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Sep 10, 2019 02:30 PM IST | Source: Moneycontrol.com

FM Nirmala Sitharaman press conference highlights: Will review surcharge on HNIs after 75th Independence Day

Track this space for all live updates on Finance Minister Nirmala Sitharaman's press conference. The briefing is likely to discuss the state of the economy.

Finance Minister Nirmala Sitharaman will be addressing a press conference on August 23 at 5 pm in New Delhi. The briefing is likely to discuss the state of the economy.

Foremost among the things that the Finance Minister could address is the issue of surcharge on foreign portfolio investors (FPIs). In her maiden Budget proposal, the Finance Minister had proposed to impose a higher tax surcharge on the super-rich.

Following the announcement, there were concerns raised that FPIs also would have to pay higher tax and the Finance Minister refused to give any relief to FPIs.

In July, the Indian equity markets bled as FPIs turned net sellers, withdrawing Rs 12,419 crore from the market. The FPIs have been demanding a review of the announcement. Sitharaman then held consultations earlier this month with stakeholders to hear their grievances.
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  • August 23, 2019 05:24 PM IST

    The complete recording of the press conference by Finance Minister Nirmala Sitharaman:

  • August 23, 2019 09:52 PM IST

    Withdrawal of surcharge on FPIs and domestic investors would help in alleviating the  tax burden on investors in capital markets. Likewise, quicker transmission of rate cuts, faster recapitalisation of banks and external benchmarking of rates are likely to aid credit off take. Most importantly, recognition of issues in the economy and the measures to address them is itself a positive signal and will help to ease concerns on growth slowdown, said Garima Kapoor, Economist at Elara Capital.

  • August 23, 2019 09:37 PM IST

    The slew of announcements made by the Finance Minister will act as major enablers for continuing to support growth. Bank recapitalization at one go will provide a big impetus to credit growth. Also, honest decision-making will not be questioned, a major mojo for a cleaner and better economy. SBI has already started benchmarking its loans to repo and now other banks are likely to follow suit. This augurs well for domestic demand. The surcharge removal on FPIs and domestic investors will soothe the markets. Measures announced for relief to the auto sector will lift sentiments. Other measures including Aadhaar enabled KYC, MSME classification, deepening of bond markets, funding to HFCs will further augment the feel-good factor, said Rajnish Kumar, Chairman of SBI.

  • August 23, 2019 09:15 PM IST

    It is very heartening to hear the finance minister patiently address issues relating to capital markets and industry. This should help stir positivity and gradually bring back animal spirits. The steps taken to infuse liquidity in the banking and nbfc sector should help alleviate stress in the system and set in motion the recovery process, said Ashish Shanker,Head- Investment Advisory, Motilal Oswal Private Wealth Management.

  • August 23, 2019 08:47 PM IST

    Announcements from the finance minister have potential to boost short term sentiment. MSME measures can help the dealers to mitigate their financial stress. Depreciation benefits can provide boost to CV demand to a certain extent but ground realities of weak economic environment needs to change for a tectonic shift in demand, said Prayesh Jain, Executive Vice President at YES Securities.

  • August 23, 2019 07:39 PM IST

    Today’s announcements do a lot to boost sentiment. Financing is taken care of by measures announced today, said Pawan Goenka, M&M. He also said that The inventory concern is slightly overplayed at present, and it has corrected inventory significantly from April to July, and the Auto industry is expecting a GST rate cut.

  • August 23, 2019 07:23 PM IST
  • August 23, 2019 07:07 PM IST

    There was a lots of confusion, but a lot of that has been cleared after the statement made by Finance Minister Nirmala Sitharaman, and this will help boost the sale of inventory, said Ashish Kale, president of the Federation of Automobile Dealers Association.

  • August 23, 2019 06:56 PM IST

    RC Bhargava, Chairman of Maruti Suzuki, in an interview to CNBC-TV 18, said that the number of cars that the government will buy not as important as the sentiment, and that the Finance Minister’s announcements on the auto sector will change sentiment in the market.

  • August 23, 2019 06:35 PM IST

    The higher surcharge will continue to be applicable for Higher Net Worth Individuals (HNIs), but it will be reviewed after the 75th Independence Day, said FM Sitharaman.