Repo Rate Cut Aims To Boost Consumption: FM

Income tax relief provided for in the Union Budget coupled with RBI repo rate cut put together will boost recovery in consumption in the economy, asserted Finance Minister Nirmala Sitharaman.

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At a press conference on Saturday after her customary post-Budget meeting with the Central Board of Directors of the RBI, Sitharaman said industry is clearly seeing the signs of a possible recovery of consumption.

She added all her post-Budget interactions with industry and journalists give her a sense that the consumption sentiment had improved.

"Since after the budget, the few inputs that I've had from some business leaders and some senior journalists who have been interacting with business is that (though these are anecdotal)... Most of it seem to be on the same page that the orders for fast-moving consumer goods for the period April to June are already getting booked, and industry is clearly seeing the signs of a possible recovery of consumption," the minister said.

As a result of fresh demands, Sitharaman said that many businesses were looking at reviewing the capacity utilization.