PM holds meet with Sitharaman and officials to weigh booster dose options

India’s economic growth has slowed to 6.8 per cent in 2018-19 – the slowest pace since 2014-15, consumer confidence is waning and foreign direct investment has reached plateau

Prime Minister (PM) Narendra Modi on Thursday met Finance Minister Nirmala Sitharaman and officials of her ministry to find solutions to the economic slowdown that has eroded wealth and hit jobs. Sources said the government might soon provide a broad stimulus package or a sector-specific booster dose.

There might also be some relief to foreign portfolio investors from the super-rich surcharge, announced in the Budget. But, a cut in the goods and services tax (GST) on motor vehicles — one of the worst-hit sectors — was unlikely, said sources, adding that the government believed the sector was going through a cyclical downturn.

“The Centre will assess the potential revenue loss from any cut in the GST rate for four- and two-wheelers before proposing it to the GST Council,” said a government source. The current GST rate is 28 per cent.

The meeting on Thursday took place hours after Narendra Modi addressed the nation from the historical Red Fort in Delhi on the occasion of Independence Day. Officials aware of the deliberations said plans were being firmed up for any stimulus package or sector-specific measures. “The broad consensus was that steps will be taken by the government to arrest the slowdown in the economy. The contours are being drawn up now,” said an official…