SLR was lowered to 24% from 25% for the first time in 11-years. Large liquidity was imparted through MSS unwinding, open market operations, standing facilities and some unconventional liquidity support measures. All this action was taken within a space of 7-months. The moves were coordinated with those in fiscal space that included large tax cuts and an expenditure stimulus.
This portrayed a rare exemplary monetary-fiscal coordination that enabled the economy not only to limit the downturn, but also assay a V-shaped recovery. Industrial growth bounced back since June 2009 and had moved back to a double-digit trajectory by August 2010. The recovery soon spilled over to the services sector, though the economy faced a newer shock from the monsoon failure.