Answer to Question #208104 in Macroeconomics for Sona

Question

To revive the growth rate of economy, a slew of measures have been undertaken by the government and the RBI. Analyse any three of them, these measures can be as old as one year. Try to explain Your answer by using different concepts of Macroeconomics that you have studied in your class.

Answer 1

The Indian government has been preparing strategies and action plans not only for business continuity and sectoral revival, but also to improve the ease of doing business in the country by issuing notifications, amendments, and circulars outlining measures to improve the business environment in India. The central government, the Reserve Bank of India, the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the sectoral ministries have all taken steps to help businesses grow in India. India's trade and commerce are boosted. To address the Corona Pandemic-related hardships of exporters, the Department of Commerce has provided a number of relaxations / extensions of certain compliance deadlines, etc. FDI policy has been changed to prevent opportunistic acquisitions or takeovers of Indian enterprises, as well as impose limits on corporations from countries that share a border with India. Besides, corporate affairs are managed effectively. Companies Fresh Start Scheme has been announced to allow for late filings under the Companies Act of 2013. For a one-year period, the RBI finds that a countercyclical capital buffer (CCyB) is not required. The CCyB framework seeks for the banking system to build up a capital buffer in good times that may be used to keep credit flowing to the real economy in bad times. The Reserve Bank of India has extended the time frame for realizing export proceeds from nine to fifteen months for exports, as well as reviewing the States'/UTs' Limits of way and means advances and implementing a countercyclical capital buffer. To maintain ongoing operations, the validity of previously issued environmental approvals for all projects and activities that are about to expire will be extended.