Published: Wed, September 11, 2019
Economy | By

FM Blames "Millennial Mindset" For Auto Crisis, Desi Twitter Responds With Sarcasm!

FM Blames

On the spending of Reserve Bank of India surplus reserve of Rs 1,76,051 crore which was transferred to the government after approving all the recommendations of the Bimal Jalan-led expert committee, the finance minister said that a task force has been appointed by the government on how the money should be frontloaded on infrastructure as well as to boost the consumption index.

On the auto sector slowdown, Sitharaman said that the government is in touch with the industry players and constantly working to resolve their issues.

Responding to a query over GST rate cut for auto industry, Sitharaman said it is a matter to be decided by the GST council.

Sitharaman said that the government, as part of its move to make India a Dollars 5 trillion economy, has chalked out various measures, including infrastructure spending and merger of public sector banks, among others. She said that work is going on on the suggestions received from the industry for auto components. "We are conscious that we need to respond", Sitharaman said, adding that the goods and services (GST) Council will decide on cutting goods and services tax on automobiles, which attract a 28% rate now, at its September 20 meeting in Goa.

The minister also expressed worry over the low GST revenue collections.

One of the reasons for the slowdown, according to the Finance Minister, was "change in the mindset" of the people, who, she said, are now using cab aggregators like Ola and Uber as well as public modes of transportation. Since December 2018, year-on-year monthly decline in sales has been unabated.

It has been a challenging start for the government, with India's economy expanding at the slowest pace in six years in the June quarter, amid sluggish demand, slowing private investment, a slump in the automobile sector and rising job losses.

'Not Underestimating Growth Pangs' "It is useful for us to remember such dips and rise in GDP growth do happen". Ms. Sitharaman said the factors included the transition to BS VI vehicles, registration fees and also the mindsets of millennials. "The effective date of mergers will be decided by the respective board of directors", said Sitharaman.

"The idea to merge the banks was so that all banks can benefit from each other", she said, adding that she is not aware of any unhappiness yet among the bank employees about the mergers. "Now we are focused to see how it can grow in the next quarter", she said.

On the removal of Article 370, to withdraw the special status of Jammu & Kashmir, the minister said it was a long-time dream of the BJP.

Like this: