Prime Minister Narendra Modi will hold an economic review and a crucial meet with the top officials on Saturday.
The meeting is to analyse the health of the economy and decide if any intervention measures are required to stem the fall of rupee and rising oil prices.Here are the key points to take note of:
- The sense is that there is no need for a knee jerk reaction on the rupee because the economic fundamentals continue to remain strong.
- The finance ministry is clear that it wants to stick to the fiscal deficit target but it is an election year so eventually this will require a political support and a political call.
- The demand was for centre to cut excise on fuel by Rs 2, states by Rs 2 and OMCs by Re 1.
- However, the finance ministry believes it’s not advisable to go back to a subsidy sharing mechanism by oil companies.
- The government is weighting options on oil payment for Iran crude.
- It hopes dialogue with US on continuing Iran crude imports will be fruitful.