The government is on its way to announce a stimulus package for the economy weighed down by demonetisation and rollout of GST.
Finance Minister Arun Jaitley on Tuesday said he has been holding meetings with high-level officials and experts in the government and may soon announce some measures after consultation with Prime Minister Narendra Modi.
The stimulus could come in for manufacturing, a sharp slowdown in which has pulled down the country’s economic growth to a below 6% in the first three months of the financial year from close to 8% last year. Sops are also on way for exporters and the sectors responsible for job creation.
Besides, the government and the Reserve Bank of India may sit together to decide on fresh monetary stimulus in form of a sharp one-time reduction in interest rates so that private sector spending takes off, a highly placed source told DH.
Though the finance minister did not elaborate what kind of incentives will be announced and when, official sources said some of the tax rebates for manufacturing, textiles, leather, gems and jewellery sectors could be announced.
Some will come in the Budget to be presented in February.
Published 20 September 2017, 10:28 IST