Govt decides to check rising Current Deficit Account & fall in rupee, several steps on anvil

The government has announced an array of steps to check the rising Current Account Deficit (CAD), and the fall in rupee.

The steps include removal of withholding tax on rupee-denominated bonds known as Masala bonds issued till March next year, relaxation for Foreign Portfolio Investment (FPI), and curbs on non-essential imports.

The decisions were taken at a meeting chaired by Prime Minister Narendra Modi in New Delhi yesterday to review the state of the economy.

During the meeting, Mr Modi was briefed by RBI Governor Urjit Patel and officials of the Finance Ministry.

Finance Minister Arun Jaitley told reporters after the meeting that the government has decided on a number of steps to contain CAD, which widened to 2.4 per cent of the GDP in the first quarter of 2018-19.

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