Economic Affairs Secretary Shaktikanta Das said the third quarter and the 7.1 percent growth projected for full fiscal are "definitely something noteworthy".
Chief Economic Adviser Arvind Subramanian, who has proposed setting up a public asset rehabilitation agency to fix the balance sheets of both struggling banks and indebted companies, said the government was in touch with the RBI on the matter.
What‘s making investors edgy is that unlike financial crises, political crises cannot be quickly fixed with monetary tools like rate cuts and liquidity infusion. But that won‘t stop central banks from trying.
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Public sector banks are expected to disburse Rs 70,000 crore and private sector and foreign banks Rs 30,000 crore, while the regional rural banks have a target to disburse Rs 22,000 crore.
Following the proposal, most of the soft drink makers are vexed and IBA, with its 25 members, will make a presentation to the Chief Economic Adviser (CEA) panel next week.