India's government is in talks with foreign lenders to provide as much as $...
NEW DELHI - India’s government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign the country’s banking system may not be robust enough to do the job on its own.
KfW’s India office confirmed the discussions, though the main focus was on credit lines to support small businesses’ solar power generation. The talks were at an early stage, KfW said. “We are exploring, we are having discussions with various funding agencies if something can be done ,” the second official said.
The push for foreign loans comes on the heels of the Indian government’s announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. But credit availability for small and medium firms, which also account for about 45% of India’s total exports, has worsened due to a liquidity crisis in the country’s shadow banking industry that has seen big lenders struggling to remain solvent.
Last month, a study by a Reserve Bank of India panel said the overall deficit in credit for the MSME sector is estimated at about 20 trillion rupees to 25 trillion rupees.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive: Indian government seeks to tap foreign lenders for loans to its small firms: sourcesIndia's government is in talks with foreign lenders to provide as much as $...
Read more »
This Indian-Pakistani Wedding Brought Bursts of Vibrant Color to the Shores of Lake ComoAn “explosion of color” was the phrase the bride-to-be cited most frequently when trying to communicate her vision to her wedding.
Read more »
Oyo founder to buy back $2 billion worth stake in SoftBank-backed Indian coIndian hospitality startup Oyo Founder Ritesh Agarwal raised his stake in the co...
Read more »
The Most Popular Dish In My Indian Household Is a Slice of Toast.pkgourmet is quite certain that her mom invented avocado toast.
Read more »
Spotify Now Has More Than 2 Million Users in IndiaSpotify India reached more than 1 million users in its first week of launch back in February and now has more than 2 million,
Read more »