India will ease overseas borrowing norms for the manufacturing sector, its finance minister said after an economic review meet chaired by Prime Minister Narendra Modi late on Friday, as the government announced a slew of measures to stem a sharp fall in the rupee.
The rupee has been the worst performing Asian currency this year. Despite strong GDP growth, the currency has weakened about 11 per cent this year amid higher oil prices and a broad sell-off in emerging markets, widening India's current account deficit and a worsening balance of payments that slipped into the red in April-June for the first time in six quarters.
Removal of exposure limit of 20% of Foreign portfolio investment (FPI) corporate bonds portfolio to a single corporate group will be reviewed: FM Arun Jaitley https://t.co/9mnYULKhpN
Finance Minister Arun Jaitley said manufacturing entities will be permitted to avail external commercial borrowings (ECBs) of up to $50 million with a minimum maturity of one year, down from three years earlier.
There will be removal of restrictions on Indian Banks market making in Masala bonds including restriction on underwriting of Masala bonds: Finance Minister Arun Jaitley in Delhi pic.twitter.com/cRX5dtLQaQ