Govt has adopted multi-pronged policy to safeguard economy amid global uncertainty: Minister

New Delhi, Aug 10 (IANS) The government has adopted a multi-pronged approach to safeguard fiscal stability, exports, and investment flows against external geopolitical uncertainties, with fiscal buffers, including the newly constituted Economic Stabilisation Fund, providing the financial space to effectively respond to global headwinds and unforeseen events, the Parliament was informed on Monday.

To support industry and exports, measures such as the RELIEF (Resilience & Logistics Intervention for Export Facilitation) Scheme, the Bharat Maritime Insurance Pool, restoration of RoDTEP benefits, targeted customs duty relief and the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 have been introduced, Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Lok Sabha.

The government is also strengthening trade resilience through Free Trade Agreements and Comprehensive Economic Partnership/Cooperation Agreements, while an investor-friendly FDI policy continues to attract long-term investment. These efforts are complemented by measures of the Reserve Bank of India to strengthen external sector resilience and attract foreign investment through liberalisation of the External Commercial Borrowing framework, facilitation of foreign investment and promotion of local currency settlement, the minister further stated.

The minister also said that the government has put in place several measures to simplify and make tax compliance more predictable for Micro, Small and Medium Enterprises. Under the Goods and Services Tax (GST) regime, exemption from registration has been provided to small suppliers up to the prescribed turnover thresholds. Eligible taxpayers may opt for the Composition Levy Scheme with concessional tax rates and simplified compliance requirements. Further, businesses with turnover up to Rs 5 crore are permitted to furnish GST returns on a quarterly basis while paying the monthly tax.

Direct tax compliance has been simplified through digital initiatives such as e-filing of income tax returns, pre-filled returns, faceless assessment and digital taxpayer services. The Income Tax Act, 2025 also provides simplified presumptive taxation schemes with higher turnover thresholds for businesses undertaking digital transactions, thereby reducing compliance requirements, the minister added.

Regarding household savings, the minister said that as per data published by the RBI, net household financial savings increased from Rs 13.9 lakh crore in 2022-23 to Rs 21.5 lakh crore in 2025-26. The retail participation in the securities market has also increased significantly in recent years, with the total number of demat accounts rising to about 22.5 crore by end-March 2026. The RBI’s Financial Stability Report, June 2026, indicates that the household sector remains resilient, with improving borrower profiles and healthy repayment performance.

–IANS

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