The Indian government will be waiving compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period (March-August), announced due to the COVID-19 pandemic. The lenders will issue a scheme by November 15 to complete the waiver. The news comes as a huge relief for small and medium businesses.
In other news, India’s export sector has finally reported some actual signs of revival. According to the Ministry of Commerce’s recently released preliminary data, merchandise exports have reported a 5.3% growth to $27.4 billion in September. The uptick was led by sectors such as engineering, petroleum, pharmaceuticals and readymade garments. Imports contracted by 40.1% to $148.7 billion and India reported a total trade deficit of $23.6 billion.