Indian Government’s Moves to Repair Textile and Realty Sector
In the wake of economic slowdown, the Indian government is trying to avert repercussions on industries and common masses. Since the Modi-government has come into power anew, the regime is formulating plans to build the Indian economy into a $5 trillion economy. Lately, the government has taken moves to uphold the banking, finance and automobile sector.
Owing to the rising count of defaulters, the government decided to merge public sector undertakings (PSU). Alongside this, measures have been taken to create a separate INR 1 lakh crore securitization facility for NBFC; also, encouraging PSBs to participate in it by rendering a one-time 6 month partial guarantee to them, reported by the daily news, The Economic Times.
After upholding the banking sector and NBFC, the government has now shifted its focus on the export and home buyers. In a recent press conference, the Finance Minister, Nirmala Sitharaman proclaimed to repair the realty sector by incentivizing house buyers and easing ECB (External Commercial Borrowings) norms. For supporting the export sector, the government proposed the plan to increment credit guarantee for export finance. Further, the move will ease regulations in the export sector, as reported by the daily news, Money Control.
Here’s How Government is Easing Regulations for Export and Realty Sector
In the third press conference of FM, Nirmala Sithraman, schemes and additionally, regulations were introduced to revive business conditions in the two sectors, export and real estate.
1. Introducing RoDTEP (Remission of Duties or Taxes on Export Products)
It is a newly launched plan by the government which will replace MEIS (Merchandise Exports from India Scheme) from January 1, 2020, onwards.
2. Expanding the Scope of ECIS
This attribute will turn helpful for the export sector as the regime states that the Export Credit Guarantee Corporation will enhance the extent of ECIS. It will also render higher insurance cover to banks which lend working capital to people for exports. This will be estimated to cost INR 1,700 crores per annum to the Indian government.
3. Introducing the Shopping Festival
The government has emphasized on starting an annual mega shopping festival similar to the one holding in Dubai. It is anticipated to start by March 2020. With this shopping festival, tourism sector, SME and export sector will be benefited.
4. Setting up FTA (Free Trade Agreements)
The government proclaimed that will be initiating FTA Utilisation Mission, which will be overseen by a senior official of the Department of Commerce, who will work along with FIEO and export houses to employ concessional tariffs in each FTA.
5. Introducing a Window for Mid-Income Housing
The government will initiate a special window that will render last-mile funding for housing projects that are non-NCLT, non-NPA projects and are stuck owing to a dearth of funding. This, in turn, initiates INR 10,000 crore funds and will be overseen by market professionals as well as veterans of the banking and housing finance sector.
With these moves, the government believes to reverse the depressing realty market and textile industry of India.
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