Chidambaram says favours cheap loans for exporters
MUMBAI (Reuters) - The finance ministry is in talks with the Reserve Bank of India (RBI) to make bank loans cheaper for exporters, Finance Minister P Chidambaram said on Friday, a move that could help reduce wide current account deficit by boosting export income.
Exporters have been lobbying to be included in a category of priority lending that guarantees easier access to bank credit and lower interest rates, a privilege usually reserved for agriculture and small businesses.
India's has the world's third largest current account deficit, a major factor in a recent rout of the rupee currency. Exports account for some 25 percent of GDP.
(Reporting by Mumbai Bureau; Writing by Krishna Das; Editing by Frank Jack Daniel)
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Prime Minister Narendra Modi has a long list of pro-growth measures to implement over the next four months, but time may have already run out to breathe enough life into the economy to meet the tough 2014/15 fiscal deficit target without cuts. Article