India will relax rules for lending to priority sectors, finance minister Nirmala Sitharaman said on Saturday, forecasting the move could lead to banks providing up to an extra Rs 680 billion ($9.6 billion) of export credit to help revive a slowing economy.
Sitharaman predicted the measures could lead to export credit rising by Rs 360 billion to Rs 680 billion.
During a press conference in New Delhi, Sitharaman detailed other steps, including improved insurance cover to banks that lend to exporters and the digitalization of certain services that she said would further bolster exports.
India will also provide 100 billion rupees ($1.41 billion) of funds to boost affordable and middle income housing, Sitharaman said, as she announced measures designed to aid India’s slowing economy.
The government will make funding available for housing projects that are not in a bankruptcy process or classified as non-performing assets, Sitharaman said.
She said the government would also relax external commercial borrowing guidelines for projects in the country’s affordable housing scheme.