium in the city on Sunday. M Khorshed Anowar, Head of Retail and SME Banking, Ziaul Karim, Head of Communications and External Affairs and other senior officials of the bank and the ministry were also present.

State Minister for ICT Division Zunaid Ahmed Palak, along with Ali Reza Iftekhar, CEO of Eastern Bank Limited (EBL), launching EBL's journey with the Government's National ID Real-time Verification Portal porichoy.com.bd at a ceremony held at the ICT Division auditorium in the city on Sunday. M Khorshed Anowar, Head of Retail and SME Banking, Ziaul Karim, Head of Communications and External Affairs and other senior officials of the bank and the ministry were also present.

.