Macro-economic indices in good shape: Jaitley

The 17th meeting of the FSDC was held here under the chairmanship of Finance Minister Arun Jaitley.  

“The Council noted that India has macro-economic stability today on the back of improvements in its macro-economic fundamentals, structural reforms with the launch of the GST, action being taken to address the Twin Balance Sheet (TBS) challenge, extraordinary financial market confidence, reflected in high and rising bond and especially stock valuations and long-term positive consequences of demonetisation,” the Finance Ministry said. 

It also deliberated on strengthening the regulation of the Credit Rating Agencies (CRAs). The Council also discussed the issues and challenges facing the Indian economy and the members agreed on the need to keep constant vigil and be in a state of preparedness for managing any external and internal vulnerabilities. 

It also took note of the progress of financial sector assessment programme for India, jointly conducted by the International Monetary Fund and the World Bank. “The Council directed that the assessment report should be finalised by the end of this year,” it said. A presentation on the state of economy was made by Chief Economic Adviser (CEA) Arvind Subramanian. 

The meeting was attended by RBI Governor Urjit R Patel, Finance Secretary Ashok Lavasa, Economic Affairs Secretary Subhash Chandra Garg, Financial Services Secretary Anjuly Chib Duggal, Ministry of Corporate Affairs Secretary Tapan Ray, Ministry of Electronics and Information Technology Secretary Ajay Prakash Sawhney, Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi, Insurance Regulatory and Development Authority of India (IRDAI) Chairman TS Vijayan, Pension Fund Regulatory and Development Authority (PFRDA) Chairman Hemant G Contractor and other senior officers of the government and financial sector regulators. A brief report on the activities undertaken by the FSDC sub-committee chaired by the RBI Governor was placed before the Council.