The government on Friday announced an array of steps, including removal of withholding tax on Masala bonds, relaxation for FPIs, and curbs on non-essential imports, to contain the widening Current Account Deficit or CAD and check the rupee fall.
The decisions were taken at a meeting chaired by Prime Minister Narendra Modi to review the prevailing economic issues.
PM Modi was briefed by RBI Governor Urjit Patel, and top officials of the finance ministry on the health of the economy.
These measures are likely to have a positive impact to the tune of $ 8-10 billion, a top finance ministry official said.
Briefing media after the meeting, Finance Minister Arun Jaitley said the government has decided on “five steps” to contain CAD, which widened to 2.4 per cent of the GDP in the first quarter of 2018-19.
He said several issues were discussed during the meeting and decisions on those are likely in the next few days.
According to Mr Jaitley, more issues would be discus