NEW DELHI: India appears to be much better placed on the back of improved macro-economic fundamentals, as measures to eliminate shadow economy and tax evasion are expected to have positive impact on GDP, the Financial Stability and Development Council (FSDC), headed by Finance Minister Arun Jaitley, said on Thursday.
The Council, at its 16th meeting, reviewed the major issues and challenges facing the economy, the present status of NPAs in bank and measures taken by the government and the Reserve Bank for dealing with the stressed assets and discussed on further action in this regard.
“World economy is quite fragile, yet India is much better placed today due to improvement in its macro-economic fundamentals,” Jaitley said.
“The Council also noted that the government’s measures to eliminate the shadow economy and tax evasion are expected to have a positive impact on both GDP and fiscal consolidation in the long run,” it said. At the meeting, the regulators offered their suggestions/ proposal for the upcoming Budget for 2017-18, which were deliberated upon by the Council.
FSDC also discussed about the various initiatives taken by the government and regulators for promoting financial inclusion/ financial literacy efforts and discussed further measures for promoting the same.
A brief report on the activities undertaken by the FSDC sub-committee, chaired by RBI Governor Urjit Patel, was placed before the FSDC.
The Council also undertook a comprehensive review of the action taken by members on the decisions taken in earlier meetings of the Council. It also took note of issues pertaining to Fintech, digital innovations and cyber security and steps taken by