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Dec 11, 2012
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RBI plans to push export lending
The RBI has mooted a separate carve-out for export credit within the overall priority sector lending target for banks to make funds available for exports amidst rising concern that the declining exports will keep current account deficit elevated and depreciate the rupee, undermining its efforts to rein in inflation.
India's exports fell for seventh month running, declining 4.2% in November to $22.9 billion while imports rose 6.4% to $ 41.5 billion, yielding a trade deficit on $19.3 billion, just short of record high $21 billion "There is little that can be done for the sector as it depends of revival of demand in other countries...Policymakers are looking at measures that could provide some help succor to the sector," said a finance ministry official.
Source -
http://economictimes.indiatimes.com
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