Lok Sabha Question No. 45 (UNSTARRED), answered on 2019-11-18
Subject: Value of Indian Currency
Ministry: FINANCE
Asked by: D.K. Suresh

## 45. SHRI D. K. SURESH

Will the Minister of Finance be pleased to state:

- (a) whether the Government has taken serous note of destabilising the Indian rupee against the US Dollar;
- (b) if so, the details thereof;
- (c) the details of measures announced to boost market confidence, curb the widening current account deficit and to control the falling value of rupee;
- (d) whether the Government is contemplating to take necessary steps to cut down non-essential imports and increase export; and
- (e) if so, the details thereof;

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 45

TO BE ANSWERED ON NOVEMBER 18, 2019

Value of Indian Currency

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) & (b) Government does not have a benchmark to evaluate the movement in exchange rate. However, the Reserve Bank of India closely monitors the exchange rate of rupee vis-à-vis the US dollar with a view to maintaining orderly conditions in the domestic foreign exchange market. This the  Reserve  Bank  does  by  intervening  in  the  forex  market  through  operations  that  contain excessive volatility of the currency.
- (c) Recent measures announced by Government to address deceleration in GDP growth include:
-  Further liberalisation of Foreign Direct Investment policy,
-  Reduction of the base corporate tax from 30 percent to 22 percent,
-  Merger of 10 public sector banks into four entities and infusion of Rs.70 thousand crores into public sector banks to improve liquidity in the market,
-  Deduction of additional  income  tax  of  Rs.1.5  lakh  on  the  interest  paid  on  loans  taken  to purchase electric vehicles, and reduction of GST rate on electric vehicles from 12 percent to 5 percent,
-  Number  of  measures  announced  to  improve  housing  sector  including  relaxation  of  ECB guidelines for Affordable Housing.

Measures announced to boost exports include:

-  Extending  the  scheme  of  reimbursement  of  taxes  and  duties  for  export  promotion replacing MEIS to incentivize exporters,
-  Fully automated electronic refund for Input Tax Credits (ITC) in GST,
-  Expanding  the  scope  of  Export  Credit  Insurance  Scheme  (ECIS)  by  Export  Credit Guarantee Corporation (ECGC),
-  Revised priority sector lending norms for exports credit.

Government had expanded the cash transfer scheme 'PM-Kisan' providing an income support of Rs. 6000 per year to all farmers, which was limited to farmers with a land holding of less than 2 hectares.  In  addition,  the  Union  budget  2019-20  provides  a  push  to  infrastructure  development with  the  intention  to  invest  Rs.100  lakh  crore  in  infrastructure  over  the  next  five  years  and  by restructuring of National Highway Programme. Scheme of Fund for Upgradation and Regeneration of  Traditional  Industries  (SFURTI)  has  been  started  to  facilitate  cluster  based  development  to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities.

The  above  measures  inter-alia shall  boost market  confidence  while keeping  our exports competitive.

(d) & (e) The trade policy of the Government reflects the desired composition of import and export basket which may change from time to time based on country's priorities and exigencies.

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