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PM reviews measures to ease liquidity crunch

By BS Reporter in New Delhi
November 18, 2008 10:45 IST
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Prime Minister Manmohan Singh on Monday reviewed measures taken by the government to ease the liquidity crunch faced by India Inc arising out of the global financial crisis as well as discussed possible measures to help Indian exporters tide over the downturn in key markets like the US and Europe.

The meeting was attended by Finance Minister P Chidambaram, Commerce Minister Kamal Nath, Reserve Bank of India (RBI) Governor Duvvuri Subbarao and senior government officials, including Finance Secretary Arun Ramanathan and Commerce Secretary Gopal K Pillai.

The meeting took place in the backdrop of initial estimates of the commerce and industry ministry that export growth during October has shrunk 15 per cent.

Earlier, speaking at the India Economic Summit, Nath had told reporters that discussions were on amongst various sections of the government to finalise a relief package for exporters. "We are going to look at how a level-playing field can be provided to our exporters. This means total remission of state level duties to exporters so that they are not at a disadvantageous position vis-a-vis competition."

The prime minister had set up a panel comprising senior officials, headed by Ramanathan, to look into measures that would help the industry.

Meanwhile, the RBI on Saturday has taken another set of measures to help ease availability of liquidity for India Inc which involves moves to help exporters, real estate, FCCBs and the SME sector.

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BS Reporter in New Delhi
Source: source
 

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