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More steps likely to cut current account deficit: Jaitley (Lead)
New Delhi, Oct 6 (IANS) With current account deficit (CAD) still remaining a concern, Finance Minister Arun Jaitley on Saturday hinted at more steps to rein in the problem.
“To bridge current account deficit and to bolster flow of funds into India, we are ready and have been gradually taking a lot of steps to deal with the situation… Depending on the situation as it proceeds, you will probably see more steps which are required,” he said at the Hindustan Times Leadership Summit.
He said the government has already taken a series of steps, including cutting its borrowings by Rs 70,000 crore, doing away with withholding tax on masala bonds for the moment and allowing oil marketing companies to raise funds worth $10 billion.
Jaitley said the current account deficit is directly linked with global oil prices, which has been going up recording the highest level in the last four years, and is going to have some adverse impact.
“We are trying our best to take measures to narrow it down. Some more steps are likely. But there are two factors, both external: one is the oil prices and the second is the policies within the US which is leading to the hardening of the dollar itself, and therefore affecting other currencies all over the world.
“As far as our internal situation is concerned, we have to consolidate our systems so the adverse impact on our growth is the least,” the Minister added.
On the falling rupee, Jaitley said it is a cause of concern due to the variance in political and economists’ opinion, and if one only looked at the transient situation.
“But since it is a creation of two factors — oil and hardening of dollar — once you have a settling impact, it (rupee) will find its own level. But what that level is, it has to be decided on the real strength of where the rupee stands and where the economy stands,” he said.
Expressing confidence in the robustness of Indian economy, the Finance Minister said the current situation is a “short-lived” phenomenon and won’t last indefinitely.
Jaitley said India has huge avenues of growth over the next 10-20 years to sustain its high growth rate.
“If you leave these two transient situations (oil and dollar), India has consistently acquired 7.5 (+/-) per cent growth rate, and we comfortably achieve that. In today’s global situation, that is the highest in the world.
“With these factors over the next two decades, there is a lot of potential. India’s ability to maintain the present growth rate for a decade or two is reasonably certain,” he said.
Jaitley hoped that India would never see the kind of “horrible” economic data as it existed in 2013, before the Bharatiya Janata Party (BJP) came to power.
“CAD at that time was 4.7 per cent, fiscal deficit at 5.6 per cent and during the UPA II, the average inflation was around 10.4 per cent between 2009 and 2014. Hopefully, India would never have that kind of horrible data again,” he said.
Maintaining fiscal prudence is a top priority for his government, as it can take certain liberties only if the economic data is good, Jaitley added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.