Govt, RBI holding talks to ease ECB rules

Economic affairs secretary Shaktikanta Das said the government was in discussions with the Reserve Bank of India to ease some of the rules for external commercial borrowings (ECB), adding the central bank would issue a draft paper "soon.

Das, who took over his current post earlier this month, did not provide specifics on which ECB rules would be eased, during a speech to an investor summit in Delhi.

He added the government was also discussing ways to loosen sectoral caps for foreign direct investment while saying it was looking for ways to resolve issues facing electricity distribution companies.

Turning to the economy, Das said investment activity was showing signs of revival, although the fluctuating monsoon rains were a concern.

He also noted the government cannot resort to fiscal measures to boost consumer demand.

(Reuters)