Prime Minister Narendra Modi’s Government Has Bad Loans In Focus Next; Arun Jaitley Feels GST Might Spur Economic Growth
Prime Minister Narendra Modi’s government has recently completed 3 years and with 2 more years to go, the government is now shifting its focus to the bad loans that have crumpled the public sector banks and its ability to lend.
With two more years remaining in the term, Prime Minister Narendra Modi’s government is said to shift its focus on reviving the public sector banks and its ability to lend. Moreover, the government will also have its focus on private investments. According to reports from Livement, action towards the high amount of bad loans will be started in a few days. It is worth mentioning here that the Indian banks have Rs 9 trillion as bad loans.
Finance Minister, Arun Jaitley has said that the huge amounts of bad loans are a challenge as it affects the capacity of the banking sector and its contribution towards growth. He further added, “Linked to it is the challenge of increasing private sector investment, even though our FDI (foreign direct investment) and public sector investment have significantly increased.”
Notably, in May this year, an ordinance pertaining to amendment of the Banking Regulation Act is already in place. And, this ordinance will bestow power on the Reserve Bank of India to intervene.
In related news, Jaitley has also said that the economic slowdown is due to various factors and holding demonetisation as the real reason will be “erroneous.” He also said that others factors like the global situation is responsible for the sharp economic slowdown, which had the GDP growth for January-March at 6.1 percent, Indian Express reported
In a press conference, he also said that the two major challenges that the government needs to resolve now is regarding the non-performing assets in the banking sector and pushing the private consumptions. Moreover, he is also hopeful that with the proposed Goods and Services Tax (GST), the economy will see a growth.