Under Opposition attack, Centre lists out steps to check decline in Rupee, boost economy

NEW DELHI: The Narendra Modi government on Friday decided to relax norms for raising overseas borrowing and impose restrictions on the non-essential imports as part of efforts to check rising current account deficit (CAD) amid falling rupee.

These decisions were taken at a meeting chaired by Prime Minister Narendra Modi to review the state of the economy.

PM held a meeting today in which RBI's governor & deputy governor, officials of finance ministry & PMO officials were present. In the meeting RBI Guv gave a detailed presentation about the condition of world's economy & external factors which can affect Indian economy: A.Jaitely pic.twitter.com/67BJnFTDpK — ANI (@ANI) September 14, 2018

PM Modi was briefed by Reserve Bank Governor Urjit Patel and officials of the Finance Ministry, Finance Minister Arun Jaitley told reporters here after the meeting.

The decisions are aimed at checking the CAD and increase foreign exchange inflows, Jaitley said.

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 exports: FM Arun Jaitley in Delhi pic.twitter.com/ZlfU1JZQLR — ANI (@ANI) September 14, 2018

The government would also take steps to promote exporters and restrict non-essential imports, he added.

Our growth rate as compared to other countries of the world is quite high. Inflation in our country stays in a range & that range is moderate: FM Arun Jaitley in Delhi pic.twitter.com/BplEpa4b5y — ANI (@ANI) September 14, 2018

Jaitley, however, did not disclose items on which import restrictions would be imposed.

"To address the issue of expanding CAD, the government will take necessary steps to cut down non-essential imports and increase exports. The commodities of which imports will be cut down will be decided after consultations with concerned ministries and will be WTO-compliant," he said.

Later, briefing reporters, Subhash Chandra Garg, Secretary DEA, said, ''Today’s discussion focused on current account & what can be done in capital account to finance the current account. There will be a constant review of the current account side, probably next week.''

''These 5 CAD (Current Account Deficit) measures would definitely have a meaningful impact. It is difficult to give a specific number. I think it should have an impact of USD 8-10 billion,'' Garg added.

The rupee touched an all-time low of 72.91 against the US dollar on September 12 and it closed at 71.84. 

The domestic currency has declined around 6 percent since August and touched an all-time low of 72 level this week. Petrol and diesel prices have also touched record highs.