India could ease overseas borrowing rules

India could ease overseas borrowing rules

New Delhi: India may ease overseas borrowing rules for firms due to the global financial turmoil, a senior finance ministry official said on Monday.

Policymakers were already keen to enable Indian companies to access funds at a cheaper rate from abroad as interest rates in India remain firm due to inflation fighting measures.

“Going by the current scenario, we will look into it," Ashok Chawla, secretary in the department of economic affairs, part of the finance ministry, told reporters.

In May, India allowed manufacturers to bring in to the country up to $50 million of the $500 million that can be raised by a company in a year from overseas markets. The rest must be invested in units overseas.