Under this initiative, every hundred days, manufacturers in critical sectors that seek to engage in greenfield projects or in expanding their existing facilities will have access to cheaper forms of credit at single digit rates, as well as foreign exchange to procure plants and machineries.
A possibly unintended consequence of the new round of quantitative easing could be an added impetus to the push factor – increased volatile capital flows into India, just as into other EMEs, in pursuit of higher returns which come at an acceptable risk.