The announcements made by Nirmala sitharaman , Union Finance Minister are well received by Corporate houses, economists. The first and foremost is that Finance Minister listened to the stakeholders about their problems. She made sincere attempt to address some of these issues. That itself is a big morale to the industry.
The release of Rs 70000 crores as recap to Public Sector Banks is urgently needed action from Government. Second, the big relief provided to Home, Vehicle and other retail loans by linking Repo rate reduction directly is a good measure. Additional amount provided by National Housing Corporation to HFCs will stimulate housing sector.Certain reliefs provided to auto sector is also welcomed by auto owners. In the Capital sector, the additional surcharge levied on Capital gains is withdrawn, the super rich surcharge imposed on FPIs and domestic front is withdrawn. There are several other measures announced. She also announced that further reforms will be announced next week.
The overall economic scenario around globe is gloomy. Fears of recession is around us. Its impact will definitely be on India also but may not be significant. Ultimately, it may be India which will be shining jewel out of these large economies. Though its announced targets may be difficult to reach, it will be definitely in better position. Nirmala Sitharaman began her journey as Finance Minister in critical period but hopeful that she will prove her capability in this sensitive portfolio also.