Govt has adopted multi-pronged policy to safeguard economy amid global uncertainty: Minister
New Delhi, Aug 10
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
Reader Comments
Interesting to see the government's focus on creating fiscal buffers with the Economic Stabilisation Fund. As someone who tracks emerging markets, this shows India is learning from past crises and preparing for global shocks. The numbers on household savings growth are particularly promising.
Honestly, while these measures sound good on paper, the real test will be in how they translate to actual relief for small businesses. I run a small catering business in Pune and the quarterly GST filing has been a lifesaver, but we need more awareness about the Composition Levy Scheme. Many small vendors don't even know these options exist!
The kind of economic resilience India is showing amid global uncertainty is impressive. The RBI's liberalisation of ECB framework and promotion of local currency settlement are smart moves. Being an international trade analyst, I can say that the Bharat Maritime Insurance Pool is a game-changer for reducing our dependence on foreign insurers. 👏
Good to see the government focusing on household savings and retail participation. But I wish they'd also address the issue of rising food prices which is eating into the savings of ordinary families. A stable economy means nothing if the common man can't make ends meet. Would appreciate more direct measures for the aam aadmi.
The 22.5 crore demat accounts number is mind-blowing! My parents who were always skeptical about investing in the stock market now have their own accounts, thanks to the digital initiatives and simplified processes. This retail participation boom is real and it's empowering middle-class families to build wealth. 📈
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