India appears to be much better placed with improved macro-economic fundamentals, as measures to eliminate shadow economy and tax evasion are expected to have positive impact on GDP, the all-powerful 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. "World economy is quite fragile, yet India is much better placed today due to improvement in its macro-economic fundamentals," Jaitley said.
With all secretaries in the Finance Ministry as well as Reserve Bank of India Governor Urjit Patel and other financial regulators in attendance, the Financial Stability and Development Council (FSDC) also reviewed the present status of NPAs in banks.
It noted that "India appears to be much better placed today on back of improvement in its macro-economic fundamentals," an official statement 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, Chief Economic Adviser Arvind Subramanian made a presentation on the state of economy.
"The Council reviewed the major issues and challenges facing the economy and noted that India appears to be much better placed today on the back of improvement in its macro-economic fundamentals," it said.
Also, the regulators offered their suggestions/ proposal for the upcoming Budget for 2017-18, which were deliberated upon by the Council.
"The Council also reviewed the present status of NPAs in banks and measures taken by the government and RBI for dealing with the stressed assets and discussed on further action in this regard," it said.
Besides Patel, those present at the meeting included Finance Secretary Ashok Lavasa, Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chib Duggal, Revenue Secretary Hasmukh Adhia, Disinvestment Secretary Neeraj Kumar Gupta, SEBI Chairman U K Sinha, IRDAI Chairman T S Vijayan and PFRDA Chairman Hemant G Contractor.
"FSDC 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," the statement said.
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.
"The Council also discussed issues pertaining to Fintech, digital innovations and cyber security. The Council took note of the initiatives taken in this regard by the government and the regulators and discussed on further steps to be taken," it added.