NEW DELHI: Union Finance Minister Nirmala Sitharaman has announced a sand-out of measures to improve the health of the economy on Friday. Following his announcements, the country's Home Minister Amit Shah has said that India's economy is in good shape even after the slowdown in the global economy. He said, "Our government takes economic prudent decisions while prioritizing development.
Today's announcements by Nirmala Sitharaman suggest that the Modi government is committed to making the country's economy a $5 trillion economy. The Rs 70,000 crore resettlement in banks was announced in the full budget presented in July this year. This step has been taken to boost credit growth to make India a 5 trillion economy by the financial year 2024-15. Bankers say that to achieve this target, the lending rate has to be increased at an annual rate of 18-20 per cent.
In another policy measure, the finance minister said banks will now cut the lending rate in line with the MCLR deduction to benefit all lenders. Both these steps will reduce the EMI of home loans, vehicles and other retail loans, as they will now be directly linked to the repo rate.