Sitharaman said inflation is under control and there is a clear sign of revival of industrial production. Addressing the third press conference to announce measures to boost economy, the minister said inflation has been kept "very much" below 4 per cent. The government has mandated the Reserve Bank of India to keep the retail inflation in the band of 2-6 per cent. The latest inflation print based on Consumer Price Index was 3.21 per cent in August.
Sitharamanannounced revised priority sector lending (PSL) norms for exporters which will release an additional funding of Rs 36,000 crore to Rs 68,000 crore to them. PSL norms for export credit have been examined and enabling guidelines are under consideration of the Reserve Bank of India, she said. "This will release an additional Rs 36,000 crore to Rs 68,000 crore as export credit under priority sector," Sitharaman said.
India will relax rules for lending to priority sectors, its finance minister said on Saturday, forecasting the move could lead to banks providing up to an extra $9.6 billion of export credit to help revive a slowing economy.
The government on Saturday announced a Rs 10,000-crore special window to provide last-mile funding for completion of ongoing housing projects which are not NPAs or facing bankruptcy proceedings under NCLT. Announcing the measure, Finance Minister Nirmala Sitharaman said the government will contribute Rs 10,000 crore for the special window and roughly the same amount is expected from outside investors. This window will help in completion of affordable and middle income housing projects. (PTI)