Govt mulling sops for MSME, textiles & exports; to focus on strengthening PSU banks so that lending to small businesses and middle class becomes easier.
Sources said the focus will be on strengthening national banks so that lending to small businesses and the middle class becomes easier.
NEW DELHI: The Centre has begun a slew of measures to boost medium and small scale industries, exports and the textile sector. Government insiders said a September 27 Cabinet meeting had discussed proposals related to providing stimulus to medium and small-scale industries, exports and the textile sector which have not performed to their optimum strength in last few quarters.
“Some important announcements aimed at giving a shot in the arm to these sectors will be made in the next few days,” a senior government official said. These moves were initiated even before RSS chief Mohan Bhagwat expressed his views in his annual Dussehra address at Nagpur.
BJP leaders Yashwant Sinha, Subramanian Swamy, Shatrughan Sinha, RSS ideologue S Gurumurthy and Congress-led Opposition have spoken out on the falling growth rate that stands at 5.7%.
There is concern in the government over the fallout of the rising oil prices, a sensitive issue for the middle class and one which BJP often raised during its days in the opposition. Petroleum products do not fall under GST and state taxes are discretionary. The Centre may reach out to states on various other issues to bring down prices of products during the GST Council meetings.
Some more changes in items under various tax slabs are likely to be taken up in the meeting and a possible revision in the tax rates are on the agenda to improve GDP figures. Senior ministers will also use various fora to defend the state of the economy and project demonetisation and GST as reforms that would increase the tax base and fight corruption and black money.
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With polls in Gujarat — a manufacturing and business-oriented state — round the corner, the Centre wants to set its house in order to beat any anti-incumbency due to the state of the economy.
The winter session of Parliament that begins in November is likely to see the Opposition cornering the government on the economy and NDA wants to be on a stronger footing to face the onslaught. Sources said the focus will be on strengthening national banks so that lending to small businesses and the middle class becomes easier.
The unemployment figures are a matter of concern but the government is likely to bat for job creation in the private sector and through entrepreneurship. The disinvestment scenario is satisfactory, a senior official claimed, adding that the fiscal deficit would be tamed by the time the next budget is presented.
