What Happened: Indian Finance Minister Nirmala Sitharaman has announced a host of measures to boost the country's economic growth, including 70,000 crore rupees (almost $10 billion) for public sector banks, Livemint reported Aug. 23.
Why It Matters: Stimulating economic growth remains one of Prime Minister Narendra Modi's paramount challenges as India's economy expanded at its slowest pace in over four years during its last fiscal year. The new measures are intended to boost spending and enable state-run banks to issue new capital to various economic sectors as a high number of non-performing loans have been suppressing credit growth.
Background: Sitharaman's fiscal measures are intended to complement the Indian Central Bank's monetary policies, which have already included four interest rate cuts in 2019 for a total reduction of 110 basis points since the start of the year.
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