2nd economic stimulous package unveiled
With a view to reverse the present recessionary trend, the Union Government on Friday announced the second economic stimulus by enabling the industry to borrow more from abroad, allowing FIIs to invest more in the country and creating avenues to step up public spending. The announcement came in tandem with rate cuts by RBI.
The package aims at providing much higher and cheaper funds in the economy along with additional expenditure by the Centre and the State to push demand in the country.
While allowing states to access market for borrowing about Rs 30,000 crore to meet additional expenditure, the package provides for liberalisation of External Commercial Borrowing norms and raising FII investment limit in rupee-denominated instruments to USD 15 billion from USD 6 billion now.