FM to meet sectoral regulators to take stock of the economy

The meeting will review the current global and domestic economic situation and financial stability issues, including those concerning banking and NBFCs.

Finance Minister Nirmala Sitharaman will review the state of economy at a meeting of the Financial Stability and Development Council (FSDC) on Thursday to be attended by sectoral regulators, including RBI Governor Shaktikanta Das.

The FSDC is the apex body of sectoral regulators, headed by the finance minister.

According to sources, the meeting will take stock of various measures taken by the government to boost the sagging growth which hit a six-year low of 5 per cent in the first quarter of the current fiscal.

The meeting will review the current global and domestic economic situation and financial stability issues, including those concerning banking and NBFCs, sources added.

Besides RBI Governor, Securities and Exchange Board of India chairman Ajay Tyagi, Insurance Regulatory and Development Authority of India(IRDAI) chairman Subhash Chandra Khuntia, Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo and Pension Fund  Regulatory and Development Authority Ravi Mittal will attend the meeting.

This would be the second meeting of the FSDC after the Modi 2.0 government assumed office.

The government has announced several short and long-term measures to boost the economy in three phases between August 23 and September 14.

Out of the total 44 measures announced, 16 have been fulfilled while the rest of the announcements are under consideration by relevant ministries.

Further, it said action on one out of three announcements made for the housing sector has been completed and the other two are being taken up.

According to experts the slowdown is primarily due to moderation in demand and steps are being taken to infuse liquidity in the financial system to aid loan growth.

Sources said the FSDC meeting will also be attended by Minister of State for Finance Anurag Singh Thakur, Finance Secretary Rajiv Kumar, Economic Affairs Secretary Atanu Chakraborty, Revenue Secretary Ajay Bhushan Pandey and other top officials of the finance ministry.

Photograph: Manvender Vashist/PTI Photo