Evidence of measures to boost investment reflects in record FDI inflow of $35 billion: CEA

Chief Economic Advisor (CEA) KV Subramanian on Friday said the evidence of measures to boost investment was actually seen in the record FDI inflows with US dollar 35 billion in the first half of 2019-20 as against US dollar 32 billion during the last corresponding period.

"Evidence of measures to boost investment is actually seen in the record FDI inflows -- US dollar 35 billion in the first half of 2019-20 as against US dollar 32 billion during the last corresponding period," said Subramanian here at a press conference.

"It is a good sign of foreigners seeing India as a very important destination," said Subramanian, while giving details of measures taken so far to bolster consumption and investment.He said that the Central government has focused on clearing all past dues of PSUs, enabling retail credit by supporting NBFCs and HFCs and supporting MSMEs via bill discounting.

Stating that there is a change on emphasis on disinvestment to enhance the efficiency of the economy, he said: "All of these measures have used transparent due diligence."

"To support NBFCs and HFCs, which are crucial for lending, total sanctioned support has been Rs 4.47 lakh crore, which includes Rs 1.29 lakh crore for pool-buy-cuts of assets," he said.

He said the Central government has cleared the dues of PSUs worth Rs 61,000 crore in two stages."The dues of 32 CPSEs -- including Navratnaas and Maharatnas -- have been cleared by more than 60 per cent in the last two months. 21 out of 32 CPSEs have set up an online bill tracking system to reduce pendency in bill payment and reduce accounts payable to CPSEs. Rs 4,877 cr is currently due to be paid," he said.

Emphasising the need for partial credit guarantee scheme for NBFCs and HFCs, the CEA said while around 17 proposals amounting to Rs 7,6557 cr were approved within two days, proposals amounting to Rs 20,000 crore are likely to be approved over next two weeks.