PM Modi chairs high-level meeting on economy, finance & oil ministers attend

WION Web Team New Delhi, Delhi, India Oct 12, 2018, 02.37 PM(IST)

File photo of Prime Minister Narendra Modi. Photograph:( Reuters )

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The main focus of the meeting is set on the rupee's continuing weakness against the dollar.

Prime Minister Narendra Modi is chairing a high-level meeting in Delhi on the state of the economy and oil sector with an agenda aimed to curb the rupee's continuous slide.

The main focus of the meeting is the rupee's continuing weakness against the dollar.

According to reports, the government could announce measures to control the current account deficit and the crude oil prices in the light of the upcoming sanctions on Iran by us. It may also announce a fresh set of measures that could include higher customs duties and import restrictions on certain non-essential items.

Finance Minister Arun Jaitley, Petroleum Minister Dharmendra Pradhan and Commerce Minister Suresh Prabhu are part of the meeting.

The government recently increased import duty on several electronic and consumer items including refrigerators, air conditioners and telecom equipment to rein in current account deficit and stabilise the rupee.

It also hiked duty on footwear, diamonds, and jet fuel as a part of its plan to get foreign funds flowing back to India recently.

According to WION's sources, there could be a new list of items that would attract higher import duty and there could be quantitative restrictions on inward shipments.  

India's current account deficit widened to 2.4 per cent of GDP in April-June and the rupee is hovering around 74 to a dollar.