Govt to soon announce import curb on several non-essential items, says economic affairs secretary Subhash Chandra Garg

New Delhi: The federal government will quickly announce import curbs on a number of non-essential objects, a high finance ministry official stated Wednesday whereas terming “the 10 p.c depreciation” within the rupee in the previous couple of weeks as a “non permanent phenomenon”.

“There are all the time implications of the greenback and rupee trade charges … this 10 p.c depreciation in previous few weeks that could be a non permanent phenomenon,” financial affairs secretary Subhash Chandra Garg stated at an occasion organised by PHD Chamber of Commerce right here.

To a query about when the federal government intends to impose import curb on non-essential items, he replied, “very quickly.”

He, nonetheless, didn’t give any timeframe.

Final week, Finance Minister Arun Jaitley introduced the federal government’s choice to calm down norms for elevating abroad borrowing and impose restrictions on the non-essential imports as a part of efforts to test rising present account deficit (CAD) and a falling rupee.

Representational picture. Reuters.

India’s present account deficit deteriorated to 1.9 p.c of GDP in 2017-18 from 0.6 p.c within the earlier yr and is forecast to rise to round 2.eight p.c within the present yr. The commerce deficit expanded to $80.four billion within the first 5 months of the present fiscal yr from $67.Three billion within the year-earlier interval.

The rupee has logged year-to-date losses of greater than 13 p.c in opposition to the strengthening US greenback after commerce issues and firming up crude oil costs. It has dropped shut to six p.c since August.

Garg exuded confidence that the fiscal deficit can be maintained as per the Finances announcement regardless of pressures.

“Come what could, oil scenario, rupee or regardless of the fiscal deficit won’t be allowed to slide from 3.Three p.c, or higher as we go alongside. I feel all of the ache factors, all the problems which have been earlier regarded as one thing unknown, whether or not it is the MSP (minimal assist worth), all these have now been factored into,” he stated.

On the value rise, Garg stated, four p.c inflation for a growing financial system is wholesome, it isn’t one thing unhealthy or detrimental for the financial system.

The Financial Affairs Secretary additionally defined that because the dependence of 50 p.c of India’s populace is on agriculture, it wants a transition and subsequently, required coverage steps.

The federal government has introduced numerous schemes together with Ujjwala Yojana, well being safety and rural electrification with the intention to carry change in rural India, he stated.

In addition to, he stated, the federal government has drawn up a programme for rising the export of agri merchandise from $30 billion to $100 billion.

“India’s agri exports potential is as excessive as $100 billion in opposition to a present export of $30 billion. To understand this potential, export of agri commodities might be liberalised,” Jaitley had stated whereas presenting the Union Finances 2018-19.

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