FM Nirmala Sitharaman to discuss India’s economic state in FSDC meeting today

New Delhi: In order to analyse India’s economic state amid global and domestic challenges, Union Finance Minister Nirmala Sitharaman is set to chair a meeting of the Financial Stability Development Council (FSDC) on Monday.

The 27th meeting of the high-level panel will be attended by all financial sector regulators, which will include RBI Governor Shaktikanta Das, sources said.

It would be the first meeting of the FSDC after the passage of the Rs 45 lakh crore Budget for the Financial Year 2023-24 highlighting majorly capital expenditure with an outlay of Rs.10,00,961 crore.

The FSDC sits at the pinnacle over sectoral regulators, headed by the Union Finance Minister.

The focus of this meeting would be to discuss the current global and domestic economic situation and financial stability issues, as well as those concerning banking and NBFCs given the failure of Silicon Valley Bank and Signature Bank and liquidity pressure being faced by Credit Suisse, sources said.

Together with this, the council perhaps will review the progress made by the measures approved earlier for further development of the financial sector, and also to achieve inclusive economic growth with macroeconomic stability.

The council will also review the activities undertaken by the FSDC sub-committee conducted by the RBI governor and the action taken by members on the previous decisions taken by FSDC, PTI reported.

Latest Numbers

In the latest bi-monthly policy, RBI slightly revised upward the economic growth projection for the current fiscal to 6.5 per cent, which was estimated at 6.4 per cent earlier.

While disclosing the first bi-monthly monetary policy of the 2023-24 fiscal in April, RBI governor Shaktikanta Das told that the GDP growth in the first quarter of 2023-24 is anticipated at 7.8 per cent.

On the other hand, growth for the second, third, and fourth quarters of the current fiscal has been predicted to be at 6.2 per cent, 6.1 per cent and 5.9 per cent.

Who is going to attend the meeting?

Along with RBI governor, Insurance Regulatory and Development Authority of India (IRDAI) chairman Debashish Panda, Pension Regulatory and Development Authority’s newly appointed chairman Deepak Mohanty, Insolvency and Bankruptcy Board of India(IBBI) chairman Ravi Mital with Securities and Exchange Board of India chairperson Madhabi puri Buch to attend the meeting.

As per sources, the FSDC meeting will also be joined by Ministers of State for Financer Bhagwat Kishanrao Karad, Economic Affairs Secretary Ajay Seth, Finance Secretary T V Somanathan, Financial Services Secretary Vivek Joshi, Revenue Secretary Sanjay Malhotra in company with other top officials of the finance ministry.