India central bank unveils $33b windfall for government, Latest Business News - The New Paper

India central bank unveils $33b windfall for government

This article is more than 12 months old

NEW DELHI : India's central bank has announced a US$24 billion (S$33 billion) windfall for the cash-strapped government, giving a much-needed boost to Prime Minister Narendra Modi as he seeks to kick-start growth.

Mr Modi has come under increasing pressure to fire up the economy, which has slowed in each of the past three quarters - losing its status as the world's fastest growing - with unemployment hitting its highest level since the 1970s.

The auto sector has been particularly badly hit, with car sales plunging in July for the ninth month running, while weak consumer spending has hit demand for everything from biscuits to hair oil, AFP reported.

The Reserve Bank of India said it had approved a transfer of 1.76 trillion rupees (S$33 billion) to government coffers, including a dividend of 1.23 trillion rupees and 526 billion rupees in excess reserves following the adoption of a new methodology for assessing market risk.