Letter to BS: The animal spirit is visible in much-needed action by govt

Tax relief in FPIs by rolling back surcharge and simplifying the KYC norms will definitely boost the sentiments of foreign investors and more wealth will be generated with new investment

The announcement of a stimulus package without touching the fiscal plan — “Stimulus without fiscal pain” (August 24) — is a welcome step by Finance Minister Nirmala Sitharaman. This is a well thought-out move by the government to counter the economic slowdown. Tax relief in foreign portfolio investment by rolling back surcharge and simplifying the KYC norms will definitely boost the sentiments of foreign investors and more wealth will be generated with new investment. Similarly, the steps taken to recapitalise public sector banks to infuse more liquidity in the market will enhance lending through the banks and NBFCs. Two more sets of announcement in the coming weeks to boost real estate and home buyers will give a fresh lease of life to these sectors. The animal spirit is certainly visible in the much-needed action by the government.

Partha Sarathi Mukhopadhyay, Nagpur

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