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Growth to pick up in second half: FM
Why is it in the news?
- Finance Minister hoped the economy will start looking up in the second half of the current financial year.
- It is expected that consumption would rise and banks increase their lending operations.
More in the news
- India’s economic growth in April-June fell to a six-year low of 5%.
- The private sector banks had assured her that there was no liquidity crunch and there was strong demand in rural areas.
- As per some bankers, the slump in demand for commercial vehicles was a cyclical issue, but this was not the case for passenger vehicles.
- Minister said that for commercial vehicles, it was a cyclical phenomenon and that it would be resolved in one or two quarters.
- According to Uday Kotak, private investment will respond to the reduction in corporate tax.
- He said most banks will follow external benchmark-based lending from October 1.
- Affordable housing:
(1) Some banks had asked if the credit limit for affordable housing could be raised to ₹50 lakh from the current ₹45 lakh.
Source
The Hindu.