517 : Revitalising the Indian Economy: Announcement of Public Sector Bank Recapitalisation Measures
Vinod Rai
30 October 2017
The Indian government announced a series of measures on 24 October 2017 designed to kick
start the economy and enable public sector banks to improve their lending which has largely
remained flat due to a lack of industrial demand, particularly from the manufacturing sector.
The recapitalisation bonds, which have been proposed to provide additional equity capital to
the public sector banks, have been hailed as a huge catalyst that could stimulate the growth
of the green shoots of demand in the country. Also announced are some measures to boost
road-building activity which can provide a major fillip to employment generation.