Rural and urban inflation sliding down when the headline interest rate (RBI's repo rate) has also been falling reflects all is not well with the economy. It calls for a comprehensive policy response to spur income and investment to revive consumption demand
The 37th GST Council meeting to be held in Goa on 20 September was supposed to discuss the issue of rate cut in the auto sector. The other proposals to be discussed during the meeting include tax cuts on FMCG goods and hotel industry.
After witnessing a phenomenal growth of over 100 per cent between the December quarter of 2017 and September quarter of 2018, there has been a a continuous downward spiral of the aggregate new orders of the industrial and infrastructural construction.
"I know the industries are going through a tough time now. We want to increase the growth rate. Recently, I met automobile manufacturers at all India convention of the automobile industry and all of them were little worried...," says Nitin Gadkari
Finance Minister Nirmala Sitharaman's announcement of Rs 20,000-crore fund may be a liquidity booster but it will not help in demand creation, which is necessary to rid the sector of unsold inventory and cash crunch