Govt to put ₹100 trn investment in infra
Sitharaman also said the government’s outreach to facilitate adequate liquidity to non-bank lenders and to consumers was a huge success resulting in loan disbursal of over ₹2.5 trillion during the weeks of Navratras and Diwali. This, she said, has benefitted non-bank lenders as well as home and vehicle buyers.
The Reserve Bank of India (RBI) has been giving a monetary stimulus to help growth by lowering the benchmark interest rate, while the central government took a series of steps in recent months to counter the liquidity crisis in the non-bank sector and to boost consumption.
The steps included a sharp cut in the corporate tax rate, liberalising of foreign ownership norms, capital infusion into state-run banks, loan outreach programmes and front-loading of public spending.
What complicates the growth slowdown is that it comes in the middle of a trade war between the US and China and worries of a global recession.