FE Editorial : Legislating change
Yet, despite all of this, Parliament managed to pass some critical Bills, including those that allowed the change in FEMA to facilitate FDI in multi-brand retail as well as the Banking Laws (Amendment) Bill, 2012, that allows RBI to now hand out some more banking licences. While the former is important, in the long run, for fixing India’s supply chain for both manufacturing and agriculture, the latter is vital if credit growth is to continue—PSUs supply the bulk of loans today, but unless they get R4-5 lakh crore of equity infusion from a cash-strapped government, this will slow down; the only other option is to get additional banks in. The retail FDI Bill, it is true, got passed despite
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